India is experiencing high demand for liquefied natural gas (LNG) due to a growing economy and increasing energy needs. Domestic gas production is declining and unable to meet demand, which is projected to rise substantially by 2021-22. As a result, India has increasingly relied on LNG imports, which are expected to rise to over 70 million metric tons per year by 2019-20. Several new LNG import terminals are planned on both the west and east coasts of India to facilitate higher LNG imports and meet rising demand across sectors like power, fertilizer, city gas, and industry.

1. India: Demand for LNG
Vemula Srinivasulu, former Executive Director,
APGIC
Dt:17th Sep 2014

2. India –Today
 Stable government at the centre
 End of coalition politics
 Decisive mandate for development
 Big infra push on the cards
 Speedy clearances – Project MonitoringGroup at Cabinet Secretariat
 Prime Minister monitoring important/mega projects
 India’s market cap reaches all time high 1.5 TrillionUSD (June,14)
 Upward movement in GDP after a long lull
 States competing for investments – healthy sign
2

3. India recorded highest growth since
Q4, 2011 at 5.7% in Q2, 2014
3

4. Oil
29.5%
Gas
7.8%
Coal
54.5%
Nuclear
Energy
1.3%
Hydel
5.0%
Renewab
les
2.0%
2013
Oil
30.3%
Gas
9.2%
Coal
52.7%
Nuclear
Energy
1.3%
Hydel
4.6% Renewables
1.9%
2012
India : Energy mix
 Decline in gas contribution in
2013 due to shortfall in domestic
supply - KG basin
 However, share projected to
reach 20% by 2025.
4
Coal
50%Oil
25%
Gas
20%
Hydel
2%
Nuclear
3%
2025
Data Source 2012& 2013: B P Statistical Review 2014
Data Source 2025: India HydrocarbonVision 2025

5. India : Natural Gas Vs Energy Consumption
5
321 345 367 390 420 447 484 510 535 573 595
26.6
28.7
32.1
33.5
36.1
37.2
46.7
56.7
55.3
52.9 46.3
0
100
200
300
400
500
600
700
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Natural Gas (in Mtoe) Total Energy (Mtoe)
Data Source : B P Statistical Review 2014
 Natural Gas Consumption in total energy consumption is less than 10%

6. India Gas Consumption: Sector-wise breakup
 Natural Gas Consumption has grown at an average rate of 8.75 % from 2005-06 to 2011-12
6
Source:VISION 2030 by PNGRB
85 86 84
90
122
141
163
141
0
20
40
60
80
100
120
140
160
180
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
POWER FERTILIZER PETROCHEMICAL DOMESTIC FUEL
INDUSTRIAL FUEL OTHERS TOTAL Expon. (TOTAL)

7. 7
Sector 2013-14 2017-18 2021-22
Power 104.59 173.88 233.88
Fertilizer 59.96 103.45 107.85
City Gas 16.22 26.62 46.25
Industrial 20 28 37
Petrochem/
Refineries
56.57 68.1 81.99
Sponge Iron/Steel 8 9 10
Estimated Demand 265.33 409.05 516.97
Source: “Vision 2030” Natural Gas Infrastructure in India -2013
Note: Out of 265 MMSCMD of demand, India could able to supply 140 MMSCMD in 2013-14
India Gas Demand Projections: Sector-wise
breakup
 Natural Gas Demand is likely to increase at an average rate of 8.7 % from 2013-14 to 2021-22

8. Domestic Gas : Inadequate
 India’s proved global natural gas reserves - 33.7 billion Cubic meter, which is 1 % of
world’s 3.37 trillion cubic meter (Source: B P Statistical Review 2014)
 80 % of production is from off shore fields
 Remaining from onshore filed, in which 90 % from Assam, Gujarat, Andhra
Pradesh
 Coal Bed Methane : Not Significant
4 rounds of bidding completed
33 blocks awarded, out of which 5 blocks are producing 0.23 MCM/day
 Shale gas – yet to be explored seriously
8
 Production in 2013 :33.7 bcm equivalent to
average of 92.3 MMSCMD
 Reserve to production ratio of 40.2, vs-a-vis
world average of 55.1

9. India : Gas Consumption, Production & Import
9
80.8 87.4 97.8 102.2 109.9 113.2
142.2
172.6 168.2 161.1 140.8
80.8 80.0 81.1 80.3 82.5 83.6
107.4
139.2 126.3
110.4
92.3
0.0 7.4
16.7 21.9
27.4 29.6
34.8
33.4
41.9
50.7
48.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Gas Import (Avg. MMSCMD) Production (Avg. MMSCMD)
Consumption (Average MMSCMD)
Data Source : B P Statistical Review 2014

