New technology and business models to drive future of India’s energy sector

Minister of Petroleum & Natural Gas and Steel, Dharmendra Pradhan, stated that the future of India’s energy sector will be noticeably different from its current avatar and will be driven by new technology and business models. In his inaugural address at the 10th World PetroCoal Congress, he said, “We are encouraging our oil & gas companies to develop extensive and qualitative engagement with Indian technology and research institutions of excellence. I am happy that seven Indian oil & gas PSUs joined with IIT Bombay last year to set up a Centre of Excellence in oil, gas, and energy. Energy transition currently underway can become more manageable only if proactive measures are set in motion. Digital technologies are transforming the energy sector in a profound manner. Industrial Revolution 4.0 is truly at our doorstep. Indian energy companies will have to quickly adopt and adapt these technologies at a faster pace. We need to create more innovative platforms in India for convergence of leading global technology leaders in the energy sector.”

He stressed on the need to achieve the twin objectives of more energy availability at an affordable price and less carbon through a healthy mix of all commercially-viable energy sources. He said that our target to transform India to a $5-trillion economy by 2024 requires a gradual and measured energy transition by deploying all sources of energy.

Pradhan said that the contours of India’s energy transition are also changing fast in sync with global challenges and opportunities. “Winds of change are evident in the global energy arena. Energy sources, energy supply, and energy consumption patterns are changing rapidly. In our pursuit to navigate energy transition, it is natural that we will take advantage of unique synergies that exist within the country. Equally, our efforts will be guided by our global commitments, be it under UN Sustainable Development Goals (SDGs) of 2030 or those under Paris Climate Summit,” he said. The government’s approach to energy policy is based on energy access, energy sustainability, energy affordability, energy efficiency, and energy security.

He also advocated the need to move away from the crude price as the basis for determining the LNG price. He said, “Global gas production and markets have witnessed significant restructuring during the last few years. Global supply of LNG is increasing at a rapid pace, and globally LNG prices are coming down significantly. It is time for our companies to take a relook at the term contracts with major LNG suppliers. I also believe that the time has come for changing the pricing formulae for purchase of LNG by India.”

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