The Business Bytes
Bhubaneswar, December 20, 2024 (TBB Bureau): The Eastern region of India is poised to become a significant player in natural gas production and consumption, according to Deepak Mehta, Chief Business Officer (CBO) of the Indian Gas Exchange (IGX). Speaking at the seminar on “Competitive Sourcing of Natural Gas” held in Bhubaneswar on Friday, Mehta emphasized the region’s untapped potential and its pivotal role in India’s energy future.
The seminar, organized by IGX, India’s first automated national-level gas exchange, convened industry leaders, policymakers, and experts to discuss opportunities in Eastern India, with Odisha at the forefront of this transformation. “Odisha is emerging as a key natural gas consumer, underscoring its strategic importance in the country’s energy landscape,” Mehta noted.
Currently, the Eastern region consumes 10-12 MMSCMD (Million Metric Standard Cubic Meters per Day) of natural gas, but this is projected to grow significantly. Mehta highlighted several transformative infrastructure projects driving this growth, including the expansion of the Dhamra LNG terminal, the upcoming Gopalpur LNG terminal, and the potential of Coal Bed Methane (CBM) reserves in West Bengal and Jharkhand. These developments, coupled with efforts to unlock stranded gas resources and enhance pipeline connectivity, are expected to fuel regional economic growth and bolster national energy security.
Mehta also shed light on IGX’s efforts to revolutionize natural gas trading in India. “IGX offers a transparent and efficient platform for trading natural gas, ensuring competitiveness and accessibility. Our expansion into sectors like Compressed Biogas (CBG) and hydrogen is aligned with the nation’s transition to cleaner energy. We aim to capture 5% of the market share within five years,” he stated.
To further strengthen the gas market, IGX is awaiting approval from the Petroleum and Natural Gas Regulatory Board (PNGRB) for Long-Duration Contracts (LDC), a move expected to unlock new market opportunities. The exchange has already recorded impressive growth, trading 39 million MMBtu (1 BCM) of gas in FY25, marking a 24% year-on-year increase. Operating across 15 delivery points, including LNG terminals and domestic gas field landfall points, IGX is at the forefront of transforming India’s natural gas ecosystem.
The seminar concluded with a strong emphasis on the Eastern region’s strategic importance, reinforcing the need for collaborative efforts to harness its potential. The region is not just a consumer hub but a catalyst for achieving India’s vision of energy self-reliance and sustainability.
