1
Ensuring Natural Gas
For
Power Sector
2
PRESENTATION FLOW
GAIL : A BRIEF PROFILE
CURRENT ENERGY SCENARIO IN INDIA
POWER SECTOR SNAPSHOT
NATURAL GAS AVAILABILITY IN INDIA
GAS SUPPLY OUTLOOK
GAS SOURCING OPTIONS
CONCLUSION
3
GAIL –
AN INTEGRATED GAS MAJOR
4
GAIL’S MISSION & VISION
Formed in 1984 as Gas Authorityof India Limited
with
In 2002Changed name
As GAIL (India) Ltd redefined
Mission
Vision
“TO ACCELERATE AND OPTIMIZE THE EFFECTIVE AND ECONOMIC USE
OF NATURAL GAS AND ITS FRACTIONS TO THE BENEFIT OF NATIONAL ECONOMY.”
“BE THE LEADING COMPANY IN NATURAL GAS & BEYOND, WITH GLOBAL FOCUS,
COMMITTED TO CUSTOMER CARE, VALUE CREATION FOR ALL STAKEHOLDERS
AND ENVIRONMENTAL RESPONSIBILITY”
5
GAS PIPELINES 5,600 KMS(133 MMSCMD)
11 States
GAIL – SCALE OF OPERATIONS
GANDHAR
VAGHODIA
USAR
VIJAIPUR
LAKWA
TRIPURA
KG BASIN
VSPL
CAUVERYBASIN
HVJ, DVPL
JLPLRAJASTHAN
NATURAL GAS PIPELINE
LPG PIPELINE
PATA
PETROCHEM PLANT
LPG PLANT
LPG PIPELINES
1922 KMS (3.8 MMTPA)
GAS PROCESSING7 Plants(1.2 MMTPA LPG)
PETROCHEMICALS310,000 TPA
6
INDIA
OFC Connectivity13,000 KMSE&P16 blocks (3 – Farm In Blocks)R-LNGPLL- Dahej (5MTPA)Gas Retailing (8 JVs)IGL,MGL,BGL,CUGL,GGL, MNGL,TNGCL, AGLPower156 MW GSEG, HaziraGlobalizationSubsidiary100% subsidiary – GAIL GlobalRetail GasFayum Gas, Shell CNG, China Gas & NAT Gas
GAIL – SCALE OF OPERATIONS
OFC CONNECTIVITYE&P BLOCKSMYANMAR BLOCKDAHEJ LNG TERMINALCITYGAS
7
930410218
10824
12412
14459
16
39 18
69
19
54
23
10
11
86
-1000
1000
3000
5000
7000
9000
11000
13000
15000
2001-02 2002-03 2003-04 2004-05 2005-2006 0
500
1000
1500
2000
2500
Revenues PAT
In Rupees Crores
Rev
enu
e
Pro
fit
Aft
er T
ax
FINANCIAL PERFORMANCE
TRACK RECORD OF STEADY GROWTH
Consistent growth in Top& Bottom line
5 years CAGR for Revenue =10 %
5 years CAGR for PAT = 15%
8
Current Energy Scenario
9
World Primary Energy Consumption, 2005
262
227
225
195
318
324
387
525
680
1554
2337
0 400 800 1200 1600 2000 2400 2800
USA
China
Russian Federation
Japan
India
Germany
Canada
France
United Kingdom
South Korea
Brazil
Million Tonnes of Oil Equivalent
India is the Fifth Largest Energy Consuming nation
Source: BP Stats 2006
10
World Per Capita Total Primary Energy Consumption, 2003
0.3
0.9
1.7
4.4
4.4
8.6
10.4
0 5 10 15
Singapore
United States
Japan
Germany
World Total
China
India
Tonnes of Oil Equivalent
Low per capita Cn
11
9,5217,545
33,175
25,460
4,605
18,727
0
5000
10000
15000
20000
25000
30000
35000
40000
US Germany China India Japan Singapore
Energy Intensity
Energy intensityB
TU
pe
r U
SD
Total Primary Energy Consumption per Dollar of GDP , 2003
High specific energy consumption by Industries : Poor fuel use efficiency and Conservation norms
High Energy Intensity
Energy savings potential in India: 23%
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Primary Commercial Energy Consumption/Demand in India (8% GDP growth scenario)
Energy Source 2003-04 2026-27 % Increase
Oil 119 365 207
Coal 167 622 272
Hydro 7 29 314
Natural Gas 29 135 366
Total PrimaryEnergy Supply 327 1222 274
Mtoe
Source: Integrated Energy Policy
Nuclear energy contribution to increase substantially ~ 13 times
13
POWER SECTOR SNAPSHOT
14
Power Generation in the World
Source : IEA-2005
1.9
19.4
15.9
15.86.9
40.1
Coal Gas Hydro Nuclear Oil Other*
World Total Electricity Generation = 16661 TWh
2003 Fuel Shares of Electricity Generation
*Other includes geothermal, solar, wind, combustible renewables & waste.
