Describing Oil & Gas present Opportunities in India for Global Companies.

1. NORTECH TRINITY INDIA PRIVATE LIMITED
NORTECH TRINITY INDIA PRIVATE LIMITED.
405, 4th
Floor, Statesman House, Barakhambha Road, Connaught Place, New Delhi- 110001, INDIA
E-mail – info@nortechtrinity.com
Web – www.nortechtrinity.com
________________________________________
Opportunities in Oil & Gas Sector
_________________________________________

2. April 01, 2015
India is the world’s fourth-largest energy consumer in the world.
(i) Brief Introduction
The Indian oil and gas industry is expected to be worth US$ 139,814.7 million by 2015. India’s
economic growth is closely connected to energy demand. The need for oil and gas is therefore
projected to grow further, providing vast opportunities for investment.
To meet this demand, the Government of India has adopted various policies, such as allowing 100 per
cent foreign direct investment (FDI) in many segments of the sector, such as natural gas, petroleum
products, pipelines, and refineries. This move along with various others has made the oil and gas
sector in India a more viable place to invest. Today, India’s oil and gas sector attracts both domestic
and foreign investment, as seen by the presence of Reliance Industries Ltd (RIL) and Cairn India in
the country.
(ii) Market Size
During FY 2013–14, the total consumption of petroleum products in India was 158.2 million tonnes
(MT). The consumption stood at 14.2 MT in March 2014, according to data released by the Petroleum
Planning and Analysis Cell, Ministry of Petroleum and Natural Gas.
The share of fuels in the country's exports surged from 5.59 per cent in 2003–04 to 20.05 per cent
during 2013–14. Total exports of fuel products stood at US$ 62.69 billion in value terms during FY
2013–14.
The country had total reserves of 1354.76 billion cubic metres (BCM) of natural gas and 758.27
million metric tonnes (MMT) of crude oil at the end of FY 2012–13.
(iii) Investments
The following are some of the major investments and developments in the oil and gas sector.
Vietnam has offered two exploration blocks to ONGC Videsh (OVL), in addition to the five it has
already offered the company. Oil and Natural Gas Corporation (ONGC) has selected one of the five
blocks that were proposed in November, 2013 and will evaluate the two new blocks. "We are planning
to visit Vietnam soon with our interest in at least one block. Based on the outcome of preliminary
examination of data, we may also express interest in the two other blocks recently offered by the
country,” said an ONGC official.
Indian Oil Corporation Ltd (IOCL) via its wholly owned affiliate IndOil Montney Ltd, Canada, signed
transaction agreements with Progress Energy Canada Ltd and PETRONAS Carigali Canada BV for
acquiring a 10 per cent interest in Progress Energy Canada’s LNG-destined natural gas reserves in
northeast British Columbia as well as the proposed Pacific NorthWest LNG Ltd (PNW LNG) export
facility located on Canada’s West Coast.
Prize Petroleum Company Ltd, a wholly owned subsidiary and upstream arm of Hindustan Petroleum
Corporation Ltd (HPCL), has entered into a sale purchase agreement with M/s AWE, Australia to
acquire 11.25 per cent interest in T/L1 license and 9.75 per cent interest in T/18P permit for a total
consideration of A$ 85 million (US$ 79.66 million).

