In the energy transition era, India’s quest is to be agile in source shifting so that it can balance the needs of its burgeoning economy and a population of 1.4 billion people alongside its decarbonization efforts, according to the country’s Minister of Petroleum and Natural Gas Hardeep Singh Puri.
In a fireside chat with your correspondent at Gastech 2024 – one of the global energy industry’s largest events – being held from September 17 to 20, in Houston Texas, Puri said: “India is committed to the green transition. But we are also realistic people who believe that in order to make that transition – we need to survive, elevate living standards and further our economy to take us to the next stage of progression. During this time fossil fuels will continue to be used.”
And the minister added: “Energy is the lifeline of any economy and not just India. So you have to be cautious in your approach and not stifle investment in traditional energy.
“But we are today facing a collective climate crisis and more needs to be done by individual nations as well as at a multilateral level. for its part, India is a country that has met its Paris climate commitments.”
His country’s approach, according to Puri, is all about pragmatism and furthering its agility when it comes to utilizing the various sources of energy.
Believers In The ‘Gas Economy’
“We are big believers in the gas economy,” the minister said. “We are upscaling our usage of natural gas from 6% to 15% of our energy mix. India is not alone in turning to natural gas as a destination fuel in its march towards low to net zero carbon emissions. Some 156 out of 193 officially recognized nations of the world are interested in natural gas.”
Puri also noted that India’s biofuel blending drive was currently up to 15.9% of its fuel mix, and the target for hitting 20% blending had been brought forward from 2030 to Q4 2025.
“We are also moving at breakneck speed on green hydrogen which needs cheap renewable energy and electrolyzers. Cost effective renewable power generation is something we have already demonstrated via signature solar projects and as far as I can comment every electrolyzer manufacturer worth its reputation is in India trying to help.”
Crude Market Clout Matters
Whatever the future holds, at present India needs crude oil to power its 7%-plus annual GDP growth. It imports a mammoth 88% of its national requirements, but Puri said the country is not shy of counting on its “market clout.”
“The Indian economy will account for 25% of the near- to medium-term global increase in crude oil demand over the coming years. We are a large importer and there is no shortage crude in the world.”
Agile energy sourcing comes into its element here too. “How many countries do you have in the world that buy nearly 5 million barrels of oil per day like we do? So, we are diversifying our pool of crude suppliers from 27 countries to 39 countries.
“The U.S. remains a key energy trading partner. More oil is coming onstream from Brazil and Guyana, and yes, we will continue to buy from Russia.
“For us, the most vital challenge is that we ensure the availability of energy for every citizen. So individual energy consumer will be at the heart of both current and future plans for energy security and a greener future.”