 "Budget 2021-22 wishlist: Here are the key challenges in oil & gas sector")
Key challenges
Slow transition to low carbon fuels: For India to continue as a leader in fighting climate change, there is a need to focus on hydrogen economy and deploy carbon negative technologies like carbon capture utilisation and storage (CCUS)
Challenges to gas-based economy: To achieve the target of increasing gas share to 15 per cent of energy mix, there is a need to democratise gas sale and purchase, create significant LNG import units, enable free access to infrastructure and make gas swap practical
Crude oil and natural gas production decline: The production is on a steady decline over the past five years due to maturing fields. All stops need to be removed to let new production come online
Low prices for domestic gas: Low gas price cycles are posing challenges to new upstream gas projects in deep-water fields
CGD sector needs improved ecosystem: CGD Geographical Area licences are allotted, although gas availability, third party access perationalisation, contractual sustenance, and financing constraints seem to bottleneck to take-off
Industry ask
Slow transition to low carbon fuels: For India to continue as a leader in fighting climate change, there is a need to focus on hydrogen economy and deploy carbon negative technologies like carbon capture utilisation and storage (CCUS)
Challenges to gas-based economy: To achieve the target of increasing gas share to 15 per cent of energy mix, there is a need to democratise gas sale and purchase, create significant LNG import units, enable free access to infrastructure and make gas swap practical
Crude oil and natural gas production decline: The production is on a steady decline over the past five years due to maturing fields. All stops need to be removed to let new production come online
Low prices for domestic gas: Low gas price cycles are posing challenges to new upstream gas projects in deep-water fields
CGD sector needs improved ecosystem: CGD Geographical Area licences are allotted, although gas availability, third party access perationalisation, contractual sustenance, and financing constraints seem to bottleneck to take-off
Industry ask
- Bringing natural gas under the ambit of classical GST
- Liberalise gas pricing by allowing the buyers to purchase the gas at higher than domestically capped prices
- Accelerating ethanol and biogas sectors’ development through capacity creation
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