3. Reliance Industries Ltd (RIL) has been awarded two offshore blocks, M17 and 18, in Myanmar’s
offshore block bidding round of 2013. The blocks in Myanmar’s Moattama basin together encompass
27,600 square kilometres and are at depths of up to 3,000 feet.
GAIL (India) Ltd has entered into an agreement with Japan-based Chubu Electric Power Co to seek
collaboration in the area of joint LNG procurement. The two companies will look to work together on
shipping optimisation as well.
India and Azerbaijan have proposed to form a joint working group in the field of hydrocarbon. Both
countries have agreed to explore opportunities for partnership in renewable energy sector, energy
efficiency and several upcoming projects in petro-chemicals, oil and gas, pipelines, etc., in India,
Azerbaijan or other third countries in collaboration or joint venture.
Petrotech 2014 was a major success, said Mr M Veerappa Moily, Union Minister for Petroleum and
Natural Gas, during the event’s penultimate day. He also announced a major development on the
Turkmenistan–Afghanistan–Pakistan–India (TAPI) pipeline project, where the Minister shared that the
framework was being readied on a fast-track basis by the four stakeholder nations. The main aim is to
bring gas from Turkmenistan to India by 2017.
(iv) Government Initiatives
The expert appraisal committee of Ministry of Environment and Forests, Government of India, has
given its approval to IOCL’s Rs 4,320 crore (US$ 718.56 million) liquefied natural gas (LNG) terminal
project at Ennore, near Chennai. The proposed facility’s capacity will be five million tonnes per annum
(MTPA). The terminal is expandable to 10–15 MTPA. This is part of the corporation’s Rs 56,000 crore
(US$ 9.31 billion) investment plan during the 12th Five-Year Plan Period (2012–17).
The Cabinet Committee on Investments (CCI) cleared projects worth Rs 7,947 crore (US$ 1.32 billion)
in the sector in December 2013. The projects involve companies such as Chennai Petroleum
Corporation Ltd (CPCL), IOCL and HPCL. The Rs 2,379 crore (US$ 395.72 million) Assam renewal
project taken up by ONGC has also been cleared. The panel also gave the go-ahead to a Rs 5,200
crore (US$ 864.88 million) worth LNG terminal project of Gujarat State Petroleum Corporation Ltd
(GSPC) at Mundra, as per Mr Moily.
(v) Road Ahead
The use of shale gas can be the first step in the road to ‘economic freedom’, as per Mr Moily. The
minister feels that the country could do something similar to the US, which became a net exporter of
energy from a net importer of energy, on the back of shale gas and oil. By 2015–16, India’s demand
for gas is expected to touch 124 MTPA, as per projections of India’s Petroleum and Natural Gas
Ministry.

4. Leading Companies In Oil & Gas Sector in India
Cairn India is one of the largest independent oil and gas exploration and
production companies in India with a market capitalisation of around
US$ 10 billion. It operates around 30 per cent of India's domestic crude
oil production. Through its affiliates, Cairn India has been operating for
close to 20 years playing an active role in developing.
Bharat Petroleum Corporation Ltd (BPCL) is a Government of India
owned oil and gas company which is headquartered in Mumbai,
Maharashtra. BPCL started as Burmah-Shell Refineries Ltd in 1952,
which later changed to Bharat Refineries Ltd(BRL) and subsequently to
Bharat Petroleum Corporation Ltd. Presently, BPCL operates the
following refineries.
Oil India Private Ltd (OIL) was incorporated in 1959 to expand and
develop the newly discovered oil fields of Naharkatiya and Moran in
India’s north-east. In 1961, it became a joint venture (JV) company
between the Indian government and Burmah Oil Company Ltd, UK. In
1981, OIL became a wholly-owned Government of India enterprise.
Today.
Hindustan Petroleum Corporation Limited (HPCL), a Government of
India enterprise, was founded in 1974. The company, which has been
conferred the prestigious Navratna status, is also listed among Fortune
500 and Forbes 2000 companies. HPCL had an annual turnover of Rs
190,048 crore (US$ 32.38 billion) and sales/income from operations of
Rs 215,675
Established as an oil marketing entity on June 30, 1959, Indian Oil
Company Ltd was renamed Indian Oil Corporation Ltd (IOCL) on
September 1, 1964, following its merger with Indian Refineries Ltd. The
integrated refining and marketing entity has since grown into India’s
largest commercial enterprise. It is the country’s number one company in
the Oil Distribution.

5. Reliance Industries Limited (RIL) is India’s largest private sector
company with businesses in the energy and materials value chain. It is
also the first private sector company from India to feature in Fortune
Global 500 list of ‘World’s Largest Corporations’ and ‘World’s Top 100
companies’. The group's activities span exploration & Production of
Petrochemicals (Upstream & Downstream both)
Oil and Natural Gas Corporation Limited (ONGC) is an Indian
multinational oil and gas company headquartered in Dehradun,
India. It is a public sector undertaking (PSU) of the Government of
India, under the administrative control of the Ministry of Petroleum
and Natural Gas. It is India's largest oil and gas exploration and
production company.

