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Natural Gas Marketing Reforms

Topics Covered: Infrastructure- energy.

Natural Gas Marketing Reforms:


Context:

The Cabinet has approved the reforms to push the usage of Natural Gas.

The reforms:

  • The government will initiate standardised e-bidding for bringing transparency in the price of Natural Gas in the country.
  • Affiliate companies will be allowed to participate in the bidding process in view of the open, transparent and electronic bidding. This will facilitate and promote more competition in marketing of gas.
  • Marketing freedom will be granted to the Field Development Plans (FDPs) of those Blocks in which Production Sharing Contracts already provide pricing freedom.

Basics:

About Natural Gas:

Natural gas is the cleanest fossil fuels among the available fossil fuels.

  • It is a naturally occurring hydrocarbon gas mixture consisting primarily of methane, but commonly including varying amounts of other higher alkanes, and sometimes a small percentage of carbon dioxide, nitrogen, hydrogen sulfide, or helium.
  • It is a potent greenhouse gas itself when released into the atmosphere, and creates carbon dioxide during oxidation.

 Uses:

  • It is used as a feedstock in the manufacture of fertilizers, plastics and other commercially important organic chemicals as well as used as a fuel for electricity generation, heating purpose in industrial and commercial units.
  • Natural gas is also used for cooking in domestic households and a transportation fuel for vehicles.

fossil

InstaLinks:

Prelims Link:

  1. Natural gas- production and availability.
  2. Components.
  3. Pollutants released by burning of natural gas.

Mains Link:

Discuss the potential of natural gas.

Sources: PIB.