PETROLEUM AND ENERGY SUPPLY NATURAL GAS 5
AT A GLANCE
Production of crude oil declined marginally during the year from 38.08 million tonnes (MT) in 2011/12 to 37.86 MT in 2012/13. On the other hand, imports of crude oil increased, Introduction in terms of both quantity and value. The total refining capacity and refinery throughput The production of crude oil declined marginally increased by nearly 2 MT and 16 MT, respectively, during during the year despite the increase in production the year. from the fields operated by Cairn India. The production of these fields is likely to increase further The government decided to decontrol the prices of as the Aishwarya field has commenced production. petroleum products in the country and the prices of diesel Imports of crude oil increased and the total outgo are being increased in small increments at regular intervals. on crude oil increased due to both depreciating In addition, the government has also introduced pilot exchange rate and rise in the prices of crude oil. schemes to initiate direct transfer of subsidies for kerosene The refining capacity of the country increased due and liquefied petroleum gas. to the expansion of the refinery at Essar-operated The domestic production of natural gas decreased during at Vadinar. The production of petroleum products the year to just over 40 billion cubic metres (BCM) from also increased during the year, particularly due 47.55 BCM in 2011/12. to increase in the production of motor spirit and The rising demand for imports has necessitated the diesel. The production of natural gas in the country establishment of new liquefied natural gas terminals in declined sharply due to a fall in production from Kakinada, Mangalore, and Gangavaram. the KG-D6 block. This led to an increase in the The recommendations of the Rangarajan Committee on purchase of liquefied natural gas (LNG). New revising the prices of natural gas had been accepted by contracts for additional imports of LNG were also the Cabinet and were due for implementation from 1 April signed during the year. The recommendations of 2014. However, Election Commission has now put this on the Rangarajan Committee on pricing of natural hold and the prices will be revised only after the elections gas have been accepted by the Cabinet and were to are over in mid-May. be implemented from 1 April 2014. The Election Till September 2012, 19 production-sharing contracts Commission has, however, put this on hold and (PSCs) were signed under the ninth round of bidding under the prices will be revised only after the elections the New Exploration Licensing Policy (NELP). Progress has are over in mid-May. A draft policy for exploration been slow on the Open Acreage Licensing Policy (OALP). of shale gas has also been announced, and the ministries concerned are currently reviewing the policy. Oil Crude oil supply Domestic production Oil production in the country fell by 0.7% in the financial year (FY) 2012/13 (Table 1) (MoPNG Energy supply
Table 1 Trend in onshore–offshore crude oil production (in MT) Year Onshore Offshore Grand total ONGC OIL Private/JV Total ONGC Private/JV Total 2012/13 (P) 6.94 3.66 8.83 19.44 15.62 2.80 18.42 37.86 2011/12 7.38 3.85 6.79 18.02 16.33 3.73 20.06 38.08 2010/11 7.45 3.58 5.40 16.43 17.00 4.28 21.28 37.71 2009/10 7.51 3.57 0.73 11.81 17.34 4.52 21.86 33.67 2008/09 7.56 3.46 0.24 11.27 17.81 4.43 22.23 33.51 2007/08 7.92 3.10 0.19 11.21 18.02 4.88 22.90 34.11 2006/07 8.06 3.11 0.16 11.33 17.99 4.67 22.66 33.99 2005/06 8.10 3.23 0.10 11.43 16.31 4.45 20.76 32.19 2004/05 8.32 3.20 0.07 11.59 18.16 4.23 22.39 33.98 2003/04 8.38 3.00 0.07 11.46 17.68 4.24 21.92 33.38 2002/03 8.45 2.95 0.08 11.47 17.56 4.01 21.57 33.04 2001/02 8.64 3.18 0.07 11.89 16.07 4.07 20.14 32.03 2000/01 8.43 3.28 0.09 12.01 16.63 3.79 20.42 32.42 JV – joint venture; MT– million tonnes; OIL – Oil India Ltd; ONGC – Oil and Natural Gas Corporation; P – provisional Note The production figures have been rounded off to two decimal places. Sources MoPNG (2013); TERI (2013)