6. Opportunities in Oil and Gas Industry in India
1. Indian Gas & Crude Pipelines –
Ample opportunity to grow as a vendor for New Pipe Lines both for
Gas & Crude as new policy says that India is going to form National
Gas Grid and in next five years approx 30,000 KM’s new pipe lines are
going to announce. Already 9000 KM new pipelines announced ,
tenders will be out by January 2016. Approx Value of projects is $40
Billion.
2. Trans-national Pipelines
To augment the domestic supply of Natural Gas and LNG imports
(Liquefied Natural Gas), the GoI is trying to implement transnational
pipelines. Pipelines which are being actively pursued are:
• Iran Pakistan India Pipeline : This project plans to bring gas from
the fields of Iran to India via Pakistan. A special Joint Working Group
(JWG) has been set up to implement this project by 2015. The project
is worth US$ 4.0 billion for about 2000 km pipeline.
• Myanmar Bangladesh India Pipeline : Indian companies ONGC
Videsh Ltd (OVL) and GAIL India Ltd jointly hold 30 per cent stake in
offshore block A-1 in Myanmar, where commercial gas discoveries of
about 5 tcf were made in January 2004. The block has a capacity to
produce 20-25 mmscmd for a period of 20 years. In February 2004,
Myanmar decided to sell its 65 per cent share of gas in block A-1 to
GAIL. To transport gas from Myanmar, a transnational 800 km
pipeline costing US$ 1 billion is being proposed (Source : MoPNG).
• Turkmenistan-Afghanistan-Pakistan (TAP) pipeline : Daulatabad
area of Turkmenistan is reported to have sufficient gas reserves. There
are plans to extend pipeline to transport gas from this area to India.
3. Coating Systems For Old Gas & Crude pipe lines which are approx. 40000
KM’s available for coatings and every year approx. 2000 KM will be released
for coatings from IOCL, GAIL, BPCL, OIL, HPCL, EIL, RIL, ESSAR and many
other players. Approx value of projects is INR 20,000 Crores. Year 2015-16
Approx 2200 KM’s pipe line will be tendered for 2 Ply, 3 Layer PE/PP
Coatings through tenders L1 System for supply and then 2nd stage tenders for
the contractors.
4. New Petrochemical Plants –
Two new Petrochemical plants & refineries are announced and will be

7. set up in 2015-16. There will be need of Consulting companies, EPC
Contractors and other technology companies who can take up large
contracts and execute in desired manner. Even in old Petrochemical
plants there are plenty of jobs available on account of maintenance and
refabricating.
Also there is scope for New Refining & Petrochemical Technologies
which will be Licensed by the Licensors to these new projects,
companies are looking for new Technologies which are able to offer
value added products with more efficiency and greater yield. Further
also needing Better and cost effective catalysts systems apart from new
additive systems.
5. Investment / Equity Particpation opportunity
Presently we have one large petrochemical project available and
inviting approx. 26% equity form either Indian or Foreign player wo
wish to enter into Petrochemical Downstream valuechain with new
value added products which can be offered to Indian market and also
to be exported to various countries in South East Asia and if feasible
then also to European market.
6. Petronet LNG Limited (PLL) regasification terminal at Dahej was the first
LNG terminal to get commissioned and it has commenced LNG imports
from Qatar. Shell’s LNG terminal at Hazira has also got commissioned and
it is expected to support imports. Three more LNG terminals are expected to
be commissioned in near future. Capacity addition to 5 MMTPA, PLL Dahej
terminal of another 5 MMTPA and to Shell’s 2.5 MMTPA of 7.5 MMTPA at
Hazira have also been proposed.
Proposed LNG Plans
Capacity MMTPA Owners Commissioning
PLL Kochi 2.5 Petronet LNG 2008-09
Dabhol 2.9 NTPC, GAIL Being revived
Ennore 5.0 IndianOil Being planned
Mangalore 2.5 ONGC Being planned
These LNG Terminals also can be targeted by EPC Contractors as Petronet
LNG is inviting New EPC Companies to participate in forthcoming tenders.
7. City Gas Projects
In recent years, use of natural gas for the automotive sector has gained
importance for reducing chronic vehicular pollution in big cities. The
Supreme Court, the highest court in India, has made it mandatory to
convert all commercial automobiles in 11 select cities to CNG. Rising

8. environmental awareness and such directives have led to cities being
provided with CNG network for automobile fuelling. Plans have been drawn
to extend CNG facilities to cities like Kanpur, Lucknow, Agra, Bareilly,
Faridabad and Pune.
Mahanagar Gas Limited (MGL) in Mumbai, Gujarat Gas Company Limited
(GGCL) in Gujarat and Indraprastha Gas Limited (IGL) in Delhi are
engaged in developing CNG infrastructure. GGCL, Assam Gas Company
Limited (AGCL), and Bhagyanagar Gas Ltd (BGL) are also engaged in
distribution of piped natural gas in different cities in Gujarat, Assam, and
Andhra Pradesh respectively and many more to come in all major
metropolatin cities.
NORTECH TRINITY INDIA PRIVATE LIMITED
Ashutosh Gupta
Director – Marketing & Operations
405, 4th Floor, Statesman House,
Barakhamba Road, Connaught Place,
New Delhi-110001, INDIA
Email: ashutosh.gupta@nortechtrinity.com
Website: www.nortechtrinity.com
Mobile: +91-99714-66668