Mon. Jan 17th, 2022

City gas distribution

Transporting future fuel

#55 Natural Gas in India

3 min read

Natural gas is the cleanest fossil fuels among the available fossil fuels. It is used as a feedstock in the manufacture of fertilizers, plastics and other commercially important organic chemicals as well as used as a fuel for electricity generation, heating purpose in industrial and commercial units. Natural gas is also used for cooking in domestic households and a transportation fuel for vehicles.

Gas supply sources in India:

  1. Domestic Gas Sources: The domestic gas in the country is being supplied from the oil & gas fields located at western and southeastern areas viz. Hazira basin, Mumbai offshore & KG basin as well as North East Region (Assam & Tripura). It is being supplied and distributed in terms of the guidelines related to pricing and utilization policies issued by the Government from time to time. In FY 2018-19, total domestic gas production was about 90.05 MMSCMD.
  2. Import of Liquefied Natural Gas (LNG): In order to meet the gas demand, Liquefied Natural Gas (LNG) is imported through Open General License (OGL) in the country and it is imported by the gas marketer under various Long Term, Medium Term and Spot contracts. The price and utilization of imported LNG is mutually decided by buyers and sellers. At present, country is having six (6) operational LNG re-gasification terminals operational with capacity of about 38.8 MMTPA (~ 140 MMSCMD).
LocationOwner & OperatorRegas capacity
Dahej (Gujarat)PLL17.5
Hazira (Gujarat)SHELL5
Kochi (Kerala)PLL5
Kochi (Kerala)GAIL1.3*
Mundra (Gujarat)GSPC LNG Ltd5
Ennore (Tamilnadu)
Indian Oil
Total Capacity (MMTPA)38.8
Total Regas capacity (MMSCMD) (MMTPA)~140
(*Name plate capacity is 5 MMTPA but in absence of the breakwater, the terminal can only operate at 1.3 MMTPA at present)

Gas Consumption in India: In FY 2018-19, the total gas consumption in India was around 148.02 MMSCMD. The share of domestic gas and imported RLNG was about 48% & 52% respectively. Sector-wise gas consumption in FY 2018-19 is tabulated as under:
Figures are in MMSCMD)

Sl. No.SectorDomestic gasR- LNGTotal
1City Gas Distribution (CGD)14.3610.9125.27
4Others- Industries –Steel, Petrochemical, Refinery etc.14.0534.4948.54
** Source- PPAC

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