Tapping growth potential in the Indian hydrocarbon … · · 2015-07-282 Tapping growth potential...

Tapping growth potential in the Indian hydrocarbon value chain

2 3Tapping growth potential in the Indian hydrocarbon value chain Tapping growth potential in the Indian hydrocarbon value chain

Contents

1 3Energy demand scenario in India: an overview

India’s midstream oil and gas sector

Pg.6 Pg.14

2India’s upstream oil and gas sector

Pg.8 4India’s downstream oil and gas sector

Pg.18


1Energy demand scenario in India: an overview

Coal, oil and natural gas are the major sources of primary energy in India, with coal accounting for the highest share of its primary energy mix (52.4%). Oil and natural gas account for 31.7% and 10%, respectively, of the country’s primary energy consumption. The share of

India is one of the world’s largest energy consumers, but its per capita energy consumption is significantly lower than the global average, which indicates significant growth potential.

Exhibit 1. Primary energy mix, 2009

oil in India’s primary energy mix is at par with the global average. However, that of natural gas is significantly lower than the global average due to supply-side constraints. In coming years, the share of gas is expected to increase due to the rise in gas supplies.

Energy demand scenario in India: an overview

India is one of the largest energy consumers in the world, but its per capita energy consumption — 500 kg of oil equivalent (kgoe) — is significantly lower than the global average (1,800 kgoe), which indicates the growth potential of energy demand in the country1. According to the International Energy Agency, India will need investments worth nearly US$600 billion over 2011–2030 across various segments of its hydrocarbon chain to increase its energy supply and improve the infrastructure to enable this.2 This provides ample opportunities for companies across the hydrocarbon value chain.

India had one of the highest growth rates in oil and gas consumption in the world, growing at a compound annual growth rate (CAGR) of 6.5% over 2005—2009 to reach 195.2 million tons (MT) of oil equivalent (MTOE). As is evident from Exhibit 2, while oil and gas consumption in some of the major economies decreased due to the recession, it was on the rise in India. Over the last few years, the growth rate of the country’s gross domestic product (GDP) has been one of the highest in the world. Although the recent financial crisis resulted in a slowdown in its industrial activities, India’s real GDP is expected to grow by 9.2% in FY11 and 8.8% in FY12.3 This is likely to result in a rise in energy consumption and an increased need for investments in the energy industry.

Exhibit 2. Growth in oil and gas consumption

-10

-5

0

5

10

2005 2007 2008

Year

-on-

year

gro

wth

(%)

India China Japan Germany US World

2006 2009

Source: BP Statistical Review of World Energy June 2010

1 “India: Addressing Energy security and climate change,” Ministry of environment and forests, Government of India, October 20072 “Addressing The Challenge Of Energy Security,” Asian Development Bank website, http://www.adb.org/, accessed on April 15, 2011 3 “Real GDP to grow by 8.8% in 2011-12, 9.2% in 2010-11,” CMIE website, www.cmie.com, 14 February 2011

Oil32%

Natural gas10%

Coal52%

Nuclear1%

Hydroelectric5%

India

Source: BP Statistical Review of World Energy June 2010

Oil 35%

Natural gas24%

Hydroelectric7%

Global

Coal29%

Nuclear5%


2India’s upstream oil and gas sector

India’s efforts to reduce the demand-supply gap in oil and gas provide significant opportunities in the upstream segment.

A. Brief overview

Growing dependence on imported crude

India’s crude oil consumption has increased exponentially over the past few years. On the other hand, the country’s crude oil production continued to be stagnant, resulting in its increased dependence on crude oil imports. The country produced 33.7 MT of crude oil in FY10, as compared to 34 MT in FY07. Fueled by strong economic growth, the demand for oil has outpaced domestic

production, resulting in an increased dependence on imports. In FY09, commissioning of Reliance Industries’ (RIL’s) export-oriented Jamnagar refinery resulted in increased oil imports. India’s crude oil imports, as a percentage of its consumption, increased steadily from 79% in FY07 to 85% in FY10. The country’s oil production is expected to rise in the short term, since the production at Cairn Energy’s Barmer block in Rajasthan is projected to increase substantially. However, despite this estimated rise in domestic production, the demand for oil is likely to still outpace production, resulting in continued dependence on imported crude oil.