2013). The primary reason for shortfall was the of which was from the Middle East. Saudi Arabia steadily declining production levels of the Oil and and Iraq together account for a third of India’s total Natural Gas Corporation (ONGC) and the Oil oil imports.4 India’s July 2013 imports from Iran, India Limited (OIL). All their existing oil-producing however, were just 35 500 BOED, down 82% from fields have already reached their peak levels. Even a year ago due to international sanctions designed though production was expected to rise this year to curb Iran’s nuclear ambitions (Winterbottom in light of Cairn India operated Aishwarya field and Goswami 2013). starting production, the figures were not included India’s crude import bill was $144 billion last since production started in Q1 of FY 2013.1 Cairn fiscal year—the largest part of its overall import India operated fields in Rajasthan produce 180 000 costs. The Ministry of Petroleum and Natural barrels of oil equivalent per day (BOED) at present, Gas (MoPNG) has undertaken several measures and plan to achieve more than 200 000 BOED by to cut the country’s oil costs after the rupee’s the end of this fiscal year.2 Cairn India intends to slide to record lows has left India facing an oil increase the production to 300 000 BOED, which bill potentially 50% higher than last year.5 An is almost 40% of India’s total production (Rowley action plan has been introduced and an Expert and White 2013). Table 2 shows the production of Committee appointed to reduce India’s import crude oil by region. dependence on oil by 50% by 2020, 75% by 2025, and 100% by 2030 (PTI 2013). Figure 1 shows the Import of crude oil trend in the quantity and value of crude oil imports in India, and Figure 2 compares total imports India imports about 80% of its oil, which accounts vis-à-vis imports of crude oil and petroleum for about 30% of its energy needs. India’s overall products. Table 3 gives the quantities of crude oil crude imports increased 7.6% in 2012/13,3 64% imports by country.
1 Cairn India Production Update FY 2012/13; details available at pdf> 3 Details available at 84 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Table 2 Production of crude oil by region (in MT) Year Onshore Offshore Grand total Arunachal Andhra Assam/ Gujarat/ Onshore Private/JV Mumbai Offshore total Pradesh Pradesh/ Nagaland Rajasthan total High Tamil Nadu 2012/13 (P) 0.12 0.53 4.86 13.90 19.44 2.80 15.62 18.42 37.86 2011/12 0.12 0.56 5.02 12.33 18.03 3.73 16.33 20.06 38.08 2010/11 0.12 0.54 4.72 11.05 16.43 4.28 17.00 21.28 37.71 2009/10 0.13 0.54 4.73 6.40 11.81 4.52 17.34 21.86 33.67 2008/09 0.10 0.55 4.67 5.94 11.27 4.43 17.80 22.23 33.51 2007/08 0.10 0.57 4.36 6.18 11.21 4.88 18.02 22.90 34.11 2006/07 0.12 0.61 4.39 6.21 11.33 4.67 17.99 22.66 33.99 2005/06 0.10 0.6 4.47 6.25 11.43 4.45 16.31 20.76 32.19 2004/05 0.08 0.62 4.70 6.19 11.59 4.23 18.16 22.39 33.98 2003/04 0.08 0.66 4.59 6.13 11.46 4.24 17.68 21.92 33.37 2002/03 0.07 0.7 4.66 6.04 11.47 4.01 17.56 21.57 33.04 2001/02 0.07 0.72 5.10 6.00 11.89 4.07 16.07 20.14 32.03 2000/01 0.08 0.7 5.20 5.82 11.79 4.01 16.63 20.64 32.43 JV – joint venture; MT – million tonnes; P – provisional Sources MoPNG (2013); TERI (2013) '000 tonnes ` crore 200000 900000 ` crore 180000 800000 3000000 160000 700000 2500000 140000 600000 120000 500000 2000000 100000 400000 80000 1500000 60000 300000 40000 200000 1000000 100000 20000 500000 0 0 7 0 1 2 0 3(P) 7/08 10/1 1/1 1 4 7 0 1 2 1 2/1 3(P) 2006/0200 2008/092009/120 20 1 1/02 7/08 10/111/1 20 2000/0200 2002/032003/02004/052005/062006/0200 2008/092009/120 20 12/1 20 Crude oil imports (in MT) Petroleum, crude oil and product imports Total goods imports Value of crude oil imports (in ` crore) Figure 1 Quantity and value of crude oil imports in Figure 2 Imports of crude oil and petroleum products India vis-à-vis total imports P – provisional figures P – provisional figures Source TERI Energy & Environment Data Directory and Yearbook 2013/14 85 Energy supply Table 3 Quantities of crude oil imports (in MT) by country Region Country 2007/08 2008/09 2009/10 2010/11 2011/12 Middle East Saudi Arabia 26.99 25.94 27.14 27.39 32.52 Iraq 14.29 14.39 14.95 16.83 24.11 Kuwait 10.31 14.77 11.82 11.49 17.73 Iran 19.49 21.81 21.20 18.50 18.11 UAE 10.86 13.86 11.60 14.74 15.79 Qatar, Oman, Yemen, Neutral Zone, 11 4.19 17.01 16.03 10.38 Syria Subtotal 92.94 94.96 103.72 104.98 118.64 Africa Nigeria 9.92 10.54 13.2 15.81 14.13 Angola 4.34 5.31 8.99 9.95 9.01 Egypt, Algeria, Equatorial Guinea, 7.23 5.38 10.75 9.82 7.99 Sudan, Congo, Cameroon, Ivory Coast, Libya, Gabon, Chad, West Africa Subtotal 21.49 21.23 32.94 35.58 31.13 Asia Malaysia, Brunei, China, Singapore, 4.63 4.90 3.95 3.27 3.43 South Korea Subtotal 4.63 4.9 3.95 3.27 3.44 South America Venezuela 1.17 7.56 7.30 10.4 9.56 Brazil, Colombia, Ecuador, Panama 0.26 0.07 4.79 4.66 4.98 Subtotal 1.43 7.63 12.09 15.06 14.54 Eurasia Azerbaijan, Kazakhstan, Russia 2.47 1.81 3.98 1.54 1.04 North America Mexico, Canada 1.37 2.15 1.97 1.28 2.28 Europe Albania, Norway, Turkey, UK 0.41 0.22 0.2 0.02 Australia Australia 0.17 0.09 0.36 1.69 0.65 Total 124.91 132.77 159.23 163.6 171.74 MT – million tonnes; UAE – United Arab Emirates Note Relatively