The exploration and monetization of natural gas reserves in the northeastern region can significantly reduce import reliance, while simultaneously enhancing the local economy and creating additional trade opportunities, according to a senior official from the Indian Gas Exchange (IGX).
Rajesh K Mediratta, Managing Director and CEO of IGX, which is the first automated national gas exchange in India, emphasized that the region has the capacity to supply surplus gas not only to various parts of the country but also to neighboring Bangladesh, thereby generating substantial revenue.
“The Northeast possesses immense potential for natural gas production. With the Northeast Gas Grid expected to be operational by 2026, the existing producers can monetize the 6 million MMSCMD of natural gas available,” Mediratta stated.
“This initiative will enhance the country’s energy security, as IGX will facilitate the sale of surplus gas to other regions,” he remarked during a seminar on ‘Gas Market Development for North East’ held on Friday.
Emphasizing the significance of natural gas from the Northeast in bolstering India’s energy security, the official noted, “India currently imports approximately 50 percent of its consumption, around 100 MMSCMD, to satisfy a total demand of 200 MMSCMD. With efficient gas pipelines in the region, existing petroleum companies can tap into 6 MMSCMD.”
This development is projected to save around Rs 14,000 crores and foster backward linkages within the local economy, creating job and trade opportunities, he asserted.
“Access to the gas network will also pave the way for the establishment of new industries, such as ceramics and glass, which rely exclusively on natural gas. Given the region’s natural resources, these industries are anticipated to flourish,” Mediratta added. He also claimed that the revitalized gas distribution network through the Northeast Gas Grid will enhance supply to tea estates, enabling them to transition back to natural gas from traditional energy sources like coal.
