Various measures taken to enhance availability of natural gas for power generation: Minister
New Delhi, Dec 11 (LatestNewsX) – The government has rolled out a series of initiatives to boost the supply of natural gas for power generation. These include extending the National Gas Grid so that domestic gas sources and LNG terminals can feed directly into power plants, according to a briefing to Parliament on Thursday.
In a written reply to the Lok Sabha, Minister of State for Petroleum and Natural Gas, Suresh Gopi, outlined several key measures. Among them is the introduction of a single tariff, the establishment of LNG terminals, and granting domestic producers who have been given pricing and marketing freedom the ability to sell up to 500 million standard cubic metres (mmscm) per year—or 10 % of their annual contract production, whichever is higher—through gas exchanges authorised by PNGRB.
The government has also classified LNG under the Open General Licence (OGL), enabling purchasers to import LNG on commercially negotiated terms with suppliers without restriction.
In addition, a nil customs duty regime has been put in place for LNG imported by a power generator defined under section 2(28) of the Electricity Act, 2003 (36 of 2003). This applies when the LNG is used to supply electricity for the grid or for private generation.
Gas‑powered plants can now freely import LNG, generate electricity, and sell it to end users, the minister added.
Further, the administration has taken multiple steps to elevate the role of natural gas in the primary energy mix. These include expanding the National Gas Grid pipeline, widening the City Gas Distribution (CGD) network, setting up more LNG terminals, prioritising compressed natural gas (CNG) in the domestic allocation, and allowing producers from high‑pressure, high‑temperature, deep‑water, ultra‑deep‑water, and coal seam fields to set prices within a capped ceiling. Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives are also being promoted to encourage the use of compressed biogas (CBG).
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