Lok Sabha Question No. 477 (UNSTARRED), answered on 2017-02-06
Subject: Non-availability of Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: R. GOPALAKRISHNAN, SHIVKUMAR CHANABASAPPA UDASI, KAVITHA KALVAKUNTLA, MURALI MOHAN MAGANTI

## 477.

## LOK SABHA

## UNSTARRED QUESTION NO. 477

## TO BE ANSWERED ON 6.2.2017

## NON-AVAILABILITY OF NATURAL GAS

SHRI R. GOPALAKRISHNAN: SHRI SHIVKUMAR UDASI: SHRIMATI KAVITHA KALVAKUNTLA: SHRI M. MURALI MOHAN:

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

## isVªksfy;e vkSj izkd`frd xSl ea=h

- (a)  whether  the  Government  has  received  complaints  from  various  sectors  of  the  economy regarding  non-availability  of  natural  gas  in  the  country  during  the  last  three  years  and  the current year and if so, the details thereof along with action taken  by the Government to ensure adequate supply/allocation of natural gas to various sectors, sector-wise;
- (b) whether there is any deficit of natural gas production in the country thereby increasing the dependence  in  import  of  natural  gas  and  if  so,  the  details  thereof  along  with  steps  taken  to remove demand and supply mismatch during the said period;
- (c) the details of production of oil and gas by various companies during the said period in the country along with the average production cost of domestically produced crude oil and natural gas both by public/pravate sector companeis, upstream/private company-wise;
- (d)  the  steps  taken/being  taken  by  the  Government  to  promote  natural  gas  in  the  country including preparation of plan to enhance the exploration and production in hydrocarbon sector and increase production of oil and gas in the country;
- (e) the objectives of 'Gas 4 India' campaign launched by the Government recently along with the current status of said campaign and the targets achieved therefrom; and
- (f)  whether  the  Government  proposes  to  set  up  a  National  Gas  Grid  for  laying  pipeline  for transportation of natural gas across the country and if so, the details thereof?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज् य मंत्ररी (स् विंत्र प्राार ( श्ररी धमेन्द र प्रधान

## MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a), (b) & (d):  There is a gap between the demand for natural gas and the domestic natural gas production.  The domestic natural gas production is not sufficient to meet the total natural gas demand  in  the  country  and  various  natural  gas  consuming  sectors  keep  approaching  the Government for supply of domestic natural gas.   The gap in demand and supply is met through import  of  Liquefied  Natural  Gas  (LNG)  to  certain  extant.  However,  the  demand  of  LNG  is price sensitive.

The Government has taken several steps to enhance domestic natural gas production through several policy initiatives such as:

- (i) Policy to grant relaxation, extension, and clarifications at development and production stage for early monetization of hydrocarbon discoveries
- (ii) Marginal Field Policy- Discovered Small Field Policy
- (iii) Uniform Licensing Policy-Hydrocarbon Exploration and Licensing Policy
- (iv) Policy for Grant of Extension to small and medium sized discovered fields
- (v) Policy for Marketing Freedom for Gas Produced from Deepwater and Ultra Deepwater areas etc.; and
- (vi) Policy  on  testing  requirements  for  discoveries  made  under  New  Exploration  and Licensing Policy (NELP) Blocks.

To  incentivize  gas  production  from  difficult  areas,  Government  has  granted  marketing, including pricing, freedom for the  gas produced  from difficult  areas. Marketing freedom has also been provided under Discovered Small Field bidding round as well as under Hydrocarbon Exploration and Licensing Policy (HELP).

- (vii) The implementation of these policy initiatives and other reform initiatives is expected to enhance domestic natural gas production from the fields.
- (c): As  per the report of the PPAC for December, 2016 the details are annexed at Annexure-I

(e):     The government is not directly involved in the campaign. The 'Gas 4 India' campaign is an initiative of the Natural gas Industry with its Secretariat being handled by Confederation of Indian Industry (CII) Federation of Indian Petroleum Industry (FIPI) and Natural Gas Society (NGS).

(f):      The  Government  has  envisaged  to  develop  additional  15000  Km  gas  pipelines  for completion  of  National  Gas  Grid  and  to  increase  the  availability  of  natural  gas  across  the country. The Government has taken a historic decision to provide a capital grant of Rs.5176

crore (i.e. 40% of the estimated capital cost of Rs.12,940 Crore) to GAIL for development of a 2539 Km long Jagdishpur-Haldia/Bokaro-Dhamra Gas Pipeline (JHBDPL) project, popularly known  as  the  'Pradhan  Mantri  Urja  Ganga'  of  Eastern  India.  This  project  will  ensure  the availability of clean and eco-friendly fuel, i.e. natural gas to the Eastern part of the country.

*****

## Annexure-I referred in reply to part (c) of Lok Sabha Unstarred Question No. 477 to be answered on 6.2.2017

(P) - Projected

| Natural gas at glance                                                              | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   | Natural gas at glance   |
|------------------------------------------------------------------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|-------------------------|
|                                                                                    |                         |                         |                         |                         |                         | (MMSCM)                 | (MMSCM)                 | (MMSCM)                 |
|                                                                                    |                         |                         | December                | December                | December                | April- December         | April- December         | April- December         |
| Details                                                                            | 2014-15                 | 2015-16 (P)             | 2015 (P)                | 2016 (Target)           | 2016 (P)                | 2015 (P)                | 2016 (Target)           | 2016 (P)                |
| (a) Gross Production                                                               | 33,657                  | 32,249                  | 2,737                   | 3,030                   | 2,737                   | 24,697                  | 25,152                  | 23,885                  |
| -ONGC                                                                              | 22,023                  | 21,177                  | 1,819                   | 2,041                   | 1,927                   | 16,272                  | 16,724                  | 16,420                  |
| -Oil India Limited (OIL)                                                           | 2,722                   | 2,838                   | 266                     | 247                     | 246                     | 2,120                   | 2,261                   | 2,212                   |
| -Private/Joint Ventures (JVs)                                                      | 8,912                   | 8,235                   | 652                     | 743                     | 564                     | 6,305                   | 6,168                   | 5,254                   |
| (b) Net production                                                                 | 32,693                  | 31,138                  | 2,648                   |                         | 2,643                   | 23,836                  |                         | 23,087                  |
| (c) LNG import                                                                     | 18,536                  | 21,309                  | 1,960                   |                         | 1,903                   | 15,637                  |                         | 18,755                  |
| (d) Total consumption including internal consumption (Net production+Import) (b+c) | 51,229                  | 52,448                  | 4,608                   |                         | 4,546                   | 39,472                  |                         | 41,842                  |
| (e) Total consumption (in BCM)                                                     | 51.23                   | 52.45                   | 4.61                    |                         | 4.55                    | 39.47                   |                         | 41.84                   |
| (f) Import dependency based on consumption (c/d*100)                               | 36.18                   | 40.63                   | 42.53                   |                         | 41.86                   | 39.61                   |                         | 44.82                   |