smaller values have been added and reported as “others” in each region. Source Lok Sabha (2013a) Crude oil pipelines primarily due to the government’s encouragement to invest in refineries. At the end of 2012, India India currently has close to 6500 km of crude oil became the third largest refiner in Asia, behind pipelines in the country. The details about the China and Japan, with a total refining capacity of pipelines, operators, capacities, and lengths are 4.3 million barrels per day.6 provided in Table 4. The last decade has seen a tremendous growth in the refining sector. The country’s refining capacity Refining has increased from a modest 62 million tonnes per Present capacity and throughput of existing annum (MTPA) in 1998 to 215.066 MTPA at present, comprising 22 refineries. During 2011/12, refineries two new joint venture (JV) refineries of 6 MTPA Despite being a net importer of crude oil, India and 9 MTPA were commissioned in Bina, Madhya has become a net exporter of petroleum products Pradesh, and Bathinda, Punjab, respectively 6 US Energy Information Administration—India Energy Report (March 2013) 86 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas products. The refining margin environment of the Table 4 Length of major crude oil pipelines (as on 30 September 2012) international market remained volatile throughout the year leading to a decline in the GRM of Indian Operator Pipeline Capacity Length refineries. This was essentially due to volatility in (MTPA) (in km) crude oil prices in the past year and in tandem with HMEL Mundra–Bhatinda 9.00 1 014 the declining global trends in refining margins. This BPCL Vadinar–Bina 6.00 935 decrease in GRM also reflected in the financial Cairn Barmer–Salaya 6.25 590 performance of the refineries. For instance, Essar Oil Limited (EOL) showed a fall of 3% in the earnings OIL Duliajan–Digboi– 8.40 1 193 before interest, tax, depreciation, and amortization. Bongaigaon–Barauni The exceptions were Reliance Industries IOCL Salaya–Mathura–Panipat 21.00 1 870 Limited (RIL), EOL, and Bharat Petroleum (including loop lines) Corporation Limited (BPCL). Reliance continues IOCL Paradip–Haldia–Barauni 11.00 1 302 to reap profits due to its superior refinery capabilities IOCL Mundra–Panipat 8.40 1 194 at its Jamnagar complex [Nelson Complexity Index ONGC Mumbai High–Uran–Trunk 15.63 204 (NCI) of 11] and international marketing of its products.8 BPCL achieved higher yield outputs ONGC Heera–Uran–Trunk 11.50 81 this year at both its Mumbai and Kochi refineries ONGC Kalol–Nawagam–Koyali 8.54 141 and a reduction in Octroi under-recovery due to BPCL – Bharat Petroleum Corporation Ltd; HMEL – Hindustan Mittal Energy Ltd; the State Surcharge Recovery Scheme.9 EOL, on IOCL – Indian Oil Corporation Ltd; MTPA – million tonnes per annum; OIL – Oil India the other hand, has upgraded the complexity of its Ltd; ONGC – Oil and Natural Gas Corporation Note Smaller pipelines operated by ONGC have not been included in this table. Vadinar refinery (NCI of 11.8 from 6.1) and as a 10 Source 7 Details available at TERI Energy & Environment Data Directory and Yearbook 2013/14 87 Energy supply Table 5 Installed capacity and crude throughput Refining company Installed capacity (as on 1 April) (MTPA) Crude throughput (MT) 2011 2012 2013 2010/11 2011/12 2012/13(P) Public sector 113.89 120.08 120.08 115.34 121.07 126.21 IOCL, Guwahati, Assam 1.00 1.00 1.00 1.12 1.06 0.96 IOCL, Barauni, Bihar 6.00 6.00 6.00 6.21 5.73 6.34 IOCL, Koyali, Gujarat 13.70 13.70 13.70 13.56 14.25 13.15 IOCL, Haldia, West Bengal 7.50 7.50 7.50 6.88 8.08 7.49 IOCL, Mathura, Uttar Pradesh 8.00 8.00 8.00 8.77 8.20 8.56 IOCL, Digboi, Assam 0.65 0.65 0.65 0.65 0.62 0.66 IOCL, Panipat, Haryana 12.00 15.00 15.00 13.66 15.50 15.13 IOCL, Bongaigaon, Assam 2.35 2.35 2.35 2.01 2.19 2.36 BPCL, Mumbai, Maharashtra 12.00 12.00 12.00 13.02 13.35 13.08 BPCL, Kochi, Kerala 9.50 9.50 9.50 8.73 9.45 10.11 HPCL, Mumbai, Maharashtra 6.50 6.50 6.50 6.75 7.72 7.91 HPCL, Visakhapatnam, Andhra Pradesh 8.30 8.30 8.30 8.20 8.68 8.03 CPCL, Manali, Tamil Nadu 10.50 10.50 10.50 10.10 9.95 9.11 CPCL, Narimanam, Tamil Nadu 1.00 1.00 1.00 0.70 0.61 0.64 NRL, Numaligarh, Assam 3.00 3.00 3.00 2.25 2.82 2.48 ONGC, Tatipaka, Tamil Nadu 0.07 0.07 0.07 0.07 0.07 0.06 MRPL, Mangalore, Karnataka 11.82 15.00 15.00 12.66 12.79 14.41 Private sector/joint venture 70.50 93.10 93.10 85.05 80.44 90.96 HMEL, GGSRa, Bhatinda, Punjab — 9.00 9.00 — — — BORL, Bina, Madhya Pradesh — 6.00 6.00 — 2.05 5.73 RIL, Jamnagar, Gujarat 33.00 33.00 33.0 34.52 35.20 35.56 EOL, Vadinar, Gujarat 10.50 18.10 20.00 14.87 13.64 19.97 RIL, SEZ, Jamnagar, Gujarat 