India finalising CCUS Mission roadmap; experts call for LNG contracts

The government is finalising the CCUS Mission roadmap and outlay as experts highlight the importance of long-term LNG supply contracts and domestic gas production for energy security

The Union government is in the final stages of preparing the roadmap and outlay for the Carbon Capture, Utilisation and Storage (CCUS) Mission, a crucial component of India’s energy transition strategy, said Rajnath Ram, Adviser for Energy, Natural Resources & Environment at NITI Aayog.

 

Speaking at the 3rd Energy Summit of the Indo-American Chamber of Commerce, Ram underlined the importance of both energy security and long-term liquefied natural gas (LNG) supply contracts. “We are working on finalising the mission roadmap and also finalising the total outlay,” he said, adding that CCUS would be critical for meeting India’s net zero targets.

 

Ram said the country would need to scale up its natural gas consumption significantly to meet its goal of raising the share of natural gas to 15 per cent of the energy mix by 2030. “If we want to achieve 15 per cent of gas in our energy basket by 2030, consumption of gas needs to increase two to three times. It should reach around 180–200 billion cubic metres of gas consumption in our system.” 

 

To achieve this, he stressed three priorities: securing an assured long-term supply, ensuring affordability, and expanding domestic production through compressed biogas (CBG). He also highlighted the need for comprehensive surveys of India’s geological basins to reduce dependence on imports.

 

Speaking at the same event, Rajarshi Gupta, Managing Director of ONGC Videsh Ltd, echoed the call for diversification in LNG sourcing. “In ONGC, we have decided that we will source about 5 million tonnes of LNG and that will be a combination of Henry Hub, crude-based LNG, and from multiple sources,” Gupta said, adding that volatility in global gas markets was inevitable, but sources of supply were expected to expand in the future.