oil and gas: Govt approves oil and gas projects worth Rs 1 lakh crore for Northeast India

oil and gas: Govt approves oil and gas projects worth Rs 1 lakh crore for Northeast India


Union Minister of Petroleum and Natural Gas, Hardeep Singh Puri said that Oil and Gas Projects worth Rs 1 lakh Crore are approved for Northeast India and are expected to be completed by 2025.

Ministry of Petroleum and Natural Gas, Government of India organized an event in Guwahati to showcase Upstream Oil & Gas opportunities in North East Region (NER). Puri said that the NER is of strategic importance for India. In line with its intent of rapidly transforming the region, the Government of India has undertaken many key initiatives to augment Infrastructure and pace economic development.

He added, “Oil and Gas Projects worth Rs 1 lakh Crore are approved and are expected to be completed by 2025. Special Bidding Round under OALP for NER with acreages being carved out by Government and offered with Additional Incentives for attracting Investments. Doubling the exploration acreage in NER from existing 30,000 Sq. Kms to 60,000 Sq. Kms by 2025 (Approx. 20,000 Sq. Kms of area already awarded under OALP over last 3 years in NER). Plans to Double the Oil and Gas production from current 9 MMTOE to 18 MMTOE by 2025.”

He added, “Plans to set up a dedicated service provider hub in NER to support the requirement of Oil and Gas Industry in collaboration with State Governments. Implementation of North East Gas Grid (NEGG) to provide access of natural gas to end-user in north-eastern region besides Six Geographical Area (GAs) comprising of 18 Districts in the State of Assam and Tripura are on offer under the 11th Round of CGD Bid Round for developing the City Gas Distribution (CGD) network.”

Puri announced that Digboi refinery in Assam will be expanded. He also assured that the issue of blending ethanol with petrol at the refinery level will also be explored.

Puri said that the outlook of E&P business in North East Region is indeed promising. There is a huge hydrocarbon potential waiting to be tapped; of the estimated 7600 MMTOE in the North-East, only 2000 MMTOE has been discovered so far. With concerted efforts by industry and governments, oil production is expected to increase by 67% from 4.11 MMT in 2020-21 to 6.85 MMT in next 4 years. Gas production is forecasted to more than double from 5.05 BCM in 2020-21 to 10.87 BCM in next 4 years.

Calling upon the investors to actively participate in upcoming rounds and become part of the national E&P enterprise which is set to gather momentum in the days ahead, Union Minister said that much impetus has been given to NER in recent past, which will act as catalyst for the envisaged future growth in the region.

Puri appreciated the launch of the portal by Government of Assam today for facilitation of statutory clearances and approvals for E&P operators and hoped that other State Governments will also launch similar initiatives. In this context, he announced that there will be periodic meeting through VC with NE states to sort out the issues.

Assam Chief Minister, Himanta Biswa Sarma extended full support of the State Government in the exploration activities. He assured that the State Government is taking steps for providing early environmental clearances for the Oil and Gas projects. He said that the contribution of Assam in the Oil and Gas sector is well-known and he wants the exploration activities to increase fast.

Minister of state for Petroleum and Natural Gas Rameswar Teli said that India is going to become a top energy consumer in the coming times. For ensuring the energy security it is important that Oil and Gas sector should develop fast and import dependence should come down. He said that NER has large potential and the same should be explored in active participation with the State Governments.



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