Natural Gas Market
Little Prospect of Naked Gas–on–Gas Competition in India
However, the ministry has revived a dormant debate on a gas pool pricing mechanism, which would narrow the gap between the low price of domestic natural gas and higher priced imported LNG. India’s LNG imports are expected to increase.
New Fields and Pipelines go Onstream
The capacity is due to reach 50 million mt/year by 2017 from around 14 million mt/year at present, Reddy said. State utility GAIL’s 2,200-km pipeline from Dahej in Gujarat on the country’s west coast, where its largest LNG terminal is located, to Bhatinda in Punjab in northern India, was opened on March 25. The pipeline’s capacity is 66 million cu m/d. GAIL has plans to buy US-produced LNG from Cheniere (IGR 688/3),
and it has also made a bid for LNG assets in Mozambique via Cove Energy (IGR 624/29).
Pakistan Interested in Importing Gas from India
Muhammad Ejaz Chaudhry, Secretary of Pakistan’s petroleum and natural resources ministry, said that Pakistan was interested in importing gas from India. Bhatinda is close to the border with Pakistan, thus opening up the possibility of a pipeline to ferry gas further from Bhatinda to Lahore.
India is also now mapping its shale gas resources and expects to put in place a regulatory regime for licensing rounds by the end of 2013, Dr. Singh revealed.
More about the gas boom in Asia–Pacific? See also our Gallery: Natural–Gas–Boom in Asia–Pacific!