Hydrocarbon Vision 2030 for North-East

Hydrocarbon Vision 2030 for North-East

Assam Economy - Assamexam

Hydrocarbon Vision 2030 for North-East

The Minister of State (IC) for Petroleum and Natural Gas Shri Dharmendra Pradhan released the Hydrocarbon Vision 2030 for north-east India, outlining steps to leverage the hydrocarbon sector for development of the region in Guwahati, to establish the Northeast as a dominant hydrocarbon hub at the forefront of the country’s energy economy, to explore hydrocarbon linkages and to explore trade opportunities with Bangladesh, Myanmar, Nepal and Bhutan. Implementation of the project will help make clean fuel accessible, fast-track projects, generate employment opportunities and promote cooperation with neighbouring countries. The Vision aims at doubling Oil & Gas production by 2030, making clean fuels accessible, fast tracking projects, generating employment opportunities and promoting cooperation with neighbouring countries.  

 

The objectives of Hydrocarbon Vision 2030

The objectives of the plan are to leverage the region’s hydrocarbon potential, enhance access to clean fuels, improve availability of petroleum products, facilitate economic development and to link common people to the economic activities in this sector.

It outlines the steps to leverage the hydrocarbon sector for development of the region in Guwahati as well as in North-east region with involvement and inputs of various stakeholders, industry players and state governments. It not only includes the ambition for the region but also an actionable road map.

The vision also focuses on other areas including exploring hydrocarbon linkages and trade opportunities with neighbouring countries like Bangladesh, Myanmar, Nepal and Bhutan.

It also aims at doubling Oil and Gas production in the region to 16 metric tonnes per annum (mtpa) from 7 mtpa now by 2030, fast tracking projects, generating employment opportunities and promoting cooperation with neighbouring countries.

Proposes investments of Rs 1,30,000 crore in 15 years to ramp up hydrocarbon production in Northeast India. Rs 80,000 crore will be required for upstream activities, Rs 20,000 crore for midstream and Rs 30, 000 crore for downstream.  “The money will be borne by the oil companies from their budgets and the oil sector will do everything to help the region in its all-around development,” Pradhan said.

Five pillars – people, policy, partnership, projects and production.

  1. For “people”, it foresees clean fuel access to households, fostering skill development and involvement of the local community.
  2. The “policy” focus areas include moderation in light of specific terrain and weather conditions of the region as well as ensuring funds planning for new projects.
  3. For “partnership”, it stresses on greater involvement of state governments in planning and implementation and boosting trade with neighbouring nations.
  4. In “projects”, the focus is on pipeline connectivity for carrying liquefied petroleum gas (LPG), on natural gas, petroleum products, oil and lubricants, building refineries and import links, development of compressed natural gas highways and city gas distribution network.
  5. The emphasis on “production” includes production enhancement contracts, technology deployment, fast-track clearance and development of service provider hubs.

The Centre plans to categorise high-risk areas, considering the tough conditions and connectivity issues, into a separate category called challenging blocks. According to Oil India, blocks falling in the hilly areas can be termed as challenging.

The document states that the Northeast has nearly 18 per cent of the national hydrocarbon resources. This is quite significant, considering the fact that vast expanses of the region are yet to be surveyed. The document says the government should focus on production maximisation by paying a premium on the prevailing gas price for gas produced from challenging blocks, which may make many blocks commercially viable.

The plan states that the total demand for all petroleum products in the Northeast is around 3.2 million metric tonnes per annum. With the proposed expansion, the region will have more capacity than demand. The Centre can utilise the excess capacity to meet demand in neighbouring countries such as Bangladesh, Myanmar and Bhutan. The region’s present production of crude oil is 12,444 tonnes per day and the average rate of gas production is around 11.32 mmscmd (million metric standard cubic meter per day).

 

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