Rising natural gas production bridging the demand-supply gap

There is a supply-demand imbalance in India’s gas market as domestic production levels are not adequate to meet the current demand. Natural gas production was stagnant till FY09, which resulted in an increased dependence on liquefied natural gas (LNG) imports. In FY10, the domestic gas industry received a significant impetus after Reliance Industries began production at its KG-D6 field. India produced around 130.2 million metric standard cubic meters per day (mmscmd) of natural gas, as compared to nearly 90 mmscmd in FY09, a year-on-year (y-o-y) increase of around 45%. During the same period, the shortfall in natural gas supplies came down from 75 mmscmd to 60 mmscmd. Gas production in FY11 (till February) was 131 mmscmd, and 25 mmscmd of LNG was imported by the country.

141 151 157187 173

34 34 34 34 3479

81

8585

83

74767880828486

0

50

100

150

200

FY07 FY08 FY09 FY10 FY11*

Impo

rts

as a

% o

f con

sum

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n

in m

illio

n to

ns

Exhibit 3. Demand-supply scenario of crude oil

Consumption Production Imports as a % of consumption

Source: Ministry of Petroleum and Natural Gas and Petroleum Planning Analysis Cell*Only till February 2011

Exhibit 4. Natural gas demand-supply scenario

162 179197

226262

27 33 32 36 25

87 89 90130 131

48 5775 60

105

0

50

100

150

200

250

300


mm

scm

dDemand LNG Domestic production Shortfall

Source: Ministry of Petroleum and Natural Gas and Petroleum Planning analysis cell*Production and LNG supplies are only till February 2011

India’s upstream oil and gas sector


B. Opportunities

i. Unexplored sedimentary basins offer significant scope for exploration and development

India has significant potential to discover new oil and gas reserves, since the bulk of its sedimentary area is largely unexplored or inadequately explored. At the end of FY10, exploration had only been initiated in 44% of the sedimentary basins; 22% of the basins were poorly explored and 12% was unexplored.4 Additionally, India offers a definite advantage in terms of finding and development costs, which are among the lowest in the world. This is primarily because exploration in the country is typically carried out in relatively softer and shallow rock formations, as compared to that in various other global locations, which are composed of cretaceous, harder and deeper rock.5 In addition, the Government provides a level playing field for foreign and domestic companies and extends various fiscal incentives under the New Exploration Licensing Policy (NELP) in order to step up domestic production.

Two important discoveries made by Cairn Energy and Reliance Industries in the last decade unlocked a wide range of opportunities in India’s upstream segment. In 2004, Cairn Energy discovered oil reserves in Rajasthan, recording one of the largest onshore oil discoveries in the country; in 2002, Reliance Industries made a significant natural gas discovery in the KG-D6 fields.

On 21 February 2011, Reliance Industries and BP plc. signed a deal to collaborate across the oil and gas value chain in India. BP will give RIL US$7.2 billion for a 30% stake in 23 production-sharing contracts that include RIL’s KG D6 block. In addition, the companies will form a joint venture (JV) to source and market natural gas in India. This is one of the largest foreign direct investments (FDIs) in India till date, which showcases the potential of the Indian upstream industry.6

ii. Rising demand for oilfield services and equipment

The nine rounds of NELP auctions have resulted in increased investment and also seen the growing participation of private players in the county’s upstream sector.

However, acute shortage of oilfield equipment has hindered growth in the upstream segment. As a result, out of the US$20.7 billion worth of investments committed in the initial seven NELP rounds, only US$7.2 billion has been spent so far.7 Investments made during NELP IX are likely to exceed the US$1.1 billion investment committed in NELP VIII.8 The pending exploratory programs of the previous NELP rounds and fresh commitments made in new NELP rounds will require the outlay of significant exploration and development infrastructure, e.g., constructing process platforms, laying pipelines and building collecting stations and other surface facilities to transport oil and gas from the wells to delivery points. This is a significant opportunity for engineering procurement construction (EPC) companies.

