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Gas flares take a toll on finances and environment – Hindustan Times

New Delhi: At a time when India is forced to buy costly natural gas form from international markets after long-term liquefied natural gas imports from Russia is disrupted, some domestic producers are flaring at least 3 million standard cubic metres of gas per day — sufficient to produce about 750 MW of electricity — due to a skewed pricing policy for indigenously produced gas.

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New Delhi: At a time when India is pressured To buy pricey pure gasoline type from worldwide markets after prolonged-time period liquefied pure gasoline imports from Russia is disrupted, some home producers are flaring A minimal Of three million regular cubic metres of gasoline per day — enough To current about 750 MW of Electricity — As a Outcome of of a skewed pricing coverage for indigenously produced gasoline.

The measurement of flaring in native oil and gasoline areas Is Sort of extreme, which is a waste of a scarce power useful resource And in addition dangerous for the environment. The federal authorities is awrestlee of the matter and Looking for methods to convey this gasoline into The current system by way of incentives, As a Outcome of it’d contain appreciable investments and, at current pricing coverage, Does not make any enterprise sense, two people awrestlee of The event said, requesting anonymity.

This matter has been frequently raised by the Comptroller and Auditor Widespread of India (CAG), The primary particular person working in an financial ministry said. High strain gasoline worthd at 816.08 crore was flared in Mumbai High area of state-run Oil and Natural Gas Company (ONGC) all by way of 2012-20, Based mostly on a CAG report launched in December 2021.

The petroleum ministry Did not Reply to an e-mail question on this matter.

ONGC, however, accepted flaring is a technical necessity. “Through The primary quarter of the yr 2022-23, gasoline flaring has been 2.32% of complete gasoline manufacturing. ONGC makes regular efforts to minimise gasoline flaring. This gasoline flaring is a technical necessity for processing of oil and gasoline at installations To take care of pilot flares for avoiding escape of unburned hydrocarbons into environment… So as To Guarantee protectedty and environmental safety,” An group spokesparticular person said.

The exact set off lies someplace between technical necessity and financial sense, particularists said. “The worth of tapping this gasoline Can be a quantity of events extreme and Wouldn’t make any enterprise sense Due to presently regulated pricing coverage,” a second particular person talked about above said.

There are corporations Similar to Reliance Industries That do not flare any gasoline. Whereas Reliance Did not Reply to A question on this matter, ancompletely different state-run agency Oil India Ltd, said that “flaring is required for protectedty set offs” As a Outcome of the agency primarytains “minor gasoline flaring” for protected operation of crude oil and pure gasoline manufacturing and processing installations as a technical and protectedty requirement.

India regulates home gasoline pricing every six months. Whereas gasoline worth for April-September 2022 is $6.10 per unit, pure gasoline produced from deep and ultradeep water is capped at $9.92 per unit. Recently, after the Ukraine wrestle, The current of prolonged-time period cheaper Russian liquefied pure gasoline was abruptly stopped, forcing India to pay spot worth of LNG, which is about 127% greater at round $50 per unit. HT reported it on August 10.

“It is technically important to flare A pair of of the low-strain gasoline,” said SC Sharma, an power professional and typeer officer on particular obligation On the erstwhile Planning Fee. “However, there had been financial set offs as the gasoline flaring nations mandate low worth of gasoline for home use pretty than enterpriseise it at An alternative value.”

India, which imports 55% of the pure gasoline it consumes, Isn’t In a place to flare gasoline like completely different producing nations, he said.

“It is assumed thOn the extreme quantity gasoline flaring nations like Russia, Iran, Iraq, Venezuela and to some extent the US are flaring pure gasoline as the gasoline prices are very low in these gasoline producing and exporting nations for home consumers in contrast with the worth of gasoline to exporting nations,” he said.

Nations like India that import LNG as additionally produce home gasoline ought to minimise flaring of gasoline to zero given extreme import dependence on LNG at a extreme risky worth Starting from $12 to 18 per mmbtu (million metric British thermal unit) all by way of extreme oil prices, as a majority of prolonged-time period LNG import contracts are both oil or Henry Hub gasoline listed, he said.

“Recently, the oil corporations have additionally introduced a worth band for buy worth of compressed biogasoline Starting from about $17.5 to 24 per mmbtu,” he added.

“Contemplating extreme import dependence of pure gasoline, authorities ought to Supply you coverage to monetise the flared gasoline from each onshore and offshore installations as An factor of Aatmnirbhar Bharat (self-reliant India),” Sharma said.

Flaring May even be detrimental for the environment. “Flaring of gasoline additionally has an antagonistic influence on environment as the emission of carbon dioxide Leads to greenhouse gasolinees and …….

Source: https://www.hindustantimes.com/india-news/gas-flares-take-a-toll-on-finances-and-environment-101661331971813.html

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