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Oil and Gas Market: Domestic Scenario

Oil and Gas Market: Domestic Scenario. India-IEA Joint Emergency Response Exercise Workshop. Shri. L.N. Gupta, Joint Secretary (Refineries) Ministry of Petroleum and Natural Gas, Government of India . 30 th May, 2012. Presentation Outline. AGENDA. Oil and Gas Market in India .

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Oil and Gas Market: Domestic Scenario

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  1. Oil and Gas Market: Domestic Scenario India-IEA Joint Emergency Response Exercise Workshop Shri. L.N. Gupta, Joint Secretary (Refineries) Ministry of Petroleum and Natural Gas, Government of India 30th May, 2012

  2. Presentation Outline AGENDA Oil and Gas Market in India Energy Overview 1 2 Upstream Sector Downstream sector 3 4 Natural Gas Sector

  3. Oil and Gas Market in India 1. Energy Overview of India

  4. India’s Energy Facts at a Glance. • 17.5% of world’s population (1.21 billion in year 2011) • 3rd largest economy in the world by GDP (PPP basis – IMF report) • GDP growth rate is expected to be in the range of 6.5-7.5% • 11th largest Energy Producer in the world - Produces 2.4% of world production • 6th highest in Energy Consumption - Consumes 3.3% of world consumption • Energy Consumption/capita amongst lowest in the world hence great growth potential • One eight North America’s per capita energy Consumption • (India’s per capita consumption: Primary Energy 400 KGOE; Hydrocarbons 166) • One Sixth of western Europe Consumption and One fourth of the World Average • Average Energy Consumption Growth has been 6% p.a., projected to increase further India imports around 80% of its hydrocarbon energy requirements Securing energy sources is of very strategic importance to India

  5. Primary Energy % Share Share of Coal as primary energy source continues .. Decline in share of Oil in % terms Source statistical review of world energy 2011

  6. Growing Primary Energy Demand … India 1633 MTOE CAGR= 6% Gas CAGR= 7% • Estimated Demand for Primary Energy to rise up to 1633 MTOE by 2031-32 • For oil, though importer for over 25 years, considering the dramatic rise in volume demand, the balance of trade for oil is a critical issue 510 MTOE Oil CAGR= 5% Source: BP Statistical Review 2011 Projected figure Source: Integrated Energy Policy

  7. 1.Oil and Gas Market in India 1.1 Upstream Sector of India

  8. Upstream Sector: Key Facts Key Facts • 26 sedimentary basins: 3.14 mn sq kM (44% on land and 56% offshore) • Prognosticated Hydrocarbon reserves: 28 BTOE (<25% established) ~ 200 bn bbls • Crude oil production:38 MMT • Upstream NOCs dominate in production/acreage • Directorate General of Hydrocarbons (DGH) vested with upstream regulatory functions • New Exploration Licensing Policy (NELP) Source: DGH

  9. New Exploration Licensing Policy (NELP) Exploration Blocks awarded in NELP Rounds April 2000 • Provides an international class fiscal and contract framework for E&P of hydrocarbons • Estimated sedimentary area of 3.14 lakh Sq. Kms • 47% of estimated area has been awarded under first eight NELP • In the first eight rounds of NELP spanning 2000-2011, Production Sharing Contracts (PSCs) for 235 exploration blocks have been signed. • Actual investment made by E&P companies under NELP is of the order of US$ 15.88 billion Source: PPAC Note: 9th NELP round has just now over

  10. Significant Discoveries Source: DGH Disc Yr: 2000-2005

  11. Recent Discoveries Source: DGH

  12. Position of Hydrocarbon Reserves * Reserves denote balance recoverable reserves of hydrocarbons Source: PPAC

  13. Crude oil Production: Projection Source: Report of the WG on P&NG Sector for the XII Plan

  14. Alternate Source of HC: CBM and Shale Gas Source: Report of the WG on P&NG Sector for the XII Plan

  15. Oil and Gas Market in India 2. Downstream Sector

  16. Refinery Capacity: India • Third largest refining capacity in Asia-Pacific and fifth largest in the world • India’s Refinery Capacity additions have made the country surplus in products Source: PPAC

  17. Indian Refining Sector – on Expansion Spree • India’s present refining capacity is 213 MMTPA (leapfrogged from 62 MMTPA in 1998) • Refining capacity is expected to touch 310.9 MMTPA by 2017 • India is the largest exporter of petroleum product in Asia since Aug’09 (Platts) Maximization of distillates, Quality & Upgrading have been the major focus of Indian Refiners Source: Report of the WG on P&NG Sector for the XII Plan

  18. Projected Refining Capacity-PSU Vs. Private Source: Report of the WG on P&NG Sector for the XII Plan

  19. Finished Products: Production & Consumption Figs in MMT Figure of FY12 is provisional Source: PPAC

  20. Projected Products Demand: Sector-wise TMT Source: Report of the WG on P&NG Sector for the XII Plan

  21. Projected Products Demand: Product-wise MMT Percentage Source: Report of the WG on P&NG Sector for the XII Plan

  22. India Net Exporter of Petroleum Products Figs in MMT India’s rapid Refinery Capacity additions have made the country net exporter of products (Largest exporter in Asia according to Platts) Source: PPAC

  23. India’s Marketing Network at a glance As of 01.04.2011 (Prvnl.) Source: PPAC

  24. Petroleum Products a major foreign exchange earner Percentage US $ billion Sector with immense Export Potential Source: PPAC

  25. Strategic Storage Indian Strategic Petroleum Reserves Limited (ISPRL), a Special Purpose Vehicle created by the Government of India, is currently building 5.33 MMT of crude oil storage capacity . The storages are in underground rock caverns and the locations and capacities are as follows: • Visakhapatnam, State of Andhra Pradesh. Capacity: 1.33 MMT • Mangalore, State of Karnataka. Capacity: 1.5 MMT • Padur , State of Karnataka. Capacity: 2.5 MMT. As per the Integrated Energy Policy, the country is required to maintain a reserve of strategic-cum- buffer stock equivalent to 90 days of oil imports. OIL PSU’s are also in the process of building storages for hydrocarbons. With these storages the total storage of crude oil and petroleum products is expected to be approx 30.82 MMT. As per a paper prepared by MoP&NG, the country would require additional storage of 13.32 MMT by the year 2019-20. Of this, ISPRL is conducting feasibility studies for 12.5 MMT of crude oil storage. Source: ISPRL

  26. Crude Pipelines • Number: 17 • Length : 7425 km • Capacity:117 MMT • Product pipelines • Number: 28 • Length :11000 km • Capacity:68 MMT Source: PPAC

  27. Oil and Gas Market in India 3. Natural Gas Sector

  28. Indian Demand Assumptions Figs in MMSCMD The share of natural gas in the energy basket is projected to increase from 11% in 2010 to around 20% by 2025. Source: Report of the WG on P&NG Sector for the XII Plan

  29. Natural Gas Availability: Projections Figs in MMSCMD Gas availability is projected to be increase by 2.5 times to 500 mmscmd in next five years Source: Report of the WG on P&NG Sector for the XII Plan

  30. LNG Import Facilities: Projections Figs in MMSCMD LNG import facility is projected to increased from 20 to 45 mmscmd in next five years Source: Report of the WG on P&NG Sector for the XII Plan

  31. Gas Pipeline Network • Gas Pipelines in India: • Pipeline Length • 13428 KM • Design Capacity • 355 MMSCMD • Average Flow • 232 MMSCMD Source: PPAC

  32. Q&A

  33. Backup

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