A report from leading
global market research company TechSci Research states that natural gas
consumption in India city gas distribution market is slated to cross 18 BCM in
the next 12-13 years. The report “India City Gas Distribution Market By Type
(PNG &CNG), By CGD Allocation, Competition Forecast & Opportunities,
2013 – 2030” carries the key statistics about the natural gas market in India.
To request for a sample
report of the abovementioned report, please visit: https://www.techsciresearch.com/report/india-city-gas-distribution-market-by-type-png-cng-by-cgd-allocation-competition-forecast-opportunities/1200.html
What drives
natural gas market in India?
The key drivers for the natural gas market in India
include the following:
· Favourable policy environment from
the government of India
·
Staggering demand from industries,
especially commercial and automotive segments
·
Increasing participation of private
corporate houses in the natural gas market in India
·
Thriving demand from end use
segments
·
Burgeoning population especially
the rise of a gigantic middle class population that has the power to drive
growth in several industries
Key
initiatives on the policy front
The government of India has taken a number of steps to
boost the natural gas market in India. Of late, the government announced that
it will set up a natural gas trading hub in the country. This will enable
transparent trading of gas and companies can strike out better balance, both
from domestic and imports perspectives.
Once this natural gas trading hub is established,
India will become a vibrant natural gas market just like Tokyo, Shanghai and
Singapore. This initiative will also enhance country’s reputation in the global
market, on account of its pursuance with best practices that are transparent
and business friendly.
Currently, the prices of gas products in India,
including fuels such as petrol and diesel, are set by the government. The same
applies on natural gas as well.
Advent of a trading hub will ensure that the prices
are rather set by the market forces themselves. This will take all the dynamic
factors that influence the demand and supply of natural gas into account.
If
media reports are to be believed, the natural gas exchange will be set up in
India by early next year. The trading hub will allow only physical trading and
would not go for online trading, as per government reports. This will also help
in ruling out the chances of unnecessary speculation.
Declining
reliance on natural gas imports
In the recent past, India has observed a
gradual rise in the domestic production of natural gas, thereby reducing its
reliance on imports. In June 2017, the country registered a growth of 6 per
cent in natural gas production.
The spurt in natural gas production was
driven by country’s energy bellwether ONGC (Oil and Natural Gas Corporation),
while Oil India too reported growth of over 5 per cent in its natural gas
production during the month. With these encouraging numbers, India reduced its
imports by around 4 per cent in June 2017.
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