GAS CURRENTLY CONSTITUTES 9% OF THE TOTAL PRIMARY ENERGY SUPPLY IN INDIA. IN THE MEDIUM TERM, SUPPLY IS EXPECTED TO INCREASE TO 15%
1-Jan-1970

LNG imports are expected to drive growthingasdem and in the country .
Gas currently constitutes 9% of the total primary energy supply in India.
In the medium term, supply is expectedtoincreaseto15%(closertotheglobal average of 24%). Growing prominence of indigenous gas would have a positive impact on various indicators such as the country's energy import bill, trade balance and GDP output.
More visible impact will, however, be onthegasconsumingindustries.

Power and fertiliser are the largest consumers of gas in India, accounting for 45% and 23% respectively , of the overall consumption pie. Around 15,500 MW (11%) of the total 140,500 MWgenerationcapacityisgas-based.
Similarly , 23 mmtpa (56%) of the total 41 mmtpa fertiliser capacity in India utilisesnaturalgasasafeedstock/fuel. Each mmscmd of gas supplied to thefertilisersegment(eitherthrough substitution of naphtha/ fuel oil or urea imports itself) is estimated to reduce the subsidy (and improve the standaloneprofitability)byRs300-500 crore and that supplied to the power segment is estimated to reduce the cost of subsidy by Rs 150-300 crore.

The effect is more wide-reaching in the case of retail consumers and SMEs. More than 250 cities are expected to have developed city gas distribution infrastructure in the medium term.

Citygasdistributionnetworksare expected to distribute the economic and environmental benefits of gas to varied segments of users--SMEs, transportation and household consumers. For domestic households, gas is expected to make a green and economic difference in day-to-day life, through its use in vehicles, airconditioning, heating, cooking, etc.
Runningcostsof CNGis50%cheaper compared with conventional fuels.
For small & medium industries such as steel, ceramics and glass, gas as fuel provides better quality and operating efficiencies.

Clarity regarding policy for gas allocation and pricing mechanism (which should be market-linked or controlled or hybrid combination of both) will provide the impetus for downstream small & medium scale investments. Quickly addressing additional issues related to access code, multi-transportercharges,inter-connectivity and gas swapping mechanisms will ensure that benefits of gas would be distributed to a wider base.


                          Petronet LNG Stock Quotes                                       
©Petronet LNG Limited                                                            Home | Contact Us | Disclaimer | Quick Links | Mail Servers: Primary / Secondary |