27.00 27.00 27.00 35.66 29.55 29.70 Total 184.39 213.18 215.07 200.39 201.51 217.17 BPCL – Bharat Petroleum Corporation Ltd; CPCL – Chennai Petroleum Corporation Ltd; EOL – Essar Oil Ltd; HPCL – Hindustan Petroleum Corporation Ltd; IOCL – Indian Oil Corporation Ltd; MRPL – Mangalore Refinery and Petrochemicals Ltd; MT– million tonnes; MTPA – million tonnes per annum; HMEL – Hindustan Mittal Energy Ltd; GGSR – Guru Gobind Singh Refinery; BORL – Bharat Oman Refineries Ltd; NRL – Numaligarh Refinery Ltd; ONGC – Oil and Natural Gas Corporation; RIL – Reliance Industries Ltd; SEZ – special economic zone a The refinery started operating in April 2012. Source 88 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas N Bathinda HMEL Panipat IOCL Digboi IOCL (AOD) Mathura Bongaigaon Duliajan IOCL IOCL Mangla Chaksu Barmer Numaligarh Guwahati NRL HPCL Barauni IOCL Sidhpur IOCL Bina Mundra Viramgam Kandla Navagam BORL Jamnagar Koyali RIL, SalayaVadinar IOCL RIL, SEZ EOL Haldia Bhogat IOCL Uran Paradip IOCL Mumbai BPCL, HPCL Visakhapatnam HPCL Tatipaka ONGC Mangalore Manali MRPL CPCL Padur Cuddalore NOCL Narimanam Kochi Andaman and Lakshadweep CPCL Nicobar Islands Islands BPCL Legend Existing refinery Proposed/under construction refinery Proposed/under construction crude pipeline Existing crude pipeline Proposed petroleum reserve INDIA Map not to scale Map 1 Crude oil pipelines and refineries in India TERI Energy & Environment Data Directory and Yearbook 2013/14 89 Energy supply US$/bbl Table 7 Consumption of petroleum products (in MT) 18 Product 2010/11 2011/12 2012/13 (P) 16 14 LPG 14.33 15.36 15.60 12 Naphtha and NGL 10.68 11.11 12.28 10 8 MS 14.19 14.99 15.74 6 ATF 5.08 5.54 5.27 4 2 SKO 8.93 8.23 7.50 0 HSD 60.07 64.74 69.16 RIL EOL NRL IOCL Kochi) CPCL MRPL (Mumbai) (Mumbai)(Visaka) LDO 0.46 0.42 0.40 BPCL HPCL BPCL HPCL Lubes and greases 2.43 2.75 2.69 2010/11 2011/12 2012/13 FO and LSHS 10.79 9.23 7.68 Figure 3 Gross refining margins from 2010/11 to Bitumen 4.54 4.63 4.67 2012/13 Petroleum coke 4.98 6.15 9.12 Sources EOL (2013); Lok Sabha Unstarred Question No. 1727, Others 4.57 4.92 5.31 Annexure III, answered on 16 August 2013; RIL (2013) Total 141.04 148.05 155.42 ATF – aviation turbine fuel; FO – furnace oil; HSD – high speed diesel; LDO – light diesel oil; LPG – liquefied petroleum gas; LSHS – low sulphur heavy stock; Table 6 Production of petroleum products (in MT) MS – motor spirit; NGL – natural gas liquid; P – provisional; SKO – superior kerosene oil Product 2010/11 2011/12 2012/13 (P) Source LSHS 1.99 1.71 1.29 Fuel oil, 1.07 Bitumen 4.45 4.60 4.67 Bitumen, 0.09 Others 19.01 21.96 27.97 Others, 4.35 Total 195.79 203.99 217.82 ATF – aviation turbine fuel; FO – furnace oil; HSD – high speed diesel; LDO – light diesel oil; LPG – liquefied petroleum gas; LSHS – low sulphur heavy stock; MS – motor spirit; P – provisional; SKO – superior kerosene oil Source 90 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Diesel, 22.46 Table 8 Contd... LDO, 0.01 Lubes, 0.06 Company Pipeline Capacity (P) Length (MTPA) (km) Fuel oil, 5.92 IOCL Mathura–Tundla 1.2 56 Bitumen, 0.09 IOCL Koyali–Viramgam–Sidhpur– 4.1 1 056 Others, 4.67 Sanganer LPG, 0.20 IOCL Panipat–Rewari 1.5 155 IOCL Chennai–Trichi–Madurai 2.3 683 Naphtha, 8.65 IOCL Koyali–Dahej 2.6 197 LPG, 0.20 IOCL Amod–Hazira 2.6 94 Petrol, 16.66 IOCL Chennai–Bengaluru 1.5 290 Kerosene, 0.02 Aviation turbine IOCL Digboi–Tinsukia 1.0 75 fuel, 4.55 IOCL Narimanam–Nagappatinam 0.4 7 IOCL Devangonthi–Devanhalli 0.7 36 Figure 5 Exports of petroleum products in 2012/13 HPCL Mumbai–Pune 3.7 508 (in MT) Source TERI Energy & Environment Data Directory and Yearbook 2013/14 91 Energy supply Table 9 Under-recoveries to oil companies (in ` million) by product 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Petrola 27 230 20 270 73 320 51 810 51 510 22 270 — — Diesel 126 470 187 760 351 660 522 860 92 790 347 060 811 920 920 610 Domestic LPG 102 460 107 010 155 230 176 000 142 570 217 720 299 970 395 580 PDS Kerosene 143 840 178 830 191 020 282 250 173 640 194 840 273 520 294 100 Total 400 000 493 870 771 230 1 032 920 460 510 781 900 1 385 410 1 610 290 LPG – liquefied petroleum gas; PDS – public distribution system a Prices of petrol were decontrolled in June 2010. Source Table 10 Fiscal subsidy on PDS kerosene and domestic LPG (in ` million) 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 PDS kerosene 10 570 9 700 9 780 9 740 9 560 9 310 8 630 7 410 Domestic LPG 16 050 15 540 16 630 17 140 18 140 19 740 21 370 19 890 Total 26 620 25 240 26 410 26 880 27 700 29 040 30 000 27 300a LPG – liquefied petroleum gas; PDS – public