4 DGH 2009-10 Annual report5 “India oil and gas” Macquarie Equities Research, 17 June 2010, via Thomson Research 6 “Reliance Industries Limited and BP to participate across the gas value chain in India,” BP press release, www.bp.com, 21 February 20117 “India oil and gas” Macquarie Equities Research, 17 June 2010, via Thomson Research8 “Global energy giants stay away from NELP IX,” The Hindu, 29 March 2011, via Dow Jones Factiva, © 2011 Kasturi & Sons Ltd

The Government offered 34 blocks during the ninth round of NELP in October 2010. As more blocks are explored, the demand for 2D/3D seismic surveys and other geo-scientific surveys is also expected to increase. The demand for other infrastructure including drilling rigs, offshore support vessels, tubular goods, pipelines, storage tanks and production platforms is also expected to grow. Furthermore, the increase in exploratory activities is expected to affect the country’s market for rigs. India is one of the countries that uses the highest number of rotary rigs worldwide, but the shortfall of rigs in the country is a serious problem. The absence of un-contracted rigs in the Indian Ocean and idle rigs in some parts of the world may navigate the movement of rigs closer to Indian shores, which should result in the offshore rig count in India increasing in the near term.9

The number of exploratory and development wells drilled in India rose steadily to 428 in FY10 from 301 in FY06. The number is likely to increase over the next few years. The number of rotary rigs used to drill oil and gas in the country is among the highest in the world. In March 2011, 113 rigs (9.85%) were deployed in India out of the 1,147 operational rotary rigs in the world.

9 “India Oil and Gas,” Macquarie Equities Research, June 2010, via Thomson Research



iii. Development of shale gas and coal bed methane

The opportunity to explore and develop unconventional energy sources, such as shale gas and coal bed methane (CBM), in India are available to both foreign and domestic players. It is estimated that there are significant shale gas reserves in the Cambay, Damodar, Krishna Godavari and Cauvery basins. According to industry estimates, Damodar and Cambay basins have preliminary shale gas reserves of between 35 and 90 trillion cubic feet. However, additional and extensive studies need to be carried out to gauge the true extent of the country’s shale reserves. India signed an agreement with the US in 2010 for cooperation on the former’s research on shale gas reserves. Although current NELP rounds do not cover shale gas resources, bidding on shale gas is expected to commence toward the end of 2011.10 This will provide opportunities for companies with experience in technical assessment of shale reserves and those with technology to reduce development and production costs.11

India has the world’s fourth-largest proven coal reserves. The country has significant potential for exploration and production of CBM. Currently, exploration has only begun in 52% of the 26,000 square kilometers of sedimentary area.12 Many companies, including ONGC, Essar Oil and Great Eastern Energy Corporation Limited (GEECL), have committed substantial investments on CBM exploration and production over the next few years.

India has prognosticated CBM reserves of nearly 161 TCF. The bulk of these reserves are located in Jharkhand, Chhattisgarh, Orissa

iv. Heightened focus on enhanced oil recovery (EOR)/improved oil recovery (IOR) projects

Crude production in India increased after Cairn Energy ramped-up production from its Barmer fields last year. However, majority of India’s producing basins have begun to mature with their production either peaking or beginning to decline. For instance, production from onshore blocks in Gujarat steadily declined to 5.9 MT in FY10 from 6.2 MT in FY0614 — Gujarat accounts for around 20% of India’s total oil production.

