GUWAHATI, Nov 10:  Northeast India’s natural gas resources hold immense potential to bolster the country’s energy security, reduce dependency on imports, and stimulate economic growth, according to Rajesh K. Mediratta, Managing Director and CEO of the Indian Gas Exchange (IGX). 

Speaking at a recent seminar titled “Gas Market Development for North East” in Guwahati, Mediratta emphasized the region’s capability not only to meet its own energy needs but also to supply surplus gas to other parts of India and to neighboring Bangladesh.

“The Northeast has tremendous capacity for natural gas production. Once the Northeast Gas Grid becomes operational by 2026, producers could monetize approximately 6 million MMSCMD (Million Metric Standard Cubic Meters Per Day) of natural gas,” Mediratta said. He highlighted that this supply could help satisfy energy needs nationwide while enhancing India’s energy security.

Currently, India relies on imports for nearly 50% of its natural gas needs, totaling around 100 MMSCMD out of a 200 MMSCMD demand. Mediratta noted that Northeast India’s reserves could play a critical role in reducing this reliance and in strengthening the country’s energy independence. With a robust pipeline infrastructure already in place, the region is prepared to contribute an estimated 6 MMSCMD of natural gas from its current producers.

Mediratta further emphasized the local economic benefits, including job creation and expanded trade. He estimated that monetizing these gas resources could save India around Rs. 14,000 crore per year, with access to affordable gas providing a significant boost to energy-dependent industries, such as ceramics and glass manufacturing.

The forthcoming Northeast Gas Grid, scheduled to connect with the National Gas Grid by 2026, will also support regional industries like tea estates, enabling a shift from traditional coal-based energy to cleaner natural gas. This transition is anticipated to lower carbon emissions and promote sustainability across tea estates.

Mediratta also emphasized that natural gas could provide a more affordable and cleaner energy alternative to LPG, facilitating a transition for both residential and industrial sectors. Expanding the gas distribution network would bring cleaner energy access to households and businesses alike.

Furthermore, Mediratta highlighted Bangladesh as a key export destination for the region’s natural gas. “Bangladesh has substantial market potential for natural gas. With the Northeast now linked to the National Gas Grid, producers can export surplus gas to Bangladesh at competitive rates,” he noted. With global gas prices around USD 13 per MMBTU, he added that Northeast India offers a significant economic advantage for producers aiming to expand trade.