Northeast India to Boost Natural Gas Production by 2026
Key Developments in the Northeast Natural Gas Grid
The Northeast Natural Gas Grid is on track to be operational by 2026, according to Rajesh K Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX). This development is expected to enhance India’s energy security by allowing gas producers to sell surplus gas to other regions.
Potential of Northeast India’s Natural Gas
The northeast region of India holds significant potential for natural gas production, with deposits of 6 million MMSCMD. This can be monetized by existing producers, reducing India’s reliance on imports, which currently account for 50% of its consumption.
Economic Benefits and Industry Growth
The effective gas pipelines in the region could save approximately Rs 14,000 crores and create job opportunities. New industries like ceramics and glass, which rely on natural gas, are expected to thrive. The gas distribution network will also benefit tea estates by allowing them to switch from coal to natural gas.
Export Opportunities
There is potential for exporting natural gas to neighboring Bangladesh, which has a strong market for it. The connection to the National Gas Grid offers economic opportunities for the Northeast by supplying surplus gas at competitive prices.
Indian Gas Exchange Performance
In October 2024, IGX traded eight million MMBtu of gas, marking a 160% increase from the previous month. Established in 2020, IGX is India’s first automated national-level gas exchange for the physical delivery of natural gas.
Doubts Revealed
Northeast India -: Northeast India is a region in India that includes states like Assam, Meghalaya, and Manipur. It is known for its beautiful landscapes and diverse cultures.
Natural Gas -: Natural gas is a type of fuel that is found underground. It is used for cooking, heating, and making electricity.
IGX -: IGX stands for Indian Gas Exchange. It is a platform where people can buy and sell natural gas in India.
CEO -: CEO means Chief Executive Officer. It is the person who is in charge of running a company.
MMSCMD -: MMSCMD stands for Million Metric Standard Cubic Meters per Day. It is a way to measure the amount of natural gas produced or used.
Rs 14,000 crores -: Rs 14,000 crores is a large amount of money in Indian currency, the Rupee. It is equal to 140 billion Rupees.
Ceramics and Glass -: Ceramics and glass are materials used to make things like tiles, dishes, and windows. They are made by heating certain types of clay and sand.
Tea Estates -: Tea estates are large farms where tea plants are grown. The leaves from these plants are used to make tea, a popular drink in India.
MMBtu -: MMBtu stands for Million British Thermal Units. It is a unit of energy used to measure the amount of heat produced by natural gas.
