“Vision 2030” 
             Natural Gas Infrastructure in India 
           
         
                  Report by Industry Group 
                             For 
         Petroleum & Natural Gas Regulatory Board 
                                      
                                
                                
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                                                                      Contents 
                   
                  Acknowledgements ....................................................................................................................................... 5 
                  Objective of the study and sub‐group participants ...................................................................................... 6 
                  Disclaimer...................................................................................................................................................... 7 
                  1     Executive Summary ............................................................................................................................... 8 
                  2     Natural Gas – Demand/ Supply Dynamics .......................................................................................... 13 
                     2.1     Present Demand Scenario ........................................................................................................... 13 
                     2.2     Demand Projections .................................................................................................................... 15 
                        2.2.1      Approach & Methodology................................................................................................... 17 
                        2.2.2      Power Sector Demand ........................................................................................................ 18 
                        2.2.3      Fertilizer Sector Demand .................................................................................................... 23 
                        2.2.4      CGD Sector Demand ............................................................................................................ 25 
                        2.2.5      Other Consumer Sectors’ Demand ..................................................................................... 27 
                        2.2.6      Consolidated demand ......................................................................................................... 28 
                        2.2.7      Regional distribution of demand ........................................................................................ 30 
                     2.3     Present Supply Scenario .............................................................................................................. 33 
                     2.4     Supply Projections ....................................................................................................................... 33 
                        2.4.1      Approach & Methodology................................................................................................... 34 
                        2.4.2      Domestic Production........................................................................................................... 35 
                        2.4.3      Imports of LNG .................................................................................................................... 36 
                        2.4.4      Gas Imports through Cross Border Pipelines ...................................................................... 38 
                        2.4.5      Non Conventional Sources .................................................................................................. 38 
                        2.4.6      Consolidated supply projections ......................................................................................... 40 
                     2.5     Demand Supply Balance ............................................................................................................. 42 
                  3     Natural Gas Infrastructure .................................................................................................................. 44 
                     3.1     Present state of Infrastructure ................................................................................................... 44 
                     3.2     Infrastructure Projection – Approach & Methodology ............................................................... 46 
                     3.3     Pipeline Infrastructure – Development Plans ............................................................................. 47 
                     3.4     Scope for further development .................................................................................................. 52 
                  4     Gas Sector – Current status ................................................................................................................ 55 
                     4.1     Present State in India .................................................................................................................. 55 
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                     4.2     International Examples ............................................................................................................... 57 
                        4.2.1     USA ...................................................................................................................................... 57 
                        4.2.2     UK ........................................................................................................................................ 59 
                        4.2.3     Market evolution models .................................................................................................... 60 
                     4.3     Focus areas for India ................................................................................................................... 61 
                        4.3.1     Policy Issues ........................................................................................................................ 62 
                        4.3.2     Regulatory Issues ................................................................................................................ 67 
                        4.3.3     Indicative Action Plan .......................................................................................................... 72 
                   
