India has taken note of the value of natural gas as a cleaner energy alternative and has been transitioning its energy mix towards a higher percentage of natural gas consumption. Electricity generation from gas-fired plants was up 30% from higher April-October of this year.
Like North America, India has experienced a significant structural change in domestic natural gas reserves primarily from the KG Basin which is controlled by Reliance Industries Limited (“RIL”). The momentum to shift to natural gas is expected to build as , RIL recently ramped up capacity of its K-G D6 deep water gas production facilities from 60 million standard cubic meter (mmscmd) to 80 mmscmd. “RIL has successfully carried out an assessment of the design capacity of the K-G D6 deep water gas production facilities on December 23. A flow rate of 80 million standard cubic meter was achieved through the K-G D6 facilities and delivered to RGTIL’s East West Pipeline,” the company said in a press release.
In North America, there has been a huge increase in the reserves of natural gas that have been unlocked from tight shale formations. The U.S. reserves are up nearly 40% where in Canada some estimate reserves have doubled which means there is enough natural gas in North America to provide energy for decades to come. However, while the U.S. seems to be making efforts to increase the use of natural gas within their transportation and power generation networks, Canada has been slow to act. Companies have been attempting to influence the Canadian government to assist providing the necessary incentives to convert and support natural gas as a convenient and cleaner alternative to diesel and gas.
Canada is the third largest producer of natural gas in the world, and is the largest supplier to the U.S. Yet, Canada does little to leverage this domestic resource to the country’s competitive and environmental advantage. With U.S. domestic resources on the increase and improved distribution, the U.S. will require less natural gas from Canada. Efforts are already underway to open new markets in Asia for Canadian natural gas with a pipeline to take Horn River natural gas to Kitimat’s planned Liquid Natural Gas facility.
So while the world starts to transition to increased use of natural gas, Canada prepares to export this cleaner fossil fuel to other countries but fails to understand the long term value of natural gas and how important it will be to reducing carbon emissions from transportation and power generation networks. Canada has an abundance of natural gas… but needs to use more of this domestic resource in order to meet energy needs and reduce carbon emissions. There will still be plenty of left over to export to other countries that have already started to incorporate natural gas into their transportation network.
The Financial Express: Finally, a shift to natural gas
The Financial Express: RIL ramps up K-G basin gas capacity to 80 mmscmd
