India seeks affordable LNG import from Australia
Union Minister Piyush Goyal is leading a delegation for the 3rd India-Australia Energy Security dialogue in Australia.
On Tuesdya, the Indian minister met Queensland Premier and said that India is running the world’s largest renewable energy expansion programme and would welcome cost competitive supply of gas from AustraliaIndia is willing to consider long-term fixed price contracts for the supply of gas from Australia to ensure power for all at affordable price, Union Minister of State for Coal, Power and New and Renewable Energy Piyush Goyal has said.
Goyal is leading a delegation for the 3rd India-Australia Energy Security dialogue in Australia. On Tuesdya, he met Queensland Premier Annastacia Palaszczuk and said that India is running the world’s largest renewable energy expansion programme and would welcome cost competitive supply of gas from Australia which will help the country run its grid stabilizing gas plants and support expansion of clean energy plants.
“Assured pricing and off take can be key enablers of such supply and Australian companies can look at vertical integration through control of entire supply chain from gas production to even power generation to control costs,” the Ministry of Power said in a statement.
The Queensland Premier also expressed willingness to export their expertise in mining.
A joint panel of Indian and Australian government officials has already been set up to explore ways to import Australian LNG to India at affordable cost.
“A sub-group has been created under the joint leadership of a Joint Secretary, Ministry of Petroleum and Natural Gas and a senior Australian official. They will be further supported by an operating team as well as representatives from NTPC, GAIL, Petronet LNG and shipping companies,” the power ministry said.
Addressing a roundtable in Brisbane on Monday, the minister said that Australia has business opportunities for LNG (Liquefied Natural Gas) and Coal Bed Methane. Also, opportunities to control the entire value chain right from gas production, liquefaction, shipping, re-gasification and power generation can be evaluated at the current historic low prices of many of these activities.
He said that India’s renewable energy programme aims to increase the capacity 5 times to 175 GW over the next seven years. This will require gas based plants which can act as spinning reserve and supply power during deficit times of day (like evenings) when renewable energy production reduces while stabilizing the grid.
Since coal-based power is available in India at less than 5 cents per unit, LNG providers should consider supplying gas to India at a price that is comparable, he added.
A K Jana, Executive Director, GAIL, who was also part of the delegation, said that India— the fourth largest energy consumer in the world— has developed sufficient infrastructure in pipeline transportation, regasification facilities as well as end consumers facilities such as gas based power plants.
These facilities enable the consumption of around 300 MMSCMD, double than the country’s present consumption. This provides good opportunities to countries which have a surplus of natural gas provided it is available at affordable price.
Australian companies showed how technologies have reduced cost of natural gas production and clear shipping routes between Australia and India provide ample opportunities to supply LNG to India at competitive rates.
Besides, with large increase in coal exploration and production in India, Australian companies can also provide Coal Bed Methane (CBM) technologies to India.
February 09, 2015 | 3:14 pm IST.
to success.