understading ng

8/8/2019 Understading NG

1/20

Confidential Slide 1

UNDERSTANDINGNATURAL GASUNDERSTANDINGNATURAL GAS

Confidential

The Green Fuel of Future

By,

Bhargavi Karlapudi


2/20


Confidential

Found underneath earths surface

Slide 2

Typical Composition of Natural Gas

Methane CH 4 70-90%

Ethane C 2H6

0-20%Propane C 3H8

Butane C 4H10

Carbon-di-oxide CO 2 0-8%

Oxygen O 2 0-0.2%

Nitrogen N2 0-5%

Hydrogen s ulphide H 2S 0-5%

Rare ga s e s Ar, He, Ne, Xe trace s

Combustible mixture of hydrocarbons

W hat is Natural Gas?


3/20



Ex traction Production

Consumers Distribution

Transportation

Value Chain of Natural Gas


Ex ploration


4/20




Benefits of Natural Gas

Natural Gas

Versatility

Convenience

EnvironmentalBenefits

ConsistentReliableSupply

Savings

Safer


5/20




Types and Consumers

PNG Piped Natural Gas

LNG Liquefied Natural Gas

CNG Compressed Natural Gas

Natural Gas

PNG CNG LNG

Domestic Commercial TransportIndustrial

Types

Consumers


6/20


A pplications

Cooking

Domestic

Cooking

Commercial

CoolingCooling

HeatingHeating

Power

Industrial

Fuel

Transport

Feed Stock

Fuel

A pplications if NG

A pplications

Cooking

Domestic

Cooking

Commercial

CoolingMicro Power

Space Heating/Cooling Heating

Power/

Cogeneration

Industrial

Fuel

Transport

Feed Stock

Direct Firing/Indirect Heating

Hot water Cooling

Confidential


7/20


NATURAL GASINDUSTRY IN INDIANATURAL GASINDUSTRY IN INDIA

entialentialConfidential


8/20


U pstream

Indian Gas Market Structure

Transport

M idstream

G SPL

GA IL

R G TIL

TNG C

Downstream

GA IL

GG CL

RIL

AG CL

SEL

MG

L/IG

L/BG

L

Power

Fertilizer

Domestic

Transport

Commercial

Industrial

ONG C

RIL

G SPC

Pvt/JVCairn/ G E/Niko

LNG

HaziraShellDahej

PLL

KochiPLL

Dahej - Ext

Dabhol

Transnational

Pipelines

AG CL

Others

Bulk M arketers/Shippers

To be regulated by P NGR BRegulated by DG H & MOP NG



9/20


Sources of Natural Gas


10/20


11/20


Massive Investments

Total Investment requiredin the proposed projects

is about U SD 15-20 bn

Transnational Gas pipelines planned

Iran-Pa kis tan- India pipeline

Myanmar- India Pipeline

Tur kmeni s tan- Afghani s tan-Pa kis tan- India pipeline

Source: MoP&NG, Infraline, IMaCS Research


12/20

Confidential Slide 12S upply will be less than demand

North, WestIndia 68%share by 2012

South India 26 % shareby 2012

East India 6% share by2012

Source: GAIL Infraline reference book

Demand and Supply

OIL

5 MM SC M DPetronet Dahej30.60 MM SC M D

Shell Hazira6.30 MM SC M D

Dabhol18.0MM SC M D Krishna Godavri

80 MM SC M D

Bombay O ffshore

56.42 MM SC M D

Gujarat6.10 MM SC M D

R IL CB M5 MM SC M D

L NG Terminal

R IL NEC12 MM SC M D

Petronet Kochi4.50 MM SC M D

R IL Shahdol5 MM SC M D

Rava5 MM SC M D


13/20


Ex ploratory Government Measures

New Exploration L icensing Policy Coal Bed M ethane Policy

110 Production S haring contract s in 5 Ne w E xploration Licen s ing Policy (NEL P) round s

30 dis coverie s w ith hydrocarbon in-place re s erve s of over 600 MMT in las t 3-4 year s

Inve s tment commitment of about USD 5 bn in exploration pha s e sunder NELP

Perception of pro s pectivity of Indian s edimentary ba s insreflected in NELP VIII re s pon s e

ExploratoryM easures

16 Bloc ks already a warded with production potential of 25 MMS CMD under Coal Bed

Methane (CBM) I & II round s

S ignificant commercial finds in bloc ks held by RIL and ONG C

Fir s t commercial production of CBM by 2007-08

54 Bids received for 10 CBM bloc ks offered in the third round

Aw ard of bloc ks in near future


14/20


Petronet DahejShell Hazira

Dabhol

HBJ Pipeline

K ris hna Godavri380 bcm

Bombay Off s hore

380 bcm

Gujarat82 bcm

Raja s than4.5 bcm

Tripura18 bcm

Total re s erve s 985 bcm

Source: UBS

Infra s tructure is a major iss ue

Getting Natural Gas to Market

2,800 K ms of HBJ pipeline traver s e s from Hazira to Delhi, Gujarat,MP, UP and Raja s than.

