News Release Details
Availability to jump 157% as India steps on the gas
Kolkata 30-May-2007
It'S now official. India's natural gas map is set to transform in just five years. Riding on the recent gas discoveries in India and plans for liquefied natural gas imports, the petroleum ministry has projected that the gas availability in the country is set to more than double (increase by 157 %) in the next five years. And this could transform the plight of major gas consumers in the power, fertilizers, industrial sectors which today face huge losses in production following a shortfall of more than 60 % in gas availability. The official status on gas availability has been sought by the prime minister's energy coordination committee, which has taken up the issue of scaling up power generation in the country as a priority. The projected increase in gas availibity, which could even turn India into a gas surplus country provided demand projections hold true comes at a time when India is negotiating with gas rich countries like Iran, Myanmar and Bangladesh for gas supplies. It is being estimated that India would be running a surplus of 16.95 mmscmd of gas within two years. Ex-pens say that this would give India a bargaining chip in its negotiations on the energy front. The sharp increase in gas availability could come as a huge bosst to the fuel-starved power sector, which is even opting for imported coal to meet the deadlines for setting up generation capacities. However, gas utilization and demand growth in this sector would largely depend on the pricing of the gas. Of the total supply of gas supply of 285.42 mmscmd, natural gas produced in India comprises 202.30 mmscmd. The balance is contributed by LNG imports, which would account for 29 % of the total gas availability. The significant jump in natural gas supply is mainly due to the 80-mmscmd-gas supply from Reliance Industries. RIL's offshore fields in the KG Basin are projected to supply 40 mmscmd gas from 2008-09, Besides the 40 mmscmd gas production certified by DGE RIL's other fields are expected to supply additional gas 20 mmscmd in 2009-10, 30 mmscmd (2010-11) and 40 mmscmd (2011-12). Even GSFC is likely to add 54-mmscmd gases from 2009-10 onwards. The supply through RIL's other fields and GSPC has, however, not been certified by the DGH, official sources said. On the demand side, it is projected that power sector would require the lion's share of 126.57 mmscmd in 2011-12 from the current demand of 79.70 mmscmd (2007-08). Next in line is the fertilizer sector, which is expected to demand 76.26-mmscmd gas in the terminal year of the 11th Plan from current level of 41.02 mmscmd. Demand from the petrochemical sector and internal consumption by refineries together would require 33.25 mmscmd gas by 2011-12, a jump from current demand of 25.37 mmscmd. Current demand of sectors like city gas is 12.08 mmscmd, industrial consumption (15 mmscmd) and sponge iron/steel (6 mmscmd) is likely to go up 15.83 mmscmd, 19.66 mmscmd and 7,86 mmscmd by the terminal year of the l1th Plan.
Kolkata 30-May-2007
It'S now official. India's natural gas map is set to transform in just five years. Riding on the recent gas discoveries in India and plans for liquefied natural gas imports, the petroleum ministry has projected that the gas availability in the country is set to more than double (increase by 157 %) in the next five years. And this could transform the plight of major gas consumers in the power, fertilizers, industrial sectors which today face huge losses in production following a shortfall of more than 60 % in gas availability. The official status on gas availability has been sought by the prime minister's energy coordination committee, which has taken up the issue of scaling up power generation in the country as a priority. The projected increase in gas availibity, which could even turn India into a gas surplus country provided demand projections hold true comes at a time when India is negotiating with gas rich countries like Iran, Myanmar and Bangladesh for gas supplies. It is being estimated that India would be running a surplus of 16.95 mmscmd of gas within two years. Ex-pens say that this would give India a bargaining chip in its negotiations on the energy front. The sharp increase in gas availability could come as a huge bosst to the fuel-starved power sector, which is even opting for imported coal to meet the deadlines for setting up generation capacities. However, gas utilization and demand growth in this sector would largely depend on the pricing of the gas. Of the total supply of gas supply of 285.42 mmscmd, natural gas produced in India comprises 202.30 mmscmd. The balance is contributed by LNG imports, which would account for 29 % of the total gas availability. The significant jump in natural gas supply is mainly due to the 80-mmscmd-gas supply from Reliance Industries. RIL's offshore fields in the KG Basin are projected to supply 40 mmscmd gas from 2008-09, Besides the 40 mmscmd gas production certified by DGE RIL's other fields are expected to supply additional gas 20 mmscmd in 2009-10, 30 mmscmd (2010-11) and 40 mmscmd (2011-12). Even GSFC is likely to add 54-mmscmd gases from 2009-10 onwards. The supply through RIL's other fields and GSPC has, however, not been certified by the DGH, official sources said. On the demand side, it is projected that power sector would require the lion's share of 126.57 mmscmd in 2011-12 from the current demand of 79.70 mmscmd (2007-08). Next in line is the fertilizer sector, which is expected to demand 76.26-mmscmd gas in the terminal year of the 11th Plan from current level of 41.02 mmscmd. Demand from the petrochemical sector and internal consumption by refineries together would require 33.25 mmscmd gas by 2011-12, a jump from current demand of 25.37 mmscmd. Current demand of sectors like city gas is 12.08 mmscmd, industrial consumption (15 mmscmd) and sponge iron/steel (6 mmscmd) is likely to go up 15.83 mmscmd, 19.66 mmscmd and 7,86 mmscmd by the terminal year of the l1th Plan.