'Mega Infrastructure Boost' towards energy securityImage Credit source: ai generated
The ongoing geopolitical tensions around the world and the crisis in West Asia have shaken the energy supply of many countries. But amidst these global challenges, India stands firm as a global leader on the basis of its strong strategies. Converting the international disruptions in gas supply from Qatar into an opportunity, the Government of India and the country's largest gas importer 'Petronet LNG' have prepared a brilliant roadmap to make the country's energy security impenetrable. Its direct objective is to ensure that whatever the circumstances in the world, the kitchen of the countrymen and the wheels of progress never stop.
Many countries of the world depend on LNG coming from Qatar and UAE. When Qatar Energy imposed 'Force Majeure' due to the current situation in West Asia, the global supply chain was badly affected. But India has handled this situation with utmost maturity and efficiency. Without any chaos, the policies were managed in such a way that PNG for households, CNG for transportation and priority sectors continued to get uninterrupted gas.
With the intention of nixing any future challenges, India has decided to take its gas storage infrastructure to new heights. Petronet LNG CEO A.K. Singh has announced a very ambitious plan. Under this, 7 new huge LNG tanks will be built across the country. In the next few years, two additional tanks will be constructed at Gopalpur in Odisha, one at Kochi in Kerala and one at Dahej Terminal in Gujarat. This is not just a corporate project, but another strong step towards 'self-reliant India'. Along with this, preparations are also underway to create a 'Strategic LNG Reserve' at the national level, so that India remains completely safe in any emergency.
Due to interruption in supply, there was a huge jump in the prices of gas in the international market. In the spot market, the prices of LNG had reached 24-25 dollars per MMBTU, which has now come down to around 16 dollars with a slight softening. In such a situation, India has shown excellent economic wisdom. Instead of hastily entering into new long-term deals in panic over expensive rates, a policy has been adopted to wait for the market to calm down and prices to come down. The government has a clear goal that the burden of expensive gas should not fall on the people of the country. We already have excellent long-term contracts with Qatar and ExxonMobil, which keeps our foundation strong.
India's existing infrastructure is already world class. Petronate is successfully operating 10 out of 23 LNG tanks in the country, which have proven their capability by successfully handling 26.5 million tonnes of foreign fuel in the last financial year. India's gas imports were at record levels in January and February this year. Although the supply from Qatar was affected in March and April, it is a matter of relief that Qatar's gas production facilities are safe and the supply is expected to be restored soon. Till then, India's huge buffer stock and the government's impeccable policies have completely shielded the country. India today is not only a big consumer of energy, but is also becoming an example for the world with its excellent management.
