Indian Natural Gas Sector Widening Gap between Supply and Demand - PowerPoint PPT Presentation

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Indian Natural Gas Sector Widening Gap between Supply and Demand

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Indian Gas Sector A Paradigm Shift in Pricing Dynamics @ The decline in domestic production of gas has increased the country’s dependence on imported LNG. The share of LNG in total gas consumption has reached around 30% and has been increasing over the years. There was a huge disparity in prices of domestic gas and LNG. While domestic gas cost consumers around $4.2-5.5/MMBTU, LNG prices were in the range $13-18/MMBTU. – PowerPoint PPT presentation

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Title: Indian Natural Gas Sector Widening Gap between Supply and Demand


1
Indian Gas Sector A Paradigm Shift in Pricing
DynamicsbyIndian Petro Group
  • Explore all reports for  Natural Gas market
  • _at_
  • http//www.rnrmarketresearch.com/reports/energy-po
    wer/energy/power/natural-gas

2
Indian Gas Sector A Paradigm Shift in Pricing
Dynamics
  • The cabinet committee for economic affairs (CCEA)
    has approved the Rangarajan Committees proposal
    to raise the price of Natural Gas from April 1,
    2014. The price of gas is expected to be raised
    to around 8.4/MMBTU and then revised every
    quarter thereafter as per the Rangarajan formula.
    The price of gas is determined by averaging the
    netback wellhead prices of Indian imports and the
    gas prices prevailing at global trading hubs of
    US, UK and Japan.
  • Inquire For Discount _at_ http//www.rnrmarketresearc
    h.com/contacts/discount?rname152135 .

3
Indian Gas Sector A Paradigm Shift in Pricing
Dynamics
  • While upstream oil and gas companies have been
    demanding a gas price increase for a few years
    now, the fertilizer and power sectors have voiced
    serious concerns over any increase in gas price.
    The upstream companies felt that a low price of
    gas did not adequately compensate them for the
    substantial risks involved in exploration
    activities. Further, the EP companies argued
    that offshore exploration and production is
    significantly costlier than onshore exploration
    and the low price of gas makes deepwater and
    ultra-deep water exploration and
  • Complete report available _at_ http//www.rnrmarketre
    search.com/indian-gas-sector-a-paradigm-shift-in-p
    ricing-dynamics-market-report.html

4
Indian Gas Sector A Paradigm Shift in Pricing
Dynamics
  • production unviable. On the other hand, the power
    and fertilizer sectors are extremely price
    sensitive and any increase in the price of gas
    has a big impact on their profit margins. Both
    these sectors have zero pricing power as the
    prices of fertilizers and energy are heavily
    regulated by the government.
  • The production of gas from RILs KG-D6 block was
    expected to transform the gas market in India.
    The gas consumers embarked on an expansion spree
    encouraged by the
  • Inquire For Discount _at_ http//www.rnrmarketresearc
    h.com/contacts/discount?rname152135 .

5
Indian Gas Sector A Paradigm Shift in Pricing
Dynamics
  • prospects of cheap and abundant gas. Although the
    gas field showed great promise in the initial
    years of production, production has been on the
    decline over the last two years and production
    has decreased to just 14 MMSCMD compared to
    estimated production of 80 MMSCMD. The gas
    utilization policy of the government that assigns
    priority to various sectors for allocation of
    domestically produced gas resulted in a skewed
    distribution of gas supply when domestic
    production declined, benefiting the fertilizer
    sector at the expense of the power sector.
  • Complete report available _at_ http//www.rnrmarketre
    search.com/indian-gas-sector-a-paradigm-shift-in-p
    ricing-dynamics-market-report.html

6
Indian Gas Sector A Paradigm Shift in Pricing
Dynamics
  • For more details contact Mr. Priyank Tiwari
    sales_at_rnrmarketresearch.com / 18883915441

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