NATURAL GAS
Presented By
Mihir Kaulgi 103
Pratibha Sharma 134
NATURAL GAS
Flow Of Presentation
• Introduction
• Manufacturing Process
• Consumption
• Production
– Reserves
• Trading Ce...
NATURAL GAS
Typical Composition of Natural Gas
Methane CH4 70-90%
Ethane C2H6
0-20%Propane C3H8
Butane C4H10
Carbon Dioxid...
NATURAL GAS
Manufacturing Process
Extracting
Processing
Transporting
Distributing
Quality Control
NATURAL GAS
Manufacturing Process
NATURAL GAS
Natural Gas Consumption ( 2006 - 2030)
0 5 10 15 20 25 30
USA
Russia
Canada
Mexico
Japan
Australia/New Zealand...
NATURAL GAS
Production
World Natural Gas Production
0
5
10
15
20
25
30
35
USA
Canada
Mexico
Japan
Australia/
New
Russia
Ch...
NATURAL GAS
World Reserves
NATURAL GAS
Demand & Supply in India
NATURAL GAS
Region wise Production & Consumption
NATURAL GAS
Production
NATURAL GAS
Sector wise Demand
NATURAL GAS
Infrastructure in India
NATURAL GAS
Sr no.Pipeline Company Expected year of
completion
Length
(kms)
1 Dadri-Bawana-Nangal pipeline GAIL 2010-11 45...
NATURAL GAS
Production by India
Gas type 2008-09 E 2013-14 P
Price Vol Price Vol
$/mmbtu % share $/mmbtu % share
APM 3.3 6...
NATURAL GAS
Production by India
NATURAL GAS
Trading Centers and Bourses
• New York Mercantile Exchange (NYMEX)
– Price is based on delivery at the Henry H...
NATURAL GAS
Factors influencing Market Price
 Global Factors:
◦ OPEC output and supply
◦ Dollar fluctuation
◦ US Natural ...
NATURAL GAS
Contract Specifications MCX Futures
NATURAL GAS
Contract Specifications MCX Futures
NATURAL GAS
Contract Specifications MCX Futures
Commodity
Symbol
Contract
Expiry
Unit PCP (Rs) Volume
(in Lots)
OI (in
Lot...
NATURAL GAS
Futures, NYMEX
NATURAL GAS
MCX - 28Dec2009 Futures Contract Price Movement
NATURAL GAS
Future Outlook
 At MCX, the futures of the further months are trading at a premium
compared to the earlier mo...
NATURAL GAS
Future Outlook
Titan……..Moon of Saturn has seas made of Pure
LNG !
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Presentation Ng 301009

  1. 1. NATURAL GAS Presented By Mihir Kaulgi 103 Pratibha Sharma 134
  2. 2. NATURAL GAS Flow Of Presentation • Introduction • Manufacturing Process • Consumption • Production – Reserves • Trading Centers & Bourses • Influencing Factors • Contract Specifications (MCX-Futures) • Future Outlook
  3. 3. NATURAL GAS Typical Composition of Natural Gas Methane CH4 70-90% Ethane C2H6 0-20%Propane C3H8 Butane C4H10 Carbon Dioxide CO2 0-8% Oxygen O2 0-0.2% Nitrogen N2 0-5% Hydrogen sulphide H2S 0-5% Rare gases A, He, Ne, Xe trace What is Natural Gas ?
