Prime Minister Narendra Modi held a two-hour meeting with oil and gas experts to discuss ways to infuse funds into exploration.
The meet also explored acquisition of global assets, amid falling oil prices and spending cuts being undertaken by domestic firms.
“The discussions focused on subjects such as increasing the share of gas in India’s energy mix, fresh investment in oil and gas exploration in India, regulatory frameworks, international acquisition of oil and gas assets, emerging areas such as shale gas and coal-bed methane, and the oil and gas sector related possibilities of ‘Make in India’,” according to a statement from the Prime Minister’s Office.
The share of natural gas in the energy mix of India, which was at 11 per cent in 2010, is expected to grow to more than 20 per cent by 2025, according to a report prepared by industry bodies for the Petroleum and Natural Gas Regulatory Board.
However, most of the country’s natural gas demand is projected to be met by imports, with domestic production falling well short of demand.
A report by the Ministry projected that domestic natural gas production will grow to 146.87 million metric standard cubic metres per day (mmscmd) in 2018-19, from 90.99 mmscmd in 2014-15. Demand, on the other hand is expected to balloon to 523 mmscmd by 2018-19. It was at 405 mmscmd in 2014-15.
India has been working towards procuring gas at reasonable prices. Petronet LNG, India’s biggest gas importer, signed a revised contract with RasGas of Qatar to import gas at a significantly lower price than was initially agreed upon. The need for additional investment in oil and gas exploration, and the subsequent production, is clear.
No major discovery has been brought to production in the last five years.