'India can be a gas trading hub'

Amazing as it may sound, India could become a gas exporter and a trading hub. That is the line on which it should be thinking, given its recent large gas discoveries, according to B S Negi, member of the Petroleum and Natural Gas Regulatory Board (PNGRB).

In fact, India should think of setting up gas liquefaction terminals instead of limiting itself to just regassification terminals for imported liquefied natural gas (LNG), he tells RAKTEEM KATAKEY

Besides regulating gas marketing and transport, the PNGRB is monitoring LNG terminals. How many proposed regassification terminals are likely to come up considering that the domestic gas production is projected to rise significantly?

Why just talk about LNG regassification terminals? I am even thinking in terms of gas liquefaction plants. If liquefaction plants are set up on the country's east coast, where big gas discoveries have taken place, gas can be exported to the Far East as LNG.

Simultaneously, LNG can be imported through the LNG gassification plants on the west coast. In fact, gas can be actively traded in the country.

But trading is not desirable, is it? A school of thought says the phenomenal rise in crude oil prices is due to trading, which leads to speculation. Wouldn't trading in gas result in a similar situation?

India is not in control of crude oil trading that happens globally. We are, moreover, not in a position to trade in crude oil. But we are entering a phase when trading in gas is feasible.

The current mandate says domestic gas cannot be exported unless the domestic needs are met. But LNG can be imported through the west coast and local gas exported through the east coast. The economics are very feasible.

What is the regulatory board's view on gas pricing?

The board will not control prices, but only monitor it. The market must always be allowed to find its own prices. Only then will the allied industries, which use gas, develop.

What else has the board been up to since it was constituted almost six months ago?

The board has just seen its most important day. We have finalised the draft regulations for authorising companies to develop city gas distribution networks, which remain our top priority.

The policy for cross-country pipelines will also be finalised soon, and will be on the same lines as the city gas distribution policy.