Increase in Demand of Natural Gas
Increase in Demand of Natural Gas
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that the Working Group on Petroleum & Natural Gas sector for 12th and 13th Five Year Plans has projected the demand of natural gas by various sectors during the period 2014-15 to 2018-19 as under:
Year Demand of natural gas by various sectors (in MMSCMD)
2014-15 405
2015-16 446
2016-17 473
2017-18 494
2018-19 523
Availability of natural gas in the country has declined due to decline in domestic gas production. The actual gas demand is price sensitive and total gas consumption during 2014-15 was 116.78 MMSCMD (73.93 MMSCMD domestic and 42.85 MMSCMD R-LNG). Due to less demand for imported Liquefied Natural Gas (LNG), out of 62.10 MMSCMD of total regasification capacity, 19.25 MMSCMD remained unutilized. Existing capacity of pipeline network is about 430 MMSCMD which is much higher than the consumption and demand.
The Cabinet Committee on Economic Affairs (CCEA), in its meeting dated 25.03.2015 and 31.03.2015 has approved the policy to revive and improve utilization of the stranded gas based power generation capacity and pooling of gas in fertilizer (urea) Sectors. The former has made R-LNG based power generation commercially viable for idle/ stranded gas based power plants, while the later has enabled fertilizer plants manufacturing urea to run at its full capacities.
In order to enhance availability of natural gas in the country, Government has taken several steps which inter alia include the following:
i. Intensification of domestic Exploration & Production (E&P) activities through New Exploration Licensing Policy (NELP) rounds;
ii. Shale Gas Policy framework;
iii. Research and development of Gas Hydrate resources in the country;
iv. Import of Liquefied Natural Gas (LNG) from various countries;
v. Pursuing various transnational pipelines;
vi. Clearance for exploration and development of some NELP blocks where the same was held up by various agencies; and
vii. Exploration in the Mining Lease Area has been allowed with certain conditions.
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Memorandum of Understanding between India and Nepal for construction of petroleum products pipeline from Raxaul (India) to Amlekhgunj (Nepal) and re-engineering of Amlekhgunj Depot and allied facilities
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its approval for the signing of a Memorandum of Understanding (MoU) between the Government of India and the Government of Nepal for the construction of a petroleum products pipeline from Raxaul (India) to Amlekhgunj (Nepal) and re-engineering of Amlekhgunj Depot and allied facilities.
The MoU will promote bilateral cooperation in the oil and gas sector and secure long term supply of petroleum products to Nepal. It would help preserve the environment along the route and decongest the international border at Raxaul.
Background:
The Government of Nepal had requested the Government of India, during the visit of the Prime Minister to Nepal on 3-4th August, 2014 for the construction of this petroleum products pipeline. Bearing in mind the close and friendly relations between the two countries and their people, this was agreed to by the Indian Government.
On behalf of Indian Government, the Indian Oil Corporation has been entrusted with the job of construction of the pipeline and re-engineering of the Amlekhgunj Depot and allied facilities. The project will be completed in two phases. In the first phase, a petroleum products pipeline from Raxaul in India to Amlekhgunj in Nepal would be constructed. The Indian Oil Corporation will bear a cost of Rs. 200 crore for the first phase of the project. There will be a long term contract of 15 years (initial contract for five years extendable for two terms of five years each) between the Indian Oil Corporation and the Nepal Oil Corporation.
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Investment by ONGC in KG basin blocks
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that ONGC has planned to invest Rs. 4509.9 crore on development of Vashishta & S-1 fields in Krishna-Godavari Basin. ONGC Board has also approved two developmental projects in this basin with a cumulative investment of Rs. 4409.16 crore which are at different stages of execution. In addition, ONGC recently completed field development of GS-1 & G-1 at a cost of Rs. 3955.21 crore. For block KG-DWN-98/2 investment details are being finalized and Field Development Plan is under preparation. In 2015-16, ONGC plans to invest Rs. 8901 crore in KG Basin, which is about 24.5% of the total plan outlay of ONGC.
