The Future of Natural Gas The role of gas to recovery

AGP Pratham  |  09 April, 2024

The increase in energy consumption over the last few years in India has presented us with the issue of running out of non-renewable energy sources. Not to mention the rising harm other energy sources cause to our environment. 

Due to a consistent drop in domestic output, the nation's reliance on imports has grown. A total of 32.2 million tonnes of crude oil was produced in 2019–20; this number dropped to 30.5 million tonnes in FY21 and 29.7 million tonnes in FY22.

This rise in the demand for oil and energy has resulted in the use of natural gas. India's natural gas usage increased from over 60 billion metric standard cubic meters in the 2019 fiscal year to almost 64 billion metric standard cubic meters in the 2020 financial year. So, what is natural gas, what are the available natural gas inventories, and what do these statistics mean for India? Let's find out.

Understanding Natural Gas & Compressed Biogas

Simply put, natural gas is a fossil fuel. However, it is better than other fossil fuels. For instance, coal. Natural gas, or fossil gas as you may call it, consists of methane and hydrocarbons with minimal carbon dioxide, nitrogen, and hydrogen sulphide. 

Natural gas compressed to less than 1% of its volume at typical atmospheric pressure forms compressed natural gas. In contrast, liquefied natural gas is obtained by purification and cooling. These two forms of natural gas - CNG and LNG currently serve various industries.

Natural gas can be substituted with compressed biogas or CBG. CNG and CBG both consist of compressed methane. Hence they are comparable chemically. But there is a distinction. CBG may be made from any type of biomass, unlike CNG, which is a by-product of petroleum. This comprises wet municipal wastes, cattle dung, and agricultural residue. Since it is inexpensive and plentiful, CBG is a viable alternative to CNG.

Why is natural gas a preferred choice today?

Natural gas has wide applications. It warms food for cooking, fuels energy-suppling power plants, powers industrial processes, and is a key component in several products. Not to forget its use in powering vehicles, especially public transportation. Following are a few reasons demonstrating why people are increasingly adopting the use of natural gas

  • Natural gas prices make it a cost-effective energy source due to its quantity and availability closer to the earth's surface and the modern technologies utilized in its extraction
  • It is a highly versatile source of energy, usable for several purposes, from cooking to the production of paints and running vehicles 
  • Natural gas releases minimal undesirable by-products on burning compared , and diesel.
  • Burning of natural gas results in fewer carbon emissions and lesser air pollution. It also does produce fumes or soot. Thus it is the cleanest and greenest fossil gas

The Future: Boon or a Bane?

At this point, the future of natural gas as an alternative fuel to meet the increasing demands looks bright. It is eco-friendly with high efficiency of 92%, in contrast to coal (29%) and oil (31%). 

In 2016, the Government of India (GOI) announced that India would increase the share of natural gas in its primary energy basket from 6.14% in 2016 to 15% by 2030 and become a “gas-based economy”. To achieve gas share of 15% in primary energy mix by 2030, a CAGR of 10% in gas consumption needs to be achieved which implies >600 MMSCMD consumption of gas by 2030.

With the increased exploration efforts under HELP, possible upcoming LNG terminals, and the Indian government's efforts toward a nationwide natural gas pipeline grid, the future of natural gas looks bright as ever! 

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