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Presentation Flow
Demand- Supply ScenarioSupply Outlook
Demand Outlook
Emerging Scenario
Supply AugmentationLNG
Transnational Pipelines
Additional Sources
End-Use Outlook
Gas Sector Policy Developments
Gas Sector Infrastructure Present & Future
Goals to achieve the vision
Issues to be addressed
Policy, Regulatory & Fiscal Provisions Required
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Domestic Reserves : 1,072 BCM(37.8 TCF)
(Balance Recoverable Reserveas on April 1, 2005) R/P : 33.5 yrs Existing Producing Fields
Declining
Domestic Production 32 (1.1)
Domestic Availability 27(1.0)
LNG Imports* 6(0.2)
Total Availability 33(1.2)
INDIAN GAS SECTOR: SUPPLY OUTLOOK
CURRENT SUPPLIES (2005-06)
BCM (TCF)
Domestic Sources
LNG Import
CURRENT SUPPLIES 33.5 BCM (1.2 TCF)
HAZIRA (3.2BCM) YET TO STABILISE NOTINCLUDED UNDER CURRENT SUPPLIES
CURRENT SUPPLY SOURCES
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INDIAN GASSECTOR:DEMANDOUTLOOK
POWER FERTILISER PETROCHEM/
LPG
STEEL INDUSTRIES CITYGAS/ CNG
CONSUMPTION 33 BCM (1.2 TCF)
DEMAND PROJECTIONSCURRENT CONSUMPTION
(2005-06)
HYDROCARBON VISION 2025
40%
29%
15% 4%
3%
9%
114
143
80
100
120
140
160
200 2012 2017 2022
8 4
2025
Demand estimated to grow at 4.2% CAGR
DEMAND BY 2025 143 BCM (5 TCF)
(4 TCF)
(5 TCF)
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SUPPLY-DEMANDOUTLOOK:EMERGING SCENARIO
SUPPLY BCM TCF
SUB TOTAL FROM CURRENT SOURCES (2012) 26 0.9
TOTAL NEW DISCOVERIES 36 1.3
SUB TOTAL NEW LNG IMPORTS 24 0.8
TOTAL (PROJECTED CURRENT SOURCES + NEW
DICOVERIES + NEW LNG)86 3.0
DEMAND (BY 2012) 114 4.0
DEMAND (BY 2025) 143 5.0
PROJECTED SHORTFALL (2012) 28 1.0
PROJECTED SHORTFALL (2025) 57 2.0
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SUPPLYAUGMENTATION:LNG
LNG TO BECOME A SIGNIFICANT SUPPLY SOURCE
LNG share in Indias total GasConsumption to grow from 11% in 200 -05to 38. % by 200 -10
12.5 MMTPA of LNG already tied up
10 MMTPA of LNG to be tied up
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SUPPLYAUGMENTATION:TRANSNATIONAL PIPELINES
India strategically located for gas imports through trans-national pipelines
Projected shortfall of28 BCM in 2012 to double in 2025
SUPPLY BCM TCF
NEW PIPELINE IMPORTS
- Iran-Pakistan-India
- Turkmenistan-Afghanistan-Pakistan-India
- Myanmar-India
32.8
21
0
1.2
0.7
0.3
TOTAL PIPELINE SUPPLIES 52 1.8
TRANSNATIONAL PIPELINES TO PROVIDE COSTEFFECTIVE SUPPLY SECURITY
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SUPPLYOUTLOOK:ADDITIONALSOURCES
India has the 4th largest coal reserves in the world (247Billion Tons)
Ranks 3rd in coal production (355 Million TPA)
Total Recoverable reserves of only about 20%
Exploitation of current unrecoverable reserves is a majorchallenge
Coal Bed Methane (CBM), Underground Coal Gasification(UCG) and Surface Coal Gasification hold significantpotential for gas
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COAL BED
METHANE (CBM)
INSITU COAL /
LIGNITE
GASIFICATION
SURFACE COAL
GASIFICATION
16 blocks awarded under
2 CBM rounds
Estimated reserves
~ 1400 2600 BCM (50
92 TCF)
Equivalent to 40 - 75 yrs
of current levels of
natural gas consumption
First CBM Gas Expected
by 2007
Total potential 15,820
BCM (565 TCF), as per
projections of UK based
UCG Parnership
Equivalent to 450 - 500
yrs of current levels ofnatural gas consumption
Focus Areas - 5 States
(Gujarat, Rajasthan, TN,
AP, W Bengal)
Total Coal Reserves
247 BT
Focus Areas 2
States (Orissa, W
Bengal)
Syn gas potentialidentified
2.3 BCM (0.1 TCF)
SUPPLYOUTLOOK:ADDITIONALSOURCES
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INDIAN GASSECTOR: ENDUSEOUTLOOK
Gas Based Power
