Govt to Boost Gas-based Power Generation with LNG Import Norm Change
Government aims to provide thrust to gas-based power generation and thus has placed Liquefied Natural Gas (LNG) under the Open General License (OGL) category allowing power plants to import LNG as per their requirements on mutually agreed commercial terms, said Suresh Gopi, Minister of State, Ministry of Petroleum and Natural Gas in the Rajya Sabha.
March 11, 2025. By Mrinmoy Dey
He stated that the gas imported by power plants during April 2024 to January 2025 is about 9.58 Million standard cubic feet per day (MMSCMD). However, gas-based plants in the country are operating at very low Plant Load Factor (PLF).
He further informed that government from time to time have brought out schemes for competitive procurement of power from gas-based power plants during peak demand periods.
Various steps taken by the government for increasing the share of natural gas in the energy basket, inter-alia, include expansion of National Gas Grid Pipeline, expansion of City Gas Distribution (CGD) network, setting up of Liquefied Natural Gas (LNG) terminals.
It also includes allocation of domestic gas to Compressed Natural Gas for transport and Piped Natural Gas for domestic use on priority, allowing marketing and pricing freedom with a ceiling price to gas produced from high pressure/high temperature areas, deep water and ultra-deep water and from coal seams. The government also introduced Sustainable Alternative Towards Affordable Transportation (SATAT) initiative to promote Bio-CNG.
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