Lok Sabha Question No. 40 (UNSTARRED), answered on 2016-07-18
Subject: Allocation of Gas
Ministry: PETROLEUM AND NATURAL GAS
Asked by: CHANDRA PRAKASH JOSHI

## LOK SABHA

## UNSTARRED QUESTION NO. 40 TO BE ANSWERED ON 18.7.2016 ALLOCATION OF GAS

## 40.     SHRI CHANDRA PRAKASH JOSHI:

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

## isVªksfy;e vkSj izkd`frd xSl ea=h

- (a)  the  details  of  demand  and  supply  of  natural  gas in the country along with capacity/requirement of gas-based power/fertilizers/Small and Medium  Enterprises (SMEs)  and supply of natural gas/ Regasification of LNG to the said sector, sector-wise;
- (b)whether the Government has fixed any priority in allocation of gas produced by public/private sector companies and prices of gas to various sectors of economy particularly power/fertilizers/SMEs;
- (c) if so, the details of gas produced by public/private companies and allocated to priority/non-priority sectors, sector/company/State/UT-wise; and
- (d) whether any request of allocation of gas from Dhoulpur gas based project has been received by the Government and if so, the details thereof and the action taken by the Government thereon?

## ANSWER

पेट्रोल ियम और प्राक ृ तिक 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):  As  per  Report  of  the  Working  Group  (MoP&NG)  November  2011  on  Petroleum  &  Natural  Gas Sector,  projected Sector-wise Natural Gas Demand for next three years is at Annexure-I .   Sector-wise Natural Gas Supply during the last 3 years is at Annexure-II .
- (b): Depending upon the availability, the domestic natural gas is allocated to various sectors as per the gas  allocation  policy.  The  domestic  gas  is  first  allocated  to  the  priority  sector  such  as  City  Gas Distribution  (CGD)  sector  for    Piped  Natural  Gas  (PNG)  (Domestic)  and  Compressed  Natural  Gas (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 (R-LNG).  LNG is imported under open general license on the terms and conditions mutually agreed upon between the buyers and the sellers.  However, the demand of R-LNG in Indian Market is price sensitive.

Sale price of different domestic Natural Gases being supplied by GAIL to its customers as on date is as follows:

|   Sl. No. | Type of Gas        | Consumer Segment   | Source              | (US $/MMBTU)                     |
|-----------|--------------------|--------------------|---------------------|----------------------------------|
|         1 | Domestic Gas Price | All                | ONGC/OIL/ Assam Gas | 3.06                             |
|         2 | Other Domestic Gas | All Consumers      | Panna-Mukta         | 5.73 - Net Calorific Value (NCV) |
|         2 | Other Domestic Gas | All Consumers      | Tapti               | 5.57 - NCV                       |
|         2 | Other Domestic Gas | All Consumers      | Ravva-1             | 3.82(Note-2)                     |
|         2 | Other Domestic Gas | All Consumers      | Ravva-Satellite     | 4.30 - NCV (Note- 2)             |
|         2 | Other Domestic Gas | RRVUNL, Ramgarh    | Focus               | 5.00 - NCV                       |
|         2 | Other Domestic Gas | PPN, Tamil Nadu    | HOEC                | 3.75 - NCV                       |
|         2 | Other Domestic Gas | Other customers    | HOEC                | 3.82(Note-2)                     |

Note:

1. Prices in Gross  Calorific Value (GCV) basis unless specified otherwise.
2. Prices are subject to pending clarification from MoP&NG and being charged provisionally
3. Above  prices  are  excluding  transportation  tariff,  marketing  margin  as  applicable  as  per  the contract.
4. (c):    The  details  of  gas  produced  by  public/private  companies  and  allocated  to  priority/non-priority sectors, sector/company/State/UT-wise during last three years is at Annexure-III .
5. (d): A request from the then Chief Minister, Rajasthan regarding allocation of full quantity of domestic gas  for  existing  330  MW  Dholpur  Power  project  and  allocation  of  domestic  gas  at  Government determined prices for the new power projects (990 MW State Sector & 1000 MW under PPP) planned for development in 12th Plan was received in March, 2013. In this regard, GAIL and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) have tied-up for supply of 1.5 MMSCMD of PMT gas and transportation of 0.1 MMSCMD of RIL KG D-6 gas to RRVUNL. The day to day nominations are being made on pro-rata basis as per actual upstream supplies.  GAIL has reported that it is making its best efforts to provide full availability of gas to RRVUNL Dholpur Plant by offering Spot RLNG, enabling them to operate their plant at full load.

