Introduction

Introduction

India had 38 trillion cubic feet (Tcf) of proven natural gas reserves as of January 2007.The total gas production in India was about 31,400 mcm in 2002-03 compared with 2,358 mcm in 1980-81. At this production level, India's reserves are likely to last for around 29 years; that is significantly longer than the 19 years estimated for oil reserves. Almost 70% of India. natural gas reserves are found in the Bombay High basin and in Gujarat. Offshore gas reserves are also located in Andhra Pradesh coast (Krishna Godavari Basin) and Tamil Nadu coast (Cauvery Basin). Onshore reserves are located in Gujarat and the North Eastern states (Assam and Tripura).

Consumption

Dry natural gas production & consumption (2003) - 0.96 tcf (consumption equalled production in 2003)

Current Energy Production

16,385.61 MW

Major Gas Based Projects

ProjectStateCommissioned Capacity (MW)

RGPPL, AnjanvelMaharashtra1480

DadriUttar Pradesh817

PaguthanGujarat654.73

AuraiyaUttar Pradesh652

Jhanor-GandharGujarat648

KawasGujarat645

FaridabadHaryana430

AntaRajasthan413

Vemagiri Power Generation Ltd.Andhra Pradesh388.5

Problems with Natural Gas

Not a renewable source of energy.

India has only limited reserves of natural gas, though further discoveries are being made from recent explorations

Owing to the high percentage of methane in natural gas, it is highly combustible

The process of extraction of natural gas involves making large cavities in the ground. Natural gas requires highly complex treatment plants and pipelines for its delivery.

Natural gas occupies four times the space of a gasoline-equivalent energy.

LNGLNG is a clear, colourless, non-toxic liquid that can be transported and stored more easily than natural gas because it occupies up to 600 times less space.

When LNG reaches its destination, it is returned to a gas at regasification facilities. It is then piped to homes, businesses and industries.

LNG Terminals

LNG TerminalCapacity (MMTPA)

Dahej5

Dahej Exp5

Kochi2.5

Shell Hazira2.5

Dabhol2.5

Mangalore5

Kakinada2.5

Total25

India LNG Imports Consumption Trends

Potential Supply and Demand

India Natural Gas Sector

CNG

Compressed Natural Gas, or CNG, is quite simply gas that has been compressed such that it can be transported in pressure vessels rather than by pipeline as is the traditional method. CNG is generally used to fuel transit and fleet vehicles in large cities, as well as in a limited number of personal Natural Gas Vehicles (NGVs).

India CNG Scenario

In India CNG is primarily used as an alternative fuel for transportation.

The Table Summarizes the LNG activities in India in terms of stations, growth in vehicles etc.

Oil & Natural gas companies

RelianceThe Reliance Group was founded by Dhirubhai H. Ambani (1932-2002). The group's annual revenues are in excess of US$ 34 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.The Company's operations can be classified into four segments namely:

Petroleum Refining and Marketing business

Petrochemicals business

Oil and Gas Exploration & Production business

Others

Cairn EnergyCairn is an Edinburgh-based oil and gas exploration and production company listed on the London Stock Exchange since 1988. There are two arms to the business: Cairn IndiaIndia is an autonomous business listed on the Bombay Stock Exchange and the National Stock Exchange of India and has interests in a total of 14 blocks in India and Sri Lanka. and Capricorn. Cairn

Oil India Limited Oil India Limited (OIL) is a premier National oil company, engaged in the business of exploration, production and transportation of crude oil and natural gas. Oil India Limited is a "Schedule A" company under the Ministry of Petroleum and Natural Gas, Government of India.

Indian Oil Corporation Limited

Indian Oil Corporation Ltd. 18th largest petroleum company in the world and has a current turnover of Rs. 247,479 crore (US $59.22 billion), and profit of Rs. 6963 crore (US $ 1.67 billion) for fiscal 2007. The IndianOil Group of companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tonnes per annum (MMTPA, .i.e. 1.2 million barrels per day). These include two refineries of subsidiary Chennai Petroleum Corporation Ltd. (CPCL) and one of Bongaigaon Refinery and Petrochemicals Limited (BRPL).

