Puri casts doubt on ambitious 15% gas target

Vol 28, PW 4 (13 Mar 25) People & Policy

Politicians rarely admit they are not meeting expectations.

But oil minister Hardeep Singh Puri dared to do just that when he expressed doubts that India will achieve its ambitious target to increase gas in the energy basket from 6% to 15% by 2030. "Our objectives are clear," Singh said after inaugurating the PNGRB's new office in Delhi on March 6 (2025).

"But the truth is, and I know that I am on camera, that despite our efforts, we keep being closer to 6% than 15%, but I am an optimist, and I have to be in the kind of work that has been assigned to me in my many years; I think the situation is bound to change." He cited Japan, which is a "total gas-based economy" and added that "maybe we cannot take it there, but we can take it quite far."

He highlighted government initiatives to promote gas in households and as fuel in the commercial, industrial and transport sectors. "Gas consumption will increase 2.5 times from 200m cm/d to over 500m cm/d in 2030, and 2030 is not far off," Puri claimed.

"We import 50% of our gas requirement, and domestic gas production for the next two years is projected to be 40.90-bcm and 45.3-bcm." Puri said India has authorised 33,475-km of gas trunk pipelines, of which 25,124-km is operational.

There are 1.42cr (14.2m) piped gas connections to homes and 7513 CNG stations. "We have a robust gas grid, and I was also shown the National Hydrocarbons Infrastructure Monitoring System (NHIMS)," he stressed.

"I encourage companies to join in and ensure that the system has effective security and cyber security safeguards." The new PNGRB office houses the NHIMS, which will receive real-time information on oil and gas transport nationwide.

The NHIMS is a fusion of software technologies that consume real-time data from oil and gas companies and integrate roads, railways, and forest water bodies, enabling more strategic planning and efficient monitoring. Justifying the large and modern PNGRB office, Puri said: "To provide input into economic processes, you need a proper working space."

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Puri said he supported an independent regulator who understands the challenges ahead. “It is essential that you have a body which effectively has the responsibility for licensing, setting tariffs, regulating pipelines, and fostering competition for energy security,” he said. Puri spoke about the global energy outlook and said crude oil supplies outstrip demand. “This is because of the strong strides and production increases from the western hemisphere,” he said. “Brazil production has risen from 3m b/d by another 150,000 b/d; the US is the largest producer with 13m b/d and is increasing production by another 1.5m b/d; more oil is coming no matter how much some traditional producers try to circumscribe the amount available.” He predicted that oil prices would fall from around $70/barrel to $65/barrel. Puri continued that India consumes 5.5m b/d, which will hit 7m b/d as the economy grows.

Puri casts doubt on ambitious 15% gas target

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