10 “First round of shale gas bids by end-2011,” Business Line, 19 October 2010, via Dow Jones Factiva, © The Hindu Business Line. 11 “India, U.S. to cooperate on clean energy, shale gas,” Reuters, 8 November 2010, via Dow Jones Factiva, © 2010 Reuters Limited.12 “ONGC starts ouput of CBM in Jharkhand,” Financial Chronicle, 14 January 2011, 13 via Dow Jones Factiva, © Copyright 2011. Deccan Chronicle Holdings Ltd.13 “CBM,” DGH website, http://www.dghindia.org/, accessed April 19, 2011.

and Madhya Pradesh although most of these regions do not have natural gas pipeline connectivity at present. Commercial production of CBM is expected to provide an impetus for the local economy of these regions. Furthermore, production of CBM will help to reduce green house gases and earn carbon credits, since it prevents methane from operating mines from escaping into the atmosphere. Moreover, extraction of methane helps to increase coal production and ensure safe operating conditions in such mines by keeping methane levels low.13

Production is also declining in other regions, particularly in the North East. Therefore, the deployment of EOR/IOR techniques has become crucial for arresting a decline in production and extending the economic life of a field. This provides opportunities for companies specializing in deploying secondary and tertiary forms of oil recovery procedures. For instance, ONGC is investing in IOR projects to offset the decline in production levels in its maturing fields.15 The company invested INR140 billion (US$3.07 billion) in IOR/EOR projects In 2000-10.16 This has enabled it to improve the recovery factor in its 15 major fields to 33.5% in FY10 from 27.5% in FY01.17

14 “Basic Statistics On Indian Petroleum & Natural Gas,” 2009-10, Ministry of Petroleum and Natural Gas, Government of India15 “INTERVIEW: ONGC director says maintaining current output a challenge,” NewsWire18, 18 November 2009, via Dow Jones Factiva, © 2009 NewsWire18 Ltd.16 “ONGC to invest Rs 50,000 cr in oil, gas fields,” The Press Trust of India Limited, 14 October 2009, via Dow Jones Factiva, © 2009 Asia Pulse Pty Limited.17 “ONGC AGM approves aggregate dividend of Rs 33 per share for FY’10,” ONGC Videsh Limited Press release, http://www.ongcindia.com/, 23 September 2010.



3India’s midstream oil and gas sector

The need for additional gas supplies calls for more LNG re-gasification and transmission capacity.

A. Brief overviewAt the end of FY10, India had a network of 19,103 km of crude and product pipelines with a capacity of around 163 million tons per annum (MMTPA). Indian Oil Corporation (IOCL) holds the majority share of the transport pipelines and the rest is held by other government-owned petroleum companies such as OIL India, ONGC, BPCL and HPCL.18 The country currently has a natural gas transmission network of about 11,000 km, with GAIL accounting for nearly 8,000 km of this network. The remaining network belongs to Reliance Gas Transportation Infrastructure Limited (RGTIL), Gujarat State Petronet Limited (GSPL), Assam Gas Company and OIL India.19 While India’s crude and product pipeline capacity is reasonably adequate, it has inadequate gas pipeline infrastructure. The country

has a very low pipeline penetration as compared to the rest of the world.

India currently has three LNG re-gasification terminals, out of which one each at Dahej and Hazira are operational. The Dahej LNG terminal has a capacity of 10 MMTPA and Hazira a capacity of 3.7 MMTPA. The third terminal at Dabhol, with a capacity of 5 MMTPA, is expected to be operational by the end of 2011. In addition, new LNG terminals are planned in Kochi, Ennore and Mundra. Although LNG imports have increased over the years, its share in total gas supplies has decreased. This is mainly due to the increase in domestic gas production and transmission capacity constraints. However, this trend is likely to reverse over the long term due to increased domestic demand and the inability of domestic production to satisfy the demand.

Exhibit 5. Trend of LNG imports

2732

36

25

2427 26

22

16

051015202530

05

10152025303540


mm

scm

d

LNG imports LNG imports as a % of domestic supplies

Source: Petroleum Planning analysis cell*Only till February 2011

33

LNG

impo

rts

as a

% o

f do

mes

tic s

uppl

ies

B. Opportunities

i. Expansion of LNG capacity

Over the next few years, domestic gas supplies are expected to increase significantly due to additional supplies from the KG-D6 field and ONGC and Gujarat State Petroleum’s new gas-fields. However, demand is expected to grow in the country at a much higher rate, since major consumers such as fertilizer units and power plants are switching to natural gas from naphtha. As a result, the demand for LNG is expected to remain high, which is likely to lead to capacity augmentation of existing LNG terminals as well as commissioning of new ones.

