Tripura has vast reserve of natural gas. The gas is available in non-associate form, with high methane content of up to 97%. Present availability of gas is 1.5 MMSCMD which is likely to go up at the level of 6.0 MMSCMD by 2012-13 onwards. Concessional Gas Pricing and vast reserve creates potential for setting up industries in this sector.
Geological Mapping and exploration undertaken by Geological Survey and Oil & Natural Gas Corporation Ltd. has proved economic mineral deposit of Natural Gas (including condensate).
State Government would encourage private sector investment in gas based industries.
Natural Gas which is presently used mainly for generation of power and to some extent in Domestic, Industrial, Commercial and Transport sector. Emphasis will be given for setting up of industries where gas will be utilized as feedstock like ammonia, urea, methanol and methanol based petrochemical industries.
Prior to 1987, gas prices were fixed by ONGC/OIL. The price is being fixed by Government w.e.f. 30.1.1987. The price of APM gas of ONGC and OIL was last revised effective 1.7.2005. The price of gas for the North-Eastern region will be pegged at 60% of the revised price for general consumers. Thus, the consumer price for the North-East region will increase from the existing price of Rs.1700 to Rs.1920/MCM,under APM (Administered Pricing Mechanism) and the non-APM price is Rs.3200/MCM.
The availability of superior quality natural gas, at concessional price, offers a great opportunity to prospective investors, to set up gas-based industrial units, using natural gas as Feedstock, like urea, methanol, PVC and other projects. Besides this, Natural gas can also be utilized as a cheaper source of energy for various energy-intensive industrial projects.
In Tripura, the other mineral resources are minor amounts of glass sands, limestone, plastic clay and hard rock; all of these materials are being used to a variable degree. Setting up of Ceramic tiles unit and other mineral based industries would be encouraged in the private sector. Efforts will also be made to set up Plastic Clay ad Glass Sand industries where natural gas has added advantage of being used as a fuel.