1. Meeting the challenges of natural gas
distribution and LNG in India
B C Tripathi
Chairman & Managing Director
GAIL (India) Ltd.

2. Asia’s Emerging Landscape
M. East India East Asia

3. 3
Strong Economic Outlook for Asia
Post recession, centre of economic gravity is shifting
Asia poised to be world’s largest economic region by 2030, ahead of G-7
By 2020, Asia’s share of World GDP may be ~35%
Asia Pacific economic growth outlook for 2010: 5.5%
Developing Asia (China, India, ASEAN-5)
growth forecast: 8.8%
Source: IMF

4. 4
Strong Outlook for Gas in Asia
High rates of growth to drive demand for energy
Growth in energy demand in China, India ~ 3-4% in next few years
Expected CAGR of gas demand (2008-2020) in ChIndia > 8%
(fastest growth among all fossil fuels)
Large scope for growth: current share of gas in AP energy basket 11%
LNG is only 1/3rd of the region’s total gas consumption
Asia Pacific Share of world LNG consumption: 70%

5. 5
Demand from India continues to be robust
4th largest economy in the world, GDP, projected to grow @ 9%+
Fifth largest energy consumer in the world
Requires 3-4 times energy supply within next two
decades
Gas ~ 10% of India’s primary energy consumption
Gas demand expected to rise @ 8% in next decade.
10% share of energy mix projected to rise to 16%
0%
2%
4%
6%
8%
10%
1970 1980 1990 2000
Share of gas

6. Gas demand in developed markets has reduced considerably
Demand in OECD Europe declined 7% in 2009 and may take time to
recover due to prevailing economic situation.
Demand to grow slowly, Could be met by indigenous supplies/piped
imports.
US gas demand contracted by (-)1% in 2009
Increased domestic production in US/Canada means limited need for
imports in near/medium term.
Demand not expected to grow beyond 1% p.a. in this decade
So, will Asia (ChIndia) drive the demand for gas?
6
Uncertainty in Developed Markets
Data source: McKinsey

7. 7
India – Gas Market Profile
Exponential rise in demand for gas; consumption of 62 bcm
Gas/LNG becoming a key source of energy
Reserves & consumption growing 6-8% p.a. for a decade
~17,000 MW Power capacity (10% share) and 17 MnT Urea production
(80% share)
Changing consumer profile: beyond power and fertilizer
Better price affordability of the market, price range $ 4.2-$ 6.5/mmbtu
Increasing integration with world gas markets: LNG 18% of consumption
Extensive pipeline and distribution infrastructure under development

8. 8
Fast Growing Market for Gas & LNG
India’s gas demand could reach 120 bcm by 2015
Domestic supply expected to reach 84 bcm by 2015
Against demand gap of 36 BCM (27 MTPA LNG), present long term
tie-up 9 MMTPA
Potential demand for additional LNG 18 MMTPA.
Total trunk tptn infrastructure by 2013-14: over 220BCM (23,000 Kms)
India is moving fast towards market based pricing
~ $50 bn planned investments in Gas Chain infrastructure over 4-5 yrs
Clear Government intent for pro-consumer, pro-investor reforms
Source: McKinsey, GAIL analysis

9. LNG
Existing
Transmission Pipelines
Existing
GAIL’s Planned Pipeline
RIL’s East West Pipeline
RIL’s Planned Pipeline
City Gas/ CNG
Existing
Planned
LNG Terminal
JAGDISHPUR
PHOOLPUR
BHATINDA
BAREILLY
DISPUR
DELHI
AGARTALA
BARODA
LUCKNOW
PATNA
AHMEDABAD
RAJKOT
KOTA
MATHANIA
GWALIOR
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
DAHEJ I & II
10 mmtpa*
HAZIRA
3.6 mmtpa
COIMBTORE
MANGLORE
MUMBAI
BHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
HASAN
BANGLORE
KOLHAPUR
SOLAPUR
KAKINADA
VIJAYAWADA
DAMRA
DABHOL
5 mmtpa
KANJIKKOD
AURAIYA
Iran-Pak-India Pipeline
Turk-Afg-Pak-India Pipeline
GOA
CUTTACK
VIJAYPUR
KANPUR
NANGAL
GURGAUN
PUNE
BHARUCH
SURAT
HYDERABAD
RAJAMUNDRY
BHOPAL
KOCHI
2.5 mmtpa
BARMER
Gas Sector Infrastructure:
Current And Future
INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET
Existing – to start
Construction
LNG TerminalLNG Terminal
(Capacity(Capacity--MMTPA)MMTPA)
Start YearStart Year
(Est)(Est)
Dahej (10)Dahej (10) OperatingOperating
Hazira (3.6)Hazira (3.6) OperatingOperating
Dhabol (5)Dhabol (5) 20112011
Kochi (2.5)Kochi (2.5) 20122012
Others (17.5)Others (17.5) 20142014--1515

