Higher prices could reduce India’s transition to gas

The Federal Bureau of Petroleum (MoU) said on Wednesday that some industries are concerned about switching to coal and petroleum, which could boost India’s goal of energy integration.

Prime Minister Narendra Modi has set a goal to reduce India’s carbon footprint by 630 by 2030.

In the long run, India wants to increase its use of renewable and biofuel and, despite having a large amount of coal, has turned to natural gas use in the “Middle Ages”, oil tycoon Tarun Kapor told the Indian Energy Forum.

“Now this high gas price has sent us the message that we may not be able to rely on natural gas. The basic question now is, can we now rely on imports? ”

Under long-term agreements, liquefied natural gas (LNG) costs $ 11- $ 12 per million British units (mmBtu), and currently sells more than $ 38 per mmBtu in the Asian space LNG-AS market. A record of more than $ 56 has already been struck. month.

India has allowed some consumers to switch to gas to cut its carbon footprint. According to Kapor, these industries could be converted to coal and petroleum due to high gas prices. Petroleum is a short-term, oil refining process for petroleum coke.

India, the world’s third-largest oil consumer and importer, is exploring strategies to reduce its imports, including requiring them to negotiate oil contracts.

According to Kapor, Indian refineries must look at long-term oil contracts with a certain or limited price.

“In oil, a contract is only a one-year contract, and not a fixed price,” Kapor said.

The contract can be fixed price or linked to a variable index. He said it was just a question of reducing risk.

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