NE's natural gas deposits can boost India’s energy security, reduce imports: IGX CEO

Guwahati, Nov 10: The exploration and monetisation of natural gas deposits in Northeast can significantly reduce imports, boost the local economy, and create new trading opportunities, according to Rajesh K. Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX).

Speaking at a seminar on “Gas Market Development for North East” in Guwahati recently, Mediratta highlighted the potential of the Northeast in contributing to the nation’s energy security.

He said that the region could not only supply surplus gas to other parts of India but also to neighbouring Bangladesh, creating substantial revenue in the process.

“The Northeast has tremendous potential for natural gas production. Once the Northeast Gas Grid becomes operational by 2026, producers could monetise an estimated 6 million MMSCMD (Million Metric Standard Cubic Meters Per Day) of natural gas,” Mediratta said.

“This will help meet the energy demands of other regions while contributing to the country's overall energy security,” he added.

Currently, India imports approximately 50% of its natural gas needs, or about 100 MMSCMD, to meet a total demand of 200 MMSCMD. The rich natural gas reserves in Northeast India could help reduce this dependency and strengthen the country’s energy security. The region’s robust gas pipeline infrastructure supports the effective distribution of 6 MMSCMD of gas from existing producers.

Mediratta also highlighted the broader economic benefits of natural gas development, including job creation and trade prospects for the local economy. He estimated that the monetisation of these resources could save India around Rs. 14,000 crore. “In addition to boosting local industries, the gas network will foster growth in sectors like ceramics and glass manufacturing, which rely heavily on natural gas,” he added.

The Northeast Gas Grid will also provide a much-needed boost to the region’s tea estates, allowing them to shift from traditional coal-based energy sources to cleaner, more efficient natural gas. This shift will help reduce carbon emissions and improve the sustainability of these estates.

Mediratta pointed out that natural gas is a more cost-effective and cleaner alternative to LPG, which could encourage households to switch to this energy source. The expansion of the gas distribution network is expected to bring cleaner energy to both industrial and residential sectors in the region.

In terms of market potential, Mediratta highlighted Bangladesh as a key export destination for natural gas. “Bangladesh has significant market potential for natural gas. With the region now connected to the National Gas Grid, producers in Northeast India can export surplus gas to Bangladesh at competitive prices. With global natural gas prices around USD 13 per MMBTU, Northeast India offers a substantial economic edge for producers,” he said.