  4. 4. NATURAL GAS Manufacturing Process Extracting Processing Transporting Distributing Quality Control
  5. 5. NATURAL GAS Manufacturing Process
  6. 6. NATURAL GAS Natural Gas Consumption ( 2006 - 2030) 0 5 10 15 20 25 30 USA Russia Canada Mexico Japan Australia/New Zealand South Korea China India Other non-OECD Asia Trillion Cubic feet 2006 2030 Consumption
  7. 7. NATURAL GAS Production World Natural Gas Production 0 5 10 15 20 25 30 35 USA Canada Mexico Japan Australia/ New Russia China India Other Non- Middle East Africa Brazil Other Central& TrillionCubicfeet -1 0 1 2 3 4 5 6 7 %Change 2006 2030 Avg Annual % Change
  8. 8. NATURAL GAS World Reserves
  9. 9. NATURAL GAS Demand & Supply in India
  10. 10. NATURAL GAS Region wise Production & Consumption
  11. 11. NATURAL GAS Production
  12. 12. NATURAL GAS Sector wise Demand
  13. 13. NATURAL GAS Infrastructure in India
  14. 14. NATURAL GAS Sr no.Pipeline Company Expected year of completion Length (kms) 1 Dadri-Bawana-Nangal pipeline GAIL 2010-11 459 2 Chainsa-Gurgaon- Jhajj ar-Hissar pipeline GAIL 2011-12 449 3 Jagdishpur-Haldia pipeline GAIL 2012-13 2,050 4 Dabhol-Bengaluru pipeline GAIL 2012-13 1,370 5 Kochi-Kanjirkkod- Bengaluru/Mangalore pipeline GAIL 2012-13 1,110 6 Kakinada-Basudebpur-Howrah gas pipeline RGTIL 2012-13 1,100 7 Vijaywada-Nellore-Chennai pipeline RGTIL 2012-13 650 8 Chennai-Tuticorin pipeline RGTIL 2012-13 670 9 Chennai-Bengaluru-Mangalore pipeline RGTIL 2012-13 660 Source: CRISIL Research Infrastructure in India
  15. 15. NATURAL GAS Production by India Gas type 2008-09 E 2013-14 P Price Vol Price Vol $/mmbtu % share $/mmbtu % share APM 3.3 60%   4.8 18% Pvt/JV 6.2 20%   6.0 64% CBM 4.6 0%   5.7 5% LNG - firm 5.2 20%   8.7 14% Weighted average firm supply 4.3 100%   6.2 100% E: Estimate; P: Projected       Note       Firm gas supply is estimated at 93.2 mmscmd in 2008-09 and projected  at 215.2 mmscmd in 2013-14. Source: CRISIL Research          
  16. 16. NATURAL GAS Production by India
  17. 17. NATURAL GAS Trading Centers and Bourses • New York Mercantile Exchange (NYMEX) – Price is based on delivery at the Henry Hub in Louisiana • Natural Gas Exchange (NGX), Canada • International Petroleum Exchange (IPE), UK • Multi Commodity Exchange of India Ltd (MCX), India – World’s 2nd Largest exchange in terms of Natural Gas futures contract (volume) traded – Almost 25% of volume of NG, NYMEX
  18. 18. NATURAL GAS Factors influencing Market Price  Global Factors: ◦ OPEC output and supply ◦ Dollar fluctuation ◦ US Natural Gas Inventory data ◦ Geopolitics ◦ Global Demand particularly from emerging sectors  Domestic Factors: ◦ NELP policy by GOI ◦ Demand from power and fertilizer sectors; the share is expected to grow from the current level. ◦ The sponge iron sector will have a share of 54% (by 2012), up from about 40% now. ◦ The transport sector is another important sector, as use of CNG is expected to grow many folds.
  19. 19. NATURAL GAS Contract Specifications MCX Futures
  20. 20. NATURAL GAS Contract Specifications MCX Futures
  21. 21. NATURAL GAS Contract Specifications MCX Futures Commodity Symbol Contract Expiry Unit PCP (Rs) Volume (in Lots) OI (in Lots) Natural Gas 25JAN2010 1 mmBtu 264.40 110 132 Natural Gas 28DEC2009 1 mmBtu 261.40 2897 645 Natural Gas 23NOV2009 1 mmBtu 244.30 46824 5186 Spot Price: Rs. 238.90 per mmBtuSpot Price: Rs. 238.90 per mmBtu
  22. 22. NATURAL GAS Futures, NYMEX
  23. 23. NATURAL GAS MCX - 28Dec2009 Futures Contract Price Movement
  24. 24. NATURAL GAS Future Outlook  At MCX, the futures of the further months are trading at a premium compared to the earlier month’s futures (FUTOCT<FUTNOV<FUTDEC)  Storage Congestions predicted to see a fall in the price in the Global market  Oil prices predicted to be bullish and expected to touch the $100 per barrel mark, with more bearish outlook for the Natural Gas  Industrial demand is expected to pick up. Still in the global space, supply is more than the demand  In India, the KG basin reserve find is expected to be much more than estimated and hence reducing the price, alongwith the import bill on Natural Gas.  Demand for LNG is high in the LNG importing countries like India, China.
  25. 25. NATURAL GAS Future Outlook Titan……..Moon of Saturn has seas made of Pure LNG !

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