Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Karan sahani
Agenda
Overview
Exploration
Refinery and Pipelines
Natural Gas
New and Renewable Energy
Power
Regulatory Framework
References
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 2
Overview
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 3
EXPLORATION - History of discoveries and
production
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 4
EXPLORATION - Overview of exploration sector
in India
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 5
EXPLORATION AND PRODUCTION IN INDIA
SIZE
- Oil & Gas cater to 45% of India’s primary energy requirements
- Crude oil demand is currently about 146 MMT while the domestic production of
crude is only 34 MMT
- Natural gas demand is currently about 179 MMSCMD while the domestic supply is
only 80 MMSCMD
STRUCTURE
- ONGC and OIL, largest upstream companies, with about 82% share of the total
domestic oil and gas production
- Exploration and Production sector witnessing increased private sector participation
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 6
EXPLORATION AND PRODUCTION IN INDIA
POLICY
- 100% FDI is allowed in the exploration of Crude Oil and Natural Gas through the
automatic route
- New Exploration Licensing Policy (NELP) is in place (since 1998) to facilitate
private sector participation in Oil and Gas exploration
- Coal Bed Methane (CBM) Policy has been formulated which provides for attractive
fiscal and contract terms for the exploration of CBM blocks
- Regulatory Body - Director General of Hydrocarbons (DGH)
OUTLOOK
- Crude oil demand is likely to increase to about 235 MMT by 2012
- Gas demand is expected to reach 279 MMSCMD by 2012
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 7
EXPLORATION AND PRODUCTION IN INDIA
POTENTIAL
- Growing demand-supply mismatch provides ample opportunities for investment
- Exploration and production of crude oil, gas and CBM
- Active promoting and creation of strategic oil and gas reserves through partnerships
with the private sector
- 22% of the Indian sedimentary area is unexplored – discovery of oil fields by
investors such as Cairn Energy and “giant” gas fields by Reliance, ONGC, etc.
indicate a large potential for profitable investment in exploration
- An investment need of US$40 billion is expected in exploration and production by
2012
- Reliance alone plans to spend over US$10 billion in oil & gas exploration and
production over the next 3 years.
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 8
EXPLORATION - Scope for DNV
ENHANCED LEVEL OF
E&P ACTIVITIES
ST
CO
BLE
RDA
FO
T AF
G YA
BOOMING N ER
ENERGY
L YE
U PP DEMAND
SCARCITY OF T OS
NGE REGULATORY
RESOURCES LLE
C HA FRAMEWORK
AND INCREASING
& TAXATION POLICY
COST
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 9
REFINING - World Consumption Pattern
At current rate of
consumption & production,
oil in India would last only
for about 20 to 25 years.
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 10
REFINING - Background
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 11
REFINING - Existing Refining Capacity &
Expansion Plans
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 12
Refined Products - Availability and Demand
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 13
REFINERY GRM trends
Market Determined
Administered Pricing Controlled Pricing
Pricing
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 14
REFINING - Future
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 15
PIPELINES - Crude and LPG Pipe Lines
Increasing urbanization and greater
concern for environment and safety,
the share of pipeline transportation is
likely to increase in India
About 50-60% of the primary
transportation of petroleum products
in developed countries is done
through pipelines
Pipeline network of Indian Oil has
grown to 9273 km with a capacity of
about 62 million metric tonnes per
year.
GAIL owns and operates 6700 km.