Gas Based Fertilizer
LPG & Petrochemicals
CNG, PNG
City Gas- Industrial, Domestic, Commercial
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SECTORAL DRIVERS FOR CURRENT GAS DEMANDIN INDIA
12%12%
43%43%31%31%
58%58%
Non gas based units
10894 MW 12 MMTPA
1 MMTPA 2.5 MMTPA
POWER FERTILISER
LPG + LIQUID HYDROCARBONPETROCHEMICALS
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Urban Pollution - A major issue Successful Experience in Delhi,
Mumbai Currently in 10 cities Plans to introduce CNG and
city gas in28 cities
Segment Total
Vehicles 25 836
Domestic 413115
Commercial 2664
SmallIndustries
55
Gas Used
(BCM)
1.86
CITY, CNG GAS SECTORS EMERGINGAS AN IMPORTANT END-USE SEGMENT
CNG, PNG, CITY GASDISTRIBUTION
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GASSECTORI FRASTRUCTURE:CURRENTOUTLOOK
LNG Terminals 2 Terminals (Dahej, Hazira), 7.5 MMTPA capacity
Transmission Network 6,300 KmsGAIL 5,300 Kms
GSPL 525
KmsAssam Gas 300 KmsOIL 175 Kms
Distribution Network 6,000 Kms (Delhi, Mumbai, Ankaleshwar,Bharuch, Surat, Baroda, Agartala)
CNG Stations 278 (Delhi, Mumbai, Surat, Vijayawada,Ankaleshwar, Bharuch,Baroda)
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GASSECTOR POLICY:SIGNIFICANTDEVELOPMENTS
100% FDI in E&P under NELP
100% FDI in natural gas pipelines
LNG imports, Gas Marketing under Open General
Licence
Petroleum and Natural Gas Regulatory Board Billunder Finalisation (Unbundling, Third Party Access)
Gas Pipeline Policy under finalisation Progressive Decontrol of prices
Policy Thrust to ensure Energy Security
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TUTICORIN
MANGLORE
HASANBANGLORE
CHENNAI
TUTICORIN
KOLKATA
RAJAMUNDRY
DABHOL
MUMBAI PUNE
BHARUCH
VIJAIPUR
HYDERABAD
BHUBANESHWAR
KRISHNAPATNAM
JAGDISHPUR
KANJIRKKOD
KOCHI
A 1 BLOCK,MYANMAR
KOTA
MATHANIA
PHOOLPUR
BHATINDA
NELLORE
TIRUCHCHIRAPALLI
KOLHAPUR
GAYA
BOKARO
COIMBTORE
JAMNAGAR
BAREILLY
AURAIYA
DELHI
BANGLADESH
NEPAL BHUTAN
AIZAWLAGARTALA
SHILLONG
DISPUR
GANGTOK
GASSECTORINFRASTRUCTURE:CURRENTAND FUTURE A
COMPOSITE PICTURE
DAHEJ I & II10 mmtpa*
HAZIRA2.5 mmtpa
DABHOL5
mmtpa
COCHIN5 mmtpa
BARODA
SURATANKLESHWAR
KANPUR
LUCKNOW
LNGExisting (7.5 MMTPA)
Upcoming (22.5 MMTPA)
Transmission PipelinesExisting (6,300 Kms)
Planned (8,400 Kms, US$ 4.2 Billion)
City Gas/ CNGExisting (10 cities)
Planned (28 cities)
VIJAYAWADA
PATNA
AHMEDABAD
SURENDARNAGAR
RAJKOT
FARIDABAD
GWALIOR
INDORE
UJJAIN
SOLAPUR
AGRAALLAHABAD
VARANASI
MATHURA
JHANSI
DAMRA
Gas By Sea Receipt (Likely Location)
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Points ofConcern
True implementation of unbundled system
Sourcing & customer tie-ups should be under the domain of
Gas Trading activities
Minimum Excess capacity should be maintained
One uniform model of transportation tariff to be adopted.
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Requirement of Provisions
Direct taxes
Infrastructure status to cross country pipelines
Tax Holiday Benefits for Gas pipelines
Indirect taxes
Zero customs duty on supplies required for Natural GasPipelines
Zero custom duty on LNG/Natural Gas
Declared Goods status to Natural Gas under Central Sales
tax Act, 1956
A. Financial
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Cont..
Development of Indigenous Steel Mills for API 5L grade steelproduction
Encourage Indigenous Steel Mills to produce API grade steel
Encourage new players in line pipe manufacturing and pipelaying
B. Technology
C. Statutory Single Window Clearance at State Level for all statutory
clearances Single Window Clearance at Center for Environmental Clearance
and ROU Acquisition
Common Corridor for Transmission Pipelines
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Thank You