NATU RAL GAS

The Multi Commodity Exchange of India Limited (MCX) is a India-based state-of-theart electronic commodity futures exchange that facilitates online trading, and clearing and settlement of commodity futures transactions, ro!iding a latform for ris" management# MCX offers trading in more than $% commodity futures contracts across segments including bullion, ferrous and nonferrous metals, energy, and agricultural and agri-based commodities# I&T'()*CTI(& + &atural gas is a !ital com onent of the ,orld-s su ly of energy# It is one of the cleanest, safest, and most useful of all energy sources# + &atural gas is a combustible mixture of hydrocarbon gases# .hile natural gas is formed rimarily of methane, it can also include ethane, ro ane, butane and entane# + &atural gas is li"ely to lay a greater role in the ,orld energy mix gi!en its gro,ing resource base and its relati!ely lo, carbon emissions com ared to other fossil fuels# + &atural gas, ,hen com ressed at a ressure of /0% bars, is termed as com ressed natural gas (C&1)# 2'3CTI(&4 (2 &3T*'3L 134

MCX is a leading commodity exchange in India, ,ith a mar"et share of 5678

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3==LIC3TI( &4 >urning natural gas is relati!ely clean, as it roduces :%7 and $%7 less carbon dioxide as com ared to etroleum and coal, res ecti!ely# &atural gas is rimarily used in homes, businesses and factories for heating, coo"ing and cooling# &atural gas is increasingly being used as a source of energy for generating electricity through gas turbines and steam turbines# C&1 is used as a !ehicle fuel for ublic trans ort buses# In addition, natural gas is used as a base ingredient in the manufacture of ammonia, anti-freeCe, fabrics, glass, steel, lastics and aint#

1L(>3L 4CE&3'I( The ,orldDs natural gas reser!es are estimated to be 6,:?%#@ trillion cubic feet (tcf)# The Middle East holds :5#$7 of the ,orldDs reser!es, ,hile an additional /<#$7 is located in the former 4o!iet *nion, ,ith only @7 held in the (EC) countries# In /%<<, the global natural gas roduction ,as :,/6?#/ billion cubic metre (bcm), u :#<7 from :,<65#/ bcm in /%<%, and consum tion ,as :,///#@ bcm, com ared ,ith :,<0:#< bcm in the re!ious year# The *4, 'ussia and Canada are the largest natural gas roducing countries, ,hile the *4, 'ussia and Iran are the largest natural gas consuming countries in the ,orld# Natural Gas Proven reserves - 2011 Trillion cubic meters Russian Federation Iran
/<7 /<7 Qatar

World 2012

Reserves

The ,orld-s largest ro!en gas reser!es are located in 'ussia# The 'ussian com any, 1aC rom, is the largest extractor of natural gas in the ,orld# The ,orld-s largest gas field is 9atar-s offshore &orth 2ield, ,hich is estimated to ha!e /0 trillion cubic meters (@#%E<% cubic feet) of gas Fenough to last more than $/% years at o timum extraction le!els# The second largest natural gas field is the 4outh =ars 1as 2ield in the Iranian ,aters of the =ersian 1ulf# Located next to 9atar-s &orth 2ield, it has an estimated reser!e of 5 to <$ trillion cubic meter (/#5E<% to 0#%E<% cubic feet) of gas#
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>illion Cubic Metres 1lobally, MCX is &o#< in gold and sil!er,

Top Natural Gas Produ in! "ountries 2011*

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Indonesia 3lgeria

World 2012

Produ tion

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The global natural gas roduction gre, by :#<7# The *4 (G6#67) recorded the largest !olumetric increase des ite lo,er gas rices, and remained the ,orld-s largest roducer &or,ay China 9atar Iran Canada

(ut ut also gre, ra idly in 9atar (G/0#57), 'ussia (G:#<7) and Tur"menistan (G$%#?7), more crude oil8 8In terms of the commodity futures contracts traded during C; /%<< (4ourceA .ebsites of exchanges and 2I3 data)

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(-60#?7) and the *H (-/%#57)# The E* recorded the largest decline in gas roduction (-<<#$7), due to a combination of mature fields, maintenance, and ,ea" regional consum tion#

Top Natural Gas "onsumin! "ountries - 2011* >illion Cubic Metres

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World "onsumption 2012 .orldDs natural gas consum tion Italy gre, by /#/7# 1ermany The consum tion gro,th ,as belo, a!erage in all regions exce t &orth 3merica, ,here lo, rices dro!e *nited robust gro,th# (utside &orth Hingdom 3merica, the largest !olumetric gains in consum tion ,ere in China 4audi (G/<#07), 4audi 3rabia (G<:#/7) and Ia an (G<<#?7)# These 3rabia increases ,ere artly offset by the largest decline in the E*Ds gas Canada consum tion (-@#@7)# Ia an China Iran 'ussian 2ederation *4