10. India - LNG import is on the rise
 Primarily through Dahej and Hazira LNG terminals
 Entire Import through LNG, No Import through pipelines
10
0.00
1.80
4.07
5.33
6.67
7.20
8.47 8.13
10.20
12.33
11.80
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Gas Import (MTPA)
Data Source : B P Statistical Review 2014

11. LNG Import to India: Projections
 LNG imports to rise from 47
MMSCMD in 2012-13 to 72
MMSCMD in 2017-18 at a CAGR
of 8-9%
11
 India’s LNG requirements primarily met by Qatar;
however its share has reduced from 83% in 2007-08 to
the current 76%
 Currently, PLL is having a long term supply contract; 7.5
mtpa with Rasgas, Qatar
 Supplies from Gorgon, Australia expected to be delivered
at Kochi terminal by 2015-16
 GAIL :Tie-up in USA (HH based) to start in 2016-17

12. Dahej and Hazira handle more than 90% of
India’s LNG imports
12
Year Regas Terminal Quantity (MMTPA)
2012-13 Dahej 8.37
2012-13 Hazira 2.85
2013-14 Dahej 9.24
2013-14 Hazira 2.65
2014-15* Dahej 4.58
2014-15* Hazira 1.24
*Data for 2014-15 is up to Aug’ 2014

13. LNG Import : Key Drivers
 Demand from affordable segments – City gas and industrial usage
 Proposed gas price pooling for power sector – to improve affordability
 PLF of gas based power plants ( 22,000 MW) – less than 30%
 Gas stranded capacity of more 10,000 MW
 Decline in domestic gas supply - KG D6 & other blocks
 Delay in trans-national pipeline-TAPI
 Revision of domestic gas price adopting Rangarajan formula
 Affordable price of LNG – Post revision gap between LNG and domestic gas will be
lesser
 Indian Rupee vs USD
 Fertilizer policy
 Infrastructure and last mile connectivity
 Inter pipeline swapping, inter state tax ( GST can be an enabler)
13

14. LNG Supply to India - Long term
contracts
 From Rasgas,Quatar, linked to DahejTerminal
 7.5 MTPA for 25Years
 Price linked to JCC (12.67% )
 From Gorgon,Australia, linked to Kochi terminal
 1.5 MTPA , for 25Years
 Price linked to JCC (14.5% )
 From Sabine Pass Liquefaction terminal :
 3.5 MTPA starts from 2017
 Import by GAIL, Price linked to Henry Hub
 From Cove Point Liquefaction terminal
 2.3 MTPA, Import by GAIL, Price linked to Henry Hub
 From Gazprom Russia
 2.5 MTPA, import by GAIL (India) Limited
14

15. LNG Supply to India - Medium and
ShortTerm Contracts
15
 Medium and Short term contracts :
 Around 2 – 3 MTPA
 Marubeni, GDF Suez, Gas Natural Fenosa
 Spot Contracts:
 1 – 1.5 MTPA
 From countries viz. Qatar,Yemen, Nigeria,Oman,Algeria,Trinidad
andTobago, Norway, Equatorial Guinea, UAE etc.

16. Indian Rupees USD/INR -Volatility
LNG price is > 50% more today than in 2008 purely in
Rupee terms due to currency depreciation

17. TAPI Pipeline : Import fromTurkmenistan
 Executed Gas Sales and Purchase
Agreement (GSPA) in May, 2012
 Landed cost at Pakistan – India border
is said to be USD 13/ MMBTU
 Approx. 1800 kms long pipeline
 India’s share 14 BCM/ year (approx. 38
MMSCMD)
 Estimated cost: 7.6 Billion (2008)
 SPV yet to be formed
 Pipeline is expected to be operational
in 2018
17

18. Beyond 2017, LNG penetration to be
defined by regulatory push
 Peak hour Policy
 Natural gas based plants are best suited for meeting peak power requirements
as they can be switched on and off with generation being ramped up as per
convenience
 Subject to incentives offered by the government, it can promote usage of gas
for power generation (as tariffs for peak hour are expected to be higher)
 Renewable Energy Policy
 Considering the rising energy needs of India and its growing focus on use of
clean fuels, there is a significant potential for increased cleaner fuels
consumption (solar, renewables, gas)
 It will potentially result in structural shift in country’s fuel mix from oil towards
cleaner fuels
 Urea Pricing and Investment policy
 Subsidization of POL products
18

