Airvoice
Oil
Natural Gas Private Limited
Gas
Gas demand in India is dominated by the power and fertilizer
sectors which account for 66 per cent of the current consumption.
In 2006, the total gas demand was around 152 MSCMD. The
gas demand is expected to increase to 320 MSCMD, according
to a report by Ernst & Young. Significantly, the share
of natural gas in the overall fuel mix is expected to increase
from 8 per cent in 2006 to 20 per cent by 2025.
Government Initiatives
The government has been taking many progressive measures
to create a conducive policy and regulatory framework for
attracting investments.
• Allowing 100 per cent foreign direct investment
(FDI) in private refineries through automatic route and
26 per cent in government-owned refineries.
• Implementation of the NELP in 1997.
• Abolition of the administered pricing policy.
• 100 per cent FDI is also allowed in petroleum products,
exploration, gas pipelines and marketing/retail through
the automatic route.
• Vision-2015 for the oil sector which will focus
on providing better services to customers covering four
broad areas of LPG (liquefied petroleum gas), kerosene,
auto fuels and compressed natural gas/piped natural gas.
Production
• Refinery production in terms of crude throughput
increased to 160.77 MT in 2008-09 as compared to 156.10
MT in 2007-08.
• The production of natural gas went up to 32.84 billion
cubic metres tonnes (BCM) in 2008-09, from 32.40 BCM in
2007-08.
• The projected production of crude oil during the
11th Five-Year Plan (2007-2012) is 206.76 MMT, while that
of natural gas is 255.27 BCM.
• Production of gas from Reliance Industries' eastern
offshore KG D-6 fields, with a life of 11 years, started
on April 1, 2009 and will increase to 80 million standard
cubic metres per day (MSCMD) by the end of the year. Production
will help save US$ 9 billion in oil import.
• Cairn India is anticipating over 1.3 million tonnes
of crude oil production from the Ravva field in the Krishna
Godavari basin during the current financial year. Moreover,
according to a Goldman Sachs report, production from Cairn
India's prolific Rajasthan oil fields will bring down India's
oil import bill by US$ 6.8 billion.
• Cairn has commenced crude oil production from the
Mangala oilfield in Rajasthan, where output is set to touch
a peak of 175,000 bpd (8.75 million tonnes a year) by 2011.
Consumption
India's domestic demand for oil and gas is on the rise.
As per the Ministry of Petroleum, demand for oil and gas
is likely to increase from 186.54 million tonnes of oil
equivalent (mmtoe) in 2009-10 to 233.58 mmtoe in 2011-12.
Global Refining Hub
India is emerging as the global hub for oil refining with
capital costs lower by 25 to 50 per cent over other Asian
countries. Already, the fifth largest country in the world
in terms of refining capacity, with a share of 3 per cent
of the global capacity, India is likely to boost its refining
capacity by 45 per cent or 65.3 mtpa (million tonne per
annum) over the next five years, according to a Deutsche
Bank report. Indian companies plan to increase their refining
capacity to 242 mtpa by 2011-12 from about 149 mtpa in 2007.
