This document provides a summary of the natural gas sector in India. It discusses technologies for transporting natural gas over long distances, trends in natural gas consumption, and India's current energy mix and goals to increase the role of natural gas. The document also examines the demand and supply gap for natural gas in India, outlines the current pricing mechanism, and identifies issues on both the demand and supply sides of the natural gas market. Finally, it provides an overview of the major players in India's natural gas market and their respective market shares.

1. JAIPURIA INSTITUTE OF MANAGEMENT
A
PROJECT ON
MANAGERIAL ECONOMICS
SUBMITTED BY:-
ROMANA AFTAB
HEENA KUMARI
ANSHU AGGARWAL
KANAK KUMARI
SATYAM KUMAR
NILANSHU PANDEY

3. INTRODUCTION
 Natural gas is one of the most abundant energy
resources on the planet, yet more than one-third of
global natural gas reserves remain stranded and
undeveloped.
 70% of gas traded internationally is exported by
pipeline; 30% by liquefied natural gas (LNG).
 Alternative technologies have been refined and
developed in recent years but are yet to make serious
inroads into the challenges of developing remote gas
fields

4. TECHNOLOGIES AVAILABLE TO TRANSPORT
NATURAL GAS LONG DISTANCES

5. CONSUMPTION TRENDS

6. ENERGY MIX & EMISSIONS BY SOURCES: INDIA
ENERGY MIX TODAY ENERGY MIX PROPOSED WITH 25
BCF/D NATURAL
coal
GAS CONVERSION
coal
1%5% oil
8% 20%
oil
4% natural gas 1%5% 12%
8%
4% natural
hydro gas
23% hydro
nuclear
36% nuclear
39% wind 33%
wind
blomass/oth
ers
blomass/o
thers

7. DEMAND AND SUPPLY GAP FOR NATURAL GAS
300
250
200
150 Supply
Demand
100
50
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

8. CHANGES IN DEMAND AND SUPPLY GAP IF
ADDITIONAL GAS IS ANTICIPATED (PLAN XI)
300
250
200
150 Supply
Demand
100
50
0
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

9. INDIA NATURAL GAS SECTOR

11. CURRENT PRICING MECANISM IN INDIA
 Pricing of gas- Administered price mechanism
 In Xth plan, under APM-gas from nominated ONGC & OIL fields
priced uniformly at Rs.2,850/(SCM). uniformly for all customers
except in North East, wherein the customers were charged a
price of Rs.1700 per 1000 SCM
 With effect from 1.7.06, the gas pricing for APM gas was
changed. all available APM gas would be supplied only to the
power and fertilizer sector consumers.
 All other consumers would be supplied natural gas at market
related price subject to a ceiling of ex-Dahej RLN.
 Free market gas -JV/Private sector, re-gasified LNG etc.

12. DEMAND SIDE ISSUE
On the demand side, the challenge is to perform a
transition to prices closer to market prices while
maintaining the consumer’s competitiveness. This
price, more than twice the former APM price level
fixed by the government, has unsurprisingly
become a reference point. Being a private sector
company, RIL cannot sell gas at under cost;
therefore their clients have to be able to pay cost-
plus for any of their gas. Indeed gas availability and
affordability for customers are crucial for gas
development in India.

13. SUPPLY SIDE ISSUE
From the supply side, keeping artificially low APM
prices often sends the wrong signals: indeed, gas
prices have to be high enough in order to attract
upstream investments, and cover production costs
and the recovery of capital in order to limit under-
recoveries from PSUs.
These, unsurprisingly, complained that low prices
had been resulting in substantial losses for them.

14. INDIAN GAS MARKET OVERVIEW
MAJOR PLAYERS
E&P -
- ONGC, OIL, RELIANCE, BRITISH GAS, CAIRN, NIKO,
GSPC
LNG -
- PETRONET LNG LTD (JV OF PSU,s, GDF, ADB)
- SHELL HAZIRA LNG LTD (SHELL, TOTALFINA-ELF)
- RATNAGIRI PROJECT
GAS TRANSMISSION & MARKETING - GAIL (INDIA) LTD
REGIONAL / RETAIL -
MGL, IGL, GCC, GSPC, AGC, TNGCL, PLAYERS
BGL, GSPL, GGL & OTHERS

15. MARKET SHARE
Market share
4%
19%
32%
RELIANCE
GAIL
ONGC
CNG
OTHERS
24%
21%

16. THANK YOU…