India: natural gas Market Fertilizer Projects and Powerplants Drive India's Hunger for Gas
With new fertilizer and power projects coming on-stream, India's demand for natural gas is expected to climb by significantly...
India's Minister of State for Petroleum & Natural Gas, Dharmendra Pradhan presented the details of natural gas production during 2014–15 to 2017–18. Presently, the normative requirement of gas for the power sector at 70–75 per cent PLF is around 81.5 mmscmd. And, after commissioning of 5,449 MW of gas based power generation capacity, the normative requirement of gas is expected to reach approximately 102.90 mmscmd. The current requirement of natural gas for the fertilizer sector is 49.321 mmscmd, which would increase by 14.4 mmscmd by the end of 2017–18.
The cost of production for natural gas varies from ,company to company and field to field depending upon the size or type of the reservoir, location of reservoir, operating cost, financing cost, depreciation, depletion and amortization applicable and accounting procedure followed by various E&P companies as well as taxes and duties levied by the government. The price of domestic natural gas is determined in accordance with the New Domestic Natural Gas Pricing Guidelines, 2014.