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Submitted by : Ninad R Joshi (9187)
Submitted to : Prof. Sreedharan
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What is Natural Gas? Natural gas isa gas consisting primarily of methane.
It is found associated with other fossil fuels, in coal
beds,as methane clathrates,and is created bymethanogenic organisms in marshes, bogs,and
landfills.
It isan important fuelsource,a major feedstock for
fertilizers,and a potent greenhouse gas.
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How is it formed?y The organic materials were
deposited with mud silt fromstreamsand rivers which will
harden over time and formsedimentary rock.
y Heat and pressure transformthe rock into soft parts of plantsand animals.
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List of countries by natural gas
productionRank Country/Region Natural gas production (m) Date of
information
World 3,021,000,000,000 2007 est.
Russia 654,000,000,000 2007 est.
2 United States 545,900,000,000 2007 est.
Arab League 405,510,000,000 2007 est.
European Union 197,800,000,000 2007 est.
3 Canada 187,000,000,000 2007 est.
4 Iran 111,900,000,000 2007 est.
5 Norway 99,300,000,000 2008 est.
6 Algeria 85,700,000,000 2007 est.
15 India 56,000,000,000 2007 est.
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Uses of Natural Gasy Power generation
y Hydrogen
y Natural gas vehiclesy Residential domestic use
y Fertilizer
y Aviation
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IndianGas Supply and Demand
Projections
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Role of Natural Gas Industry in
Indian GDP1
y The Role of Oiland Natural GasIndustry in India
GDP is very significant as it is one of the biggestcontributors to both the Centraland State treasuries.
y India is the 6th largest consumer of petroleum.
y By the year2010-11,India is expected to rank 4th in
terms of consumption of energy
1 http://business.mapsofindia.com/india-gdp/industries/oil-natural-gas.html
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Natural Gas Industry in India
GDP-Highlightsy In 2009-10, the demand for natural gas is expected to
be 225 million metric standard cubic meters per day
(mmscmd)
y According to a recent Mckinsey report, Gas in 2020: A
Perspective, Demand for gas in India would surge
by 9-10% annually to about 115 to 135 billion cubic
meter (BCM) by 2020.
y Indian petroleum demand depends highly on import of
oiland natural gas.
y The area of interest for the Indian Oiland Natural Gas
Industry is to search for petroleum in both offshore and
onshore blocks
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10
Indian Energy Demand ScenarioYear
Hydro
(MTOE)
Nuclear
(MTOE)
Coal
(MTOE)
Oil (MTOE)
Gas Total Energy
Consumption in
MTOE(MTOE) BCM2007-08 11 4.4 216 140 40 33 410
2011-12 12 17 257 166 44 49 496
2016-17 18 31 338 214 64 71 665
2021-22 23 45 464 278 97 108 907
2026-27 29 71 622 365 135 150 1222
2031-32 35 98 835 486 197 219 1651
% Growth 6% 11% 6% 5% 7% 7.2
Source: Integrated Energy Policy, of the Gov., August 2006Assumptions: (1) GDP growth assumed to be 9% (2) Population growth assumed to be 1.1% (3) Includes only commercial energy requirements
0
200
400
600
800
1000
1200
1400
1600
1800
2007-08 2011-12 2016-17 2021-22 2026-27 2031-32
Nuclear Hydro Gas Oil Coal
CAGR 7.2%
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Natural Gas Consumption in India
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Summary of Natural Gas Study
Sector ScenariosDemand Driver Current Condition Plausible Future Scenarios
Natural GasPricing Some plant have access to cheapgovernment-regulated gas
Gassupply curve allows plants to
exhaust available low-cost suppliesand forces them to purchase market-
priced gas.