*****

## ANNEXURE-I REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 40 TO BE ANSWERED ON 18.7.2016

## REGARDING SECTOR WISE DEMAND OF GAS

| Sector                                             | (Figures in MMSCMD)   | (Figures in MMSCMD)   | (Figures in MMSCMD)   |
|----------------------------------------------------|-----------------------|-----------------------|-----------------------|
| Sector                                             | 2016-17               | 2017-18               | 2018-19               |
| Power                                              | 207                   | 225                   | 243                   |
| Fertilizer                                         | 113                   | 113                   | 113                   |
| City Gas                                           | 46                    | 47                    | 50                    |
| Industrial                                         | 27                    | 28                    | 32                    |
| Petrochemicals / Refineries / Internal Consumption | 72                    | 72                    | 76                    |
| Sponge Iron / Steel                                | 8                     | 9                     | 9                     |
| Total Demand                                       | 473                   | 494                   | 523                   |

## ANNEXURE-II REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO. 40 TO BE ANSWERED ON 18.7.2016

## SECTOR WISE SUPPLY OF GAS

| Historical Gas Consumption ( MMSCMD)                    | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   | Historical Gas Consumption ( MMSCMD)   |
|---------------------------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|----------------------------------------|
| Sectors                                                 | FY 2013-14                             | FY 2013-14                             | FY 2013-14                             | FY 2014-15                             | FY 2014-15                             | FY 2014-15                             | FY 2015-16                             | FY 2015-16                             | FY 2015-16                             |
| Sectors                                                 | Domestic                               | R- LNG                                 | Total                                  | Domestic                               | R- LNG                                 | Total                                  | Domestic                               | R- LNG                                 | Total                                  |
| Fertilisers                                             | 30.30                                  | 12.65                                  | 42.95                                  | 26.70                                  | 15.21                                  | 41.91                                  | 25.11                                  | 18.73                                  | 43.83                                  |
| Gas Based LPG plants for LPG extraction                 | 1.83                                   | 1.09                                   | 2.92                                   | 2.75                                   | 0.09                                   | 2.84                                   | 2.03                                   | 0.38                                   | 2.41                                   |
| Power                                                   | 27.26                                  | 2.17                                   | 29.43                                  | 25.33                                  | 2.71                                   | 28.04                                  | 22.90                                  | 7.45                                   | 30.35                                  |
| CGD Sector                                              | 7.25                                   | 8.23                                   | 15.48                                  | 9.16                                   | 7.14                                   | 16.30                                  | 10.74                                  | 6.88                                   | 17.62                                  |
| TTZ                                                     | 0.98                                   | 0.07                                   | 1.05                                   | 1.00                                   | 0.12                                   | 1.11                                   | 1.00                                   | 0.14                                   | 1.14                                   |
| Small consumers having allocation less than 50,000 SCMD | 2.45                                   | 2.58                                   | 5.03                                   | 2.47                                   | 1.86                                   | 4.33                                   | 0.73                                   | 0.21                                   | 0.94                                   |
| Steel &Sponge iron                                      | 1.32                                   | 1.82                                   | 3.14                                   | 0.88                                   | 1.32                                   | 2.20                                   | 0.42                                   | 1.67                                   | 2.09                                   |
| Refineries                                              | 1.89                                   | 10.45                                  | 12.34                                  | 1.44                                   | 10.53                                  | 11.97                                  | 1.18                                   | 19.46                                  | 20.65                                  |
| Petrochemicals                                          | 3.82                                   | 0.88                                   | 4.70                                   | 1.67                                   | 1.96                                   | 3.63                                   | 1.26                                   | 3.64                                   | 4.90                                   |
| Others                                                  | 1.52                                   | 1.17                                   | 2.69                                   | 1.36                                   | 1.91                                   | 3.27                                   | 1.71                                   | 3.61                                   | 5.33                                   |
| Internal consumption - pipeline system                  | 1.40                                   | 0.00                                   | 1.40                                   | 1.18                                   | 0.00                                   | 1.18                                   | 1.29                                   | 0.00                                   | 1.29                                   |
| Total                                                   | 80.02                                  | 41.11                                  | 121.13                                 | 73.93                                  | 42.85                                  | 116.78                                 | 68.38                                  | 62.18                                  | 130.56                                 |

