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Growth of Indian Natural Gas Market

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Information about Growth of Indian Natural Gas Market
Business-Finance

Published on February 27, 2014

Author: backardi_lisa

Source: authorstream.com

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PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India Executive Summary The share of LNG in total natural gas consumption in India reached 25.5% in FY12 and increased to 30% in FY13. The fall in domestic gas production in recent years has forced many gas consumers to evaluate the viability of using R-LNG to bridge the gap. The government’s decision to increase the price of domestic natural gas from April 2014 has further complicated things for natural gas consumers. Domestic gas prices are expected to double to around $8.5/MMBTU from $4.2/MMBTU currently. The domestic gas production is not expected to increase substantially over the next 3-4 years. Keeping in view the scarcity of domestic gas, Indian Petro Group has assessed the competitiveness of imported LNG with various liquid fuels based on the energy content and price. Based on the price of alternative fuels, the viability of using PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India imported natural gas for various industries has been analyzed. Gas based power stations around the country are operating at low PLF’s due to unavailability of gas and are in danger of defaulting on their debts. Gas based power plants will find it extremely difficult to compete with coal power plants in the future. The recent debacle in the power sector will reduce the pace of investment in gas power plants. With coal prices in the range of $2-3/MMBTU, domestic gas priced at $8.5/MMBTU and imported gas price of $16-20/MMBTU, the cost of generation from gas power plants will be significantly higher than that of coal power plants. The fertilizer sector will also have to adapt to the new pricing paradigm. Naphtha prices are currently trading around $26-27/MMBTU in India but the subsidies doled out by the government makes it a viable PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India option when compared to Natural gas. Natural gas becomes uneconomical for the fertilizer sector at import prices of about $19-20/MMBTU. Under these circumstances, fertilizer producers may find it cheaper to set up plants in the US and Canada to take advantage of the low gas prices prevailing in North America and then import the finished products into India. Sectors such as Steel, Refineries and CGD had to increase dependence on imported LNG in FY 2013 as they are assigned a lower priority in gas allocation as per the government’s gas utilization policy. The CGD sector used imported LNG to fulfill more than half of its gas requirements in FY12 and FY13. The share of imported LNG in the refineries and steel sectors was around 65-75% in FY12 and increased to around 75- 12 Indentification of High Value Crops 80% in FY13. At high LNG prices PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India of around $20/MMBTU, refineries may find it more economical to replace natural gas with Furnace Oil to reduce costs. Globally, LNG trade has been increasing at a fast pace. The number of countries importing LNG has been on the rise over the last decade. USA and Australia are expected to become major exporters in the near future and offer the best bet for sourcing long-term gas post-2015. The price of LNG in Asia has been very high compared to the prices prevailing at global trading hubs in North America and Europe. The Natural gas market is still largely fragmented into regional markets. India and China are expected to become large importers in the future and will strive for a larger share in the global LNG market. The price of LNG in Asia will continue to be highly volatile in the future as observed in the last two years. Gas consumers PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India in India need to evaluate all available options to adopt strategies to remain profitable, given the low availability of domestic gas and high prices of imported LNG. Introduction Natural gas has emerged as the fuel of choice for many industries around the world as it is a cheap, clean and efficient source of energy. Natural gas use may be broadly classified into two categories, namely, for energy generation purposes and non-energy purposes. Natural gas is used for energy generation purposes in power plants, industries, refineries, as domestic fuel, captive usage, LPG shrinkage, City Gas Distribution (CGD), tea plantations etc. In the non-energy purposes category natural gas is used as a feedstock or raw material in the fertilizer, petrochemical, sponge iron industries etc. The share of Natural Gas in total primary energy production has PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India been increasing around the world over the last decade. This can be attributed to the comparatively low price of natural gas resulting from substantial gas discoveries and exploitation of unconventional gas resources enabled by technological advances. In the USA and Canada, Natural gas accounts for 23-25% of total energy production and its share is on the rise. The share of natural gas in energy production in Europe has increased from 9% in 1990 to over 24% in 2012. The share of natural gas in global primary energy production was about 22% in 2012. In India, the share of natural gas in energy production is low by global standards at just 9%. The share of natural gas in energy production is expected to continue to grow in the future. Global production of Natural gas reached 3363.9 billion cubic meters (BCM) in 2012 from 2523.9 BCM in 2011. PowerPoint Presentation: Complete Report @ http://www.marketreportsonline.com/315872.html Buy Report @ http://www.marketreportsonline.com/contacts/purchase.php?name=315872 Indian Natural Gas Market, Global LNG Trade Dynamics and Economic viability of R-LNG in India Global production grew at a slow but steady rate of 2.9% per annum over the last decade. The quantity of natural gas traded between countries increased at a healthy rate of 5.9% per annum over the last decade to reach 1033.4 BCM in 2012 from 581.34 BCM in 2011. Since 2010, more than 30% of global natural gas production has been utilized for trading/exports. In 2002, only 23% of aggregate global production of natural gas was traded/exported. The share of global production utilized for trading has increased consistently over the last ten years, dipping slightly in 2012 compared to 2011.

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