of natural gas transmission network
which is over 82% of the total
pipeline infrastructure in the country
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 16
PIPELINES - Transportation
Road
5.10%
Share of pipeline transportation in
Rail, 3.20%
India much lower as compared to
Coastal
33.70% USA, inspite of its advantages
Pipelines
59% Total POL pipeline length currently
USA under operation in India – 12,204
kms
Road
27.50%
POL pipelines under
Rail 37.50%
implementation – 5,561 kms
(Investment of USD 1.5 bn)
Coastal
7.50%
Pipelines
25% INDIA
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 17
REFINING AND PIPELINES - Scope for DNV
ST
CO
BLE
RDA
FO
T AF
G YA
BOOMING N ER
ENERGY
L YE
U PP DEMAND
T OS
RISING COST OF
N GE
FEEDSTOCK & LLE REGULATORY
A
CH
UPGRADATION OF EXISTING FRAMEWORK
REFINERIES
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 18
Global Comparison
India’s Gas Reserves / Production
India 37 1 35
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 19
Indian Energy Sector – An Overview
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 20
KOLHAPUR
HYDERABAD RAJAMUNDRY Upcoming (16.25 MMTPA , US$ 2 Billion)
GOA VIJAYAWADA
Transmission Pipelines
NELLORE
Existing (6,300 Kms)
BANGLORE Planned (8,400 Kms, US$ 5 Billion)
HASAN CHENNAI City Gas/ CNG
MANGLORE
Existing (10 cities)
COCHIN
Planned (40 cities, US $ 2 Billion)
5 mmtpa KANJIRKKOD TIRUCHCHIRAPALLI
COIMBTORE
Gas By Sea Receipt (Likely Location)
TUTICORIN LNG Terminal
© Det Norske Veritas AS. All rights reservedINTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
3 April 2009 Slide 21
Gas Sector Challenges
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 22
What does this mean for DNV?
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 23
RENEWABLE ENERGY - Introduction
India has installed close to 10,000 MW of grid connected renewable energy (Sept, 2007)
Wind energy market size has increased in the 1,500-1,700 MW per year $2250miillion –
2500million per annum
Non-commercial sources
Regulator :The Ministry of New and Renewable like fuelwood, agricultural
Energy (MNRE) is the nodal Ministry of the waste & animal dung
Government of India for all matters relating to new constitute ½ of the total
and renewable energy. energy consumption in
India
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 24
RENEWABLE ENERGY - Solar Power
Location advantage
Average annual temperature – 25-27 degree centigrade
South-East coast has the highest temperature
Major players PV cell - Central Electronics Ltd., BHEL
Reliefs offered by Government on SPV manufacturers and users of SPV based
products
- No excise duty for manufacturers
- Low import tariff for several raw materials and components
- Soft loans to users, intermediaries and manufacturers
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 25
RENEWABLE ENERGY - Hydro power
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 26
RENEWABLE ENERGY - Wind Energy
Wind energy is plentiful, renewable and clean. Therefore, it is considered by experts to be
more environmentally friendly than many other energy sources.
Wind Energy Potential In India
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 27
Source : M N E S
RENEWABLE ENERGY - Wind resource in India
Major Player
Suzlon
- Started in 1995
- Ranked 5 in terms of
th
India is second
largest exploiter of
Wind Energy –
1000 MW
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 28
RENEWABLE ENERGY - Biomass and Bio-fuel
BIOMASS BIOFUEL
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 29
RENEWABLE ENERGY - Scope for DNV
RISING PRICES
OF CONVENTIONAL
FUELS
D
MAN
E
NGD
WI
G RO
Y AT
G
BOOMING N ER
ENERGY
L YE
U PP DEMAND
T OS
AVAILABILITY OF NGE FAVOURABLE
L LE
A
COST EFFECTIVE REGULATORY
CH
TECHNOLOGY FRAMEWORK
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 30
POWER SECTOR - Current Scenario
2.4% of the overall world energy output
6th largest energy user, comprising about 3.3% of the overall global energy expenditure
per year.
The gross electricity production capability of Indian Power Sector is placed at
around 111 GW.
