Lok Sabha Question No. 4205 (UNSTARRED), answered on 2019-01-07
Subject: Demand and Supply of Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: HEMANT TUKARAM GODSE

## LOK SABHA

## UNSTARRED QUESTION NO. 4205

## TO BE ANSWERED ON 7.01.2019

## Demand and Supply of Natural Gas

## 4205. SHRI GODSE HEMANT TUKARAM:

Will the Minister of PETROLEUM AND NATURAL GAS पेट्रोल ियम और प्राक ृ तिक गैस मंत्री be pleased to state:

(a) the details of demand and supply of natural gas in the country along with the quantum of gas and crude oil imported during the last three years and the current year;

(b) the steps taken to find out new destination to import natural gas/ Re-gasification LNG and crude  oil,  country-wise  including  United  States  of  America,  Qatar  and  other  Middle  East countries;

(c)  the  concrete  steps  taken  by  the  Government  to  reduce  price  of  domestically  produced natural  gas/Re-gasification  and  imported  LNG  supply  to  all  fertilizers/  power  units  at uniform/pooled price rates across the country;

(d)  whether  the  Government has fixed priority in allocation of gas including gas produced from D-6 and prices of gas to various sectors of economy particularly power/fertilizer and Small and Medium Enterprises (SME);

(e)  if  so,  the  details  of  gas  produced  by  public/private  sector  companies  including  D-6  oil blocks and allocated to various priority/non-priority sectors along with its prices offered by the Government, sector/oilfield/State/UT-wise including southern States;

(f) the details of capacity/requirement of gas-based power generating stations, fertilizer plants and  SME  in  the  country  and  quantum  of  natural  gas/RLNG  available  and  supplied  to power/fertilizer  and  SME  sectors  in  various  States  along  with  the  steps  taken  by  the Government to adopt flexible approach in allocation of gas to power/fertilizers/SME sector as per their requirement, Sector/State/UT-wise; and

(g) whether the gas based SME/power/ fertilizers industries are badly affected and are on the verge  of  closure  due  to  short  supply  of  gas  in  various  States  and  if  so,  the  details  thereof along with any request from Maharashtra and Uttar Pradesh for ensuring sufficient supply of natural gas to the said sectors and follow-up action taken by the Government in this regard, State/ UT-wise?

## ANSWER

## MINISTER OF PETROLEUM & NATURAL GAS (SHRI DHARMENDRA PRADHAN)

(a)        The  supply  of  natural  gas  in  the  country  along  with  the  quantum  of  LNG  imported during the last three years and the current year is as follows:

## (MMSCM)

| Natural Gas                      |   2015-16 |   2016-17 |   2017-18) |   2018-19 (P) (April-Oct 2018) |
|----------------------------------|-----------|-----------|------------|--------------------------------|
| Net availability of domestic gas |     31129 |     30848 |      31731 |                          18586 |
| LNG import                       |     21388 |     24686 |      26328 |                          16468 |
| Total consumption                |     52517 |     55534 |      58059 |                          35054 |

The quantum of crude oil imported during the last three years and current year is as under:

| 2015-16   | 2016-17   | 2017-18   | 2018-19 (P) (April-Nov   |
|-----------|-----------|-----------|--------------------------|
|           |           |           | 2018)                    |
| 202.9     | 213.9     | 220.4     | 151.0                    |

(in MMT)

(b) Re-gasified Liquefied Natural Gas (RLNG) is imported under open general license on the  terms  and  conditions  mutually  agreed  upon  between  the  buyers  and  sellers.  Based  on techno-commercial contracts, the companies procure LNG / crude from countries across the world.  Indian refineries import crude oil from diverse sources depending on technical and commercial  consideration.    Indian  Public  Sector  refineries  are  diversifying  their  crude sources to strengthen India's energy security.

(c) The  Government  had  approved  a  scheme  for  Gas  Pooling  in  fertilizers  sector  on 31.03.2015.  The scheme seeks to establish a mechanism for pooling the price of domestic gas and RLNG for offering a uniform gas price to all the customers in Fertilizers sector.  The Government  had  also  approved  a  Power  Sector  Development  Fund  (PSDF)  in  connection with supply of RLNG to gas based plants selected through the reverse e-bidding process.  The scheme concluded on 31.03.2017.

(d) Domestic  gas  is  being  allocated  to  all  sectors  as  per  Gas  Utilization  Policy  of  the Government.  The domestic gas is first allocated to the priority sector such CGD sector for PNG (Domestic) and CNG (Transport), Fertilizer, Power, LPG etc.

( e) to (g) Any demand over and above domestic gas (including for SME Sector) may be met through imported R-LNG which is imported under open general license on mutually agreed terms.  The details of domestic gas production in the country, average production of KG-D-6 and Domestic Gas supply to Power sector and Fertilizers sector are as under:

## ( MMSCMD )

| Year                                            |   2013-14 |   2014-15 |   2015-16 |   2016-17 |   2017-18 |
|-------------------------------------------------|-----------|-----------|-----------|-----------|-----------|
| Domestic gas production                         |     97    |     90.99 |     88.12 |     87.39 |     89.45 |
| Average gas production of KG-D6                 |     13.54 |     11.91 |     10.33 |      7.45 |      5.5  |
| Domestic gas supply to Power Sector             |     27.26 |     25.33 |     22.87 |     25    |     25.71 |
| Domestic gas supply to Fertilizers Sector       |     30.3  |     26.7  |     26.51 |     21.52 |     18.83 |
| Domestic gas supply to industries including SME |     15.21 |     12.74 |      9.63 |     10.9  |     13.84 |

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