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He added that his government was striving But the agency said in its India Energy Out-
both to create a national gas grid, by connecting look 2021 published on February 9 that the
the country’s five regional grids, and lower prices country needed significant investment and
of the cleaner-burning fuel. policy support across the entire value chain
While inaugurating the Dobhi-Durgapur to stimulate upstream activity, an expansion
pipeline, the Modi said the project would help of gas import capacity as well as new pipeline
to boost residential access to piped gas as well construction.
as provide uninterrupted feedstock supplies to “There are reasons to believe that the gas
fertiliser plants in West Bengal State. market can grow rapidly, provided that current
“This [pipeline] will create more job oppor- policies promoting its use are effectively imple-
tunities and provide farmers [with] a sufficient mented,” the IEA said.
supply of cheap fertiliser,” he added. Highlighting some of the challenges
New Delhi has set goal of expanding gas’ facing the country, the IEA said there was
share of the energy mix to 15% by 2030 from “complex patchwork of different pricing
more than 6% at present. While New Delhi’s goal mechanisms, gas allocation schemes and
still leaves it short of the current global average types of gas”. In addition, the country also
of 23%, the Paris-based IEA noted that achieving had distressed gas‐fired assets in the power
the target would represent a “momentous [shift] sector as well as underperforming and
for the Indian energy economy”. underutilised infrastructure.™

Indian refiners await easing

of sanctions on Iranian oil

POLICY INDIAN refiners would resume imports of Ira-
nian oil if the US eases sanctions against Tehran,
the chairman of state-run Hindustan Petroleum
Corp said on February 4.
“Iranian crude had been in the [import] bas-
ket of Indian refineries ... we will be happy to take
that crude as and when the situation warrants
and the crude is available,” M.K. Surana told a
news conference, as reported by Reuters.
India was second only to China as an
importer of Iranian crude prior to a tightening After stopping purchases from Iran, Indian
of US sanctions by the Trump administration in refiners diversified their crude imports. “There
mid-2019. are alternatives in the picture after that [intro-
Surana reportedly added that Iran was previ- duction of sanctions]. Now US crude is coming
ously offering favourable terms for payment and to India,” Surana also said.
freight discounts among others which made its India is the world’s third biggest oil importer
oil “preferential” compared to other grades. and consumer.™

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