In the Union Budget 2023-24, INR 35,000 crore has been allocated to the Ministry of Petroleum and Natural Gas for achieving energy transition. A major part of this allocation could go into gas exploration and the setting up of gas infrastructure projects, details of which are yet to emerge.
Can natural gas continue to play the role of a transition fuel for India or will this lead to stranded assets in the future? There is no simple answer to this question. Let’s look at some of the key reasons.
The transition towards renewable fuels will be aided by rising global gas prices and should be viewed as an opportunity driver towards accelerating the energy transition to renewables.