ONGC Oil and Natural Gas Corporation Ltd. (ONGC) is engaged in E&P activities both in Onshore and Offshore. The Corporation is now venturing out to new areas i.e. deepwater exploration and drilling, exploration in frontier basins, marginal field development, optimization of field development plan field recovery and other allied areas of service sector.

HPCL HPCL is a Fortune 500 company, with an annual turnover of over Rs 1,03,837 Crores ($ 25,142 Millions) during FY 2007-08, 16% Refining & Marketing share in India and a strong market infrastructure. Corresponding figures for FY 2006-07 are: Rs 91,448 crores ($20,892 Million). The Corporation operates 2 major refineries producing a wide variety of petroleum fuels & specialties, one in Mumbai5.5 MMTPA capacity and the other in Vishakapatnam, (East Coast) with a capacity of 7.5 MMTPA.

Engineers India Limited

Engineers India Limited was established in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects. In addition to petroleum refineries, with which EIL started initially, it has diversified into and excelled in other fields such as pipelines, petrochemicals, oil and gas processing, offshore structures and platforms, fertilizers, metallurgy and power. EIL now provides a range of project services in these fields and has emerged as Asia's leading design and engineering Company.

BPCL

Bharat Petroleum Corporation Limited engages in refining, storing, marketing, and distributing petroleum products in India. It also involves in the exploration and production of hydrocarbons. The company offers various products, including liquefied petroleum gas (LPG), naphtha, motor spirit, special boiling point spirit/hexane, benzene, toluene, polypropylene feedstock and more.

GAIL (India) Limited

GAIL (India) Limited operates as a natural gas company in India and internationally. The company involves in the exploration, production, processing, transmission, distribution, and marketing of natural gas. It also offers LPG and other liquid hydrocarbons, and petrochemicals. The company owns approximately 5,800 kilometers of natural gas high pressure trunk pipeline.

Premier Oil Premier Oil plc engages in the exploration, development, and production of oil and gas properties. It has oil and gas producing interests principally in Asia, Middle East and Pakistan, the North Sea, and west Africa. As of December 31, 2006, the company had proved plus probable reserves of 722 billion cubic feet of gas and 152.1 million barrels of oil equivalents of oil.

Adani Group Adani Group has forayed into the Oil & Gas sector and has been awarded two oil & gas blocks in Gujarat and AssamGujarat and another block with an area of 95 sq. kms. is situated in Assam. under the recently concluded NELP VI and also plans to participate in the upcoming NELP VII bids and is actively looking at oil and gas blocks overseas. One Block with an area of 75 sq. kms is situated in Cambay.

Simon Carves In Simon Carves as a part of its offshore development, projects have been carried out in India and Indonesia in providing oil and natural gas development facilities. In gas processing they have carried out projects in Singapore, Indonesia and India in providing natural gas processing facilities and gas field developments. A key part of many of these projects is the provision of pipeline and tanks where in conjunction with Punj Lloyd they have considerable expertise in the design and construction of these facilities in often very difficult environments.

Petronet LNG Limited Petronet LNG Ltd, one of the fast growing companies in the Indian energy sector, has set up the country's s first LNG receiving and regasification terminal at Dahej , Gujarat, and is in the process of building another terminal at Kochi, Kerala. The Dahej terminal has a nominal capacity of 5 million metric tones per annum (MMTPA) [equivalent to 20 million standard cubic meters per day (MMSCMD) of natural gas], the Kochi terminal will have a capacity of 2.5 MMTPA (equivalent to 10 MMSCMD of natural gas)

Oil & Natural gas research centres

1. The Energy and Resources Institute (TERI)The research areas of TERI in ONG include:Connecting additional washing units to 30 MLD CETP at Bithuja in district Barmer, Rajastahan

2. Gujarat Energy Research & Management Institute (GERMI)GERMI is promoted by Gujarat State Petroleum Corporation Ltd. (A Govt. of Gujarat Undertaking). GSPC is a fully integrated energy company having a presence in various operations like exploration & production, transportation of gas, and power generation, IT services. It is one of the fastest growing state owned companies and has excellent support from Gujarat Govt. as well as from Central Govt. GERMI has already established a specialized technology & management institute focusing on the Oil & Gas Sector and is actively pursuing initiatives in the areas of research and alternative energy resources.

