Northeast India To Gain from Enhanced LNG Access, Pipeline Infrastructure: PHDCCI

Guwahati: A workshop was held on Thursday, November 8th at Guwahati to explore the potential of Liquefied Natural Gas (LNG) in the North-East’s energy and industrial landscape as part of India’s push for a cleaner, diversified energy landscape. PHDCCI (PHD Chamber of Commerce and Industry) organized the workshop focusing on advancing gas market development. 

During an interview with Pankhi Sarma for Business North East (BNE), Deputy Secretary General of PHDCCI Jatinder Singh addressed the proactive measures required to improve gas accessibility in the Northeast. He highlighted the need for improved pipeline networks, the advantages of LNG adoption, the region's particular infrastructural requirements and the collaborative effort necessary to realize the region's potential in India's energy transformation. He also outlined a vision in which LNG hubs fuel long-term growth across sectors, establishing the Northeast as a significant participant in India's changing energy environment. 

Jatinder Singh, Deputy Secretary General, PHDCCI with journalist Pankhi Sarma

Here are the excerpts from the interview.

Interview Q&A:

Business NorthEast (BNE): Could you provide a brief overview of the recent seminar on gas market development for domestic gas and pipeline connectivity to the Northeast?
PHDCCI: This seminar focused on the critical need to develop the domestic gas market and enhance pipeline connectivity to the Northeast to ensure gas access in the region. Given the current energy landscape, renewable energy, specifically a gas-based economy, makes up only about 6.2% of the energy basket. With the Government of India's target to increase the gas share in our energy basket, it has become essential to bring together all stakeholders. This collaborative approach is aimed at discussing advancements, overcoming challenges, exploring new opportunities, and charting a way forward to meet these targets. Additionally, as we focus on reducing carbon emissions and moving away from fossil fuels, natural gas and LNG (liquefied natural gas) play a vital role. Establishing a market ecosystem, where producers, suppliers, consumers, and City Gas Distribution (CGD) entities come together, is crucial for creating an enabling environment for a gas-based economy, especially in the Northeast.

BNE: You highlighted the aim of developing a gas-based economy. However, we're still working on meeting CGD targets and increasing consumer awareness. How does LNG come into play, and what are your plans for promotion?
PHDCCI: LNG holds a unique position, as it isn’t just limited to fueling vehicles. LNG can be utilized as a bunkering fuel and is increasingly being used for trucking as well. There has been significant progress, with many vehicles transitioning from diesel to LNG, which is promising for the sector. Specifically, in the Northeast, we are optimistic that more industries and sectors will adopt LNG, helping us move toward a sustainable and equitable energy model. The adoption of LNG will contribute to making our energy sector more resilient and will also assist us in achieving the environmental goals we’re aiming for.

BNE: With renewable energy currently forming a small part of the energy basket, what steps are being considered to increase the share of gas in India’s energy mix?
PHDCCI: The plan to boost the gas share in India’s energy basket involves several strategic steps. First, expanding infrastructure, such as pipeline connectivity, is essential, especially in underserved regions like the Northeast. This expansion will provide more consistent access and supply to industries, residential sectors, and transportation. Additionally, by creating a collaborative ecosystem involving all stakeholders such as producers, distributors, CGD entities, and consumers, we can drive awareness and adoption of gas as a viable alternative. The government’s policy support and incentives for cleaner fuels are also crucial in helping achieve the targeted share in the energy basket.

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BNE: How do you see the role of City Gas Distribution (CGD) networks in facilitating a gas-based economy in the Northeast?
PHDCCI: City Gas Distribution networks are pivotal for enabling a gas-based economy, particularly in regions like the Northeast. CGD networks bring gas access directly to urban centres, residential users, and small businesses, which helps broaden the consumer base for natural gas. As CGD networks expand, awareness and accessibility improve, making it easier for consumers to switch from conventional fuels to gas. This not only supports environmental objectives but also promotes a sustainable economic model by encouraging cleaner fuel consumption at a local level.

BNE: What are the key challenges in promoting gas and LNG adoption in India, especially in the Northeast?
PHDCCI: In terms of promoting gas and LNG adoption in the Northeast and across, India faces a major challenge. One is infrastructure, building pipelines in geographically complex areas like the Northeast is costly and time-intensive. Another challenge is consumer awareness. Many consumers and industries are reliant on traditional fuels like diesel and coal. Achieving affordability and competitive pricing for gas also remains a hurdle. However, with collaborative efforts from the government, private sector, and regulatory bodies, we are optimistic about overcoming these barriers.

BNE: Given the global shift towards decarbonization, how does India’s focus on a gas-based economy align with this trend?
PHDCCI: India’s focus on a gas-based economy aligns well with the global decarbonization trend. Natural gas is one of the cleaner fossil fuels, producing significantly lower carbon emissions than coal or oil. By increasing the share of gas in our energy mix, we are taking a progressive step toward reducing our overall carbon footprint. Additionally, as the global energy market advances, we are exploring ways to integrate renewable energy sources with natural gas infrastructure, which allows for a more sustainable and adaptable energy transition.

BNE: What are the benefits of LNG as a transportation fuel, and how is its adoption being encouraged?
PHDCCI: LNG as a transportation fuel offers multiple benefits: it reduces carbon emissions, lowers pollution levels, and is a cost-effective alternative to diesel. The adoption of LNG for heavy vehicles, such as trucks, has been particularly successful, as it significantly reduces emissions compared to diesel engines. To encourage further adoption, the government and private sectors are working to expand LNG refueling stations along key transport routes and provide incentives for fleet operators to transition to LNG. This shift is essential for achieving sustainability goals in the transportation sector.

BNE: What is your vision for establishing a self-sufficient gas-based economy in the Northeast?
PHDCCI: Our vision for the Northeast is to establish it as a robust and self-sufficient gas-based economy. By enhancing pipeline connectivity, expanding CGD networks, and promoting LNG adoption, we aim to make natural gas accessible across the region. This will not only support local industries and urban centres but also create new economic opportunities, such as job creation and infrastructure development. Achieving this vision will enable the Northeast to reduce reliance on traditional fuels, lower emissions, and align with national energy goals for a cleaner, sustainable future.