With the government’s initiative in simplifying the licensing rules and offering price incentives to recover gas from difficult offshore fields, the oil and gas sector is expected receive a big thrust

India: The Petroleum minister, Mr. Dharmendra Pradhan had proposed the simplification of licensing rules and price incentives in order to recover oil and gas from difficult offshore fields which would unlock natural resources worth USD40 billion. This reform is expected to provide leverage to the companies on gas pricing for exploration of deep water gas reserves. The increase in natural gas production will help in reducing the demand-supply gap to its end-users such as power, fertilizer, city gas distribution and industrial sector.

TechSci Research depicts that with the limited domestic production of natural gas along with the rising demand from the key end customers, have widened the demand-supply gap in India. The growing demand for natural gas in India has to be met by increasing the production and imports of natural gas. The change in gas pricing is expected to increase the exploration from the difficult offshore field such as deep water gas reserves.

According to released report of TechSci Research “India LNG Market Forecast & Opportunities, 2025”, the natural gas market in India is projected to reach 598 Million Metric Standard Cubic Meter per Day (MMSCMD) by 2025. The requirement of natural gas in fertilizers and city gas distribution sector will be met by domestic natural gas. However, the domestic production shall remain insufficient and import of liquefied natural gas will have a big market in India.