Lok Sabha Question No. 185 (UNSTARRED), answered on 2017-07-17
Subject: Natural Gas Share in Energy Components
Ministry: PETROLEUM AND NATURAL GAS
Asked by: DEVJI MANSINGRAM PATEL

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO.185 TO BE ANSWERED ON 17 th  JULY, 2017

## NATURAL GAS SHARE IN ENERGY COMPONENTS

185. SHRI DEVJI M.PATEL:

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

- (a)  the  details  of  energy  components  in  the  country  along  with  the  measures  taken  to increase the compulsory share of natural gas to 15 per cent in energy components during the last three years and the time frame stipulated by the Government to achieve  the same; and
- (b) the estimated components of energy in the next five years and the efforts made/being made to increase the share of gas in the energy components?

## ANSWER

## MINISTER  OF  STATE  (I/C)  IN  THE  MINISTRY  OF  PETROLEUM  AND NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)    & (b):

The fuel component wise share of primary energy consumption during 2016 in India is as under:

| 2016            |   Oil |   Natural Gas |   Coal |   Nuclear Energy |   Hydro electric |   Renew- ables |   Total |
|-----------------|-------|---------------|--------|------------------|------------------|----------------|---------|
| Mtoe            | 212.7 |          45.1 |  411.9 |              8.6 |             29.1 |           16.5 |   723.9 |
| %share in total |  29.4 |           6.2 |   56.9 |              1.2 |              4   |            2.3 |   100   |

Source: BP Statistical Review of World Energy, June 2017

The  demand  of  primary  energy  in  India,  under  new  policy  scenario,  is  projected  by International Energy Agency, at 1033 Mtoe and 1225 Mtoe, in 2020 and 2025 respectively. The fuel-wise share in energy basket is as under:

|   Year |   Oil |   Gas |   Coal |   Nuclear |   Hydro |   Bio energy |   Other Renewable |   Total |
|--------|-------|-------|--------|-----------|---------|--------------|-------------------|---------|
|   2020 |   241 |    57 |    480 |        17 |      14 |          210 |                13 |    1033 |
|   2025 |   283 |    81 |    574 |        28 |      18 |          216 |                25 |    1225 |

Source: World Energy Outlook 2016

To  improve  the  share  of  natural  gas  and  promote  gas  based  and  clean  fuel  economy,  the Government has adopted a systematic approach to focus on all aspects of gas sector viz. (a) development of gas sources either through domestic gas exploration & production activities or through building up facilities to import natural gas in the form of LNG, (b) development of adequate gas pipeline infrastructure including nationwide gas grid and city gas distribution (CGD) network and (c) development of gas consuming markets including inter-alia fertilizer, power, transport and industries.

Some important  specific  initiatives  taken  to  enhance  the  domestic  natural  gas  production, expand  the  gas  pipelines  and  secondary  infrastructure  and  develop  the  gas  consuming markets are as under:

-  100% FDI in many segments of hydrocarbon sector.
-  Notification  of  a  new  Hydrocarbon  and  Exploration  Licensing  Policy  (HELP)  on 30.03.2016.
-  Offer  Discovered  Small  Fields  (DSF)  to  investors  across  the  globe  and  signing  of  31 contracts (23 onland and 8 offshore) for awarded fields under the DSF Bid Round 2016.
-  Link  gas  prices  to  the  market/  important  hub  prices  under  New  Domestic  Natural  Gas price Guidelines, 2014.
-  Provide marketing and pricing freedom for new gas production from Deepwater, Ultra Deepwater and High Pressure-High Temperature areas, subject to certain conditions.
-  Marketing and pricing freedom for gas produced from Coal Bed Methane (CBM) fields to incentivize CBM operations in the country.
-  A capital grant of 40% for development of 2650 km long Jagdishpur-Haldia & BokaroDhamra natural  gas  pipeline,  known  as  Pradhan  Mantri  Urja  Ganga  project,  to  ensure supply of clean and eco-friendly fuel to eastern India.
-  Reduction of basic customs duty on LNG from 5% to 2.5% in the last budget to boost LNG  demand  in  industrial  and  commercial  sectors,  especially  power,  petrochemical, fertilizer  and  CGD  and  also  help  in  reviving  stranded  capacity  of  power  and  fertilizers plants.
-  Gas pooling mechanism for fertilizer sector has encouraged utilisation of fertilizer units in the country.
-  Priority  for  allocation  of  domestic  gas  accorded  to  PNG/CNG  segments  for  meeting 100% demand and faster roll out of PNG connections and CNG stations to promote use of natural gas in transport sector, households and industry.

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