NATURAL GAS & LNG IN INDIA
Importance of Natural Gas:
Natural gas is increasingly emerging as a fuel of choice on account of its clean combustion properties. Natural gas is the third largest energy source after crude oil & coal, and accounts for nearly 24 per cent of global primary consumption. The natural gas market in India is growing at a rapid pace and its share in overall energy basket is increasing. The government is keen on promoting its usage and it is envisaged to increase the share of natural gas in domestic energy basket currently around 6.5% to around 20% by year 2025.
To support the increasing gas demand, LNG imports are required to be increased and the same will result in requirement of LNG receiving and regasification facilities in the country.
The world today is in a dire need of an alternative fuel source, one that can permanently replace the harmful fossil fuels that a majority of global population is breathing in today owing to the growing number of vehicles on roads. Natural Gas, has come to light as a very ideal source at least until something better is discovered. Natural Gas is important in several ways:
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To begin with it produces half as much Carbon Dioxide, as burning fossil fuels like coal. This certainly helps in curbing the global warming problem for a longer time and fosters discovers of cleaner fuel sources.
Another important trait of Natural Gas is that it is that it is more abundant than fossil fuels. Natural Gas reserves are estimated to outlast fossil fuel reserves by several years. Today, Natural Gas is becoming a fast growing fuel, and is perceived to be a game changer in the fuel wars of the world.
What Is LNG?
Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4) that has been converted to liquid form for ease of storage or transport to different destinations. It takes up about 1/600th the volume of natural gas in the gaseous state. It is odourless, colourless, non-toxic and non-corrosive. LNG is only flammable if it evaporates in contact with an ignition source and the amount of gas in the air is between 5 and 15 percent.
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If Natural Gas needs to be transport over long distances, LNG is a particularly good alternative to gas transport by shipping as well as by way of pipelines.
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Gas Pipeline Infrastructure:
India has a relatively underdeveloped gas pipeline infrastructure when compared to some developed countries. However, in tune with increasing demand and growing natural gas supplies, the government is taking steps to build a better infrastructure. India, currently, has a network of 13,000 km of natural gas transmission pipelines with a capacity of around 337 MMSCMD. This network is expected to increase to around 28,000 Kms with a total capacity of around 721 MMSCMD in next decade owing to the formation of a National Gas Grid connecting which will connect all major centres of the country. The western region of India accounts for the highest proportion of the existing pipeline network of the country and also for the highest consumption of natural gas. At the same time the presence of pipeline network remains significantly low in the central, southern and eastern parts of the country. To address the regional imbalance of pipeline networks present in the country, MoPNG in the year 2007 authorized to lay around 8400 Kms of pipeline network. India is expected to have circa 32,727 Kms of natural gas pipeline with a design capacity of 815 MMSCMD in place by 2030.
LNG & India:
India is a country that has primarily relied on fossil fuels like coal, especially to power its power sector. Liquid fuels, above all diesel is the lifeline of our road transport. It is the call of the hour for India to look for better fuels that are more clean and efficient than fossil fuels. But for environmental reasons we need to focus on cleaner fuels.
The development of Natural Gas industry in the country started in 1960s with discovery of gas fields in Assam and Gujarat. After discovery of South Basin fields by ONGC in 1970s, Natural Gas assumed importance. The Exploration activities in India were earlier carried out only by the National Oil Companies (ONGC & OIL). It was not until later that private companies joined this regime and subsequently 100% foreign participation in exploration was allowed. More discoveries were made in the Natural Gas segment in the coming years and in 2004, liquefied Natural Gas was imported from Qatar and LNG terminal was set up at Dahej of 5 MMTPA capacity.
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Currently, India has a gas pipeline network length of 14,987 Km having capacity of 401 MMSCMD spread over 15 States (including Union Territories). The current demand of Natural Gas also far exceeds its supply and to cater to such demands, R-LNG is being imported. The CGD (City Gas Distribution Center) sector comprises of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) customers. Today, there are over 936 compressed natural gas (CNG) stations across the country and 24, 14,288 households with Piped Natural Gas (PNG) connectivity. The consumption of gas in the CGD network is estimated to be over 16 MMSCMD, that is spread between various distribution channels of domestic and industrial sectors.
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The Government on the other hand, is constantly implementing policies and guidelines that facilitate better distribution, consumption and fair pricing of Gas for all sectors. The Government is also facilitating several projects that ensure smooth import of Natural Gas from different parts of the world.