10. Forging partnerships to Meet The
Challenges of Gas & LNG in India

11. Partnership Options
Oil/Gas Exploration through NELP/CBM
LNG Sourcing and Terminals
Trans - National Pipelines (incl. deep offshore )
Gas based end-use industries (petrochemicals,
power, processing plants etc)
City Gas Distribution /CNG Projects
Immediate Focus
LNG Sourcing and Equity Stake in LNG Liq. Terminals

12. Partnership in the LNG Chain
Opportunities for:
LNG supply into Indian market
Partnership in LNG Regas Terminals (incl. FSRUs)
LNG Liquefaction assets overseas
Long term LNG contracts required for ~12 MMTPA of unmet demand in
India.
Consumers in Indian market have shown good appetite and
affordability for market driven price of gas / LNG
With emerging global scenario, India would be important market for
Long Term and spot LNG
Pricing strategy key to unlock India market

13. Technology Based Partnerships
GAIL focussed on taking India market to the next level through
assimilation of new/emerging technology
Possible areas of interest
Shale Gas & CBM exploration
Coal Gasification
Improved mobility solutions based on gas
Gas Storage Systems
Methane to Olefins
Waste to Biogas

14. GAIL: A Preferred Partner
$ Bn$ Bn
India’s Premier Integrated Natural Gas Company since 1984
25+ Years of Experience & Expertise in Gas Chain
57%+ GoI stake
13%+ CAGR in 10 Year Turnover
14%+ CAGR in 10 Year PAT
Moody’s – Foreign/Domestic Rating: Baa2/A3
3700+ Manpower Asset
2
3
4
5
6
0.4
0.5
0.6
0.7
Turnover CAGR of 13%
PAT CAGR of 14%
GAIL: Partner of choice
$ Bn$ Bn
20042004‐‐05 200905 2009‐‐1010

15. Business Portfolio
NG Transmission
E&P
Petrochemicals
NG Trading
Retail
Liquid Hydrocarbons
GAILTEL Diversification

16. India is a rapidly evolving market for gas
Gas and LNG an integral part of India’s energy portfolio
With emerging global scenario, it is an attractive market for gas/LNG
Pricing largely aligned with market forces
Pro-reform, Pro-liberalization Policy
Necessary Policy and Regulatory framework already available
Several incentives for large scale investment in energy value chain
Reforms in key end-use sectors yielding good results
Right pricing strategy key to unlock India market
GAIL open for potential business partnerships
Conclusions

17. THANKS FOR YOUR ATTENTION

18. Indicative Gas Prices - India
$4.20
$4.21
$4.30
$5.57
$5.73
$6.86
Administered gas
RIL ‐ K.G. D‐6
RAVVA Satellite
Tapti Fields
Panna‐Mukta Fields
Dahej ‐ RLNG, incl regas

19. Gas Demand CAGR, %
(2008‐20)
0
100
200
300
400
500
600
700
2007 2008 2010 2015 2020
346
513
420
622
1
4
9
8
5
1.3
Japan, S
Korea,Taiwan
SE Asia
China
India
Asia
World
(2007‐15)
322
Asia Demand Projection, BCM
Strong Outlook for Gas in Asia
Source: McKinsey, IEA