LNG supplies are estimated to account for around 26% of the total demand for natural gas by FY20. The expansion of existing LNG terminals and commissioning of new terminals

at Kochi, Ennore, Mundra and Dabhol are expected to result in an increase in supply. Despite the increase in LNG re-gasification capacity in the country, it may continue to witness a shortage of natural gas. According to industry estimates, India is expected to face shortage of gas of 130–140 mmscmd by FY20, which is more than current domestic production levels. This shortfall can be met by setting up additional LNG terminals or transnational pipelines. In the current scenario, LNG terminals are more attractive as geopolitical factors, and disagreements on gas pricing may discourage investments in transnational pipelines. Therefore, ramping up additional LNG capacities may be a long-term solution for increasing gas supplies in India. Furthermore, the increase in LNG re-gassification capacity is expected to create opportunities for companies operating LNG terminals and providing EPC services.

Petronet LNG currently operates an LNG re-gasification terminal at Dahej. It began operations in FY06 with an initial capacity of 5 MMTPA, which was expanded to a capacity of 10 MMTPA in FY10. The scarcity of domestic gas supplies has helped the company to increase its throughput from 4.9 MMTPA in FY06 to 8.7 MMTPA in FY11. It plans to begin operations at its Kochi terminal in FY12. Consequently, it is expected to have a cumulative re-gasification capacity of 15 MMTPA by FY13.


18 “Basic Statistics On Indian Petroleum & Natural Gas,” Ministry of Petroleum and Natural Gas, Government of India, 2009-10.19 “Gas pipeline networks in India,” Petroleum Planning Analysis Cell


ii. Need for robust pipeline infrastructureSome of the main drivers of the Indian natural gas market include pricing, pipeline infrastructure, regulatory reforms and customer demand. Gas prices in India are gradually shifting from government-controlled administered prices toward a market-determined pricing mechanism. The Petroleum and Natural Gas Regulatory Board (PNGRB) is in the process of strengthening the country’s regulatory framework. There has also been an evident shift of major consumers to the natural gas market. Therefore, there is an urgent need to improve pipeline infrastructure in the country.

India has a limited gas transmission network, primarily due to a shortage in the availability of gas supplies and the regional concentration of gas sources (in the western region). However, the supply situation is changing with increasing gas production on the eastern coast as well as an increase in LNG capacity.

GAIL was the first company to lay a cross-country pipeline in India. It currently has a pipeline network of nearly 8,000 km with a transmission capacity of 157 mmscmd. The country’s longest pipeline — Hazira-Vijaipur-Jagdhishpur — is operating at 100% capacity and is therefore unable to handle additional gas supplies. Over the next few years, GAIL plans to significantly increase its investments to increase its transmission capacity.

In October 2010, a GSPL-led consortium won the rights for laying two cross-country pipelines, which are yet to be awarded. The consortium, comprising GSPL, IOCL, BPCL and HPCL, won the pipeline project, which included the Mallavaram-Bhilwara project and the Mehsana-Bhatinda project.

iii. Setting up of strategic crude oil reserves and petroleum product storage infrastructureOil-refining companies maintain a crude oil inventory of around two weeks. However, this is only for operational purposes and cannot be classified as strategic reserves. India plans to construct strategic crude storage reserves of around 15 MT to protect against possible disruption of supplies. Three underground storage reserves, with a cumulative capacity of 5.33 MT, are being constructed during the first phase. Indian Strategic Petroleum Reserves Limited (ISPRL) is constructing the reserves at Visakhapatnam (1.33 MT), Mangalore (1.5 MT) and Padur (2.5 MT). This will be sufficient to meet the country’s oil requirements for around 14 days.23

However, this storage capacity is small compared to global standards. For instance, strategic petroleum reserves in the US have a 90-day stockpile. Furthermore, the recent upheavals in the Middle East have again highlighted the importance of having sufficient

