Natural gas availability in India to increase 52% by 2013-14

Availability of natural gas, including imported LNG, is likely to increase in the country by over 52 per cent to 271.92 million cubic meters a day by 2013-14, Oil Minister Murli Deora said today.

"At present, total availability of natural gas in India, including liquedified natural gas (LNG), is around 167.80 mmcmd, which is projected to be around 202.97 mmcmd, 256.6 mmcmd and 271.92 mmcmd during 2011-12, 2012-13 and 2013-14 respectively," Deora told the Lok Sabha here.

Most of the increase would come when Reliance Industries hikes output from its eastern offshore KG-D6 fields to over 80 mmscmd and the commissioning of LNG import terminal at Kochi in Kerala.

Kochi terminal would import 2.5 million tons of LNG a year and shipments to the currently operational Dahej and Hazira facilities in Gujarat are also going to rise.

Deora said power sector's current requirement of gas is around 77.44 mmcmd and it would need another 15.59 mmcmd in 2011-12 and 60 mmcmd each in 2012-13 and 2014.

Similarly, gas demand in fertiliser units is 39.61 mmcmd, which will rise by 3.43 mmcmd in 2011-12, 13.44 mmcmd in 2012-13 and 46.78 mmcmd in 2013-14.

Deora said that according to the Power Ministry, "the total requirement of proposed power plants, whose expected date of commissioning has yet to be certified by Central Electricity Authority (CEA), is around 600 mmcmd. However, only 60 mmcmd has been included in each of the years 2012-13 and 2013-14."

He said most of the domestically produced gas is priced at $4.2 per million British thermal unit. "LNG imported under long-term agreement is sold at $6.53 per mmBtu while the price of spot cargo presently varies in the range of $5.40-9.4 per mmBtu."

An Empowered Group of Ministers, Deora said, has given fertiliser plants the highest priority in the usage of KG-D6 gas, followed by LPG extraction plants, while gas-based power plants are placed third on the list.

These are followed by city gas distribution (CD) entities for supply to domestic and transport sectors, steel plants, petrochemical units, refineries and captive power plants.

Dora said KG-D6 production is presently around 60 MIMD. Against this the government has made firm allocation of 63.715 MIMD.