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Petronet LNG CEO Urges Government Action on Affordable LNG Prices for Clean Energy Adoption

Singh identified pricing as a significant barrier to persuading consumers to transition to cleaner fossil fuels, emphasizing the need to carefully calibrate prices to avoid discouraging demand.

February 08, 2024. By Abha Rustagi

During the Leadership Panel on 'Developing LNG markets and infrastructure' at the India Energy Week 2024 in Goa, Akshay Kumar Singh, the Managing Director and CEO of Petronet LNG, underscored the critical role of affordable pricing and synchronized infrastructure in realizing India's target of increasing the share of natural gas in its total energy mix to 15 percent by 2030 from the current 6 percent.

Singh identified pricing as a significant barrier to persuading consumers to transition to cleaner fossil fuels, emphasizing the need to carefully calibrate prices to avoid discouraging demand. He emphasized that while pricing remains a concern, LNG offers advantages such as nationwide accessibility and potential applications in transportation, which could contribute to a cleaner energy mix.

Moreover, Singh highlighted the government's commitment to transitioning the economy to a gas-based one and suggested that large-scale adoption of LNG could be facilitated through government interventions, particularly in terms of concessional taxation.

Sukhmal Jain, Director (Marketing) and member of the board of directors at BPCL, echoed Singh's sentiments, emphasizing the necessity of natural gas adoption for India to align with developed countries. Jain stressed the importance of aligning costs, supply efficiency, and taxation to promote natural gas usage.

Andrew Barry, Chairman of ExxonMobil LNG Market Development, emphasized LNG's potential as a complementary partner to renewable energy, particularly in addressing intermittency issues faced by solar, wind, and hydro energy. However, Barry also acknowledged the challenges related to the cost of building LNG production and transmission infrastructure, underscoring the need for concerted efforts to overcome these obstacles.

The discussions at the panel highlighted both the opportunities and challenges in achieving India's natural gas targets, emphasizing the importance of coordinated efforts from industry stakeholders and government interventions to drive widespread adoption of LNG and facilitate the transition to a cleaner energy future.

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Energy efficiency

Developing LNG markets and infrastructure

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