Environmental controlsPiecemeal regulation of regionalair
pollutants in some cities
Tighterlimits ofsulfur emissions
Coal pricing and reform
Coal isstate-controlled industry with
low pricesand infrastructure imposed
cap on available supplies
Reformsallow much greater use of pit-
head coal plants ("coal by wire") and
imported coal,and raise coal prices
towards internationallevels
Electricity Sector
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Projected Electricity Generation
Mix,2005-2025Electricity Sector
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Fertilizer Sector
Demand Driver Current Condition Plausible Future Scenarios
Import ontrolIndia is nearly 100% self-suffi ient in
nitrogenous fertilizer
Allowance of5%or 30% dependence
on imported fertilizer
Price and availability of gasMost plants have access tocheap
government-regulated gas
Cheap gas supplies decline and gas
prices move tomarket levels
Farm gate ureaprices
Prices to farmers have increased
slowly but remain below international
levels
Farm gate prices increase more
rapidly towards international levels
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1See Integrated Research and Action for Development (2007). Demand forNatural Gas in the Indian Fertilizer Sector.
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Demand Driver Current Condition Plausible Future Scenarios
Availability of gas
Many industrial consumerslack
politicalaccess to gassupplies,andconsume other fuels
Significant gassuppliesare available
to consumers willing to payinternational prices
Economic growth Economic growth isstrong in IndiaEconomic growth could accelerate,
decelerate, or remain the same
Industrial Sector
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1
Fora more detailed discussion of the modeling framework and results,see A.T
. Kearney (2007). Demand forNatural Gas in the IndianIndustrial Sector.Program on Energy and Sustainable Development, Working Paper #68.
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Total Indian Gas Demand
Projected Natural Gas Demand (2005-2025)
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Global Natural Gas Scenario
19Source: Wood Mackenzie
Liquefaction CapacityRegion 2,010.0 2,011.0 2,012.0 2,013.0 2,014.0 2,015.0 2,020.0 2,025.0
Asia Pacific 84.2 90.4 90.2 88.7 90.7 104.6 115.3 92.1
Europe 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1
Middle East 76.9 94.5 98.1 98.1 98.1 98.3 98.3 98.3
North Africa 31.3 31.3 31.9 35.0 36.4 41.4 42.8 42.8
North America 0.8 0.2 - - - - - -
South America 16.2 18.7 19.4 19.4 19.4 19.4 16.2 9.4
West Africa 21.7 23.8 25.0 27.9 30.1 30.3 29.7 24.6
Total: 235.2 263.0 268.6 273.2 278.7 298.1 306.3 271.2
LNG Demand
Region 2,010.0 2,011.0 2,012.0 2,013.0 2,014.0 2,015.0 2,020.0 2,025.0
Asia Pacific 122.1 132.2 141.9 145.9 156.3 168.1 186.6 227.5
Europe 60.4 69.4 71.2 72.2 75.3 81.1 148.1 169.0
North America 34.6 44.8 43.6 39.3 26.9 26.0 20.7 17.3
South & East Africa - - - 0.3 0.3 0.3 0.4 0.4
South America 3.2 4.0 4.2 4.2 4.3 4.4 5.5 5.9
Total: 220.2 250.4 260.9 261.8 263.2 279.9 361.3 420.2
Surplus/Deficit 15.0 12.6 7.7 11.4 15.5 18.2 (55.0) (149.0)
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Conclusionsy Demand size and uncertainty could influence supply
infrastructure decisions.
yGas demand is highly dependent on policies outsidethe gassector.
y The electricity mix in India is unlikely to change
dramatically
y Coalsector reform may undercut climate changeobjectives
y Non-climate policies could have alarge impact on
carbon emissions
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Bibliographyy http:// n. i ipedia.or / i i/ ain_Pa e
y http://petroleum.nic.in/
y http:// .indiaener portal.or /overview_detail.php
y http://www.financialexpress.com/news/natural-gas-could-keep-indias-growth-engines-running/488199/
y http://pesd.stanford.edu
y http:// usiness.mapsofindia.com/india-
gdp/industries/oil-natural-gas.html
y http://economictimes.indiatimes.com/news/economy/i
ndicators/ anufacturing-helps-GDP-grow- 4-in-
FY10/articleshow/599 1 .cms
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