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.('L) T'3)E 1lobal natural gas trade increased by a robust <%#<7 in /%<%# LiJuified &atural 1as (L&1) shi ments ,itnessed an increase of //#?7, ,hich ,as dri!en by an increase of 0:#/7 in shi ments from 9atar# 3mong L&1 im orters, the largest !olumetric gro,th ,as seen by 4outh Horea, the *H and Ia an# L&1 no, accounts for :%#07 of the global gas trade# =i eline shi ments gre, by 0#$7, led by gro,th in 'ussian ex orts#

#r$ Natural Gas %&porters 2011

#r$ Natural Gas Importers 2011

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I&)I3& 4CE&3'I( + The balance reco!erable natural gas reser!es in the country is </$%#@ bcm, ,hich accounts for only %#?7 of the ,orldDs total natural gas reser!es # + The share of natural gas in the country-s rimary energy mix decreased to @#57 in /%<< from<<7 in /%<%# Bo,e!er, this share is Juite lo, com ared to the global a!erage (/$7), rimarily due to the su ly-side constraints# + The natural gas (including C>M) roduction in /%<< ,as $?#< bcm, ,hich is </#57 higher than the actual roduction of 0%#5 bcm in /%<%# + India-s consum tion of natural gas ,as around ?<#< bcm in /%<<, ,hich accounts for only <#@7 of the ,orld natural gas mar"et# + 3s India does not ha!e any i eline connection, all the gas currently im orted is L&1# India-s current o erational L&1 im ort ca acity is <5 bcm# 6illion "u,i 'etres India &atural 1as 4cenario /%<%-<<8 &1 *sage =attern in India /%<%-<<8 07 =o,er 1eneration 0: 7
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MCX is the first commodity exchange in India to launch mini futures contracts in

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>E&E2IT4 (2 T'3)I&1 (& MCX + 4tandardised, acce ted and liJuid financial instruments + Cost-efficient trading and ris" management o ortunities + Com etiti!e trading in an anonymous auction rocess + 2utures rices ser!e as ,orld reference rices O + MCX offers safe, fair, and orderly mar"ets rotected by its rigorous financial standards and sur!eillance rocedures# + =erformance of futures contracts is su orted by a strong financial system, bac"ed by the ExchangeDs clearing members, including some of the strongest names in the bro"erage and ban"ing industries# LE3)I&1 EXCB3&1E4 )E3LI&1 I& &3T*'3L 134 2*T*'E4 + &e, ;or" Mercantile Exchange (&;MEX)8 + IntercontinentalExchange (ICE) + Multi Commodity Exchange of India Ltd# (MCX) IM=('T3&T .E> 4ITE4 ,,,#eia#doe#go! P ,,,# etroleum#nic#in P ,,,#nymex#com P ,,,#b #com P ,,,#iea#org

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MCXC(M)EX is IndiaDs first real time com osite commodity futures rice index

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4ymbol )escri tion &o# of contracts a year Contract duration Trading eriod Trading session T'3)I&1 Trading unit 9uotationLbase !alue =rice Juotation Maximum order siCe Tic" siCe (minimum rice mo!ement) )aily rice limits Initial margin 4 ecial margin

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Ex-BaCira exclusi!e of all taxes, le!ies and other ex enses /%,%%% mm>tu <% aise (%#<% ru ees) $7 07 In case of additional !olatility, an additional margin (on both buy and sell side) and L or s ecial margin (on either buy or sell side) at such ercentage , as deemed fit, ,ill be im osed in res ect of all outstanding ositions# 2or indi!idual clientA ?%,%%,%%% mm>tu 2or a member collecti!ely for all clientsA :,%%,%%,%%% mm>tu or <07 of the mar"et ,ide osition, ,hiche!er is higher#

Maximum allo,able o en osition

)ELIME'; )eli!ery unit )eli!ery centre 9uality s ecifications <%,%%% mm>tu BaCira Bub It should be of the standard i eline Juality# The Juantity of natural gas bought or sold under any contract ,ill be deli!ered at the uniform hourly rate (,ith maximum of <%7 !ariation) during the eriod of eight hours co!ered under the contract#

C(&T'3CT 4=ECI2IC3TI(&4 (2 &3T*'3L 134

MCX has strategic alliances ,ith

se!eral commodity exchanges of the ,orld

5- 6a$ light timing ")-)) am to ""-'' 3m 78inter9 &oteA=lease refer to MCX circulars for the latest contract s ecifications, and deli!ery and settlement rocedures#

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"ustomer Support< G@<-//-??$@ $%$% P To !et t=e latest >utures pri es on mo,ile< !isit =ttp<;;m/m &india/ om or sms ?'"7 @Commodity nameAB to 52222

'ulti "ommodit$ %& =an!e o> India Limited Exchange 4Juare, 4uren 'oad, Cha"ala, 3ndheri (East), Mumbai $%% %@: P Tel# no#A G@<-//-?6:< 5555 P EmailA infoSmcxindia#com P .ebsiteA ,,,#mcxindia#com