Northeast Gas Grid likely to be operational by 2026, unearth 6 MMSCMD of natural gas: IGX CEO

Syllad | The Rising MeghalayaNovember 10, 2024

Indian Gas Exchange (IGX) managing director cum CEO Rajesh K Mediratta has announced that the Northeast Gas Grid (NEGG) is expected to become operational by 2026, which will enable the monetization of approximately 6 MMSCMD of natural gas from the Northeast region.

Mediratta was addressing a seminar, titled “Gas Market Development for Domestic Gas and Pipeline Connectivity in Northeast,” organised by PHD Chambers of Commerce and Industries in collaboration with Indian Gas Exchange (IGX) Ltd at Hotel Vivanta in Guwahati on Friday. IGX is India’s first automated national gas exchange, aiming to foster an efficient and resilient gas market across the country,

“This development is set to enhance India’s energy security by tapping into the region’s rich natural gas deposits, which will reduce the country’s reliance on imported gas and support local economic growth. Mediratta emphasized that the NEGG will connect Northeast producers to broader markets, fostering industrial growth and creating job opportunities across the region,” Mediratta said.

Mediratta highlighted the Northeast’s significant potential for natural gas production and noted that the Northeast Gas Grid would allow existing producers to market their gas resources, enhancing the country’s energy security. Mediratta explained that IGX’s role would be crucial in helping producers sell surplus or “stranded” gas, opening up opportunities to supply other regions.

Mediratta emphasized the strategic importance of natural gas from Assam and the Northeast in bolstering India’s energy security.

Mediratta noted that industries dependent on natural gas, like ceramics and glass, could flourish in the region due to its rich resources. The NEGG network is also expected to improve supply to local tea estates, allowing a shift back to natural gas from traditional fuels like coal. Mediratta highlighted natural gas as a cost-effective, cleaner alternative to LPG, with regional prices about 40% lower than elsewhere, which could encourage more households to transition to piped gas.

He also underscored the potential for exporting natural gas to nearby markets, particularly Bangladesh, where demand for natural gas remains strong. The connection to the National Gas Grid would enable the Northeast to earn revenue by supplying competitively priced surplus gas to other parts of India through IGX, where October 2024 gas trading volumes reached 8 million MMBtu, a 160% month-on-month increase. The IGX facilitates trades at 15 delivery points, supporting contracts from Day-Ahead to Monthly, allowing continuous trade throughout the year.

The seminar brought together key figures from government, industry, and energy sectors to explore expanding natural gas infrastructure in Northeast India.

In the opening address, A.K. Tiwari, Member of the Petroleum and Natural Gas Regulatory Board (PNGRB), emphasized the government’s commitment to the region’s energy future through infrastructure and regulatory support. He called for close collaboration to overcome logistical challenges and underscored the economic impact of improved gas accessibility.

Dr. Jatinder Singh, Deputy Secretary General of PHDCCI, discussed the strategic importance of a gas-based economy in the Northeast, highlighting the role of domestic resources and pipeline networks in promoting sustainable growth. He reaffirmed PHDCCI’s dedication to supporting regional energy equity and industrial development.

The opening session closed with a vote of thanks from Rupesh K. Pandey, PHDCCI’s Senior Secretary. A key feature was an interactive panel discussion moderated by Deepak Mehta, Chief Business Officer of IGX. Panellists included industry leaders like Jayanta Narayan Das from IGGL, Manish Khandelwal of GAIL, Suman Mishra from Indian Oil Corporation, C.M. Jose of Bharat Petroleum, and Sourav Dutta from Brahmaputra Cracker and Polymer Ltd, who shared insights on IGX’s initiatives to enhance market connectivity.

The seminar wrapped up with concluding remarks by Bibhuti Dutta, Resident Director (NER) at PHDCCI, who expressed appreciation for the contributions of all participants.