This document discusses gas demand and supply in India. It notes that natural gas demand is expected to increase significantly by 2030 due to growth in the power, fertilizer, and city gas sectors. Currently, India faces a deficit as demand is outpacing supply. To address this, the government needs policies to boost domestic exploration and production while also developing infrastructure like pipelines and import terminals to increase supply from imported LNG. Expanding the gas network and implementing policies around taxation and regulation can help overcome structural deficiencies and better meet rising gas needs in India.

1. Gas Demand and Supply in India
April,2016

2. - 1 -
Table of Contents
1
2
3
4
5
Introduction
Trend in demand for Gas
Overall Supply and the deficit
Sector consumption
Percentage contribution of LNG
6
Going forward

3. - 2 -
 The share of the Natural gas in India is expected to
increase to 20% in 2025 as compared to 11% in 2010
 In recent years the demand for Natural gas has increased
due to its Higher availability, development of transmission,
distribution infrastructure and its comparatively cheaper
then other source of energy
 Power and Fertilizer sector will remain the two biggest
contributors to natural gas demand in India and continue to
account for more than 55% of gas consumption
 The government has allowed 100 per cent foreign direct
investment (FDI) in many segments of the sector, including
natural gas
 India is increasingly relies on imported LNG; the country
was the fifth-largest LNG importer in 2013, accounting for
5.5 per cent of global imports .Wherein, the consumption is
up more than 160 % since 1995
 In future, the natural gas demand is all set to grow
significantly at a CAGR of 6.8% from 242.6 MMSCMD in
2012-13 to 746 MMSCMD in 2029-30.
 Today, it attracts both domestic and foreign investment, as
attested by the presence of Reliance Industries Ltd (RIL) and
Cairn India
Introduction : Overview of Gas in India
The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making for all
the other important sections of the economy.
Gas Transmission Sites in India
Existing lines
Mehasana
Source : Ibef.org
Delhi
Kota
Dahej
Mumbai
Bhopal
Proposed lines
Mundra
Dabhol
Kochi
Chennai
Ennore
Gangavaram
Kakinanda
Nagpur
Guwahati
Paradeep
Nangal
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4. - 3 -
Market Trends
Present
GDP per capita income :
$310
6X increase in GDP per
capita income since 1991
1.2% growth at constant
price
7.5% growth at
constant price
Population
1.222 Billion
20011991
GDP per capita income :
$466
4.1% growth at constant
price
Population and Income are the key drivers behind the growing
demand for Clean Energy products like LNG
Going
forward?
As the industries tends to increase the demand for alternative
fuel (LNG) will increase with the period of time
Consumption of Gas =
11.95 (Mtoe)
Consumption of Gas =
23.21 (Mtoe)
Consumption of Gas =
44.47 (Mtoe)
Population
886.3 Million
Population
1.06 Billion
51.5% 48.5%51.7% 48.3%
72% 28% 69% 31%
52% 48%
74% 26%Rural Urban Rural Rural UrbanUrban
New Government policy in terms of clean fuel for Vehicles will
also increase the demand of LNG
21 Lac Cars
Petrol = INR 60 Per Ltr
Diesel = INR 48 Per Ltr
CNG = INR 38 Per Kg
Petrol = INR 14.62 Per Ltr
Diesel = INR 6.11 Per Ltr
CNG = INR
Petrol = INR 27.54 Per Ltr
Diesel = INR 17.09 Per Ltr
CNG = INR 12.21 Per Kg
Source :IEA,Reuters
10 Lac Cars 17 Lac Cars
While urbanization has been steadily increasing since the 1990s, consumption has also increased due to an increase in
disposable income
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5. - 4 -
Sector Consumption
Key Consumption of LNG under various sectors
Source : BCG
Fertilizers Power
CGD Petrochemical/Refiniries
60
159
234
309
354
0
50
100
150
200
250
300
350
400
2012-13 2016-17 2021-22 2026-27 2029-30
15 22
46
68
86
0
20
40
60
80
100
2012-13 2016-17 2021-22 2026-27 2029-30
54 65
82
104
119
0
20
40
60
80
100
120
140
2012-13 2016-17 2021-22 2026-27 2029-30
87
97
108 110 110
0
20
40
60
80
100
120
2012-13 2016-17 2021-22 2026-27 2029-30
3

6. - 5 -
Source : BCG.
Industrial Sponge Iron/Steel
7
9
11
13 14
0
2
4
6
8
10
12
14
16
2012-13 2016-17 2021-22 2026-27 2029-30
20
27
37
52
64
0
10
20
30
40
50
60
70
2012-13 2016-17 2021-22 2026-27 2029-30
Power and Fertilizer sector will remain the two biggest contributors to natural gas demand in India and
continue to account for more than 55% of gas consumption in the long run
Key Consumption of LNG under various sectors
Sector Consumption

7. - 6 -
Contribution of LNG
Source : PNGRB.
53%
30%
11%
5%
1%
50%
25%
20%
2% 3%
0%
10%
20%
30%
40%
50%
60%
Coal Oil Gas Hydro Nuclear
2010 2025
Overall Contribution of Energy mix in India
26%
42%
20%
4% 2%
6%
North
West
South
East
North-East
Central
Installed Capacity as on 2012-2013
29%
32%
23%
8%
3%
5%
Installed Capacity as on 2029-2030
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8. - 7 -
Contribution of LNG
Source : techsciresearch.
104.59
140.78
203.88
278.88
59.96
72.09
105.65 110.05
16.22 18.22
35.94
58.27
20 25
35
45.42
56.57 62.07
74.73
94.24
8 8 10 11.26
0
50
100
150
200
250
300
2013-14 2015-16 2019-20 2024-25
Power Fertilizer City gas Industrial Petrochemical Sponge Iron/Steel
Overall Contribution of Energy mix in India
Power ,Fertilizer and City Gas shows its healthy dependence on the LNG in the coming Decade .Government
needs to address this challenge(Gap) in a very responsible manner to overcome at an early stage

9. - 8 -
Demand and supply gap
180
195
230
260
280
240 245
280
300
330
380 385
405
420 430 425 438
490
110
152
170
190 195
150 155
190
220 225
320 320 310 310 320 330 328 338
0
100
200
300
400
500
600 Demand
Supply
Overall Demand and supply gap in India
Government need to work on the policies and procedure extensively to reduce the widen up gap of Supply and
demand pattern in the coming decade
Source : PNGRB.
As the dependency on LNG products has been increased, demand and supply gap has widen up due to less Gas
reserves, bad infrastructure and to other reasons
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10. - 9 -
Going Forward….
If India, wants to grow at a rapid pace without impacting its Growth and its consumption pattern. Government needs to
work upon some of the key elements to reap the benefits of Natural Gas for a longer period of time
key elements
•Sourcing
•Contracting
•Physical Infrastructure
•Intensified the “domestic exploration
and production activities through New
Exploration Licensing Policy (NELP)
rounds
•Downstream Ecosystem
•Bundled services to incentivize
investment in infrastructure
•Regulatiom
•Evaluate and implement uniform tax
regime for gas
Benefits
•Overcome the structural deficincey
between domestic production and the
demand
•Define value proposition for LNG in
terms of economic feasibility for end use
in various sectors like
power,transport,industries etc
•Increase of terminal from present ~4 to
~10 by 2030 to increase the capacity to
overcome the demand and supply gap
Source : BCG,PNGRB
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