Total

## ANNEXURE-III REFERRED IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO. 40 TO BE ANSWERED ON 18.7.2016 REGARDING PRODUCTION OF GAS

As per the PPAC data natural gas net production & sales for last five years is as follows:

| All India Gas Production& Consumption (in mmscmd)   |   2013-14 |   2014-15 |   2015-16 |
|-----------------------------------------------------|-----------|-----------|-----------|
| Net Domestic Gas Production                         |     94.46 |     89.33 |     85.08 |

(source : PPAC)

Sector and State-wise Domestic gas allocation is as follows:

| State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   | State/Sector Wise allocation of APM gas   |
|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| Sl No.                                    | State                                     | Power                                     | Fertiliz ers                              | CG D                                      | LPG                                       | Court Mand ated                           | Small Consu mer                           | Steel                                     | Refi neri es                              | Petro Che mical s                         | Oth ers                                   | I/C for Pipeli ne                         | Total                                     |
| 1                                         | Gujarat                                   | 5.99                                      | 5.51                                      | 0.66                                      | 0.70                                      |                                           | 1.25                                      | 3.11                                      | 1.07                                      | 3.52                                      | 0.56                                      |                                           | 22.37                                     |
| 2                                         | Delhi                                     | 2.59                                      | 0.00                                      | 2.00                                      |                                           |                                           | 0.00                                      |                                           |                                           |                                           |                                           |                                           | 4.59                                      |
| 3                                         | Haryana                                   | 1.95                                      | 0.00                                      | 0.50                                      |                                           |                                           | 0.00                                      |                                           |                                           |                                           |                                           |                                           | 2.45                                      |
| 4                                         | U.P.                                      | 5.36                                      | 8.80                                      | 0.49                                      | 0.68                                      | 1.06                                      |                                           |                                           | 1.40                                      | 1.95                                      |                                           |                                           | 19.74                                     |
| 5                                         | M.P.                                      |                                           | 3.22                                      |                                           | 0.98                                      |                                           | 0.00                                      |                                           |                                           |                                           |                                           |                                           | 4.20                                      |
| 6                                         | Rajasthan                                 | 2.46                                      | 1.76                                      |                                           |                                           |                                           | 0.00                                      |                                           |                                           |                                           |                                           |                                           | 4.22                                      |
| 7                                         | Maharashtra                               | 5.00                                      | 6.00                                      | 2.40                                      | 0.45                                      |                                           | 0.05                                      | 2.65                                      | 0.20                                      | 0.60                                      | 0.15                                      |                                           | 17.50                                     |
| 8                                         | Tamil Nadu                                | 5.03                                      | 0.00                                      |                                           | 0.06                                      |                                           | 0.13                                      |                                           |                                           |                                           |                                           |                                           | 5.22                                      |
| 9                                         | Puducherry                                | 0.50                                      | 0.00                                      |                                           |                                           |                                           | 0.26                                      |                                           |                                           |                                           |                                           |                                           | 0.76                                      |
| 10                                        | A.P.                                      | 13.04                                     | 2.78                                      | 0.10                                      |                                           |                                           | 0.34                                      |                                           |                                           |                                           | 0.15                                      |                                           | 16.40                                     |
| 11                                        | Assam*                                    | 0.87                                      | 2.17                                      |                                           | 0.35                                      |                                           | 0.04                                      |                                           |                                           |                                           | 0.06                                      |                                           | 3.48                                      |
| 12                                        | Tripura                                   | 1.65                                      |                                           | 0.13                                      |                                           |                                           | 0.00                                      |                                           |                                           |                                           |                                           |                                           | 1.78                                      |
| 13                                        | I/C for Pipeline                          |                                           |                                           |                                           |                                           |                                           |                                           |                                           |                                           |                                           |                                           | 1.55                                      | 1.55                                      |
| Total                                     | Total                                     | 44.43                                     | 30.24                                     | 6.28                                      | 3.22                                      | 1.06                                      | 2.08                                      | 5.76                                      | 2.67                                      | 6.07                                      | 0.91                                      | 1.55                                      | 104.27                                    |