Budget 2021-22 wishlist: Here are the key challenges in oil & gas sector

Low gas price cycles are posing challenges to new upstream gas projects in deep-water fields

Topics
Union Budget | oil and gas | Gas price

Business Standard 

óil, gas, petrol, refinery, exploration
The production is on a steady decline over the past five years due to maturing fields.

Key challenges

Slow transition to low carbon fuels: For India to continue as a leader in fighting climate change, there is a need to focus on hydrogen economy and deploy carbon negative technologies like carbon capture utilisation and storage (CCUS)

Challenges to gas-based economy: To achieve the target of increasing gas share to 15 per cent of energy mix, there is a need to democratise gas sale and purchase, create signif­icant LNG import units, enable free access to infrastr­ucture and make gas swap practical

Crude oil and natural gas production decline: The production is on a steady decline over the past five years due to maturing fields. All stops need to be removed to let new production come online

Low prices for domestic gas: Low cycles are posing challenges to new upstream gas projects in deep-water fields

CGD sector needs improved ecosystem: CGD Geographical Area licences are allo­tted, although gas availa­bility, third party access perati­onalisation, contr­actual sustenance, and fina­ncing constraints seem to bottleneck to take-off

Industry ask

  • Bringing natural gas under the ambit of classical GST
  • Liberalise gas pricing by allowing the buyers to purchase the gas at higher than domestically capped prices
  • Accelerating ethanol and biogas sectors’ development through capacity creation



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Read our full coverage on Union Budget
First Published: Tue, January 12 2021. 00:03 IST
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