Submitted by : Ninad R Joshi (9187)

Submitted to : Prof. Sreedharan

What is Natural Gas?
• Natural gas is a gas consisting primarily of methane.
• It is found associated with other fossil fuels, in coal
beds, as methane clathrates, and is created by
methanogenic organisms in marshes, bogs, and
landfills.
• It is an important fuel source, a major feedstock for
fertilizers, and a potent greenhouse gas.
How is it formed?
 The organic materials were
deposited with mud silt from
streams and rivers which will
harden over time and form
sedimentary rock.

 Heat and pressure transform

the rock into soft parts of plants
and animals.
List of countries by natural gas
production
Rank Country/Region Natural gas production (m³) Date of
information

 World 3,021,000,000,000 2007 est.

1  Russia 654,000,000,000 2007 est.

2  United States 545,900,000,000 2007 est.

—  Arab League 405,510,000,000 2007 est.

—  European Union 197,800,000,000 2007 est.

3  Canada 187,000,000,000 2007 est.

4  Iran 111,900,000,000 2007 est.

5  Norway 99,300,000,000 2008 est.

6  Algeria 85,700,000,000 2007 est.

15  India 56,000,000,000 2007 est.

Uses of Natural Gas
 Power generation
 Hydrogen
 Natural gas vehicles
 Residential domestic use
 Fertilizer
 Aviation
Indian Gas Supply and Demand
Projections
Role of Natural Gas Industry in
Indian GDP 1

 The Role of Oil and Natural Gas Industry in India GDP is

very significant as it is one of the biggest contributors to
both the Central and State treasuries.
 India is the 6th largest consumer of petroleum.
 By the year 2010-11, India is expected to rank 4th in
terms of consumption of energy

1 http://business.mapsofindia.com/india-gdp/industries/oil-natural-gas.html
 Natural Gas Industry in India
GDP-Highlights
 In 2009-10, the demand for natural gas is expected to be
225 million metric standard cubic meters per day (mmscmd)
 According to a recent Mckinsey report, Gas in 2020: A
Perspective, “Demand for gas in India would surge by 9-
10% annually to about 115 to 135 billion cubic meter
(BCM) by 2020.”
 Indian petroleum demand depends highly on import of oil
and natural gas.
 The area of interest for the Indian Oil and Natural Gas
Industry is to search for petroleum in both offshore and
onshore blocks
 Indian Energy Demand Scenario
Gas
Total Energy
Hydro Nuclear Coal
Year Oil (MTOE) Consumption in
(MTOE) (MTOE) (MTOE) (MTOE) BCM
MTOE
2007-08 11 4.4 216 140 40 33 410
2011-12 12 17 257 166 44 49 496
2016-17 18 31 338 214 64 71 665
2021-22 23 45 464 278 97 108 907 
2026-27 29 71 622 365 135 150 1222
2031-32 35 98 835 486 197 219 1651
% Growth
Source: 6% Energy Policy,
Integrated 11%of the Gov., August
6% 2006 5% 7%   7.2
Assumptions: (1) GDP growth assumed to be 9% (2) Population growth assumed to be 1.1% (3) Includes only commercial energy requirements

10
Natural Gas Consumption in India
 Summary of Natural Gas Study
Electricity Sector
Sector Scenarios
Demand Driver Current Condition Plausible Future Scenarios

Gas supply curve allows plants to

Some plant have access to cheap exhaust available low-cost supplies
Natural Gas Pricing
government-regulated gas and forces them to purchase market-
priced gas.

Piecemeal regulation of regional air

Environmental controls Tighter limits of sulfur emissions
pollutants in some cities

Reforms allow much greater use of pit-

Coal is state-controlled industry with
head coal plants ("coal by wire") and
Coal pricing and reform low prices and infrastructure imposed
imported coal, and raise coal prices
cap on available supplies
towards international levels
 Projected Electricity Generation
Mix, 2005-2025
Electricity Sector
Fertilizer Sector
Demand Driver Current Condition Plausible Future Scenarios

India is nearly 100% self-sufficient in Allowance of 5% or 30% dependence

Import controls
nitrogenous fertilizer on imported fertilizer

Most plants have access to cheap Cheap gas supplies decline and gas
Price and availability of gas
government-regulated gas prices move to market levels

Prices to farmers have increased

Farm gate prices increase more
Farm gate urea prices slowly but remain below international
rapidly towards international levels
levels
See Integrated Research and Action for Development (2007). “Demand for Natural Gas in the Indian Fertilizer Sector.”
1
Industrial Sector

Demand Driver Current Condition Plausible Future Scenarios

Many industrial consumers lack Significant gas supplies are available

Availability of gas political access to gas supplies, and to consumers willing to pay
consume other fuels international prices

Economic growth could accelerate,

Economic growth Economic growth is strong in India
decelerate, or remain the same
For a more detailed discussion of the modeling framework and results, see A.T. Kearney (2007). “Demand for Natural Gas in the Indian Industrial
1

Sector.” Program on Energy and Sustainable Development, Working Paper #68.

Projected Natural Gas Demand (2005-2025)
 Global Natural Gas Scenario
Liquefaction Capacity                
Region 2,010.0 2,011.0 2,012.0 2,013.0 2,014.0 2,015.0 2,020.0 2,025.0

Asia Pacific 84.2 90.4 90.2 88.7 90.7 104.6 115.3 92.1
Europe 4.1 4.1 4.1 4.1 4.1 4.1 4.1 4.1
Middle East 76.9 94.5 98.1 98.1 98.1 98.3 98.3 98.3
North Africa 31.3 31.3 31.9 35.0 36.4 41.4 42.8 42.8
North America 0.8 0.2 - - - - - -
South America 16.2 18.7 19.4 19.4 19.4 19.4 16.2 9.4
West Africa 21.7 23.8 25.0 27.9 30.1 30.3 29.7 24.6
Total: 235.2 263.0 268.6 273.2 278.7 298.1 306.3 271.2
LNG Demand                
Region 2,010.0 2,011.0 2,012.0 2,013.0 2,014.0 2,015.0 2,020.0 2,025.0

Asia Pacific 122.1 132.2 141.9 145.9 156.3 168.1 186.6 227.5
Europe 60.4 69.4 71.2 72.2 75.3 81.1 148.1 169.0
North America 34.6 44.8 43.6 39.3 26.9 26.0 20.7 17.3
South & East Africa - - - 0.3 0.3 0.3 0.4 0.4
South America 3.2 4.0 4.2 4.2 4.3 4.4 5.5 5.9
Total: 220.2 250.4 260.9 261.8 263.2 279.9 361.3 420.2
                 
Surplus/Deficit 15.0 12.6 7.7 11.4 15.5 18.2 (55.0) (149.0)
Source: Wood Mackenzie 19
Conclusions
 Demand size and uncertainty could influence supply
infrastructure decisions.
 Gas demand is highly dependent on policies outside
the gas sector.
 The electricity mix in India is unlikely to change
dramatically
 Coal sector reform may undercut climate change
objectives
 Non-climate policies could have a large impact on
carbon emissions
Bibliography
 http://en.wikipedia.org/wiki/Main_Page
 http://petroleum.nic.in/
 http://www.indiaenergyportal.org/overview_detail.php
 http://www.financialexpress.com/news/natural-gas-
could-keep-indias-growth-engines-running/488199/
 http://pesd.stanford.edu
 http://business.mapsofindia.com/india-
gdp/industries/oil-natural-gas.html
 http://economictimes.indiatimes.com/news/economy/i
ndicators/Manufacturing-helps-GDP-grow-74-in-
FY10/articleshow/5996613.cms