If gas becomes cheaper this will be good news for India's energy transition

Copyright © HT Digital Streams Limit all rights reserved. Leverage LNG: Cheaper gas can provide India a better path to the climate goals that can help cheaper gas to deepen the penetration of pipe stock for cuisine, which helps take off houses from LPG cylinders that contaminate more. (Bloomberg) Summary of India’s economy must find an optimal path to its net zero target. An expected fall in world prices will make gas affordable enough to increase its role in carbon reduction. We must be prepared to use the best opportunity that is on our way to our path. It is not often that geopolitical events make room for greater economic efficiency. While the unrest of the trade around the world is linked to the supply chains, with the costs rising more than going along the way, the gas market deserves attention. The dynamics of this commodity are exposed to geopolitics in their own way. After Russia’s invasion of Ukraine in 2022, Europe’s dependence on Russian pipe gas taps. This year alone is the import of Europe of liquid natural gas (LNG) by 20%higher, more than half of it from the US. It is not surprising that Russia is looking for new markets in friendly countries. As Mint reported this week, state-run Gazprom is looking for an LNG terminal in India. To the extent that greater gas consumption can help us decarbonize our economy, such projects are welcome. Our challenge lies in gas absorption. Recently, LNG prices have dropped about $ 11 per unit (from a million UK thermal units), which priced it from bulk use categories such as transport and electricity. But we can expect US gas production to rise after the White House has lifted its lid on the expansion of capacity, which reversed a decision made by the previous occupant. As US firms work in a feverish pace to expand, LNG can become more affordable. As far as local question is concerned, China’s case is instructive. It imports most of its offer, and yet most of its diesel trucks switched to cleaner LNG, which sprayed less carbon. Gas from Russia, Myanmar and Turkmenistan, who are cheaper than Seaborne LNG, helped China make the switch. In India, half of the gas we consume is imported (in LNG form), while 60% of domestic supplies are about 40% lower than world levels. However, gas remains a modest 6.7% of our total energy mix. Given its benefits, the government strives for 15%by 2030, but it has been a fight so far. Many of our LNG terminal weaken; On average, they only use half of their capacity. If gas imports become cheaper, it will enable greater LNG adoption for the transport of cargo by road. It can help bridge our transition from fossil fuels to clean energy. Although electric trucks enjoy policy support, fiscal incentives may also be used to push carriers – mostly businesses, to switch from diesel to LNG transporters, which are more expensive to acquire. Cheaper gas will also help deepen the penetration of pipe stock for cuisine, which helps take off houses from LPG cylinders that are more contaminated. Meanwhile, a carbon market that arises in India can catalyze the use of gas as a middle road in our net zero travel. This market will get energy users to optimize the use in the specific context of their own restrictions by buying or selling carbon permits or credits, even if it is gradually tightened emission heads to converge the climate goals. Broadly, lies the key to its success in the high-integrity emission authentication, which would ensure that carbon credits are properly valued and as intended. LNG, supported by importing terminal along our long coastline, can grow its share in our energy mix as the market begins to account for the lead on emissions about other fossil fuels. Oil is a competitive fuel that offers a cheaper alternative in LPG, as Saudi Arabia still increases its rough output, but we will be better off using the cleaner option whenever possible. Gas does not remove carbon from the mixture. But it offers India an opportunity the same. Let’s grab it. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #lng Prices #karbon Emission #Climate Change Read Next Story