Global Economy Needs Clean, Affordable, Reliable, Sustainable Energy For Post-pandemic Recovery: Puri

The global economy needs clean, affordable, reliable, sustainable energy to speed up the post-pandemic recovery, said Hardeep Singh Puri, Minister of Petroleum and Natural Gas and Housing and Urban Affairs at Fifth India Energy Forum by CERAWeek. 

The Minister said that to say that the world faces unprecedented challenges would be an understatement. In an era of the energy transition, the energy markets are characterised by key imbalances. 

Puri said, "The current levels of oil and gas prices are too high. India is 85 per cent dependent on imported oil while the import dependence is about 55 per cent for gas. He said that 20 per cent of the country’s import bill is from these items. The import bill of these items has almost gone up by almost three times in the last quarter compared to last year’s corresponding quarter. He said that the extreme volatility and high prices have led to a surge in the domestic prices of hydrocarbon fuels."

The high prices of oil have an impact on the economies, leading to surging in inflation and affecting the logistics cost. Describing the situation as the wake-up call, Puri said that if prices are not brought under control, global economic recovery could be fragile. 

He underlined that prices have to be predictable, dependable, and stable. This may also impact the producers in the long run, he added. The OPEC+ countries should factor in the sentiments of the consuming countries, he added. 

"India is accelerating its efforts to become a gas-based economy. He said that about $60 billion investment is underway in the country in setting up the infrastructure- pipelines, terminals, regasification facilities, etc. The country is on the path of 'One Nation-One Grid', with the Pipeline length going to increase from 19,000 km to 35,000 KM. The area under exploration is also increasing, and the country has undertaken a plethora of reforms so that there is more investment in the E&P sector,"  Puri added. 

Regarding the Bio-fuels, the Minister said that ethanol-blending has already reached 10 per cent, and we are determined to take it to 20 per cent soon. Under the SATAT scheme, 5000 CBG plants are being set up, with an investment of $20 billion. To promote Electric Vehicles, thousands of charging stations are being installed. The Minister said that to usher in the transition to Green energy, the Hydrogen Mission is being launched.

Puri also said that India comprises one-sixth of the global community and our commitment to the sustainable Development Goals (SDGs) related to clean energy, urban development and health will ensure their success.  Generally, for the SDGs to succeed, India must succeed.  That is when socio-economic transformations can take place. We view the energy sector as one that empowers people and furthers "Ease of Living", he said.

"India is focusing on developing in an integrated manner a gas-based economy, cleaner use of fossil fuels, achieving the renewable energy target of 450 Gigawatts by 2030, greater reliance on domestic fuels to drive biofuels, increasing the contribution of electricity, moving into emerging fuels like Hydrogen, and promoting digital innovation across all energy systems. He said that we are moving towards a clean and green energy transition in a big way. India is unwavering towards its commitment to climate action," he added.