Reference

http://www.powermin.nic.in/JSP_SERVLETS/internal.jspwww.cea.nic.in/power_sec_reports/Executive.../2009.../34-40.pdfhttp://www.shell.com/home/content/aboutshell/our_business/gas_and_power/lng/what_is_lng/

www.abareconomics.com/publications_html/energy/.../india_lng.pdf

http://petroleum.nic.in/petstat.pdfNatural Gas

The present trend in oil consumption and its not encouraging prospects makenatural gas a viable replacement for oil in near future. The decomposition of organic matter in oxygen- poor (anaerobic) conditions and aided by bacterial activity leads to the formation of natural gas. The presence of high content of organic matter in most of the young sediment basins may favor the generation of methane gas in such locales. The gas when formed diffuses in surrounding regions unless it is trapped by suitable geological structures. Commercial amounts of gas also can accumulate as a gas cap above an oil pool or, if reservoir pressure is sufficiently high, dissolved gas in the oil is derived from both land plants and marine organic matter. The gas found in nature is formed due to physical, chemical, biological and geological conditions prevailing in different at levels in the earths crust. Most of the methane gas is of biogenetic nature and formed at shallow levels of the crust, where biological and chemical processes dominate and is confined to swamps, lake beds and shallow marine environment. In the deeper parts of the earth the physical parameters of temperature and pressure dominate the formation of thermogenic gas (see details Chap. 1). Natural gas primarily comprises methane and ethane. Other gases like propane and butane may also be present in the natural gas and such mixture without presence of any liquid component is considered as dry natural gas. The inclusion of higher isotope elements such as pentane containing liquids at standard pressure and temperatures may be considered as natural gas liquids. Natural gas reserve may also contain non-hydrocarbon elements such as carbon dioxide, water vapor, hydrogen sulfide and such mixed gas is considered as wet natural gas. The wet gases are processed to remove the contaminants before the gases are used for normal purposes. Gas is found abundant in nature; with its higher recovery rate, higher fuel efficiency and low order pollutant may work out to be a good future energy prospect. Natural gas remains the main energy resources for many industrial plants and the generation of electricity. Worldwide natural gas is third most prominent energy resource amounting to 23% of global energy consumption. It is expected that in future, industry will consume 40% of total gas production. In absence of goodtransport system for transporting the gas to industrial plants most of the gas associated with oil reservoirs is burnt at the wellhead. Owing to its low calorie content it has lesser priority than oil for its use as the energy source. In order of priority Russia,Iran, Qatar, Saudi Arabia and UAE have the highest gas reserves of the world. Russia is also highest gas producer of the world. Global gas reserves are abundant, but unevenly distributed

Natural Gas Scenario

The global market for gas is much smaller than for oil because gas transport is costly and difficult. Only about 16% of global gas production is internationally traded, with less than 4% of the trade accounted for by liquefied natural gas (LNG). However, in spite of the high cost of gas transportation and the remote location of potential future supply regions, increasing international trade in natural gas is expected. A significant portion of gas production by major gas producing countries is meant for export in the form of LNG. Middle East and Africa are likely to be main contributors for the supply of LNG in the coming future. These two countries are likely to have tremendous growth (~21 TCF) in the production of natural gas and especially in terms of LNG and may cover a bigger portion for the demand of gas from other countries (EIA 2008, 2009). Recent discovery in China and India may help these countries to reduce their import from other countries. The industrialized countries are the major gas importers, but the major gas supplies are located in the Former Soviet Union and the Middle East. Thus, similar to world oil, the expanded use of natural gas by Europe and Japan will become increasingly dependent on the worlds politically unstable regions. Canada provides most of the natural gas imports to the United States.