Natural Gas Availability To Increase 50 In Three Years (26-Aug-2010)
India’s natural gas production, after including imported LNG, is likely to increase by nearly 50% by 2013-14, said the government on Thursday. Oil and gas minister Murli Deora informed the lower house of Indian Parliament that the gas availability in the country will increase to 271.92 million standard cubic meters a day (mmscmd) from 167.80 mmscmd currently.
'At present, total availability of natural gas in India, including liquefied natural gas, is around 167.80 mmscmd, which is projected to be around 202.97 mmscmd, 256.6 mmscmd and 271.92 mmscmd during 2011-12, 2012-13 and 2013-14 respectively,' the minister said in a written reply in the Lok Sabha.
Deora added that the present total requirement of natural gas in power and fertilizers sectors, the two key consumers of the fuel, is around 77.44 mmscmd and 39.61 mmscmd respectively. Over the next three years, both these sectors will need an additional natural gas supply of around 60 mmscmd and 46.78 mmscmd respectively.
Most of the increase is likely to come when Reliance Industries hikes output from its eastern offshore at the KG-D6 fields to over 80 mmscmd. The LNG import terminal at Kochi in Kerala is also set to improve substantially the gas availability when it is commissioned. It would be able to import 2.5 million tonne of LNG a year. Beyond that, any substantial jump in gas availability from domestic sources will only come when the ONGC start operating at the KG basin, expectedly in 2016.
With regard to pricing, the minister stated that while gas available under Administered Price Mechanism (APM) and New Exploration Licensing Policy (NELP) is sold at $4.2/million British thermal unit (mmbtu), that available under pre-NELP contracts is sold at an average price of $5.24/mmbtu. Further, LNG imported under long-term agreement is prices at $6.53/mmbtu. This compares with a spot price of natural gas ranging between $5.40-9.4/mmbtu.
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