natural gas_roll no 9187 b

8/8/2019 Natural Gas_Roll No 9187 B

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Submitted by : Ninad R Joshi (9187)

Submitted to : Prof. Sreedharan


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What is Natural Gas? Natural gas isa gas consisting primarily of methane.

It is found associated with other fossil fuels, in coal

beds,as methane clathrates,and is created bymethanogenic organisms in marshes, bogs,and

landfills.

It isan important fuelsource,a major feedstock for

fertilizers,and a potent greenhouse gas.


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How is it formed?y The organic materials were

deposited with mud silt fromstreamsand rivers which will

harden over time and formsedimentary rock.

y Heat and pressure transformthe rock into soft parts of plantsand animals.


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List of countries by natural gas

productionRank Country/Region Natural gas production (m) Date of

information

World 3,021,000,000,000 2007 est.

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.


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Uses of Natural Gasy Power generation

y Hydrogen

y Natural gas vehiclesy Residential domestic use

y Fertilizer

y Aviation


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IndianGas Supply and Demand

Projections


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Role of Natural Gas Industry in

Indian GDP1

y The Role of Oiland Natural GasIndustry in India

GDP is very significant as it is one of the biggestcontributors to both the Centraland State treasuries.

y India is the 6th largest consumer of petroleum.

y By the year2010-11,India is expected to rank 4th in

terms of consumption of energy

1 http://business.mapsofindia.com/india-gdp/industries/oil-natural-gas.html


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Natural Gas Industry in India

GDP-Highlightsy In 2009-10, the demand for natural gas is expected to

be 225 million metric standard cubic meters per day

(mmscmd)

y 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.

y Indian petroleum demand depends highly on import of

oiland natural gas.

y The area of interest for the Indian Oiland Natural Gas

Industry is to search for petroleum in both offshore and

onshore blocks


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10

Indian Energy Demand ScenarioYear

Hydro

(MTOE)

Nuclear

(MTOE)

Coal

(MTOE)

Oil (MTOE)

Gas Total Energy

Consumption in

MTOE(MTOE) BCM2007-08 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 6% 11% 6% 5% 7% 7.2

Source: Integrated Energy Policy, of the Gov., August 2006Assumptions: (1) GDP growth assumed to be 9% (2) Population growth assumed to be 1.1% (3) Includes only commercial energy requirements

0

200

400

600

800

1000

1200

1400

1600

1800

2007-08 2011-12 2016-17 2021-22 2026-27 2031-32

Nuclear Hydro Gas Oil Coal

CAGR 7.2%


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Natural Gas Consumption in India


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Summary of Natural Gas Study

Sector ScenariosDemand Driver Current Condition Plausible Future Scenarios

Natural GasPricing Some plant have access to cheapgovernment-regulated gas

Gassupply curve allows plants to

exhaust available low-cost suppliesand forces them to purchase market-

priced gas.

Environmental controlsPiecemeal regulation of regionalair

pollutants in some cities

Tighterlimits ofsulfur emissions

Coal pricing and reform

Coal isstate-controlled industry with

low pricesand infrastructure imposed

cap on available supplies

Reformsallow much greater use of pit-

head coal plants ("coal by wire") and

imported coal,and raise coal prices

towards internationallevels

Electricity Sector


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Projected Electricity Generation

Mix,2005-2025Electricity Sector


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Fertilizer Sector

Demand Driver Current Condition Plausible Future Scenarios

Import ontrolIndia is nearly 100% self-suffi ient in

nitrogenous fertilizer

Allowance of5%or 30% dependence

on imported fertilizer

Price and availability of gasMost plants have access tocheap

government-regulated gas

Cheap gas supplies decline and gas

prices move tomarket levels

Farm gate ureaprices

Prices to farmers have increased

slowly but remain below international

levels

Farm gate prices increase more

rapidly towards international levels


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1See Integrated Research and Action for Development (2007). Demand forNatural Gas in the Indian Fertilizer Sector.


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Demand Driver Current Condition Plausible Future Scenarios

Availability of gas

Many industrial consumerslack

politicalaccess to gassupplies,andconsume other fuels

Significant gassuppliesare available

to consumers willing to payinternational prices

Economic growth Economic growth isstrong in IndiaEconomic growth could accelerate,

decelerate, or remain the same

Industrial Sector


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1

Fora more detailed discussion of the modeling framework and results,see A.T

. Kearney (2007). Demand forNatural Gas in the IndianIndustrial Sector.Program on Energy and Sustainable Development, Working Paper #68.


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Total Indian Gas Demand

Projected Natural Gas Demand (2005-2025)


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Global Natural Gas Scenario

19Source: Wood Mackenzie

Liquefaction CapacityRegion 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)


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Conclusionsy Demand size and uncertainty could influence supply

infrastructure decisions.

yGas demand is highly dependent on policies outsidethe gassector.

y The electricity mix in India is unlikely to change

dramatically

y Coalsector reform may undercut climate changeobjectives

y Non-climate policies could have alarge impact on

carbon emissions


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Bibliographyy http:// n. i ipedia.or / i i/ ain_Pa e

y http://petroleum.nic.in/

y http:// .indiaener portal.or /overview_detail.php

y http://www.financialexpress.com/news/natural-gas-could-keep-indias-growth-engines-running/488199/

y http://pesd.stanford.edu

y http:// usiness.mapsofindia.com/india-

gdp/industries/oil-natural-gas.html

y http://economictimes.indiatimes.com/news/economy/i

ndicators/ anufacturing-helps-GDP-grow- 4-in-

FY10/articleshow/599 1 .cms


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natural gas_roll no 9187 b

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