While total natural gas supplies are likely to increase to 410 mmscmd in FY20 from 166 mmscmd in FY10, the demand is likely to increase to 544 mmscmd in FY20 from 225 mmscmd in FY10.20 The PNGRB is inviting bids for laying transmission pipelines across the country to link the supply centers to the major demand centers. The Board invited an expression of interest (EoI) for laying two pipelines in December 2010. Bids were invited for a pipeline from Chennai to Nellore and another from Kakinada to Visakhapatnam and Srikakulam.21 Companies such as GAIL and RGTIL are also planning aggressive pipeline capacity additions.22 Major investments in this segment will provide ample opportunities for gas transmission, EPC and pipeline-manufacturing companies.

crude oil storages. The Government is open to the idea of setting up secondary storage infrastructure in addition to that maintained by the refining companies. These can be constructed by using public private partnership (PPP) mode.24 This will provide opportunities for EPC contractors, oil traders and financing companies.


20 “Report of Working Group on Petroleum & Natural Gas Sector for the XI Plan,” Ministry of Petroleum & Natural Gas and “Exploring opportunities — growth potential in the Indian natural gas market,” Ernst & Young, October 2010, via GRAD.21 “PNGRB INVITES BIDS FOR GAS PIPELINE,” India Business Insights, 29 December 2010, via Dow Jones Factiva, © 2010 2010 Informatics (India) Ltd. 22- “GAIL gas tariffs set to rise 40%,” DNA India, 21 April 2010, via Dow Jones Factiva, © 2010 Diligent Media Corporation Limited.

23 “India to have strategic oil reserve by October 2011,” The Press Trust of India, 15 April 2010, via Dow Jones Factiva, © 2010 Asia Pulse Pty Limited. 24 Report of the working group on petroleum and natural gas sector for the XI plan, Ministry of Petroleum and Natural Gas, November 2006.


4India’s downstream oil and gas sector

Growth opportunities exist in oil refining and gas distribution.

A. Brief overviewAt the end of FY10, there were 20 crude oil refineries operating in India, with an installed refining capacity of 185.4 MMTPA. Over the past few years, private players have gained in importance in the country’s oil-refining sector. Private companies operate three of the refineries mentioned above and have a total installed refining capacity of 72.4 MMTPA. The remaining 17 refineries, with a refining capacity of 113 MMTPA, are run by state-owned oil refiners. The bulk of

the output from PSU refineries is sold in the domestic market and that of private companies is largely exported. In FY10, consumption of petroleum products amounted to 137.8 MMTPA.25

Currently, India has a surplus refining capacity and is a net exporter of petroleum products. Its net exports of petroleum products, as a percentage of the crude processing capacity of its refineries, increased to around 20% in FY10 from 11.4% in FY07. Petroleum exports are a major source of foreign exchange for the Government and amounted to more than INR1,102 billion (US$23.3 billion) in FY10.

Exhibit 6. Crude processing of refineries and net export of petroleum products

141 151 157187

173

16 18 2036 31

11 12 13

20 18

0

5

10

15

20

25

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100

150

200


Expo

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as a

% o

f pro

cess

ing

in m

illio

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ns

Crude processing Net exports Exports as a % of processing

Source: Petroleum Planning Analysis Cell*Only till February 2011

The Government is promoting India as a global refining hub. The country offers advantages such as low refinery construction and operating costs and the Government’s relaxation of FDI limits is likely to improve investor sentiments in the segment. Moreover, many refineries in developed countries are likely to shut down over the next few years due to environmental pressures — they are old and inefficient, which makes it economically unviable to upgrade them.26 Refining companies in India are aggressively increasing their refining capacity by upgrading their existing facilities and building new grass-root refineries to exploit these opportunities. The upgraded refineries will be able to produce Euro IV- and Euro V-compliant fuels, which can be exported to developed markets in the US and Europe. These refinery projects provide opportunities for EPC contractors and refinery equipment providers.

City gas distribution (CGD) was first introduced in Delhi and Mumbai, primarily to reduce air pollution. The success of these projects prompted the Government to promote CGD in other parts of the country. Currently, 41 cities in India are under CGD coverage. Its share in India’s total gas consumption increased from 3% in FY06 to nearly 8% in FY10.