                  FIGURES 
                  Figure 1 Demand Projection Methodology ...................................................................................... 17 
                  Figure 2 Region wise gas based power generation capacity (%) ............................................. 19 
                  Figure 3 Gas demand for power sector from 2012-13 to 2029-30 ............................................. 22 
                  Figure 4 Gas demand from fertilizer sector: 2012-13 to 2029-30 ............................................... 24 
                  Figure 5 Gas demand from CGD sector: 2012-13 to 2029-30 ..................................................... 26 
                  Figure 6 Gas demand from other consuming sectors: 2012-13 to 2029-30 ............................ 27 
                  Figure 7 Consolidated demand growth trajectory ......................................................................... 29 
                  Figure 8 Consolidated Demand - Break up in 2012-13 and 2016-17 ......................................... 29 
                  Figure 9  Consolidated Demand - Break up in 2021-22 and 2029-30 ........................................ 30 
                  Figure 10  Regional markets in India ................................................................................................ 30 
                  Figure 11  Regional contributions to demand ................................................................................ 32 
                  Figure 12  Regional demand growth profiles ................................................................................. 32 
                  Figure 13 Gas supply projection methodology .............................................................................. 34 
                  Figure 14  Natural Gas Supply Growth Profile ............................................................................... 41 
                  Figure 16 Existing gas transmission network in India ................................................................. 46 
                  Figure 17: Gas infrastructure projection methodology ............................................................... 47 
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                  Figure 18 Gas transmission network in India at the end of 12  five year plan ..................... 50 
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                  Figure 19: Gas transmission network in India at the end of 13  five year plan .................... 51 
                  Figure 20: Infrastructure addition linked to ICF’s NGG proposal and CBM Blocks ............. 52 
                  Figure 21: Natural gas chain (India) .................................................................................................. 56 
                  Figure 22 U.S. Natural Gas Pipeline Network, 2009 ...................................................................... 57 
                  Figure 23 National Transmission System (UK) .............................................................................. 59 
                  Figure 24 Major structural and market elements for an enabling environment .................... 61 
                  Figure 25 Action plan for development ............................................................................................ 73 
                  TABLES 
                  Table 1 Primary energy mix for India ................................................................................................ 13 
                  Table 2 Sector wise natural gas consumption in India (January 2013) ................................... 14 
                  Table 3 Regional gas markets in India ............................................................................................. 15 
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            Table 4 Demand drivers for various end user segments ............................................................ 16 
            Table 5  SUMMARY OF INSTALLED CAPACITY AS ON 31.03.2012 .......................................... 18 
            Table 6  Gas Demand for Power Projects by End of 12th Plan (2016-17) ............................... 21 
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            Table 7  Power Sector Gas Demand - 12  and 13  five year plan ............................................ 22 
            Table 8  Power Sector Gas Demand - 2023 to 2030 ...................................................................... 22 
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            Table 9  Fertilizer Sector Gas Demand - 12  and 13  five year plan ........................................ 24 
            Table 10  Fertilizer Sector Gas Demand - 2023 to 2030 ............................................................... 24 
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            Table 11  Total Realistic Demand - 12  and 13  five year plan ................................................. 28 
            Table 12 Total Realistic Demand - 2023 to 2030 ............................................................................ 28 
            Table 13 Regional Markets – Constituent States ........................................................................... 31 
            Table 14 Regional Demand Distribution .......................................................................................... 31 
            Table 15 Natural gas availability by source in India ..................................................................... 33 
            Table 16 Domestic Supply Projections (MMSCMD) ...................................................................... 35 
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            Table 17 Domestic gas availability - 12  and 13  five year plan ............................................... 35 
            Table 18 Domestic gas availability - 2023 to 2030 ......................................................................... 36 
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            Table 19 Imported LNG - 12  and 13  five year plans ................................................................. 37 
            Table 20 Imported LNG - 2023 to 2030 .............................................................................................. 37 
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            Table 21 Gas availability (cross border pipelines) - 12  and 13  five year plans ................. 38 
            Table 22 Gas availability (cross border pipelines) - 2023 to 2030 ............................................. 38 
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            Table 23 Total gas availability - 12  and 13  five year plan ....................................................... 41 
            Table 24 Total gas availability - 2023 to 2030 ................................................................................. 41 
            Table 25 Natural gas transmission infrastructure in India .......................................................... 44 
            Table 26 Natural gas transmission infrastructure in India – Regional Distribution ............. 45 
            Table 27 Pipeline authorizations by MoPNG in 2007 .................................................................... 48 
            Table 28 Pipeline Authorizations through EOI Route / Pending EOI’s .................................... 48 
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            Table 29 Gas pipelines expected to be commissioned in the 12  five year plan ................. 49 
            Table 30 Summary – Pipeline infrastructure in 2030 .................................................................... 51 
            Table 31 Demand-Supply-Capacity from 2022-23 to 2029-30 ..................................................... 53 
            Table 32 Regional Infrastructure in 2030 ......................................................................................... 54 
            Table 33 Focus Areas ........................................................................................................................... 62 
             
                      
            ANNEXURES
            ANNEXURE – I ‐  List of Thermal ( Gas Based ) Power Station as on 31.03.2012 
            ANNEXURE – II  ‐  Gas demand for Future power plants 
            ANNEXURE – III – Plant wise gas requirement of UREA plants in 2010‐11 
            ANNEXURE – IV – Demand Projections for UREA plants/ projects from 2012 ‐2030  
            ANNEXURE – V – Gas consumption by CGD entitis for the year 2010‐11 
            ANNEXURE – VI – Assumed GA’s for new CGD networks for the period 2016‐17 to 2021‐22 
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            ANNEXURE – VII – Pipeline Development Schedulefor pipelines expanding beyond 13  plan 
            ANNEXURE – VIII – Pipeline capacity at source ‐ existing and additional   
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