Ministry of Petroleum & Natural Gas
12-April, 2018 18:21 IST
Valedictory Address By EAM at the IEF Ministerial Meeting
My colleague Minister of Petroleum & Natural Gas
Shri Dharmendra Pradhan Ji,
Participating Ministers,
Heads of International Organisations,
CEOs
Delegates and
Friends
It gives me great pleasure to be with you all at this Valedictory Session of the IEF Ministerial Meeting. I am indeed happy to see that about 40 Energy Ministers, 10 Heads of International Organisations and top CEOs have engaged extensively over the
last two days. Such a broad swath of participation is a rare event in the world. I am delighted that this event took place in India.
During the inaugural session,you heard from my Prime Minister about the importance energy occupies in his policy matrix. His vision has always been to promote energy access, energy sustainability, energy efficiency and energy security.
I am sure, these objectives also guide most of you. Geo-politics is a complex and evolving subject. Geo-politics of oil is even more complex. I hope that your discussions over the last one and a half days have provided more solutions rather than raising more questions.
Oil and Gas are not only strategic commodities,but price variations impact people down to the bottom of the pyramid.
As the third largest consumer of energy, we carefully observe the shifts in centre of gravity of the oil and gas world, the potential technology disruptions, the financialization of the oil markets,climate change imperatives and innovations.
All these elements have an ingrained capacity to create sudden and disruptive pressure on the operations of global energy assets and energy supplies.
As the External Affairs Minister, energy is beginning to occupy more and more space in my world view. Energy is a key engine of our economic growth. It is also a key element of our diplomatic engagement and outreach.
India took the lead during CoP 21 in Paris.
India and France announced the formation of the International Solar Alliance (ISA).
Today ISA is a reality.
Of the 121 prospective nations,
61 have joined the alliance,
32 have also ratified the framework agreement. The successful first ISA summit in Delhi last month saw the participation of 23 Heads of State and Government and over 75 Ministers. Our commitment is amply reflected in our efforts at a national level.
In India, we have started the world's largest renewable energy expansion program.
We will generate 175 GW of electricity from renewable sources of energy by 2022, of which 100 GW will be from solar power. We have already achieved 20 GW installed solar power. Time again has come for India to take the lead, which according to most projections will lead incremental growth in energy consumption and show the way towards green and clean energy.
We have been working to promote “Climate Justice” to protect the poor and vulnerable from
adverse impacts of climate change.Several schemes have been launched to achieve universal access to
clean, sustainable & affordable energy for our poor.
Prime Minister Modi launched the Saubhagya Scheme in September 2017. It aims at electrifying 40million additional households by December 2018 at an investment of US$ 2.5 billion.
Currently, India’s per capita energy consumption is almost one tenth of that of some of the advanced countries. I assure you that we will be responsible in our incremental energy consumption. However, in this regard, India expects the world to share technology knowhow and partnership to achieve the objective of providing clean and affordable energy to its citizen.On the oil and gas front, the rapid expansion of infrastructure and enhanced energy availability has been marked by two clear objectives:
(i) promote energy access; and
(ii) promote clean and affordable energy.
India accords high priority to promoting a gas based economy. Currently natural gas forms a relatively small share of the energy mix. Gas infrastructure projects of over US $ 8 billion are under implementation across the country.
We aim to increase share of natural gas in energy mix from current 6.5% to 15% by 2022. In the last 20 months, under the UJJWALA scheme,35 million new households have started using LPG, taking LPG penetration from 56% in 2014 to 80%. India will leap from Euro IV to Euro VI fuel by April 2020. There is also a concerted effort of replacing Fossil Fuels by Bio-Fuels.
We are well aware that just as energy is a key pillar for our economic growth & development, it is also the same for our neighbours. Our government has been following ‘Neighbourhood First’ in our foreign policy. In line with this policy, we strongly believe that our efforts to build our oil and gas infrastructure should also benefit our neighbours and promote economic development and raise their standards of living. We appreciate the close cooperation of our neighbours in this regard. India supplies 100% of the domestic requirement of petroleum products to landlocked Nepal since 1974.
Last week Prime Minister Modi and Prime Minister Oli of Nepal jointly initiated work on a petroleum product pipeline between India and Nepal. We are also working with Nepal to increase availability of LPG and natural gas and build an
efficient distribution system.
India is engaged with Bangladesh to build a pipeline to supply Diesel to Parbatipur and natural gas to power plant at Khulna. Work is also in progress to build LNG terminals, both land based and floating.
In Bhutan too, India supplies 100% of their petroleum products requirements. We are working closely with them to increase LPG penetration based on our own successful
Ujjwala programme.
The Sri Lankan government has been according priority for enhanced use of gas. In this context, India is engaged in setting up an LNG terminal in Sri Lanka to introduce gas as an important and sustainable energy source. In Myanmar, we are working closely with the government to promote use of LPG and provide diesel to the North West region through refineries in our North Eastern states.
A new policy framework has been brought in by our Government, termed as the Hydrocarbon Exploration & Licensing Policy (HELP).
The key elements are:
(i) A single uniform license for exploration and development of both conventional & unconventional hydrocarbon prospects;
(ii) A simple and easy to administer Revenue Sharing Contract Model;
(iii) Full freedom in pricing & marketing of crude oil & natural gas produced;
(iv) Simplified fiscal regime with no levy of cess on crude oil, exemption of custom duty, and,
(v) low graded royalty rates including zero royalty for deep water and ultra-deep water areas during
first seven years.
