India’s G20 presidency is an opportunity to lead efforts on ensuring global energy security, while keeping climate goals in mind at a time when the energy crisis is having ripple effects on various sectors of the global economy, the country’s petroleum minister Hardeep Singh Puri said.
As India assumed the G20 presidency, we endeavor to utilize the opportunity to give resonance to the voice of the developing and underdeveloped countries and highlight the common concerns of energy security, energy justice, and sustainable energy transition so that all developing countries can gain reliable and clean energy,” Puri told a meeting of ministers from across the globe attending the India Energy Week.
Puri said while advanced economies committed over $500 billion in funds to support and shield consumers and secure alternative fuel supplies by temporarily reverting to nuclear and high-carbon intensity fuels to fill the supply gap, some economies have continued to exacerbate fuel poverty and food insecurity.
“The energy crisis has a ripple effect on other sectors as well. The unprecedentedly high level of gas prices has created a fertilizer crisis which in turn has created food security concerns. Further, the high energy and commodity prices have raised inflationary concerns and many countries are facing recessionary fears,” he said.
LNG prices surged last year reflecting the impact of the Russia-Ukraine war, other geopolitical supply risks and facility outages worldwide. Heated competition for LNG cargoes between Asia and Europe also sent prices soaring, as procuring supplies for winter, and ensuring energy security became supreme concerns. For calendar year 2022, Platts JKM averaged about $33.9789/MMBtu, compared with $18.59543/MMBtu in 2021, S&P Global Commodity Insights data showed.
Asia a bigger concern
The minister said climate change is the defining challenge, and stakes are high for the Asian region with temperatures rising two times faster than the global average. Therefore, a low carbon emission pathway for development is key to mitigating climate change.
“However, the reality is more complex because the starting point and the capacity of each country and region to transition from a reliance on conventional hydrocarbons to low-carbon energy are different across the globe. This is demonstrated by major differences in the level of detail and ambition of nationally declared commitments in the pursuit of net zero at the country and regional levels,” Puri added.
Achieving net zero goals would require global coordination and access to skills, technology, and global financing, he said.
“For that reason, it is likely to be a ride that involves a variety of energy solutions to drive to net zero — drawing on renewables, nuclear, and advanced biofuels, as well as the critical role of gas in the energy transition, whether from current supplies of natural gas, LNG and LPG, or into a future shaped by their low-carbon alternatives in the form of hydrogen, ammonia and green LPG,” Puri added.
Puri said India recognized that its energy transition path would involve a variety of energy solutions to support energy and economic growth. Advanced biofuels, green hydrogen, renewables and nuclear will play a critical role in the energy mix as India charters its path to the energy transition.
India is setting up 2G refineries utilizing agricultural waste and bamboo to make ethanol, using indigenous technology. This contributes to achieving rural prosperity and also goes a long way in reducing pollution along with achieving energy security goals, he added.
“The availability of the lowest cost for solar power combined with engineering prowess makes India an ideal place for a green hydrogen production hub. We are setting up pilot scale and commercial-scale green hydrogen manufacturing plants at several of our refineries,” Puri added.
Source: Hellenic Shipping News
