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Indian natural gas market ppt

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Indian natural gas market ppt

  1. 1. JAIPURIA INSTITUTE OF MANAGEMENT A PROJECT ON MANAGERIAL ECONOMICS SUBMITTED BY:- ROMANA AFTAB HEENA KUMARI ANSHU AGGARWAL KANAK KUMARI SATYAM KUMAR NILANSHU PANDEY
  2. 2. INTRODUCTION Natural gas is one of the most abundant energy resources on the planet, yet more than one-third of global natural gas reserves remain stranded and undeveloped. 70% of gas traded internationally is exported by pipeline; 30% by liquefied natural gas (LNG). Alternative technologies have been refined and developed in recent years but are yet to make serious inroads into the challenges of developing remote gas fields
  3. 3. TECHNOLOGIES AVAILABLE TO TRANSPORT NATURAL GAS LONG DISTANCES
  4. 4. CONSUMPTION TRENDS
  5. 5. ENERGY MIX & EMISSIONS BY SOURCES: INDIA ENERGY MIX TODAY ENERGY MIX PROPOSED WITH 25 BCF/D NATURAL coal GAS CONVERSION coal 1%5% oil 8% 20% oil4% natural gas 1%5% 12% 8% 4% natural hydro gas23% hydro nuclear 36% nuclear 39% wind 33% wind blomass/oth ers blomass/o thers
  6. 6. DEMAND AND SUPPLY GAP FOR NATURAL GAS300250200150 Supply Demand100 50 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
  7. 7. CHANGES IN DEMAND AND SUPPLY GAP IF ADDITIONAL GAS IS ANTICIPATED (PLAN XI)300250200150 Supply Demand100 50 0 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
  8. 8. INDIA NATURAL GAS SECTOR
  9. 9. CURRENT PRICING MECANISM IN INDIA Pricing of gas- Administered price mechanism In Xth plan, under APM-gas from nominated ONGC & OIL fields priced uniformly at Rs.2,850/(SCM). uniformly for all customers except in North East, wherein the customers were charged a price of Rs.1700 per 1000 SCM With effect from 1.7.06, the gas pricing for APM gas was changed. all available APM gas would be supplied only to the power and fertilizer sector consumers. All other consumers would be supplied natural gas at market related price subject to a ceiling of ex-Dahej RLN. Free market gas -JV/Private sector, re-gasified LNG etc.
  10. 10. DEMAND SIDE ISSUEOn the demand side, the challenge is to perform atransition to prices closer to market prices whilemaintaining the consumer’s competitiveness. Thisprice, more than twice the former APM price levelfixed by the government, has unsurprisinglybecome a reference point. Being a private sectorcompany, RIL cannot sell gas at under cost;therefore their clients have to be able to pay cost-plus for any of their gas. Indeed gas availability andaffordability for customers are crucial for gasdevelopment in India.
  11. 11. SUPPLY SIDE ISSUEFrom the supply side, keeping artificially low APMprices often sends the wrong signals: indeed, gasprices have to be high enough in order to attractupstream investments, and cover production costsand the recovery of capital in order to limit under-recoveries from PSUs.These, unsurprisingly, complained that low priceshad been resulting in substantial losses for them.
  12. 12. INDIAN GAS MARKET OVERVIEWMAJOR PLAYERS E&P - - ONGC, OIL, RELIANCE, BRITISH GAS, CAIRN, NIKO, GSPC LNG - - PETRONET LNG LTD (JV OF PSU,s, GDF, ADB) - SHELL HAZIRA LNG LTD (SHELL, TOTALFINA-ELF) - RATNAGIRI PROJECT GAS TRANSMISSION & MARKETING - GAIL (INDIA) LTD REGIONAL / RETAIL - MGL, IGL, GCC, GSPC, AGC, TNGCL, PLAYERS BGL, GSPL, GGL & OTHERS
  13. 13. MARKET SHARE Market share 4%19% 32% RELIANCE GAIL ONGC CNG OTHERS24% 21%
  14. 14. THANK YOU…

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