Rajesh K Mediratta Highlights Northeast India’s Natural Gas Potential
Guwahati, Assam: The Northeast region of India holds significant potential for natural gas production, which could save around Rs 14,000 crore and boost local economies with job and trade opportunities, according to Rajesh K Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX). Speaking at a seminar organized by IGX, Mediratta emphasized the importance of the Northeast Gas Grid, expected to be operational by 2026, in monetizing 6 million MMSCMD of natural gas deposits.
Mediratta noted that India currently imports about 50% of its natural gas consumption. The Northeast’s gas resources could reduce this dependency, saving costs and supporting new industries like ceramics and glass. The improved gas distribution network is also expected to benefit tea estates by enabling a switch from coal to natural gas.
He highlighted that natural gas is a cheaper and cleaner alternative to LPG, with regional gas producers offering a 40% discount compared to APM gas prices elsewhere. This makes piped gas an attractive option for households.
Mediratta also pointed out the export potential to Bangladesh and the competitive edge Northeast India has due to its connection to the National Gas Grid. In October 2024, IGX traded 8 million MMBtu of gas, a 160% increase from the previous month, driven by decreased APM gas allocations and high global LNG prices. IGX offers trades at 15 delivery points with various contract options.
Doubts Revealed
Rajesh K Mediratta -: Rajesh K Mediratta is the CEO of the Indian Gas Exchange, which is a platform where natural gas is bought and sold in India.
Northeast India -: Northeast India is a region consisting of eight states in the easternmost part of India, known for its rich natural resources and diverse cultures.
Natural Gas -: Natural gas is a fossil fuel used for cooking, heating, and electricity. It is cleaner than coal and oil, making it a preferred energy source.
Rs 14,000 crore -: Rs 14,000 crore is a large amount of money, equivalent to 140 billion rupees, which could be saved by using local natural gas instead of importing it.
Northeast Gas Grid -: The Northeast Gas Grid is a planned network of pipelines that will transport natural gas across the Northeast region of India, expected to be completed by 2026.
MMSCMD -: MMSCMD stands for Million Metric Standard Cubic Meters per Day, a unit to measure the volume of natural gas.
Import Dependency -: Import dependency means relying on other countries to supply goods or resources, like natural gas, instead of producing them locally.
LPG -: LPG stands for Liquefied Petroleum Gas, commonly used for cooking in Indian households. It is more expensive than natural gas.
National Gas Grid -: The National Gas Grid is a network of pipelines that distribute natural gas across India, connecting different regions for efficient energy supply.
IGX -: IGX stands for Indian Gas Exchange, a marketplace where natural gas is traded in India, similar to a stock exchange but for gas.