Lok Sabha Question No. 2498 (UNSTARRED), answered on 2016-05-09
Subject: Demand and Supply of Natural Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: SANJAY SHAMRAO DHOTRE, DUSHYANT SINGH, BHARTRUHARI MAHTAB, DEVAJIBHAI GOVINDBHAI FATEPARA, JASVANTSINH SUMANBHAI BHABHOR, R.P. MARUTHARAJAA, J. JAYASINGH THIYAGARAJ NATTERJEE, S. RAJENDRAN, GOPAL CHINAYYA SHETTY, CHINTAMAN NAVSHA WANAGA, KIRTI VARDHAN SINGH, JAYSHREEBEN  PATEL

## LOK SABHA

## UNSTARRED QUESTION NO. 2498

## TO BE ANSWERED ON 9.5.2016

## DEMAND AND SUPPLY OF NATURAL GAS

2498.      SHRI SANJAY DHOTRE: SHRI DUSHYANT SINGH: SHRI BHARTRUHARI MAHTAB: SHRI DEVAJIBHAI G. FATEPARA: SHRI JASVANTSINH SUMANBHAI BHABHOR: SHRI R.P. MARUTHARAJAA: SHRI J.J.T. NATTERJEE: SHRI S. RAJENDRAN: SHRI GOPAL SHETTY: ADV. CHINTAMAN NAVASHA WANAGA: SHRI KIRTI VARDHAN SINGH: SHRIMATI JAYSHREEBEN PATEL:

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

## isVªksfy;e vkSj izkd`frd xSl ea=h

(a) whether the demand of natural gas is likely to be doubled by 2030 and if so, the steps taken/proposed to be taken by the Government to meet the demand of natural gas in the country as well as to reduce the dependence on imports;

(b) the details of demand and supply of natural gas in the country along with quantum of domestic gas produced including D6 blocks/LNG imported to meet the shortfall/projected demand during each of the last three years and the  steps  taken  to  fix  the  priority  in  allocation  of  gas  to  various  sectors  particularly  power/fertilizer  and Small and Medium Enterprises (SMEs), sector/company/State/UT/ country-wise including Iran;

(c) whether gas based SMEs/power/ fertilizers and other industries have been badly affected and several plants are  lying  idle/closed  and  production  and  profitability  of  the  companies  adversely  impacted  for  want  of  gas supply and if so, the details thereof and the reaction of the Government thereto along with the steps taken/being taken in this regard;

(d) whether  various State Governments  including  Maharashtra  and  Uttar  Pradesh  have  requested  the Government to ensure supply of sufficient and subsidized gas to SMEs/Power/fertilizers sectors and if so, the details thereof and the action taken by the Government thereon, State/UT-wise; and

(e) the  measures taken/proposed to be taken by the Government to encourage the States/private sector to use natural gas to curtail pollution in the country, State/UT- wise including in Uttar Pradesh?

## ANSWER

पेट्रोलियम और प्राक ृ लिक गैस मंत्रािय में राज  ् य मंत्री ( स  ् विंत्र प्रभार ) ( श्री धमेन  ् द्र प्रधान )

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

(a) The demand of natural gas for the year 2030 is not available in this Ministry.   However, as per the Report of the Working Group on Petroleum & Natural Gas Sector, the demand of natural gas during 2021-22 will be 606 Million Standard  Cubic Meters (MMSCMD).  In order to meet the demand of natural gas in the country, as well as  to  reduce  the  dependence  on  imports,  Government  has  taken  several  steps  which  inter  alia  include  the following:

- (i) Intensification of domestic Exploration &  Production (E&P) activities through  New Exploration Licensing Policy (NELP) rounds;
- (ii) Shale Gas Policy framework;
- (iii) Research and development of Gas Hydrate resources in the country;
- (iv) Clearance for exploration and development of some NELP blocks where the same was held up by various agencies; and
- (v) Exploration in the Mining Lease Area has been allowed with certain conditions.
- (b)  As per the data furnished by Petroleum Planning and Analysis Cell (PPAC), the year wise demand, supply and production of natural gas in the country during the last three years are as under:

(MMSCMD)

|         | Demand as per working   | Production of Domestic   | Consumption Of Natural Gas   | Consumption Of Natural Gas   | Consumption Of Natural Gas   |
|---------|-------------------------|--------------------------|------------------------------|------------------------------|------------------------------|
| Year    | group Report            | gas                      | Domes tic                    | R- LNG                       | Total                        |
| 2013-14 | 371                     | 97.01                    | 94.72                        | 48.57                        | 143.29                       |
| 2014-15 | 405                     | 92.21                    | 89.57                        | 50.78                        | 140.35                       |
| 2015-16 | 446                     | 88.11                    | 85.08                        | 58.22                        | 143.30                       |

The Government of India has already formulated a gas utilization policy for allocation of domestic gas in an objective manner.

(c) & (d): The domestic natural gas is allocated as per gas allocation policy depending upon the availability. The domestic gas is first allocated to the priority sector such CGD sector for PNG (Domestic) and CNG (Transport), Fertilizer, Power, LPG etc. Due to limited availability of domestic natural gas, it is not possible even to meet the full  requirement  of  priority  sector.    The  consumers  other  than  priority  sector  are  free  to  use  Re-gasified Liquefied Natural Gas (RLNG).  RLNG is imported under open general  license on the terms and conditions mutually agreed upon between the buyers and sellers.  However, the demand of RLNG is price sensitive.

The  Cabinet  Committee  on  Economic  Affairs  (CCEA),  in  its  meeting  dated  25.03.2015  and  31.03.2015  has approved the policy to revive and improve utilization of the stranded gas based power generation capacity and pooling of gas in fertilizer (urea) Sectors. The former has made R-LNG based power generation commercially viable for idle/  stranded gas  based power plants. The pooling of  gas in  fertilizer  sector has enabled fertilizer plants manufacturing urea to run at their full capacities.

(e):  In  order  to  promote  the  usage  of  Compressed  Natural  Gas  (CNG)  across  the  country,  Government  has issued guidelines according to which the entire requirement of City Gas Distribution (CGD) entities for CNG (transport) and PNG (domestic) sector is met through domestic gas. Further, PNGRB has envisaged a phased roll  out  plan  for  development  of  CGD  networks  in  several  Geographical  Areas  (GAs)  in  various  States.  The GAs  are included in bidding rounds in a phased manner depending on the natural gas pipeline connectivity/natural gas availability and feasibility for grant of authorization to develop CGD networks in the country, including Uttar Pradesh.  At present, in the State of Uttar Pradesh the following GAs are having CGD Infrastructure namely Gautam Budh Nagar, Ghaziabad, Agra, Lucknow, Meerut, Firozabad, Dibiyapur, Khurja, Kanpur, Bareilly, Jhansi, Moradabad & Mathura.

*****