distribution system a In addition to this, the government also pays freight subsidy for far-flung areas and this stood at `230 million in 2012/13. Source Table 11 Share of under-recoveries (in ` million) 2008/09 2009/10 2010/11 2011/12 April–December 2012 Total under-recovery 1 032 920 460 510 781 900 1 385 410 1 248 540 Government share 712 920 260 000 410 000 835 000 550 000 Upstream oil companies and GAIL 320 000 144 300 302 970 550 000 452 510 Oil marketing companies 0 56 210 68 930 410 246 030a GAIL – Gas Authority of India Ltd a Unmet gap to be finalized at the end of the year in consultation with the Ministry of Finance. Note Until 2009/10, the government share was in the form of oil bonds issued to oil marketing companies. Source Lok Sabha (2013b) rupee (Agarwal and Soni 2013). Further, decision This year, total gas production fell by 14% in India. was also made to sell diesel to the bulk consumers Even though production from ONGC and OIL at non-subsidized rates. However, this decision has has consistently been around 25 BCM per year, also led to a decline in the bulk sales of diesel that the steep fall in RIL-BP-Niko’s KG-DWN-98/3 have reduced from 17.77% of the total diesel sales block (also known as KG-D6) has led to this in 2011/12 to 10.2% in 2012/13. Table 11 shows the decrease. For the trend in natural gas production share of under-recoveries of various stakeholders. from public sector undertakings and private fields, see Figure 6. The total productions of onshore and Natural gas offshore natural gas is given in Tables 13 and 14, respectively. Natural gas supply Natural gas production in India has gone from Natural gas imports almost zero in the 1950s to more than 40 billion India became the world’s sixth largest LNG cubic metres (BCM) in the current year (Table 12). importer in 2011, with 5.3% of global imports.11 11 Energy Information Administration—India Analysis (18 March 2013) 92 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Table 12 Production of natural gas (by company, in BCM) Per cent 100 Year ONGC OIL Private/JV Total 90 80 2012/13 (P) 23.55 2.64 14.49 40.68 70 60 2011/12 23.31 2.63 21.61 47.55 50 40 2010/11 23.09 2.35 26.77 52.21 30 20 2009/10 23.17 2.41 21.98 47.57 10 0 2008/09 22.49 2.26 8.09 32.84 0 1 2 (P) 1/2 7/8 0/1 1/1 3 2000/1200 2002/32003/42004/52005/62006/7200 2008/9 1 1 2007/08 22.21 2.34 7.78 32.27 2009/120 20 12/1 20 2006/07 22.25 2.27 7.04 31.56 PSU Pvt./JV 2005/06 22.57 2.27 7.36 32.20 Figure 6 Trend in natural gas production from 2004/05 22.99 2.01 6.78 31.77 public sector undertakings and private fields 2003/04 23.58 1.88 6.49 31.96 P – provisional Source 12 Lok Sabha Question No. 177 (MoPNG), answered on 23 August 2012 13 Lok Sabha Question No. 3160 (MoPNG), answered on 15 March 2013 TERI Energy & Environment Data Directory and Yearbook 2013/14 93 Energy supply Table 13 Production of onshore natural gas (in BCM) by region Year Andhra Pradesh Arunachal Pradesh Assam Gujarat Rajasthan Tamil Nadu Tripura Total 2012/13 (P) 1.25 0.04 2.91 2.03 0.68 1.21 0.65 8.77 2011/12 1.36 0.04 2.90 2.16 0.59 1.28 0.64 8.99 2010/11 1.38 0.04 2.68 2.26 0.04 1.12 0.61 8.53 2009/10 1.47 0.04 2.72 2.45 0.24 1.18 0.65 8.76 2008/09 1.52 0.03 2.57 2.60 0.21 1.24 0.55 8.72 2007/08 1.56 0.03 2.60 2.93 0.26 1.17 0.53 9.09 2006/07 1.53 0.04 2.53 3.29 0.24 1.13 0.52 9.27 2005/06 1.66 0.05 2.41 3.83 0.24 0.91 0.48 9.58 2004/05 1.71 0.04 2.25 3.71 0.21 0.68 0.50 9.09 2003/04 1.93 0.04 2.20 3.52 0.17 0.61 0.51 8.97 2002/03 2.04 0.04 2.05 3.53 0.16 0.47 0.45 8.73 2001/02 1.80 0.03 1.99 3.28 0.10 0.35 0.42 7.97 2000/01 1.60 0.03 2.20 3.15 0.16 0.20 0.38 7.73 BCM – billion cubic metres; P – provisional Note The 84.1 million cubic metres of production from coal bed methane blocks in West Bengal, Madhya Pradesh, and Jharkhand has not been included. Source Table 14 Production of offshore natural gas (in BCM) 2009/10 2010/11 2011/12 2012/13 (P) Total imports (MT) 14 ONGC Mumbai 17.46 17.59 17.56 18.10 12 High 10 Private/JV 21.35 26.05 20.91 13.70 offshore 8 6 Total 38.81 43.64 38.47 31.80 4 BCM – billion cubic metres; JV – joint venture; ONGC – Oil and Natural Gas 2 Corporation; P – provisional Source 14 Press Information Bureau, Government of India (15 March 2013) 94 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Map 2 Natural gas pipelines and LNG terminals in India TERI Energy & Environment Data Directory and Yearbook 2013/14 95 Energy supply Table 15 Existing and planned LNG terminals in India Project and developer Location (state) Capacity Supplier Status (MTPA) Dahej LNG terminal Dahej (Gujarat) 10 RasGas (Qatar-based LNG Commissioned in (Petronet LNG