A lot has been said about this COP 26 meeting. What were your main takeaways especially as somebody who is very very much
involved with gas which is of course seen as being far cleaner than coal.
I think the focus of the government is very clear the idea that they are pushing towards Su Keenan energy the natural gas needs
solar et cetera. And you've seen big announcements by big industrial houses in India getting into clean energy. So I know
it's a difficult target. But I think with the right policies in place it is possible.
Absolutely. You know you're making this transition of course with this pledge to be net zero by 2070. Now
their term goal is actually to increase the share of non fossil in energy the energy mix in India to something like 50 percent.
How does that dovetail into your industry. I think it's a compliment each other. Because India's energy
demand is rising. You're on your own. You can see it in the normal petrol and diesel.
Know in natural gas yes to non-business any hydrocarbon so the incremental demand I think will be shared more with the non
fossil and fossil. I think that percentage could change but the growth in both will continue because you know the Vonnie Quinn
billion people you can are satisfied with one of the other. Talk to us about the energy mix when it comes to natural gas.
How will that play out. What percentage will that be. Maybe intensive 5 10 years down the road.
But currently is very low. It's only about six or eight percent. The government started to take it to 15 percent
which I think they have implemented the correct policies which have been announced. They have three down on the ground mostly.
And the reason I say mostly is because that is there are still some
tweaks that need to be done and actually be implemented. Once that is done I think
investments in naturals will go up. There was a big discovery of reliance on BP that just happened which has increased domestic
production. I think there are a few more on the line which which would come true.
I think with the right marketing with the prices which they have not announced that
would be free market. I think that is the biggest hurdle that was faced by producers earlier that free marketing was not done.
Even though we now know that in the new policy it is completely free market.
DAX. DAX. DAX. A big plus. It's all on revenue sharing contracts. Most of the approvals are also certification basis
but more needs to be done which I think the government is proactive especially this government
and they just basically want that you beat when you comply with the terms and that's it. So I think if that kind of trickles
down which it is there'll be a big boost in investments in natural gas.
I'm just wondering how it she's achievable that targets all. We know that India wants gas to be about 15 percent of its energy
mix by 2030. How challenging would that be. What would it take. Well two things one.
Any sort of artificial price caps need to be removed. But there's already got some new debts. It doesn't matter. This is
these are molecules on heat that we're selling. Second especially under revenue sharing contracts all approvals should
be only on some sort of efficient basis because the government is you know we'll be more than happy for anybody to come in
order to check in sector because what happens is that there are sometimes used to be in a cost recovery regime.
Know a decade or so 18 years ago there was a government interest because there was a lot of people with a couple of costs. They
had to check now in revenue share. There's nothing. It's complete in my race. What I spend with I spend a hundred dollars
or a hundred million doesn't matter. So I think but as I said that process has been implemented and it is getting more and
more so. One is that and one is you know some gas is still under control pricing it but that is when you start bringing a lot of
investments. Speaking of prices what's the outlook for gas prices given that
the current prices don't take into account the increase in the international market.
Well India has sort of three crises. One is the domestic gas which is
again low two point nine dollars which has been fixed. One is from the offshore which is at six point one three and one is the
tough price which is free market price which is like we are selling at ten dollars or ten. Eleven dollars is being sold
about LNG which is the weighted average price for this year is already
eleven point five dollars. Current pricing balance is about surging in the polls. So this is up. This is a disparity of
prices that I'm booking. So I think if everything prices will remain very strong city gas
pipe natural gas is being sold at 15 to 20 dollars easily. Industrial gas to some industrial units are buying gas fifty
four point two dollars. So there is a demand at that price that it is viable. So my take is always market price means market
price. Let the market decide though. It depends on demand and supply like what happened in the US. Well you are delivering 10
11 bucks a decade. She'll happen. Drop to one or two dollars because supply increase demand is not there.