Northeast's Expanding Gas Network To Spur Regional Industrialization, Says PNGRB Member

Guwahati: With significant investments in the natural gas infrastructure, Northeast's shift to a gas-based economy is gaining traction while promoting sustainable growth and economic resilience. Backed by an investment pipeline of around Rs 50,000 crore, the 'Urja Ganga' project brings together some key firms such as Oil India, Adani Group, and Assam Gas Company to build a massive distribution network. 

Anjani Kumar Tiwari emphasized PNGRB's focus on developing a vibrant energy ecosystem that establishes Northeast India as a sustainable energy model while improving regional supply dependability. With the gas network progressing swiftly, Anjani Kumar Tiwari forecasts major economic gains - from job creation to industrial expansion, which collectively paves the way for a greener, more energy-secure Northeast. 

In an exclusive interview with Business North East's Pankhi Sarma, member of the Petroleum and Natural Gas Regulatory Board (PNGRB) Anjani Kumar Tiwari spoke about the region's growing gas network, emphasized by the North Eastern Gas Grid and city gas distribution projects aimed at providing cleaner fuel to both industrial and domestic consumers.

Here are the excerpts from the interview.

Interview Q&A:

Business Northeast (BNE): Sir, we would like to begin by understanding the scenario of the gas-based economy in Northeast India, especially in the context of recent developments in Guwahati. Could you share your thoughts on how the region is moving towards a gas-based economy and the role of LNG in this transformation?

Anjani Kumar Tiwari (AKT): First, let me clarify that the focus here is not exclusively on LNG, but rather on an integrated gas infrastructure. The current initiative includes both domestic gas production and gas distribution through a robust pipeline network across Northeast India. Several licenses have been granted for city gas distribution (CGD) in the region, aiming to establish a sustainable and accessible gas infrastructure that supports various sectors.

The Northeast is witnessing a significant push toward establishing a comprehensive gas distribution network, facilitated by public and private entities. Investments totalling around Rs 50,000 crore are projected over the next eight years for this infrastructure. This includes the creation of the North Eastern Gas Grid (IGGL), which will soon be operational. IGGL will facilitate a more dynamic flow of gas between the northern, western, and northeastern parts of India, helping balance supply and demand across regions. In short, this initiative is about building a foundational infrastructure to support domestic gas production and distribution ultimately benefitting local industries, businesses, and households.

BNE: That’s a substantial investment. Could you elaborate on the steps taken and the timeline for achieving these goals? When do you expect the gas infrastructure to be fully operational in the region?

AKT: Yes, we have taken significant steps by issuing licenses to approximately 3,575 CGD companies in Assam and seven in Tripura. We have also licensed several other operators across Northeast India, each working to complete a minimum work program. For instance, our target includes around 8,300 domestic PNG connections and 110 CNG stations in Assam alone, all of which we expect to be operational by the end of this year.

Once these city-based gas pipelines are functional, and integrated with the main North Eastern Gas Grid, the infrastructure will be robust enough to meet various regional needs. This includes ensuring supply to industrial, commercial, and household consumers enhancing energy reliability in the Northeast. Given the pace of current developments, we anticipate that within the next two to three years, these projects will yield tangible benefits, with the infrastructure maturing and providing stable and affordable energy to all sectors.

BNE: The CGD and pipeline projects are quite ambitious. What challenges do you foresee in achieving these objectives, especially with the involvement of multiple public and private entities?

AKT: It is an ambitious project, and there are challenges, particularly around coordination and timely execution. Key players like Adani, Assam Gas Company, and Oil India are working actively in the region. Adani, for example, holds significant CGD licenses nationwide, with about 30 to 35 projects, some of which are in Northeast India. The Assam Gas Company and Oil India are also heavily invested through joint ventures, supporting the regional gas economy.

It’s important to understand that building this infrastructure is a shared responsibility among producers, pipeline operators, CGD companies, and regulators like PNGRB. In a recent seminar, we emphasized the need for collaboration among all stakeholders to make the gas-based economy a reality in the Northeast. The government is also extending its full support, and we are optimistic that by maintaining this collective approach, the challenges can be effectively managed.

BNE: Beyond domestic and industrial use, how will this gas-based infrastructure impact the broader regional economy?

AKT: The impact will be far-reaching. The gas-based economy is expected to revolutionize energy consumption in the Northeast by providing clean and affordable energy for households, industrial plants, and commercial establishments. For example, PNG and CNG connections will provide households and businesses with cost-effective and reliable energy sources. Industrial and commercial consumers, including hotels and manufacturing units, will also benefit from the availability of cheaper gas delivered through a reliable pipeline network.

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Moreover, this development aligns with environmental goals, as gas is a cleaner alternative to traditional fuels. We anticipate a reduction in carbon emissions, which contributes to the Northeast's environmental goals. Additionally, this infrastructure development will attract substantial investment, creating direct and indirect employment opportunities in the region. We expect new industries to emerge, particularly in sectors like manufacturing, hospitality, and transportation, which will further boost the local economy and improve job availability.

BNE: Do you see LNG playing a role in the Northeast’s energy scenario?

AKT: Currently, LNG has a limited role due to the lack of extensive pipeline connectivity needed to transport it efficiently. Hence, we are focusing more on utilizing domestic gas sources and building a pipeline network which enables broader access to natural gas. However, once the infrastructure is more advanced and established, LNG could become a viable option for the Northeast. LNG’s role will depend on factors like infrastructure readiness and cost-effectiveness. If pipelines are in place to transport LNG effectively, it could eventually become an additional energy source for the region.

BNE: What long-term changes do you envision as the Northeast continues to develop its gas-based economy?

AKT: Over the long term, I believe Northeast’s transition to a gas-based economy will drive industrial and economic growth, making the region more self-reliant. The government is committed to supporting industrial development, and with the necessary infrastructure, I foresee an increase in both domestic and foreign investment. This will create a conducive atmosphere for industries, resulting in increased production capacities, job opportunities, and overall economic resilience.

We aim to make the Northeast a model region for a sustainable gas-based economy that other parts of the country can emulate. With a fully integrated gas grid, local industries will gain easier access to energy, transportation costs will decrease, and the overall business environment will improve. Ultimately, this transformation will enhance the region’s quality of life and set a benchmark for gas-based development in India.

Meanwhile, the 'Urja Ganga' gas pipeline project, which is about 1,500 km long cooking gas pipeline project, includes gas stations and will be extended to 2,540 km in the second stage. The pipeline is set to connect the northeastern region of India to other states, including Uttar Pradesh, Bihar, Orissa, and West Bengal.