Indian such as Demand-Supply, Pricing Policy, and Regulatory

Indian Natural Gas Outlook

Today our life style is changing with brisk pace. And in
order to embrace the changes, the industries are also leaving no stone unturned
to welcome the revolutionary shift. One such industry is “Indian Natural Gas Industry”.  For the past two decades, the economy of India
has shown a greater escalation. This is because of the amalgamation of the
better performance & output, being driven by almost all the industries. The
Natural Gas Industry has always been affected by the factors such as Demand-Supply,
Pricing Policy, and Regulatory Reforms etc.The Current Outlook
of Natural Gas in India

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Going by the present scenario, the industry is at the
threshold of growth. This is evident from the fact that the demand is
increasing exponentially. Not only this, the coming up of the major projects
such as Gas Discoveries in Eastern Coast, Commissioning of LNG import terminals
in the Western Coast etc. signifies that the country’s dependency towards the natural
gas will reach new heights.

Current State of Infrastructure

The pipeline serves as the mode of Natural Gas
Transportation. At present, the HVJ
Pipeline serves as the longest serving pipeline with a whooping length of
3750 km. As per the forecast, by the end of 13th Five Year Plan,
nearly 31,432 Km of Pipeline of
capacity 782 MMSCMD will be ready.
Though the projects will be ready, the capacity addition will be the key focus
of continuous improvement. As per the forecasted report, the capacity of the
natural gas pipeline will touch 815
MMSCMD by the end of 2030. The capacity
at Source which aims at abridging
the gap between the supply points and market is seeing the capacity addition of
582 MMSCMD. Major focus is also led
on the eastern part of the country, as they will be brought under the arena of
avid Natural Gas users. The states such as Bihar, West Bengal, Jharkhand,
Orissa etc. will be brought under the CGD project in the days to come. Proposed
action plans has also been taken into account for the same. In this context,
GAIL is coming forward with the estimated fund of 5176 Crore to connect the region with national grid.Looking through “Demand” window

The demand for the natural gas is increasing day-by-day. The
urge for manageable source of energy, improved availability of natural gas
resources, infrastructural developments, etc. are some of the contributing
factors behind the escalated demand figure. The sectors such as Power,
Fertilizers, CGD, Industrial & Commercial sectors etc. serves as the major
chunk of natural gas users. Among these, the power & fertilizer sectors are
the prominent users of the natural gas. Having a look into the sectorial
demand, the industry-wise demand are as follows:

Natural Gas demand for power sector will rise from 158.88 MMSCMD in 2016-17 to 353.88
MMSCMD in 2029-30.

present demand of natural gas in Fertilizers sector is 96.85 MMSCMD. This will escalate to 110.05 MMSCMD by 2029-30.

the demand for Natural Gas in City Gas Distribution project will reach 85.6 MMSCMD by 2029-30.Potential Optimal Supply Options

Despite all odds, the domestic production is seen to improve
in the next 3-6 years. This can cater to the industry-wise requirements and
thus improve upon the Demand-Supply gaps. Also, the introduction of Shale Gas,
CBM Blocks etc. can act as an optimized alternative. Right from 2012 to 2030,
the availability of natural gas is going to increase at a CAGR of 7.2%. This will reach to 474 MMSCMD by 2029-30. Though the
demand for the Natural Gas will always be ahead of the Supply, but the proper
management and reaching out at the optimum alternate solution, can help in
fixing bugs. One such Solution that can cater to the additional demand is the R-LNG & Transnational Pipelines for
product transportation.

Importing LNG

Currently, the capacity of the Re-gasification in India is 13.60 MTPA. Apart from existing capability, the capacity
addition to the re-gasification is also on forecast as per the 13th
Five Year Plan Period. To cater to the supply gaps, an addition of nearly 10.0 MMTPA of R-LNG for the western
& eastern part of the country is planned. Referring to the statistical
data, the amount of LNG imported in 2016-17 is 204.2 MMSCMD, which eventually will reach 305.4 MMSCMD by 2029-30.Looking into the future

GSPC & Adani will come together with a 5.0
MTPA Capacity Terminal at Mundra.

the end of 12th five year plan, IOCL will come up with 5.0 MTPA Terminal at Ennore.

FSRU based Terminal at Kakinada & Gangavaram will get operational in the east
coast of the country by the end of 12th five year plan.

Gas Imported Via Cross-Border Pipelines

India caters to its natural gas requirement with the
assistance of other nations as well. Some of the countries like Turkmenistan,
Iran & some Middle-East Countries has helped a great deal in providing
Cross-Border service. The most sought after pipeline is the TAPI Pipeline that
will carry Caspian Sea Natural Gas from Turkmenistan to India via Afghanistan
& Pakistan, covering a total distance of 1680 km. As per MoPNG, nearly 30 MMSCMD of natural gas will be made
available in 2017-18 to 2021-22 plan.

The projected supply of Natural Gas via Cross-Border
Pipelines can be summarized as follows:Demand-Supply

Though it will be difficult to meet the demand of natural gas
through domestic production, the gap between the demand & supply will get
reduced by 2017-18. Post 2017-17, the gap will expand further as more &
more demand will get generated. Many reasons, be it Industrial demand, or the
production issues etc. will lag the supply from demand. However, if the R-LNG
is made available to the end-customers such as Power & fertilizers Industry
at affordable price 


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