Intensify Exploration In Ultra-Deep Water Oil & Gas Fields, Recommends PHD Chamber

PHD Chamber of Commerce and Industry and CRISIL have recommended a way forward for hydrocarbon sector, emphasizing on lowering of their imports by increasing domestic production and improving strategic alliances with oil and gas exporting nations as it can help India achieve energy security. Likewise, the government should continue its efforts with concerning nations to build trans-border gas pipe lines.

In a paper on Emerging trends in natural gas market and recent government initiatives prepared by the two also points out that India's recent policy push for developing the manufacturing sector of the country, setting-up of City Gas Distribution (CGD) networks, providing cleaner cooking fuels, promoting use of CNG etc. have boosted the country's natural gas demand. However, the supply side of the sector needs strategic focus and attention.

Key themes for developing India into a gas based economy, according to the paper would depend on four factors such as resource availability, competitive pricing, cooperation among Asian economies and market connectivity. It stresses that developing stable and favourable regulatory and fiscal policies with focus on unexplored areas like deep and ultra-deep water oil and gas fields, would pay India richer dividends in future.

Besides, the paper also talks on developing unconventional hydrocarbon assets like shale and CBM with strategic alliances with National oil companies as also oil producing nations. Developing a balanced portfolio of oil, natural gas and LNG is also recommended.

On the issue of competitive pricing, the paper states that developing market based pricing mechanism for petroleum and natural gas products should be priorities. It also suggests that ensuring cooperation among Asian countries in Safeguarding energy interests, in the emerging geo-political landscape should be another strategy that India needs to adopt.

In addition, it should maintain strategic relationship with both supply and demand-rich countries to create a free flowing natural gas market. The paper has also advised for collaboration with Sri Lanka, Bangladesh and Myanmar to develop an integrated natural gas market as also enable bi-lateral investments in exploration and production with Middle East and Russia.

On the market connectivity front, PHD Chamber is of the view that developing an integrated and optimised national gas grid is the call of the day. Promoting development of intra-state pipeline infrastructure is another strategy that India requires to adhere to. It should also provide incentives to various parties in the oil and gas space, by way of viability gap funding.

Powered by Capital Market - Live News