Guwahati: India’s north-eastern region is home to substantial natural gas reserves, and the introduction of the Northeast Gas Grid (expected to become operational by 2026) could be a game-changer, allowing local producers to monetize these resources.
During an exclusive interview with Business North East (BNE), the Managing Director and CEO of IGX Rajesh K Mediratta shared the main motive behind bringing IGX to northeast India. Rajesh K Mediratta gauged the region holds around 6 million MMSCMD (Million Metric Standard Cubic Meters per Day) of natural gas deposits, which could be tapped by existing producers to meet domestic demands and generate additional revenue from exports.
“Currently, India imports nearly 50 per cent of its total gas consumption, which amounts to around 100 MMSCMD. With improved infrastructure and connectivity in Northeast India, the region can contribute 6 MMSCMD of gas, which could significantly reduce import dependency,” Rajesh K Mediratta explained during his conversation with Business North East.
This reduction in imports could save India an estimated Rs 14,000 crores annually. Moreover, the local economy could benefit from job creation and new trade opportunities stemming from increased gas production and utilization.
IGX, India’s first automated national-level gas exchange, aims to bring competition and transparency to the gas market, with plans to expand its operations to the Northeast. Rajesh K Mediratta emphasized that the primary goal of IGX’s expansion into the region is to inform stakeholders about the potential of local gas reserves and to ensure that the players in the Northeast have access to fair, efficient gas trading platforms once the gas grid is operational. As connectivity expands, IGX aims to enable all players in the Northeast region to participate in gas trading.
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“India is currently importing about 50 per cent of its consumption, around 100 MMSCMD, to meet the total demand of 200 MMSCMD. With effective gas pipelines in the region, existing petroleum companies can unearth 6 MMSCMD,” Rajesh K Mediratta said, noting that this could significantly reduce the country's import bill and strengthen its energy security. “This will not only help reduce imports but also provide new employment opportunities and boost local trade,” he added during the BNE interview.
The establishment of a functional gas network in the Northeast also has the potential to stimulate growth in energy-intensive industries such as ceramics and glass manufacturing, both of which rely heavily on natural gas. Rajesh K Mediratta noted that with easy access to natural gas, these industries are poised to flourish in the region, further contributing to local employment and economic activity.
FIRST Business Portal addressing the potential of business capability of North East Region.