Ltd) (operating at 11 MTPA) supply company) and spot February 2004 and cargoes commercial sales began in April 2004 Hazira LNG Hazira (Gujarat) 3.6 Spot cargoes Commissioned in April (Shell and Total) (phase I) 2005 Dabhol terminal (Ratnagiri Dabhol 5.0 Spot cargoes. The terminal is partially Gas and Power Pvt. Ltd) (Maharashtra) (Operating at 0.75 MTPA; will (Long-term agreement for operational and is achieve max capacity once fully supply of LNG is yet to be currently running at a operational) finalized) capacity of 3.2 MT. Kochi LNG Kochi (Kerala) 5 LNG sale and purchase Under construction; (Petronet LNG Ltd) agreement with Exxon commissioned in 2013 Mobil Corporation for supply of approximately 1.5 MTPA of LNG from the Gorgon LNG Project, Australia Ennore LNG Ennore 5.0 Yet to be finalized Schedule to be (IOCL and CPCL) (Tamil Nadu) commissioned by 2015/16 Mundra LNG terminal Mundra (Gujarat) 5.0 Yet to be finalized Planned (GSPC and Adani) Mangalore LNG Mangalore 2.0–3.0 Yet to be finalized Planned (ONGC and MRPL) (Karnataka) APGDC–Kakinada FSRU Kakinada (Andhra 3.5 Yet to be finalized Planned terminal (APGIC and GAIL) Pradesh) Gangavaram Gangavaram 5 Yet to be finalized Planned (Petronet LNG Ltd) (Andhra Pradesh) APGDC – Andhra Pradesh Gas Distribution Corporation; APGIC – Andhra Pradesh Gas Infrastructure Corporation; CPCL – Chennai Petroleum Corporation Ltd; FSRU – floating storage re-gasification unit; GAIL – Gas Authority of India Ltd; GSPC – Gujarat State Petroleum Corporation; IOCL – Indian Oil Corporation Ltd; LNG – liquefied petroleum gas; MRPL – Mangalore Refinery and Petrochemicals Ltd; MT – million tonnes; MTPA – million tonnes per annum; ONGC – Oil and Natural Gas Corporation Sources Lok Sabha Starred Question No. 521, answered on 3 May 2013; 96 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Table 16 Details of existing natural gas pipelines Network/region Entity Length (km) Design Average flow Per cent Pipeline size capacity in 2012/13 capacity (MSCMD) (MSCMD) utilization as on 31 March 2013 HVJ GREP–DVPL and Spur GAIL 3 570 33 47.5 93 36” (Hazira–Vijaipur–Jagdishpur) DVPL-I (42”) (Dahej–Vijaipur) GREP GAIL 865 34 28.0 82 42”/48” upgrade DVPL-1(36”), DVPL-2 (48”) (Vijaipur– GAIL 1 112 54 13 28.2 48” Dadri ) Chhainsa–Jhajjar–Hissar (including Spur GAIL 262 5 0.75 15 36”/16” lines) commissioned up to Sultanpur, Jhajjar–Hissar under hold (111 km); flow of 5 million up to 2011/12 Dahej–Uran–Panvel (DUPL/DPPL), GAIL 873 20 12.64 68.5 30”/18” including Spur lines Dadri–Bawana–Nangal, Dadri–Bawana GAIL 788 11 1.43 13.0 36”/30”/24”/18” (106 km); Bawana–Nangal (501 km, Spur line of BNPL (213 km); flow of 11 million up to 2011/12 Dhabhol–Bengaluru GAIL 1 004 16 0.06 36”/4” (including Spur) Assam (Lakwa) GAIL 8 2.5 0.58 23.2 24” Tripura (Agartala) GAIL 61 2.3 1.45 64.0 12” Ahmedabad GAIL 144 3.0 0.41 14.1 12” Rajasthan (Focus Energy) GAIL 154 2.35 0.75 31.8 12” Bharuch, Vadodara (Undera), including GAIL 670 15.4 2.94 19.1 24”/16” RLNG + RIL Mumbai GAIL 129 24.0 22.9 95.4 26” KG Basin (including RLNG + RIL) GAIL 877 16.0 8.6 54.0 18” Cauvery Basin GAIL 267 9.0 3.20 37 18” East-west (RGTIL) Reliance 1 469 80.0 48.0 60 48” GSPC Network, including Spur lines GSPC 1 874 50.0 22.0 44 Assorted Assam Gas Company (Duliajan to AGC 1 000 6.0 4.50 75 16” Numaligarh) Contd... TERI Energy & Environment Data Directory and Yearbook 2013/14 97 Energy supply Table 16 Contd... Network/region Entity Length (km) Design Average Per cent Pipeline size capacity flow in capacity (MSCMD) 2012/13 utilization (MSCMD) as on 31 March 2013 Dadri–Panipat IOCL 132 11.0 2.63 28 30”/10” Uran Trombay ONGC 24 6.0 Total 15 283 400 221 AGC – Assam Gas Company; BNPL – Bawana–Nangal pipeline; DPPL – Dadri–Panipat pipeline; DUPL – Dahej–Uran pipeline; DVPL – Dahej–Vijaipur pipeline; GAIL – Gas Authority of India Ltd; GREP – Gas Rehabilitation and Expansion Project; GSPC – Gujarat State Petroleum Corporation; HVJ – Hazira–Vijaipur–Jagdishpur; IOCL – Indian Oil Corporation Ltd; MSCMD – million standard cubic metres per day; ONGC – Oil and Natural Gas Corporation; RGTIL – Reliance Gas Transportation Infrastructure Ltd; RIL – Reliance Industries Ltd; RLNG – re-gasified liquefied natural gas Source Table 17 Details of planned natural gas pipelines S/N Natural gas pipeline Name of the entity 1. Dadri–Bawana–Nangal (central GAIL (India) Ltd government) 2. Chhainsa–Jhajjar–Hissar (central GAIL (India) Ltd government) 3. Dabhol–Bengaluru (central GAIL (India) Ltd government) 4. Kochi–Koottanad–Bengaluru– GAIL (India) Ltd Mangalore (central government) 5. Jagdishpur–Haldia (central GAIL (India) Ltd government) 