15
11%
1%
3%
2%
59%
25%
Coal Gas Diesel Nuclear Wind Hydro
Power Capacity Profile In India, 2003-04
Fuelwise Installed Capacity (Total Generation : 556.175 Billion KW)
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Generating Capacity In India
Installed capacity around end of the period (MW)
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Natural Gas Demand & Availability in India
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Sectoral Gas Consumption, 2004-05
Power38%
Fertiliser27%
Others31%
SI4%
Indian Gas Sector
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Natural Gas
Accounts for 9% of commercial energy consumption
Consumption ~ 31 BCM(2004-05); Projected to grow around 3/4 times by 2025
Power and Fertiliser sectors account for 2/3rd of the total consumption
Present demand estimated around 71 BCM
20
Natural Gas Demand Scenario
Years Quantities
(in MMSCMD)
2006-07 231
2011-12 313
2024-25 391
As projected by Hydrocarbon Vision - 2025
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Sustainability of domestic reserves, 2004-05
Fuel TypeReserves
* Prod. (per yr)
Cons. (per yr)
R/P Ratio
Oil (Million MT) 786 33.98 127.12 23
Natural Gas (BCM) 1101 31.78 30.79 35
Coal (BMT) 210 0.38 0.44 243
Source: Integ Energy Policy and MOPNG Petstat Statistics, 2005*Proved & Indicated reserves as on 1.4.2005; R/P ratio derived for Proved reserves
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Current Scenario- Power Sector
•No. of gas based power plants : 43
•Installed capacity : 10999 MW
•Gas requirement : 53.9 MMSCMD
•Current Total supply : 36.6 MMSCMD
•Current Supply by GAIL : 27.4 MMSCMD
•Existing Shortfall : 17.3 MMSCMD
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Gas Availability Projections
SOURCE AVAILABILITY (Projected)
2005-06 2011-12
DOMESTIC ONGC 51 30
OIL 4 8
JV / PVT. 20 67
SUB TOTAL 75 105
LNG QATAR 18 27
SHELL Spot 9
IRAN 18
SUB TOTAL 18 54
TOTAL 93 159
(MMSCMD)
Large deficit between demand and availability
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CHENNAI
KOLKATA
KAKINADADABHOL
PUNE
DAHEJ
VIJAIPUR
BHUBANESHWAR
VIZAG
TIRUCHCHIRAPALLI
HAZIRA
KOCHI
A 1 BLOCK, MYANMAR
KRISHNAPATTANAM
TURKMENISTAN
IRAN
MYANMAR
BANGLADESH
NEW GAS
DISCOVERIES
LNG TERM’s-
Upcoming
LNG TERM’s- Existing
TRANS – NATIONAL P/L
CBM
MUMBAI
JAMNAGAR
MANAPPAD
New Gas Discoveries at• Eastern Cost• Myanmar
Upcoming LNG Terminals• Dabhol• Kochi
Cross Border Pipeline
CBM
DAHEJ I & II10
mmtpa*
HAZIRA2.5
mmtpa
DABHOL5 mmtpa
KOCHI5 mmtpa
Gas Supply Augmentation
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LNGExisting (7.5 MMTPA)
Transmission PipelinesExisting (6,300 Kms)
JAGDISHPUR
PHOOLPUR
BHATINDA
JAMNAGAR
BAREILLY
DISPUR
DELHI
AGARTALA
BARODASURAT
KANPUR
LUCKNOW
PATNA
AHMEDABADRAJKOT
KOTA
MATHANIA
GWALIOR
VIJAIPUR
INDORE
UJJAIN
AGRA
KOLKATA
GAYA
BOKARO
VARANASIJHANSI
Iran-Pak-India Pipeline
Turk-Afg-Pak-India Pipeline
DAHEJ I & II10 mmtpa*
HAZIRA2.5 mmtpa
DABHOL5 mmtpa
COCHIN5 mmtpa
MYANMAR-India Pipeline
A 1 BLOCK, MYANMAR
Upcoming (15 MMTPA , US$ 2 Billion)
Planned (8,400 Kms, US$ 4.5 Billion)
City Gas/ CNGExisting (10 cities)
Planned (28 cities, US $ 1.8 Billion)Gas By Sea Receipt (Likely Location)
LNG Terminal
COIMBTORE
MANGLORE
MUMBAIBHUBANESHWAR
KRISHNAPATNAM
NELLORE
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
PUNE
BHARUCH
DABHOL
HASANBANGLORE
KOLHAPURHYDERABAD
SOLAPUR
RAJAMUNDRY
VIJAYAWADA
DAMRA
KOCHI
KANJIRKKOD
TOTAL INVESTMENT – US$ 8 Billion
AURAIYA
Gas Sector Infrastructure: Current And Future
26
Need to set up a Nation-wide Gas Grid
Equitable geographical distribution
Connecting Demand Centres to the Supply Sources: high investment requirement
Ready market access to the producers
Create choice to customers
Demand-Supply Management
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Exploration & Production : 10
LNG Terminals/Re-gasification : 2
Domestic gas grid : 4.5
Cross Border pipelinesIPI :
7.1TAPI :
3.3Myanmar India : 2.9
Downstream SectorsPower & Fertiliser : 5-6
Gas Retailing (CNG, Auto LPG, Residential) : 1.8
Scale of Investments Required (next 5 years)
In billion USD, approx
Total projected estimates ~ USD 35 Billion, subject to projects materializing
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Creating market driven market
Creating upfront Infrastructure
Regulatory framework to attract & encourage investments in
infrastructure
Sound energy security structures for cross border trade
Creating institutions for development of technology, standards and
skilled manpower
Bridging geographic disparity between gas resources and demand
centres
Synchronize transportation infrastructure with gas availability
Massive investment
Challenges
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CONCLUSIONS…
Proactive initiatives taken by Government for sourcing gas from domestic and international sources
Concurrent connectivity to demand centres- planned by GAIL
Prompt response to market reality essential
Gas sourcing long term phenomenon
Capacity additions to match availability of gas
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CONCLUSIONS
Early capacity bookings will facilitate required energy sourcing and ensure infrastructure development
Currently, limited international sources of LNG
As an immediate step Power plants using Naphtha can switch over to spot RLNG which is cheaper by 30-40%.
Most of additional demand for power generation to be met through LNG which is aligned to international market.
Power sector will have to be prepared to pay higher price for energy in future in line with global trend.
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Thanks