High prices take toll on gas strategies for South Asia [Gas in Transition]

High prices take toll on gas strategies for South Asia [Gas in Transition]

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Natural Gas News
High prices take toll on gas strategies for South Asia [Gas in Transition]

Summary

It is the start of a long goodbye for gas in various national power systems on the Indian subcontinent, as global energy price shocks drive a switch to low-cost and domestically available renewables and coal. [Gas in Transition, Volume 3, Issue 11] by: Shi Weijun

South Asian states led by India are embarking on an evolution of their power generation systems that will constrict long-term gas growth, as the region’s biggest economies embrace renewable sources and to some extent coal to drive their energy transition and wean themselves off expensive fossil fuel imports. Economic output in South Asia is expected to grow faster than every other emerging market/developing economy region in 2023-2025, reaching 5.8% this year and 5.6% next year, according to the World Bank’s latest update for the region released in October. The forecast underlines the Indian subcontinent’s status as a dynamo for the global economy, but a major drag on growth prospects is a coal- and gas-dominated energy mix that has struggled to meet demand through local supplies. The region is a net energy importer and relies on imports to meet more than 60% of oil and gas demand. The high import dependency means So...