For the complete report, get in touch with us at : info@netscribes.com The natural gas market in India is witnessing growth and capacity expansions to meet the growing demand for gas consumption as a result of growth in industrial, auto and commercial sector. Increased economic activity is providing the players an opportunity for growth and expansion. The report provides a brief introduction to the natural gas industry. The market overview includes information regarding the Indian market scenario, market size and growth as well as the demand from various sectors in the coming years. It also highlights the various pricing mechanisms, price fluctuations, value chain and the major existing and proposed pipelines. The import section focuses upon the demand supply gap, imports made in last 5 years and the major countries of import. An analysis of drivers explains growth factors such as increasing spend by the government, preference of industry for an alternate fuel, increase in gas reserves, deregulation of auto fuel prices, CNG is a cheaper fuel and new transmission tariff will generate more revenue. The key challenges identified include lack of exploration and low level of technology, gas flaring, lack of transport pipelines and a likely price increase. The role of the government has been highlighted and includes the major policies which govern the natural gas sector. The primary trends indentified include major investments in natural gas, emphasis on developing pipelines and development of city gas. The competition section provides the market structure along with the brief profiles of the major players in the market along with their financials.

1. Natural Gas Market – India
Natural Gas Market India
July 2011

2. Executive Summary
 Natural Gas market in India is poised to grow to M mn tns by 20‐‐, growing at a CAGR of x %
Market
 Both in the global and Indian context, the dependency on Natural Gas is growing
Overview
 In the domestic market, bulk of the production is from the ABC
In the domestic market, bulk of the production is from the ABC
Drivers Challenges
 Increase in budgetary allocation  Lack of exploration & low level of technology
Drivers &  Industry prefers green fuel
Industry prefers green fuel  Gas flaring
Gas flaring
Challenges  Increase in gas reserves  Lack of transport pipelines
 Deregulation of auto fuel prices  Likely price increase
 CNG is a cheaper fuel
 New transmission tariff
Trends  The industry is witnessing major investments from both private and public players
 Emphasis is being placed on the on the development of pipelines
 City Gas Distribution is coming in a big way so as to make LPG/CNG available to customers
Major Players in the Market
Competition
Player 1
Pla er 1 Player 2
Pla er 2 Player 3
Pla er 3 Player 4
Pla er 4
NATURAL GAS MARKET IN INDIA 2011.PPT 2

3. •Introduction
•Market Overview
•Import
p
•Drivers and Challenges
•Government Initiatives
•Government Initiatives
•Trends
•Competition
NATURAL GAS MARKET IN INDIA 2011.PPT 3

4. Natural gas market has been developing steadily with high
demand from power and fertilizer industry
Natural Gas Market – Overview Market Size and Growth
• Indian energy market is growing at x % over the last
two decades 1,000
x% C
• In India, a % of the natural gas comes from region 1. 800
• India remains a natural gas deficit state so natural 600 B
A
gas has to be imported to meet growing needs
400
• Authority 1 and Authority 2 are the two major
200
authorities responsible f approval and execution of
h ii ibl for l d i f
0
various projects pertaining to oil and natural gas
20‐ ‐ 20‐ ‐ 20‐ ‐
 In general, Authority 1 provides a single window contact
for all the activities in connection with carrying out work
under M, or seeking clarifications or exemptions /
Natural Gas Demand
amendments Industry 1 Industry 3 Industry 5
 Authority 2 is also the agency which monitors and
Industry 2 Industry 4 Industry 6
regulates operations under PSC
• Authority 2 is the approving authority for the issues 300 S
f4%
T f5 %
requiring Government Approval 250 R f3 %
f3 % e4 %
e4 % e5 %
 They are also the owners of the acreage, licensing f1 % Q f2% e3 % c4 % d4 % c5 % d5 %
200 P e2 %
authority and deciding authority on accepting the bids e1 % c3 % d3% b5 %
150 d1% d2 % b4%
b3 %
100 b1 % c1 % b2% c2 %
50 a3 % a4% a5 %
a1 %
a1 % a2 %
0
20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐
Source:
NATURAL GAS MARKET IN INDIA 2011.PPT 4

5. Demand for natural gas outstrips domestic supply hence the
need for import
Import Overview Import – Year wise
• Currently, India does not have links via pipelines to Quantity Value
foreign destinations and all imports are done through 10 X5 1.5
15
X3 X4
trucks containing LNG 8 X2
1.0
• Domestic supply of Natural Gas is A mn cubic metres 6 X1 X6
(mcm) per day but demand is B mcm per day 4
0.5
2
• Demand is expected to further increase to C mcm per
p p
0 0.0
day by 20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐
• Since demand outstrips the supply, India has signed
an agreement with Country 1 to import D mn tons of
LNG from Country 1 (long term contract) Major Importers (20‐ ‐)
• Also, India has active LNG contracts with Country 1,
x6 % Country 6
Country 2 and Country 3
x5 % Country 5
• The major trans‐national pipelines currently under x4 %
Country 4
x3 %
consideration are:
Country 3
C t 3
 Country 1 ‐ Country 2 Pipeline x2% Country 2
 Country 2 ‐ Country 3, Country 4 Pipeline Country 1
x1 %
 Country 3 ‐ Country 5 Pipeline
Source:
NATURAL GAS MARKET IN INDIA 2011.PPT 5

6. Drivers & Challenges – Summary
Drivers Challenges
Ch ll
Lack of exploration & low level of
Increased Budgetary allocation technology
Preference of Industry for an alternate
Preference of Industry for an alternate Gas flaring
G fl i
fuel
Increase in gas reserves Lack of transport pipelines
Deregulation of auto fuel prices Likely price increase
CNG is a cheaper fuel
New transmission tariff will generate
ff ll
more revenue
NATURAL GAS MARKET IN INDIA 2011.PPT 6

7. Trends – Summary
Major investments in
Natural Gas
Natural Gas
Key
Trends
d
Strong investment in city Emphasis on the
gas development of pipelines
d l f i li
NATURAL GAS MARKET IN INDIA 2011.PPT 7

8. Major Players (1/7)
Company Snapshot: Player 1
Corporate Information Financial Performance
Headquarters Location 1
Location 1 Revenue
Net Income
Founded 19‐‐ 400 X4 50
300 X3 40
X2
X1
Products Product 1 & Product 2 200
30
20
100 10
Key People Person 1‐ Position 1
0 0
20‐ ‐ 20‐ ‐ 20‐ ‐ 20‐ ‐
Business Highlights
Business Highlights
• Player 1 operates as a natural gas company both in India and Internationally
• It is involved in exploration, production, processing, transmission , distribution and marketing of natural gas
• Supplies natural gas to both households and industrial sector. Nationwide player 1 owns about K kms of pipe‐lines
• Player 1 is bidding for a x % asset in US shale based company. The deal is approximately worth INR A mn
NATURAL GAS MARKET IN INDIA 2011.PPT 8

9. Thank you for the attention
The Natural Gas – India report is part of Netscribes’ Power Industry Series.
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NATURAL GAS MARKET IN INDIA 2011.PPT 9