May 2007 - SIMA

GAS SCENERIO IN INDIA
G P AGGARWAL
Head International Trade & Business Development
Essar Oil Limited Mumbai
Natural gas has been rightly termed as the fuel of
21 st century. Presently Natural gas, accounting for
24 percent of total global primary energy supply, is
the third largest contributor to the global energy
basket and is projected to increase at an average
rate of 2.4 percent per year from 2003 to 2030 as
per EIA, which will be faster than any other energy
source. During the last 5 year the global gas markets
are fast integrating, commercial models are
undergoing rapid changes, and market structures
are evolving and fast changing. Leading this growth
in global gas sector are the Asian markets with
special investment focus on countries like China and
India.
With the advent of LNG and progressive de-control
of gas prices, the natural gas sector in India has
Hydrocarbon Reserve Position (Natural Gas)
progressed and achieved some degree of maturity.
Current natural gas policy dispensations have
created numerous challenges for the gas sector.
Major among them are the demands of competing
consumers industries, ensuring competition and
open access in the pipeline transportation and
distribution networks, reducing the supply demand
gap that exists today. The rapid growth of the Indian
economy in the xth Plan (2002-2007) has greatly
contributed to the development of the Indian energy
sector as a whole and provided a major trigger for
the growth of the gas sector as well. While gas
occupies only about 9-10 percent of the total energy
basket, primarily due to supply constraints all these
years, the scenario is fast changing.
As on 1.4.2006 the total prognosticated reserve, ultimate reserve and balance recoverable reserves of gas
of the country have been estimated as under:
Initial Place Ultimate Reserves Recoverable Reserves
(MMT) (MMT) (MMT)
ONGC 1688.32 942.28 523.01
OIL 251.00 170.00 110.00
Pvt/JV 933.59 511.76 466.94
Total 2872.91 1624.04 1099.95
Gas Infrastructure
� On supply side, there are two LNG terminals at
Dahej and Hazira in Gujarat with a total capacity
of 7.5 MMTPA and are operating. The third
terminal in Dabhol with a capacity of 5.0 MMTPA
is likely to be commissioned shortly. There is plan
for another terminal at Kochi and Mangalore
which are taking a final shape for implementation.
� In term of transmission pipelines, there is an
existing network of 6300 km including the Hazira-
Vijaipur-Jagdishpur pipeline and other regional
networks. A number of pipelines, including those
by the private sector are at various stage of
implementation.
� From coverage of just 2 cities at the beginning
of Xth Plan (2002-07), the city gas coverage has
grown to10 in 2005-06 across the western,
northern and southern regions of the country.
Currently there is a total city gas distribution
network of about 6000 km. As far as CNG
supplies are concerned, there are 278 stations
dispensing CNG in the country and number is
expected to continuously grow in coming years.
MAY-2007/13