In 2004, 996 billion cubic feet (Bcf) of natural gas was produced in India. However consumption of natural gas was 1089 Bcf, so net import was 93 Bcf. This was the first time that the natural gas was imported in India.
38 trillion cubic feet of natural gas is present in India. India’s natural gas reserves are present in Mumbai High Complex, Andhra Pradesh, Assam and Gujarat. Panna, Tapti and Mukti fields which are present in the Mumbai High basin produces 300 million cubic feet per day.
Government owned companies like ONGC and Oil India Ltd and private companies like Reliance Industries are the significant players in the natural gas production.
In the transmission and distribution of natural gas, Gas Authority of India Ltd. (GAIL) has complete monopoly. In the year 2004, 88 percent of natural gas consumed in India was piped by GAIL. Transmission network of GAIL which at present is around 1900 miles will be increased to 6200 miles to cover maximum part of India.
In 2006 the Government of India allowed the private and foreign players to have 100 percent stake in the pipeline projects.
In 2006 ONGC found natural gas reserves in Krishna Godavari Basin and Mahanadi Basin. Reliance Industries too had found large natural gas reserves in the Krishna Godavari Basin in the year 2002.
Dahej LNG facility and Surat LNG facility in Gujarat are at present the two LNG import terminals in India. Dahej can handle 5 million metric tons per year (MMt/y) and Surat can handle 2.5 million metric tons per year; however the capacity of Surat terminal will be increased to 5 MMt/y in future. Another LNG import terminal is being developed at Kochi by Petronet LNG; it is expected to be completed by 2009 and will be able to handle 2.5 MMt/y.
Despite having large reserves of natural gas, it is estimated that the demand will outstrip supply. So, India has been exploring various alternatives to meet the demand for natural gas in the coming future. Some of the alternatives being explored are:
Iran-Pakistan-India Pipeline: It will run from South Pars fields of Iran to Gujarat (India) via Pakistan. It will be around 1700 mile with a capacity of 2.8 Bcf/d. Instability and terrorism in Pakistan is the major threat.
Turkmenistan-Afghanistan-Pakistan-India Pipeline: It is a 1050 mile pipeline project. The pipeline will originate from Dauletabad-Donmex of Turkmenistan and will run through Afghanistan, Pakistan and India. Initially India was not the part of the project but was invited in 2006.
Imports from Myanmar: India entered into an agreement with Myanmar for the supply of natural gas to India. The pipeline will originate from Myanmar and will terminate in Tripura (India).
The discussions are being carried out by the respective governments. As these countries are politically sensitive and prone to religious extremism, India will have to be very cautious in the dealings. However it is a fact that India being the second fastest growing economy of the world requires secure and steady supply of natural gas to meet its ever growing demand.
Sources:
Energy Information Administration
Oil and Gas Journal
Times of India
Website: http://www.ebiz16c.blogspot.com
38 trillion cubic feet of natural gas is present in India. India’s natural gas reserves are present in Mumbai High Complex, Andhra Pradesh, Assam and Gujarat. Panna, Tapti and Mukti fields which are present in the Mumbai High basin produces 300 million cubic feet per day.
Government owned companies like ONGC and Oil India Ltd and private companies like Reliance Industries are the significant players in the natural gas production.
In the transmission and distribution of natural gas, Gas Authority of India Ltd. (GAIL) has complete monopoly. In the year 2004, 88 percent of natural gas consumed in India was piped by GAIL. Transmission network of GAIL which at present is around 1900 miles will be increased to 6200 miles to cover maximum part of India.
In 2006 the Government of India allowed the private and foreign players to have 100 percent stake in the pipeline projects.
In 2006 ONGC found natural gas reserves in Krishna Godavari Basin and Mahanadi Basin. Reliance Industries too had found large natural gas reserves in the Krishna Godavari Basin in the year 2002.
Dahej LNG facility and Surat LNG facility in Gujarat are at present the two LNG import terminals in India. Dahej can handle 5 million metric tons per year (MMt/y) and Surat can handle 2.5 million metric tons per year; however the capacity of Surat terminal will be increased to 5 MMt/y in future. Another LNG import terminal is being developed at Kochi by Petronet LNG; it is expected to be completed by 2009 and will be able to handle 2.5 MMt/y.
Despite having large reserves of natural gas, it is estimated that the demand will outstrip supply. So, India has been exploring various alternatives to meet the demand for natural gas in the coming future. Some of the alternatives being explored are:
Iran-Pakistan-India Pipeline: It will run from South Pars fields of Iran to Gujarat (India) via Pakistan. It will be around 1700 mile with a capacity of 2.8 Bcf/d. Instability and terrorism in Pakistan is the major threat.
Turkmenistan-Afghanistan-Pakistan-India Pipeline: It is a 1050 mile pipeline project. The pipeline will originate from Dauletabad-Donmex of Turkmenistan and will run through Afghanistan, Pakistan and India. Initially India was not the part of the project but was invited in 2006.
Imports from Myanmar: India entered into an agreement with Myanmar for the supply of natural gas to India. The pipeline will originate from Myanmar and will terminate in Tripura (India).
The discussions are being carried out by the respective governments. As these countries are politically sensitive and prone to religious extremism, India will have to be very cautious in the dealings. However it is a fact that India being the second fastest growing economy of the world requires secure and steady supply of natural gas to meet its ever growing demand.
Sources:
Energy Information Administration
Oil and Gas Journal
Times of India
Website: http://www.ebiz16c.blogspot.com
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