Wind Renewable,
Nuclear, 3%
Others, 8.60% 5%
Diesel, 1%
Hydro, 26%
Gas, 11%
Agriculture, Insustrial, 35.60%
22.90%
Commercial,
8.10%
Domestic, 24.80% Coal, 54%
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 31
POWER SECTOR - Weakness
MAJOR REASONS
Inadequate power generation capacity
Lack of optimum utilization of the existing generation capacity
Inefficient use of electricity by the end users
Inadequate inter-regional transmission links
Huge T&D losses (theft) and skewed tariff structure, making SEBs unviable
Inadequate and ageing sub-transmission & distribution network leading to power
cuts and local failures/faults
Slow pace of rural electrification Still 19% villages
haven’t seen what is
Lack of grid discipline electricity
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 32
POWER SECTOR - Future
FUTURE SCOPE
Exponential demand growth Abundant coal reserves (enough to last
at least 200 years).
Capacity Enhancement
Vast hydroelectric potential (150,000
Increased significance of the role of the
MW).
private players and foreign investments
Large pool of highly skilled technical
New strategies and reforms
personnel.
Increased significance of renewable Impressive power development in
sources of energy
absolute terms (comparable in size to
those of Germany and UK).
Enabling framework for private
investors.
Potentially, one of the largest power
markets in the world
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 33
POWER SECTOR - Scope for DNV
INCREASING ROLE
OF PRIVATE
PARTICIPATION
ST
CO
BLE
A
O RD
AFF
A T
GY
N
BOOMINGEENERGY ER
TE
ADEMAND
E R
N
O GE
HUGE LOSSES IN GE T
N LIBERALISATION
L
TRANSMISSIONLE
A
CH FROM GOVERNMENT
AND PILFERAGE
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 34
REGULATORY FRAMEWORK - Laws
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 35
REGULATORY FRAMEWORK - Regulatory
Authority
Government
of
India
Ministry of
Ministry of
Ministry of New and Atomic Energy
Petroleum and
Power Renewable Commission
Natural Gas
Energy
Petroleum &
Director General Central
Natural Central State Electricity Atomic Energy
of State Electricity Electricity
Gas Regulatory Electricity Regulatory Regulatory
Hydrocarbons Boards Regulatory
Board Authority Commission Board
(Upstream) Commission
(Downstream)
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 36
REGULATORY FRAMEWORK - Director
General of Hydrocarbons
Upstream Regulator
Members
Director General
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 37
REGULATORY FRAMEWORK - New
Exploration and Licensing Policy (NELP)
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 38
REGULATORY FRAMEWORK - Petroleum and
Natural Gas Regulatory Board
Downstream Regulator
PNGRB formally established with effect from 1.10.2007
Regulate refining, processing, storage, transportation, distribution, marketing
and sale of petroleum, petroleum products and natural gas
Promote competitive markets
Functions of the Board
- Registration of entities
- Authorization
- Declaring, laying, building, etc., of common carrier or contract carrier and city or
local natural gas distribution network
- Rights of first use
- Transportation Tariff
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 39
REGULATORY FRAMEWORK - Central
Electricity Regulatory Commission
Mandatory Functions
- Regulate the tariff of generating companies
- Regulate the inter-State transmission of electricity
- Determine tariff for inter-state transmission
- Issue licenses to persons to function as transmission licensee and electricity trader
- Specify Grid Code having regard to Grid Standards
- Specify and enforce the standards with respect to quality, continuity and reliability
of service by licensees
- Fix the trading margin in the inter-State trading of electricity
Advisory Functions
- Formulation of National electricity Policy and tariff policy
- Promotion of competition, efficiency and economy
- Promotion of investment in electricity industry
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 40
References
http://petroleum.nic.in/
http://mnes.nic.in/
http://uttara.in/
http://www.acus.org/
http://www.energymanagertraining.com/
http://www.hinduonnet.com
http://southasianmedia.net
http://www.indiaenergyportal.org/
http://indiastatistical.wordpress.com
www.energywatchgroup.org
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 41
References
www.ongcindia.com
www.iocl.com
www.bharatpetroleum.com
www.hindustanpetroleum.com
www.cercind.gov.in/
www.cairnindia.com
www.teriin.org
www.suzlon.com
www.ril.com
www.oil-india.com
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 42
© Det Norske Veritas AS. All rights reserved 3 April 2009 Slide 43