Name- S.M.

Iqbal

Branch- APE GAS (VIII semester)

Roll Number-104

SAP ID-500053072

Understanding Natural Gas Business Assignment

Q1). What is the Indian scenario on natural gas production (including LNG,

CNG &PNG) and imports?

Ans.) Natural Gas is the cleanest of fuels that is available today. It has a variety of applications
and it the sectors that it is used mostly are:- Industrial, Residential, Power,
Commercial,Vehicle fuel

https://www.depa.gr/natural-gas-commerce/?lang=en

Here is a figure depicting the dependence of various sectors on natural gas.

Natural gas scenario in India

India is also quite significantly dependent on natural gas and the government plans to

transform India into a gas based economy in the coming few decades. Some of the

applications of natural gas in India are:-

• Feedstock in the manufacture of fertilizers, plastics and other commercially important

organic chemicals
• Fuel for electricity generation

• Used for heating purposes in industrial and commercial units.

• Cooking in domestic households (PNG) and as a fuel for vehicles (CNG)

Production- Natural gas in India is produced from western and south eastern part of the

country i.e Hazira basin, Mumbai offshore & KG basin as well as North East Region (Assam

& Tripura). Import- For meeting domestic requirements, India also imports LNG from other

countries. Here is a list of 6 operating LNG terminals in India that are operational today

with their owners and their re gasification capacities.

Location Owner/Operator Re gas:

Dahej (Gujarat) PLL 17.5

Hazira (Gujarat) SHELL 5

Kochi (Kerala) PLL 5

Kochi (Kerala) GAIL 1.3

Mundra (Gujarat) GSPC LNG ltd 5

Ennore (Tamil Nadu) Indian Oil 5

Capacity (MMSCMD) 140

Consumption- In the fiscal year 2018-19, India consumed around 148.02MMSCMD of

total gas of which 48% was contributed by domestic sector and 52% by imports.

Natural Gas Pipeline- India currently has about 16,800 km long operational natural gas

pipeline network in the country. India is planning to develop an additional 14,300 km

pipeline network for completing the national gas grid. Some of the important pipeline

projects under construction are Jagdishpur – Haldia/Bokaro – Dhamra Pipeline Project

(JHBDPL) & Barauni- Guwahati Pipeline project (BGPL), North East Region (NER) Gas

Grid, Kochi-Koottanad- Bangalore-Mangalore (Ph-II) Pipeline Project (KKBMPL),Ennore-

Thiruvallur-Bangalore-Nagapattinum– Madurai – Tuticorin Natural gas pipeline (ETBNMTPL)
City Gas Distribution Network- The government has planned to lay a gas distribution

network covering 53% of country’s geographical area and 70% of country’s population.

This will ensure an easy accessibility to CNG/PNG for common public and for industrial

and commercial areas as well. It has also been planned to meet 100% of CNG and PNG

requirements through domestic supply which is cheaper than imported gas.

Conclusion- The above mentioned steps will make India self-sufficient as far as energy

demand is concerned, thus boosting the economy. The proposed projects will also promote

employment when undertaken, therefore taking care of the welfare of common citizens.

References

• http://petroleum.nic.in/natural-gas/about-natural-gas

• https://geology.com/articles/natural-gas-uses/

 https://www.depa.gr/natural-gas-commerce/?lang=en

2. A Case study on ONGC biggest oil/gas project in Krishna Godavari basin

(reasons of delay, etc)

Name of the project-: KG-DWN-98/2

Location-: Krishna Godavari basin, Bay of Bengal

Estimated cost of the project-: $5billion

Oil and Natural Gas Corporation, India’s national oil company has planned to produce gas

from its largest gas reserve till date. The block was supposed to produce gas from June 2019

but this production date has been postponed and the new proposed time is not before at least

second half of 2020.

The block is critical towards making India self-sufficient in the energy sector. It is critical

towards contributing country’s energy mix to 15% gas. One of the main reasons behind the

delay is contractual delay. Even if ONGC resolves this issue soon, then there are other

technical challenges that are staring them right in face.

One of the major challenges ONGC is likely to encounter is the extreme geographical and

climatic difficulty. Hostile weather conditions allow drilling for only half a year. Thus, one

can again expect a duel between one of the top oil companies and nature for making this

mega project economically viable. Another such difficulty could be the deep water drilling in

this block. ONGC has planned to set up 5 deep water drilling ships and about multiple dozens

of jack up rigs for this project.

ONGC aims to produce 15 million standard cubic meters a day of gas and 77,000 barrels a

day of oil from the block. Oil production can be expected a year later since the first gas

production. This will certainly be major step towards making India a self-sufficient domestic

producer and it will also help in increasing the share of clean gaseous fuel to meet India’s

energy demand.