India to Simplify Gas Pipeline Tariff to Boost Demand
NEW DELHI (Reuters) — India is simplifying its gas pipeline tariff structure to make the fuel more affordable and to attract investment for building gas infrastructure in the country, oil minister Dharmendra Pradhan said on Wednesday.
Prime Minister Narendra Modi has set a target to raise the share of gas in India's energy mix to 15% from the current level of about 6.3% to cut its carbon footprint. Use of gas is also set to rise as India wants to push local manufacturing to cut costly imports and lift its battered economy.
Pradhan said the new tariff structure would help to create a single gas market in the country by attracting investment to complete the gas grid and make it more easily accessible. He did not provide more details of the new pricing structure.
The oil minister said India's current "zonal" tariff rates for gas pipelines resulted in higher transportation charges and had hindered development of gas markets and demand centers in remote areas.
India, the world's fourth biggest importer of liquefied natural gas (LNG), is spending $60 billion to strengthen its gas infrastructure that includes expanding the pipeline network and building gas import terminals.
"A level playing field (for tariffs) among the industries across the country will help in minimizing their input cost and improve their competitiveness in global production," Pradhan, speaking at a joint webinar with International Energy Agency chief Fatih Birol, said.
He said new rationalized tariff would help to promote faster development of city gas project to connect households, industries and transport sectors with gas network.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
- Enbridge Sells $511 Million Stake in Westcoast Pipeline to Indigenous Alliance
Comments