6. Mallavaram–Bhopal–Bhilwara– GSPL India Transco Ltd Figure 8 Consumption of natural gas by various Vijaipur (PNGRB) sectors (2012/13) Source 98 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Table 18 Natural gas pricing volume-weighted average of US Henry Hub, UK National Balancing Point, and the net-back price Source Price ($/MBtu) Average at the sources of supply for Japan. In June 2013, supply during the Cabinet Committee on Economic Affairs gave 2011/12 its approval to implement the pricing mechanism (MSCMD) recommended by the Rangarajan Committee. This APM gas from Nocs $ 2.52–5.25/MBTU 50.7 decision was expected to be implemented by 1 April Non-APM gas from NOCs $ 4.2/MBTU 7.45 2014. However, as per the decision of Election PMTa $ 4.2–5.73/MBTU 11.03 Commission, the price revision has currently been put on hold. Niko-Hazira $ 2.673–5.346/MCF 0.48 Ravva Satellite $ 4.3/MBTU 0.97 Shale gas in India RIL-KG-D6 $ 4.2/MBTU 42.32 Long-term RLNGb $ 6.97–9.06/MBTU 25.51 A draft shale gas policy has been introduced in the country and is currently under review.16 Various LNG (Spot)b $12.52–17.44/MBTU 14.11 exercises have been carried out to estimate the APM – administered price mechanism; LNG – liquefied natural gas; MBTU – extent of shale reserves in the country. These are million British thermal units; OMCF – thousand cubic feet; MSCMD – million 17 standard cubic metres per day; NOC – national oil company; PMT – Panna– as follows: Mukta–Tapti; RIL – Reliance Industries Ltd; RLNG – re-gasified liquefied natural • Estimates by M/s Schlumberger: 300–2100 gas trillion cubic feet (TCF) (as available in public a Purchase price of Panna–Mukta Gas is $5.73/MBTU and that of Mid Tapti is domain) $5.57/MBTU. • Estimates by the Energy Information b RLNG/spot prices are ex-terminal prices, exclusive of re-gasification charges. Administration, USA: 290 TCF in four basins Source Govermment of India (2012) • ONGC estimates: 114 TCF in three basins term contracts is governed by the sale-purchase • Estimate by the Central Mine Planning and agreements between the LNG seller and buyer. The Design Institute: 45 TCF in six sub-basins spot cargoes are purchased on mutually agreeable In addition, the United States Geological Survey commercial terms as per market conditions. has also estimated technically recoverable shale The MoPNG revised the price of APM gas with gas resources of 6.1 TCF in three basins and has effect from 1 June 2010 to $4.2/million British indicated that these basins have also potential for thermal units (outside north-eastern states) and shale oil. However, as can be noted, there is a wide $2.52 (in north-eastern states). The difference in divergence in the estimates by different agencies. these prices for north-eastern states is paid through Moreover, none of the studies have covered all budget. Table 18 presents the comparative chart for the basins in the country. The government has pricing of natural gas. granted permission to ONGC for a research and In 2012, an expert committee was appointed development project in Gondwana Basin in the under the chairmanship of Dr C Rangarajan to existing two coal bed methane (CBM) blocks for examine the pricing mechanism for natural gas in exploration of shale gas. India. In its report to the government, the committee There are significant environmental and social has reviewed various pricing mechanisms in the risks associated with the exploration of shale gas. country and abroad, and has recommended an Most important among these is, arguably, the appropriate mechanism for pricing till the time ecological impact and the associated demand and a gas-on-gas competition becomes feasible.15 It pollution of water in the process of horizontal recommends a uniform gas pricing mechanism, drilling and hydraulic fracturing (fracking), which at an arm’s length basis. It suggests determining is a water-intensive activity. Before exploration of prices as an average of volume-weighted average at shale gas can be approved in the country, these well-head (on net-back basis) for gas imports and factors have to be examined carefully (Batra 2013). 