1. Challenges of Developing Natural Gas Infrastructure in India

2. Presentation Flow Demand- Supply Scenario End-Use Outlook
Supply Outlook
Demand Outlook
Emerging Scenario
Supply Augmentation
LNG
Transnational Pipelines
Additional Sources
End-Use Outlook
Gas Sector Policy Developments
Gas Sector Infrastructure – Present & Future
Goals to achieve the vision
Issues to be addressed
Policy, Regulatory & Fiscal Provisions Required

3. INDIAN GAS SECTOR: SUPPLY OUTLOOK
CURRENT SUPPLIES ( )
CURRENT SUPPLY SOURCES
BCM (TCF)
Domestic Production
32 (1.1)
Domestic Availability
27(1.0)
LNG Imports*
6(0.2)
Total Availability
33(1.2)
HAZIRA (3.2BCM) YET TO STABILISE NOT
INCLUDED UNDER CURRENT SUPPLIES
Domestic Reserves : 1,072 BCM (37.8 TCF)
(Balance Recoverable Reserve as on April 1, 2005)
R/P : yrs
Existing Producing Fields Declining
Domestic Sources
LNG Import
CURRENT SUPPLIES – 33.5 BCM (1.2 TCF)

4. INDIAN GAS SECTOR: DEMAND OUTLOOK
CURRENT CONSUMPTION
( )
DEMAND PROJECTIONS 84
2025
(5 TCF)
(4 TCF)
CONSUMPTION – 33 BCM (1.2 TCF)
PETROCHEM/
LPG
POWER
FERTILISER
HYDROCARBON VISION 2025
STEEL
INDUSTRIES
CITYGAS/ CNG
Demand estimated to grow at 4.2% CAGR
DEMAND BY 2025 – 143 BCM (5 TCF)

5. SUPPLY-DEMAND OUTLOOK :
EMERGING SCENARIO
SUPPLY
BCM
TCF
SUB TOTAL FROM CURRENT SOURCES (2012) 26
0.9
TOTAL NEW DISCOVERIES 36
1.3
SUB TOTAL NEW LNG IMPORTS 24
0.8
TOTAL (PROJECTED CURRENT SOURCES + NEW DICOVERIES + NEW LNG) 86
3.0
DEMAND (BY 2012)
114
4.0
DEMAND (BY 2025)
143
5.0
PROJECTED SHORTFALL (2012) 28
1.0
PROJECTED SHORTFALL (2025) 57
2.0

6. SUPPLY AUGMENTATION : LNG
LNG share in India’s total Gas Consumption to grow from 11% in to 38.4% by
12.5 MMTPA of LNG already tied up
10 MMTPA of LNG to be tied up
LNG TO BECOME A SIGNIFICANT SUPPLY SOURCE

7. SUPPLY AUGMENTATION : TRANSNATIONAL PIPELINES
India strategically located for gas imports through trans-national pipelines
Projected shortfall of 28 BCM in 2012 to double in 2025
SUPPLY
BCM
TCF
NEW PIPELINE IMPORTS
- Iran-Pakistan-India
- Turkmenistan-Afghanistan-Pakistan-India
- Myanmar-India
32.8 21 09
1.2
0.7
0.3
TOTAL PIPELINE SUPPLIES 52
1.8
TRANSNATIONAL PIPELINES TO PROVIDE COST EFFECTIVE SUPPLY SECURITY

8. SUPPLY OUTLOOK : ADDITIONAL SOURCES
India has the 4th largest coal reserves in the world (247 Billion Tons)
Ranks 3rd in coal production (355 Million TPA)
Total Recoverable reserves of only about 20%
Exploitation of current unrecoverable reserves is a major challenge
Coal Bed Methane (CBM), Underground Coal Gasification (UCG) and Surface Coal Gasification hold significant potential for gas

9. SUPPLY OUTLOOK : ADDITIONAL SOURCES
COAL BED METHANE (CBM)
INSITU COAL / LIGNITE GASIFICATION
SURFACE COAL GASIFICATION
16 blocks awarded under 2 CBM rounds
Estimated reserves ~ 1400 – 2600 BCM (50 – 92 TCF)
Equivalent to yrs of current levels of natural gas consumption
First CBM Gas Expected by 2007
Total potential – 15,820 BCM (565 TCF), as per projections of UK based UCG Parnership
Equivalent to yrs of current levels of natural gas consumption
Focus Areas - 5 States
(Gujarat, Rajasthan, TN, AP, W Bengal)
Total Coal Reserves – 247 BT
Focus Areas – 2 States (Orissa, W Bengal)
Syn gas potential identified 2.3 BCM (0.1 TCF)

10. INDIAN GAS SECTOR: END USE OUTLOOK
Gas Based Power
Gas Based Fertilizer
LPG & Petrochemicals
CNG, PNG
City Gas- Industrial, Domestic, Commercial

