Usually accompanies petroleum. When a well is dug, it is natural gas, which is available first (being lighter than oil). Yet, there are wells where, there is only natural gas available.
- 1984 : GAIL was incorporated to look after
- transportation
- processing
- marketing of Natural Gas
- KG offshore basin in 2002 (estimated to be 14 trillion cubic feet (TCF))
- deepest oil exploration in India
- 2005 : by ONGC in the shallow water of KG basin
- 2004 : off the Odisha coast (4-5 TCF)
- 2003 : oil and gas in Barmer district
Imported gas constitutes a third of our consumption
Significance
- can be used for
- power generation,
- producing fertilizer,
- running transport systems, (CNG)
- cooking purposes (mahanagar Gas, Indraprastha gas - JV of GAIL)
- more a clean fuel than coal and petroleum
- saves precious forex
- transforms economy
GAIL
- incorporated in Aug, 1984
- for transportation, processing and marketing
- completed HBJ pipeline
| State | Reserves (%) | Production (%) | Imp Fields | Downstream |
| W Offshore | 30.7 |
81
| KG basin | |
| E Ofshore | 35 | KG basin, Mahanadi basin, Cauvery basin | ||
| Assam | 10 | 6 | ||
| Gujarat | 6 | 4.5 | ||
| AP | 4 | |||
| TN | 3 | |||
| Tripura | 3 | Palatana fields, Udaipur district | Palatana thermal power plant | |
| Others | ||||
| Total | 1355 BCM |
Gas Transportation
| State | Reserves (%) | Production (%) | Imp Fields | Downstream |
| W Offshore | 30.7 |
81
| KG basin | |
| E Ofshore | 35 | KG basin, Mahanadi basin, Cauvery basin | ||
| Assam | 10 | 6 | ||
| Gujarat | 6 | 4.5 | ||
| AP | 4 | |||
| TN | 3 | |||
| Tripura | 3 | Palatana fields, Udaipur district | Palatana thermal power plant | |
| Others | ||||
| Total | 1355 BCM |
Gas Transportation
2 ways
- As LNG
- A number of LNG terminals are coming up around the coastline
- Gas from Iran, Qatar, Oman, Algeria, Australia
- Through Pipelines
- TAPI
- IPI
- From B'desh and Myanmar
- From Russia
Gas Pricing
- less fungible than oil. So, does not have a single global price.
- Gas markets tend to be segmented because of transportation issues over a great distance
- So, a range of gas prices exist
- Henry hub
- Asia pacific rate
- So, a mechanism is needed (either to make it market determined by principle of supply and demand or make it cost price linked)
- In a market economy it should be linked to market, but it has its own ramification
- gas is linked to our food and energy security
- nearly 35% of gas consumed is for making fertilizer which is already heavily subsidized by the govt.
- already CNG prices are almost at par with diesel prices. hiking it more is not good from pollution POV
- also in absence of a global price, we should go by domestic demand and supply
- but there is a severe supply shortage (under production by RIL)
Rangarajan formula considers global prices
Jan 2014 : Govt notified new gas pricing formula which doubled the gas price to $ 8.4 per mbtu.
Aug 2014 : Govt formed a panel (under Shri Vijay Kelkar) consisting on secretaries of power, fertilizer, expenditure and additional secy of oil ministry to review the Gas Pricing Mechanism.
Sep 2014 : panel has submitted report
http://articles.economictimes.indiatimes.com/2014-08-28/news/53324442_1_gas-pricing-gas-market-natural-gas
http://articles.economictimes.indiatimes.com/2014-08-28/news/53324442_1_gas-pricing-gas-market-natural-gas
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