India’s downstream oil and gas sector

25 “Consumption of petroleum products — PPAC,” accessed on 28 April 2011.

26 “Europe’s oil refining set to shrink,” Reuters, 30 March 2009, via Dow Jones Factiva, © 2009 Reuters Limited.


Since 2009, the PNGRB has concluded three rounds of CGD bidding. Bids for eight geographical areas, Asansol-Durgapur (West Bengal), Bhavnagar, Gandhidham-Anjar, Bhuj-Mundra, Jamnagar (Gujarat), Ludhiana, Jalandhar (Punjab) and Panipat (Haryana) were invited in the third round, which ended in February 2011. In the fourth round, which is expected soon, bids will be invited for setting up a CGD network in Ernakulam (Kerala); Rangareddy, Medak, Nalgonda and Khammam (Andhra Pradesh); Alibag/Pen, Lonavla/Khopoli (Maharashtra); Guna (Madhya Pradesh) and Shahjahanpur (Uttar Pradesh).27 Increasing availability of gas, transmission capacity and environmental concerns are driving CGD projects and the use of compressed natural gas (CNG) as a transportation fuel. The Government is also promoting the supply of piped natural gas (PNG), which will help

to reduce the subsidy burden imposed on domestic LPG. The regulator plans to increase CGD coverage from the 41 cities at present to 250 cities by 2020.28 Private companies, as well as PSUs, plan to develop CGD projects that are likely to be implemented in cities, which are located across the transmission pipeline network. Therefore, this industry offers attractive growth opportunities to contractors, distribution pipeline manufacturers, CNG kit suppliers and cylinder manufacturers. The industry is also expected to become a high employment generator and create opportunities to train manpower and upgrade skills suitable for this sector.

Exhibit 7. Gas consumption trend in CGD

31

44

13

3

1

34

8

0123456789

0

2

4

6

8

10

12

14

FY06 FY07 FY08 FY09 FY10%

shar

e in

Indi

a's

tota

l gas

co

nsum

ptio

n

mm

scm

d

Consumption % share in India's total gas consumption

Source: Ministry of Petroleum and Natural Gas

India’s downstream oil and gas sector

27 “PNGRB not to slow down city gas distribution bidding,” Business Standard, 15 February 2011, via Dow Jones Factiva, © 2011 Business Standard Ltd.28 PNGRB 2009-10 Annual Report

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About ASSOCHAM

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) acknowledged as Knowledge Chamber of India has emerged as a forceful, pro-active, effective and forward looking institution playing its role as a catalyst between the Government and the Industry. ASSOCHAM was established in 1920 and has been successful in influencing the Government in shaping India’s economic, trade, fiscal and social policies which will be of benefit to the trade and industry.

ASSOCHAM renders its services to over 3,50,000 members which includes multinational companies, India’s top corporate, medium and small scale units and Associations representing all the sectors of Industry. ASSOCHAM is also known as a Chamber of Chambers representing the interest of more than 300 Chambers & Trade Associations from all over India encompassing all sectors.

ASSOCHAM has over 80 Expert Committees covering the entire gamut of economic activities in India. It has been especially acknowledged as a significant voice of Indian industry in the field of Corporate Social Responsibility, Environment & Safety, Corporate Governance, Information Technology, Agriculture, Nanotechnology, Biotechnology, Pharmaceutics, Telecom, Banking & Finance, Company Law, Corporate Finance, Economic and International Affairs, Tourism, Civil Aviation, Infrastructure, Energy & Power, Education, Legal Reforms, Real Estate, Rural Development etc. The Chamber has its international offices in China, Sharjah, Moscow, UK and USA. ASSOCHAM has also signed MoU partnership with Business Chambers in more than 45 countries.

D.S. Rawat Secretary General The Associated Chambers of Commerce and Industry of India

ASSOCHAM Corporate Office 1, Community Centre, Kailash Colony, New Delhi – 110048, Tel: 011- 46550555 (Hunting Line), Fax: 011- 46536481/82, 46536497/98 Email: [email protected], Website: www.assocham.org

Date post:	20-May-2018
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