India is becoming an increasingly attractive investment destination, particularly in oil and gas sector. You are all familiar with the massive economic transformation India is undergoing under the leadership of Prime Minister Modi.
The overhauled indirect tax system with the introduction of GST, programmes to promote skills and domestic manufacture, and the increasing ease of doing business augers well for FDI.Energy fuels growth. Energy fuels aspirations. Energy should also fuel sustainability.
No country, international organization or company alone can provide all the answers.
I am confident that the new ideas, new solutions and new approaches provided by IEF Ministerial Meeting will ensure that we are all better off and the earth is a greener and happier place.
As Helen Keller says,
“Alone we can do so little; together we can do so much.”
I thank you for your attention.
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Ministry of Petroleum & Natural Gas
12-April, 2018 16:51 IST
16th International Energy Forum Ministerial Minister’s Shri Dharmendra Pradhan speech at Concluding Session New Delhi, April 12, 2018
Hon’ble External Affairs Minister Smt. Sushma Swaraj ji,
His Excellency Dr. Sun Xiansheng, Secretary General, International Energy Forum;
My esteemed ministerial colleagues from various countries;
Heads of International Organisations;
CEOs of global oil and gas companies;
Delegates and Friends from media
At the outset, let me thank you all for making the last two days, “Days of Energy”. Let me also thank you for fuelling them with your valuable insights. It is rare for such a distinguished cross-section of Energy Ministers, Heads of International Organisations and CEOs to gather and debate at one place. When such a meeting does take place, that too on a neutral platform which the IEF provides, the global discourse on energy gets richer, more focused and result-oriented.
Today, we find ourselves at a critical juncture faced with a rapidly-transforming energy landscape bringing in changes that are not reversible. We are at such a point, when we have to assess the impact of disruptive technologies, innovations, changes in trade and investment patterns, geopolitics and climate change issues.
It is not easy to sum up the rich intellectual discussions which have taken place in the last two days. However, we have attempted a “Concluding Statement” which reflects on the discussions that have taken place. A copy of the concluding statement has been distributed. The statement will also be put up on IEF website and shared with the media.
I note with satisfaction that the substantive agenda for this meeting, which was drawn up in an inclusive and consultative process of the Executive Board, proved stimulating and thought-provoking. We also experimented with a new format for this Ministerial Meeting. Instead of sitting around a table and relying on speeches, we opted for an interactive format in order to generate deeper multi-way dialogue on key issues. The moderators brought in their wide experience to tickle the participant’s intellect and have a substantive and in-depth discussion.
I am happy to share that there was as much discussion on the sidelines as was inside the two meetings halls. This is exactly what we hoped for - a multi-way and multi-dimensional discussion on energy issues.
You heard from Prime Minister Modi yesterday about his vision. Sharing his vision, Prime Minister Modi mentioned 4 pillars – energy access, energy efficiency, energy sustainability and energy security. He also mentioned that Oil and Gas are a commodity of trade but also of necessity. The world needs to move from roller coaster prices to stable and responsible pricing, that balances the interests of both the producer and consumer. He called for a mutually supportive relationship between producers and consumers. The neutral platform of the IEF is the perfect place to build a global consensus on energy-related issues.
While this is the vision of my Prime Minister, it has resonance with most Governments. Energy has to fuel growth. Growth has to fuel development. Development has to raise the standard of living of our people and make the world a happier and more equitable place to live in.
At this stage, I would also like to share an Indian perspective on our expectations from the global hydrocarbon industry as we go forward. India, as already mentioned during this conference, is presently the world’s 3rd largest energy consumer. By all accounts, India’s oil & gas demand is expected to increase nearly 3 fold from 229 Million Metric Tons currently to 607 Million Metric Tons in 2040.
Our rural areas are fast emerging as key demand centers for auto-fuels. At the same time, India is rapidly urbanising: our urban population is tipped to increase from 31% in 2011 to almost 41% in 2030. India is also demographically a young country with half of our population below 25 years of age and about 65% people below 35 years of age. With more and more people coming out of poverty, an aspiring middle class, larger than the population of several countries, has come into existence. Upward social mobility has also led to changed consumption patterns and more energy-intensive lifestyles.
In order to meet the exploding energy needs of its vast population, India imports a large proportion of its crude oil and gas requirements. The average Indian energy buyer is also highly price conscious. It is in this context, therefore, that as a large and reliable consumer of energy, India has often advocated the concept of Reasonable and Responsible energy pricing. With the technological advancements in solar, wind and other renewables driving down energy prices, there are alternatives available today for average consumers. I would like to utilize this platform to urge both producers and consumers, once again, to work for a more equitable pricing regime rather than trying to artificially manage the volume of production and price of crude.
Before closing, let me add a word about investment, which the theme for this Ministerial Forum rightly recognizes, as a key element influencing global energy security. The hydrocarbon industry needs continuous investment in terms of technology, resources and manpower to realize its true potential. I would like to reiterate that the Indian hydrocarbon sector is open for investment. We invite and welcome investors to invest in India’s upstream, midstream and downstream sectors as well as for technological, R&D and academic collaborations.
The schedule of this Ministerial meeting was tight, but I hope that during your stay in Delhi, you got a taste of India - its vibrant economy, its culture, its traditions, its food and I do hope that you will come back to India very soon.
Thank you all.
Click here to see Concluding statement at IEF2018 by Host Country India
Click here to see Press Remarks by Petroleum Minister Shri Dharmendra Pradhan 12 April 2018
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