19. Infrastructure
For LNG Re-gasification
and gas Distributions
19
Kakinada

20. India’s Regas Terminals
 Currently, Four LNG terminals are in operation
 Total Capacity : 20 MMTPA
 All land Based, all inWest Coast
 Utilization of newly built terminals at Dhabol and Kochi are low
 Various terminals planned – both east and west coast
 East Coast terminals :
 Mixed development : Land based and also FSRU
 Govt of AP gave clearance for two projects viz Kakinada and
Gangavaram
20

21. LNG Import Infrastructure : Existing and outlook
FSRU based /
Land based
Current 2015-16 2019 -20
PLL Dahej Land Based 10 15 15
Shell , Hazira 3.7 5 7
PLL Kochi 5 5 10
Dhabol 2 5 5
Kakinada FSRU based 3.5 5
Gangavaram Land / FSRU based 3.5 5
Mundra Land based 7.5 7.5
Pipavav Land Based 3.5 3.5
Ennore Land based 5 5
Mangalore Land based 5
Others 5
Total LNG Capacity
(MMTPA)
20.7 53.0 73
Gas Qty. 73.5 185.5 255
21
Figures in MTPA

22. LNG Projects in West Coast existing & planned
LNGTerminals planned inWest
Coast:
 In Operation :
 Dahej
 Hazira
 Dhabol
 Kochi
 Planned :
 Mundra
 Pipavav
 Mangalore
22
Dahej
Hazira
Dhabol
Kochi
Mundra
Pipavav
Mangalore
Terminals under
operation
Terminals planned

23. LNG Projects planned in East Coast
LNGTerminals planned
in East Coast:
FSRU based :
 Kakinada (2 nos.)
 Krishnapatanam
 Paradip
 Digha
 Karaikal
Land based terminal:
 Gangavaram
 Ennore
23
Kakinada
Gangavaram
Krishnapatanam
Paradip
Digha
Ennore
Karaikal
FSRU (In progress)
Land based LNG terminal
FSRU (Planned)

24. Distribution facilities in East Coast of
India
24
Name of
the P/L
From –To Capacity
(mmscmd)
Current
flow
Mallavaram
Bhilwara
pipeline
Kakinada –
Bhilwara
57 Under
Construc
tion
Kakinada
Srikakulam
pipeline
Srikakulam
, further to
Haldia
20 Notified
for
bidding
by
PNGRB
Ennore
Nellore
Ennore -
Nellore
5 Under
bidding
Vijaywada -
Nellore
Viajywada
– Nellore
10-15 Proposed
To Bhilwara
ToAnkot (Gujarat)
GAIL KG Basin Network
ENPL
Ennore
Krishnapatnam
Gangavaram
Kakinada
Legends:
GAIL KG Network:
EWPL (RGTIL) :
MVPL (under const):
P/l under bidding :
LNG Terminals planned:
Gas Fields :
Offshore Gas fields
(RIL, ONGC, Cairn, GSPL)

25. FSRUs in East India : Need and Opportunities
Opportunities
 Proximity to Australia LNG
export projects as compared to
west coast
 Easy and ready evacuation
through well established Pipeline
Connectivity:
 Kakinada connected to local
and as well to various demand
centres across the country
through transmission and
distribution network
 Vizag and Ennore :
connection plan made
 Other ports : can be quickly
connected
25
To Bhilwara
ToAnkot (Gujarat)
GAIL KG Basin Network
ENPL
Ennore
Krishnapatnam
Gangavaram
Kakinada
Legends:
GAIL KG Network:
EWPL (RGTIL) :
MVPL (under const):
P/l under bidding :
LNG Terminals planned:
Gas Fields :
Offshore Gas fields
(RIL, ONGC, Cairn, GSPL)

26. Telangana - new State of India
26

27. Telangana beckoning
 Natural and human resources abundant
 Proactive leadership and Government
 Large number of Engineers and other professionals
 Skilled workers
 Huge land bank with the Govt for industrial purposes
 English speaking population
 Major IT centre
 Great culture and heritage
 good climate round the year
 Medical tourism and leisure tourism
 Good industrial policy in offing
 Emphasis on law and order
27

28. thanq
28