News

Oil& gas firms to invest Rs3 trillion to help build gas-based economy

Oil and gas companies will invest about Rs.2.5-3 trillion in India over the next few years to produce around 10-15 trillion cubic feet of natural gas and help build a gas-based economy, said Sashi Mukundan, BP’s head of country, India.Mukundan, who also chairs the hydrocarbon wing of the Confederation of Indian Industry, was speaking to reporters after sharing an industry road map with oil minister Dharmendra Pradhan. The road map is based partly on concrete investment commitments of individual companies and partly on projections, Mukundan said.

Private sector gas producers signalled their willingness to make fresh investments after the Union cabinet on 10 March approved a liberal pricing regime for natural gas produced in hard-to-reach areas. The proposed investments will help raise the share of gas in the country’s primary energy mix (comprising crude oil, gas and coal) from 6% now to about 15% by 2030, said Mukundan.“The intent is to boost gas production by intensifying exploration, accelerating production from existing fields, enhancing hydrocarbon recovery and forging partnerships.