433 K ms of GS P L whcich traver s e s from Hazira to K alol in Gujarat610 K ms of Dahej Vijaipur pipeline s by Gail

Exis ting


15/20

Confidential Slide 15S outh India connectivity in next pha s e

Pipelines- Ex isting & Planned

Kakinada

Kolkata

Dadri

Delhi

Dahej

Jagdishpur

Vijaipur

Hazira

Chennai

Dabhol

Bangalor e

KochiCoimbatore

U ranHyderaba

d

Pune

M angalore

Goa

Existing / Planned L NG TerminalsExisting Transmission L inesPlanned Transmission L ines

Infra s tructure to connect demand center swith s upply s ource sInfra s tructure to develop regional mar ket s

Pipeline s connecting S outhern s tate s w ith s upply s ource sPipeline s connecting Ea s tern s tate s w ith s upply s ource sPipeline s to connect Ea s t and We s t regional mar ket sPipeline s to connect Ea s t and North regional mar ket sRe quire s anchor load s e.g. po wer, fertilis er S tate grid s to connect major demand centre s w ithin s tate s

National ga s mar ket expected to evolve from regional ga s hub s once infra s tructure isavailable

Significant investment requirements and rapidly growing demands arechallenges to infrastructure development


16/20


Present Status

P NGR B announced CGD to 200 citie s in next 5 year sBoard ha s received EOI for 70 citie s13 citie s have been a warded licen s e s to variou s companie s by GoI

Average ga s re quirement per city is ~ 0.5 to 1.0 MMS CMD by end of 15-20 year s

Average inve s tment per city is Rs .300 Crore s Approximate inve s tment in in next 5-7 year s is ~Rs .10,000


17/20


Challenges

Ba s ic Challenge s E nergy deficit mar ket and large demand s upply gap in natural

ga s Huge unexploited potentialMa king up the s hortfall through

U nloc king Indias up s tream potential through enhanced exploration E ncouraging development of ne w s ource s -CBM LNG I mport sCritical Challenge s

S hift to mar ket-ba s ed pricing for dome s tic ga s and LNG Ade quate policy mea s ure s to develop the natural ga s mar ket

Natural Ga s ha s an important role to play in Indias energy need s


18/20


19/20


Players Contd.,

Many other player s intere s ted to foray into CGD Bu s ine ss

urat perationalBaru h perational

n hle s hwar perational

ha adia lanned

ap i lanned

G u

arat

tate P etroleu Corporatio td G u

arat

n s an s olD ur apur

an i un

G ur oa n perational ohta P lanned ewari P lanned

ha ar P lanned ee rana P lannedBhiwadi P lanned

ol ata City G a s Co pany We s t Be n al ol ata P lannedMu ai perationalThane perational

a i u ai perationalMira ! Bhayander perationalP a s te P lanned

" Mahar s htra atural G a s Co pany Mahar s htra P un e P lanned #

elian e $ nd u s trie s td Cro ss Country % % Town s P ropo s ed

& elian e atural e s ou r e s td P ropo s ed

Me h s an a P lannedSa ar antha P lanned

Siti ' ne r y td ( P Morada ad perational

) Tripura atural G a s Co pany td Tripura We s t Tripura perational0

adodara Mu n ipal Corporation :td G u

arat

adodara P lanned

% Torrent P ower G u

arat D ah e

G M ' ne r y

1

)

0

We s t Be n al P lanned

%

2 aryana City G a s D is tri ution td

$ ndrapra s tha G a s Co pany td

G u

aratSa ar at i G a s td

S.NO

Name of Company

D elhi

Mahar s htra

D elhi perational

a

a s than

2 aryana

G u

arat

Mahana ar G a s Co pany td

G u

arat G a s Co pany td

G reat ' a s tern ' ne r y Corporation td

State District/Town Current Status


20/20


Gross Sales of Gas Players

Company O perations Gas Revenues Total Revenues

ONG C Exploration 75,528 650,494

RIL All 34890 174350

IOC All 2307290

GAIL Tran s miss ion 219836 219836

GG CL CGD 4463 4463

IGL CGD 9621 9621

Fig in Million Rs .

understading ng

Documents