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In the market where so many fossil fuels are available Natural Gas is the one
which is the cleanest. India has currently around 1339.57 billion cubic meters of
natural gas reserves. Natural gas has been dubbed as a “bridge fuel,” a
fossil fuel that could help reduce emissions while other pure fuels are
being researched.
USE
Industrial Use
14%
31% Home Use
Electricity
34%
Consumption
21% Commercial
In India gas is produced from Hazira basin, Mumbai offshore & KG basin and
Assam & Tripura.
Gas Consumption
In 2018-19 gas consumption was 148.02 MMSCFD. Biggest purchasers of natural
fuel are the fertilizer enterprise (27.78%), electricity (22.7%), and the use of
gasoline as a home gas for transportation (16.25%). Natural gas is fed for both
power (60.8%) and non-energy use (39.32%) .
Natural Gas Network
To satiate India’s energy needs , Petroleum and Natural Gas Regulatory Board
(PNGRB) Act 2006, authority was given to many companies to lay City Gas
Distribution (CGD) network in certain parts of the country.
Regulations have been changed to allow coverage of CGD to 228 GAs spread over
406 districts with potential to cover about 53% of the country’s area and 70% of
country’s population.
50
46
45
40 38
35
30
CNG
24
25 PNG- House hold
20
20 PNG - Industrial
15
10 7
5
5
0
2011 2015 2020
It covered 50 Geographical Areas (GAs) spread over 14 states and 124 districts
(112 full and 12 part), covering 24% of India’s population and 18% of its area. A
total 225 bids from 25 entities were received .
In future, the natural gas demand is all set to grow significantly at a CAGR of 6.8%
from 242.6 MMSCMD in 2012-13 to 746 MMSCMD in 2029-30. The supply of
natural gas is likely to increase in future with the help of increase in domestic gas
production. The contribution to the overall demand from the CGD sector is set to
increase from 6% to 11% during the projected period.
Conclusion
The development of natural gas market as well as infrastructure in India today
needs an enabling environment so that the intended results could be achieved in
the most cost effective manner, in the least possible time and with maximum
benefits to all stakeholders including consumers.
To meet the country’s growing natural gas demand, radical changes should be
made. The market for natural gas in India currently lacks depth with only a small
number of producers (production still largely controlled by the state players),
negligible number of shippers and a fairly limited number of consumers.
Therefore, the market is limited in terms of bilateral contracts between
producers/marketers and consumers of natural gas
It is also imperative to note consuming gas sectors like Power and Fertilizers
which form the anchor load for any gas field or RLNG terminal. The affordability of
these two key user segments depends upon the policy directives and regulatory
reforms in these sectors.