11. SECTORAL DRIVERS FOR CURRENT GAS DEMAND IN INDIA
10894 MW
12 MMTPA
12%
58%
POWER
Non gas based units
FERTILISER
1 MMTPA
2.5 MMTPA
31%
43%
PETROCHEMICALS
LPG + LIQUID HYDROCARBON

12. CNG, PNG, CITY GAS DISTRIBUTION
 Segment
Total
Vehicles
259836
Domestic
413115
Commercial
2664
Small Industries
559
Gas Used (BCM)
1.86
Urban Pollution - A major issue
Successful Experience in Delhi, Mumbai
Currently in 10 cities
Plans to introduce CNG and city gas in 28 cities
CITY, CNG GAS SECTORS EMERGING AS AN IMPORTANT END-USE SEGMENT

13. GAS SECTOR INFRASTRUCTURE : CURRENT OUTLOOK
LNG Terminals – 2 Terminals (Dahej, Hazira), 7.5 MMTPA capacity
Transmission Network – 6,300 Kms
GAIL – 5,300 Kms
GSPL – 525 Kms
Assam Gas – 300 Kms
OIL – 175 Kms
Distribution Network – 6,000 Kms (Delhi, Mumbai, Ankaleshwar, Bharuch, Surat, Baroda, Agartala)
CNG Stations – 278 (Delhi, Mumbai, Surat, Vijayawada, Ankaleshwar, Bharuch,Baroda)

14. GAS SECTOR POLICY : SIGNIFICANT DEVELOPMENTS
100% FDI in E&P under NELP
100% FDI in natural gas pipelines
LNG imports, Gas Marketing under Open General Licence
Petroleum and Natural Gas Regulatory Board Bill under Finalisation (Unbundling, Third Party Access)
Gas Pipeline Policy under finalisation
Progressive Decontrol of prices
Policy Thrust to ensure Energy Security

15. GAS SECTOR INFRASTRUCTURE: CURRENT AND FUTURE – A COMPOSITE PICTURE
Turk-Afg-Pak-India Pipeline
BHATINDA
Iran-Pak-India Pipeline
DELHI
DAHEJ I & II
10 mmtpa*
FARIDABAD
BAREILLY
NEPAL
BHUTAN
MATHURA
AURAIYA
LUCKNOW
GANGTOK
MATHANIA
AGRA
KANPUR
JAGDISHPUR
DISPUR
ALLAHABAD
GWALIOR
PATNA
PHOOLPUR
SHILLONG
VARANASI
KOTA
JHANSI
GAYA
BANGLADESH
UJJAIN
SURENDARNAGAR
VIJAIPUR
BOKARO
AGARTALA
AIZAWL
HAZIRA
2.5 mmtpa
RAJKOT
AHMEDABAD
INDORE
KOLKATA
JAMNAGAR
BHARUCH
MYANMAR-India Pipeline
ANKLESHWAR
BARODA
SURAT
DAMRA
A 1 BLOCK,
MYANMAR
BHUBANESHWAR
LNG
MUMBAI
PUNE
DABHOL
5 mmtpa
KRISHNAPATNAM
Existing (7.5 MMTPA)
DABHOL
SOLAPUR
Upcoming (22.5 MMTPA)
KOLHAPUR
HYDERABAD
RAJAMUNDRY
VIJAYAWADA
Transmission Pipelines
NELLORE
Existing (6,300 Kms)
BANGLORE
Planned (8,400 Kms, US$ 4.2 Billion)
HASAN
CHENNAI
MANGLORE
City Gas/ CNG
COCHIN
5 mmtpa
Existing (10 cities)
KANJIRKKOD
TIRUCHCHIRAPALLI
COIMBTORE
Planned (28 cities)
KOCHI
TUTICORIN
TUTICORIN
Gas By Sea Receipt (Likely Location)

16. Points of Concern True implementation of unbundled system
Sourcing & customer tie-ups should be under the domain of Gas Trading activities
Minimum Excess capacity should be maintained
One uniform model of transportation tariff to be adopted.

17. Requirement of Provisions
A. Financial
Direct taxes
Infrastructure status to cross country pipelines
Tax Holiday Benefits for Gas pipelines
Indirect taxes
Zero customs duty on supplies required for Natural Gas Pipelines
Zero custom duty on LNG/Natural Gas
‘Declared Goods’ status to Natural Gas under Central Sales tax Act, 1956

18. B. Technology C. Statutory Cont..
Development of Indigenous Steel Mills for API 5L grade steel production
Encourage Indigenous Steel Mills to produce API grade steel
Encourage new players in line pipe manufacturing and pipe laying
C. Statutory
Single Window Clearance at State Level for all statutory clearances
Single Window Clearance at Center for Environmental Clearance and ROU Acquisition
Common Corridor for Transmission Pipelines

19. Thank You