15 The report of the committee can be found at TERI Energy & Environment Data Directory and Yearbook 2013/14 99 Energy supply Other unconventional fossil fuels blocks are expected to start commercial production in the near future. The total CBM production is Ethanol expected to be around 4 MSCMD by the end of the Twelfth Five-Year Plan, that is, 2016/17. Details on the biofuels programme policy in the country can be found in the previous edition of this publication. To legislate the consumption of Natural gas hydrates ethanol-blended fuel, a Gazette Notification was A National Gas Hydrates Programme was issued on 2 January 2013, directing oil marketing introduced in India in 1997. Reconnaissance companies (OMCs) to sell ethanol-blended petrol surveys carried out by the Directorate General with a percentage of ethanol up to 10% as per of Hydrocarbons have found gas hydrates to be the Bureau of Indian Standards specification to present in the Krishna–Godavari basin, Mahanadi achieve 5% ethanol blending across the country basin of the Bay of Bengal, and Andaman Islands as a whole. The most important factor affecting and collected a number of gas hydrate cores from the achievement of this target is the availability of 21 sites and 39 holes. The total prognosticated gas ethanol and competitiveness of rates offered by resource from the gas hydrates in the country is OMCs, who have been allowed to import ethanol placed at 1894 trillion cubic metres. in the case of non-availability in domestic market. Key policy changes introduced in the Coal bed methane sector during the year For the exploration and production of CBM in the country, 33 CBM blocks located in Jharkhand, The government is moving towards decontrolling West Bengal, Chhattisgarh, Madhya Pradesh, the prices of diesel, and the prices are being Maharashtra, Rajasthan, Gujarat, Andhra Pradesh, increased in small amounts at regular intervals. Tamil Nadu, Odisha, and Assam have been awarded The pricing of natural gas has been revised, in to national oil companies and private companies. line with the recommendations of the Rangarajan The total prognosticated CBM resources for Committee. The revised policy will have uniform these 33 CBM blocks is about 63.85 TCF, of which prices for all domestically produced gas and was only 9.12 TCF reserves have been established so far expected to come into effect from 1 April 2014. as gas-in-place. Commercial CBM production has However, as per the Election Commission's started from one block, namely Raniganj (south), notification, this decision has been put on hold. since 14 July 2007, which now contributes about The government issued a Gazette Notification in 0.28 MSCMD of CBM production. Seven more 2013 mandating blending of 5% ethanol in petrol. 100 TERI Energy & Environment Data Directory and Yearbook 2013/14 Petroleum and natural gas Green initiatives by oil and gas companies In step with the global move towards environmental sustainability, Indian oil and gas players are also moving towards introducing green initiatives in their operations. One of the most important developments in this context is the establishment of captive renewable-based power generation capacities by these companies. For instance, the Oil and Natural Gas Corporation has set up a 50 MW wind energy project in the Kutch district of Gujarat. Similarly, the Indian Oil Corporation Limited has established a Renewable Energy and Sustainable Development Department, which formulates and implements strategies towards reducing the ecological footprint of the company. The company has been selected in a competitive bidding process to install a 5 MW solar power project in Rajasthan under the Jawaharlal Nehru National Solar Mission Phase I Batch I. The solar power project was commissioned in January 2012. The company has also set up a 21 MW wind power project in Gujarat and is in the process of establishing a second wind power project of 48.3 MW in Andhra Pradesh. The Hindustan Petroleum Corporation Limited has also established a 3.75 MW pilot turnkey wind power project in Maharashtra. The project was executed by M/s Suzlon Energy Limited and power generated from this venture is being sold to the Maharashtra State Electricity Board. The company is also operating another 21.25 MW wind power project in the Jaisalmer district of Rajasthan. In addition to establishing renewable energy-based power projects, companies in the sector are also utilizing renewable energy-based facilities such as solar water heaters and boilers in their own operations. TERI Energy & Environment Data Directory and Yearbook 2013/14 101 Energy supply References MoPNG (Ministry of Petroleum and Natural Gas). 2013. Brief note on Agarwal, P., and A., Soni. 2013. Policy Brief: petroleum product pricing the production performance of oil and natural gas sector for the reforms in India—are we on the right track? New Delhi: TERI month of March 2013 and cumulatively for the period April–March Batra, R. 2013. Shale gas in India: look before you leap. Details available 2013 vis-à-vis 2012. Details available at 102 TERI Energy & Environment Data Directory and Yearbook 2013/14