India to change its gas policy to widen LNG's reach
India's decision to ease the rules on setting up LNG stations would help to increase accessibility of the fuel as well as draw more private investors as the country nurtures a vision of becoming a gas-based economy, the head of S&P Global Platts said.
This decision would help tap into the smaller scale and commercial transportation market for the use of LNG, a step towards boosting gas consumption in India where the share of gas in the energy mix is as low as 6% compared to a global average of nearly 25%, said Dinesh Kumar Sarraf, chairman of India's Petroleum and Natural Gas Regulatory Council.
PNGRB released a notice specifying that LNG stations would be exempt from CGD exclusive licenses for different geographical areas. Any entity that set up an LNG station in any geographical area or elsewhere, even if it is not the entity designated for that region.
The move would benefit integrated players according to Platts Analytics and could also increase the penetration of LNG in the transport sector.
India unveiled its first natural gas trading platform earlier this week, a move planned by government officials to bring greater price transparency to the market and help boost clean fuel consumption.
IGX, a wholly owned subsidiary of Indian Energy Exchange, or IEX, launched the trading exchange for the physical delivery of gas.
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