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Transportation of Natural Gas

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Transportation of Natural Gas
CHAPTER 1: NATURAL GAS IN INDIA

* Importance of natural gas
Natural Gas is a new age fuel. Natural Gas is the cleanest of fossil fuels. Natural Gas satisfies most of the requirements for fuel in a modern day industrial society, being efficient, non-polluting and relatively economical. Natural Gas requires a strong distribution network to not only support existing demand, but also fuel future demand. A big challenge lies in bridging the physical gap between demand and supply centers in an efficient, safe and eco-friendly manner. Pipeline transportation of gas offers a safe, economic and environmentally sound alternative to most other modes of energy transport. Meeting the emerging demand for gas requires transportation of gas across the length and breadth of India through creating gas transportation infrastructure of more than 2-3 times the present size. The Government and Regulator also recognize the need to augment the natural gas transmission infrastructure in the country. With the Petroleum and Natural Gas Regulatory Board in place, the conditions to support an expanded natural gas grid (NGG) and a fully functioning natural gas market are in place.

Many environmentalists view natural gas as a natural bridge fuel between the dominant fossil fuels of today and the renewable fuels of tomorrow. For a given amount of heat energy, burning natural gas produces about half as much carbon dioxide, the main cause of global warming, as burning coal. Since one of the primary consumption of natural gas is as a source for electrical generation & it is increasingly becoming popular because it burns cleaner than oil and coal and produces less greenhouse gases. This ability of natural gas raises the possibility that it could emerge as a critical transition fuel that could help to battle global warming.

In nature Natural gas is much more in abundance than Oil. Most oil economists put the Natural gas reserves at least 50% higher than Oil reserves at the current



References: * CEA (Central Electricity Authority) (2008), Annual Report 2007/08, CEA, Ministry of Power, New Delhi. * CEA (2010), Electrical Energy Generation during the month of January 2010 and the period April’09- January 2010, CEA, New Delhi. * Chatterjee, T. K. (2009), Roundtable discussion on gas allocation, NTPC, New Delhi. Directorate General for Hydrocarbons (2008), Petroleum exploration and production activities Annual Report 2007/08, MoPNG, New Delhi. * IEA (International Energy Agency) (2007), World Energy Outlook, China and India Insights, IEA, Paris. * IEA (2009), World Energy Outlook, IEA, Paris. * IEA (2010a), India’s Downstream Petroleum Sector Refined product pricing and refinery investment, IEA, Paris. * IEA (2010b), Natural Gas Vehicles, Working Paper, IEA, Paris. * Jackson, M.P. (2007), The Future of Natural Gas in India: A Study of Major Consuming Sectors, Stanford University, Stanford. * KPMG (2009), The Oil and Gas Sector Overview in India 2009, KPMG, Mumbai. * MoPNG (2003), Auto Fuel Policy, MoPNG, New Delhi. * MoPNG (2006), Report of the Working Group on Petroleum & Natural Gas Sector for the XI Plan, MoPNG, New Delhi. * MoPNG (2008), Basic Statistics on Indian Petroleum & Natural Gas 2007-08, MoPNG, New Delhi. * MoPNG (2009a), Annual Report 2008/09, MoPNG, New Delhi. MoPNG (2009b), Basic Statistics on Indian Petroleum & Natural Gas 2008-09, MoPNG, New Delhi. * MoHUPA (Ministry of Housing and Urban Poverty Alleviation) and United Nation Development * Programme (2009), Urban poverty report 2009, MoHUPA, New Delhi * ONGC (2010), Investors’ and Analysts’ Meet Annual Results FY’09, ONGC, Mumbai. * Mahajan R. (2008), Indian gas regulatory framework, Ernst & Young, New Delhi. * Rajpal S.D. (2009), Issues and marketing strategies of natural gas in India, University of Petroleum and Energy Studies, Dehradun. * Shukla, P.R., S. Dhar, D. G. Victor, and M. Jackson (2007), Natural Gas in India: An Assessment of Demand from the electricity sector, Stanford University, Stanford. * Kaushik V. (2008), Outlook for Availability of Feed Stock for Nitrogenous Industry, Kribhco Shyam Fertilizers Limited, Hazira. [ 4 ]. India had proved reserves of 5.8 billion barrels of crude and 1,120 bcm of natural gas at the end of 2009 (BP Statistical Review of World Energy, June 2010).

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