In place reserves established by ONGC, OIL and Pvt./JVs companies are about 11827.48 Million Metric Tonne of oil Equivalent (MMToE). In exploration and production business, input in terms of surveys and drilling are deterministic, however, results in terms of hydrocarbon discoveries are probabilistic in nature. Therefore, future projection of hydrocarbon discoveries cannot be made.
Field Development Plans (FDP) for 21 hydrocarbon discoveries comprising of 13 oil and 8 gas, have already been approved. These discoveries are under development or on way to production.
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Investment by GAIL Plant at Auraiya on Welfare of Locals
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that as per the provisions of Section 135 of Companies Act, 2013, every company having net worth of Rs.500 crore or more, or turnover of Rs.1000 crore or more or a net profit of Rs.5 crore or more during any Financial Year is to ensure that in every Financial Year atleast 2% of the average net profit of the company made during the three immediately preceding Financial Years is spent in pursuance of its Corporate Social Responsibility (CSR) policy, preferably in the local area and areas around it where it operates.
GAIL (India) Ltd. is mandated to spend 2% of its average net profit of the preceding three financial years on CSR activities of the company. GAIL spends majority of its annual CSR allocations in and around its work centre. GAIL, Pata being the biggest work centre of GAIL gets a significant share of the CSR budget for undertaking welfare and community development projects in villages around Pata Plant.
The details of CSR projects undertaken by GAIL in and around Pata in the financial Years 2013-14 and 2014-15 are at Annexure.
ANNEXURE REFERRED IN REPLY TO PART (c) OF RAJYA SABHA UNSTARRED QUESTION NO.2666 ANSWERED ON 12.8.2015 REGARDING INVESTMENT BY GAIL PLANT AT AURAIYA ON WELFARE OF LOCALS
Details of CSR PROJECTS in District Auraiya taken up during FY 2013-14
| ||||
Sl.
No. |
Thrust Area
|
Approved CSR Programme
|
Amount
| |
(Rs. in Lacs)
| ||||
1
|
Healthcare/ Medical
|
Mobile 1000 - Mobile Health Care facility to various villages around Pata Plant,Auraiya (UP)
|
124.42
| |
2
|
Healthcare/Medical
|
To organize 2 - 3 Family Planning and Health Awareness Camps for villages surrounding Pata Plant
|
10
| |
3
|
Education/
|
UP Block Excellence Programme covering 100 Primary Schools in Bhagyanagar Block & Achhalda Block (Pata, Mamrejpur, Sahnagra - Bankapurva)
|
15
| |
Literacy Enhancement
| ||||
4
|
Education/
|
An Integrated Education and Health Programme in Mamrejpur, Kanho and Vaisundhara
|
40
| |
Literacy Enhancement
| ||||
5
|
Community Development
|
D3 AADERSH GAON: Demand Driven Development (Model Village Development Program)- Village Lahokar
|
30
| |
6
|
Healthcare/ Medical
|
HIV Care & Prevention through Mass Awareness & by setting up HIV Testing/ STI Treatment Centre for the truckers
|
15
| |
7
|
Environment Protection/
|
Installation of Bio- Gas Plants for individual households in Parwaha, Munshipur, Bankapurva
|
15
| |
Horticulture
| ||||
8
|
Infrastructure
|
Providing clean lighting services through Solar Home Lighting Systems
|
42
| |
9
|
Drinking Water/Sanitation
|
Construction of Individual Household Toilets- Village Dulha Rai Ka Purva
|
5
| |
10
|
Drinking Water/Sanitation
|
Construction of Individual Household Toilets- Village Lahokar
|
25
| |
11
|
Drinking Water/Sanitation
|
Construction of Individual Household Toilets- Village Bankapurva
|
12
| |
12
|
Infrastructure
|
Construction of CC Roads & Drainage Development- Village Chota Khanpur, Taiyabpur
|
25
| |
13
|
Infrastructure
|
Construction of CC Road- Village Vaisundhara
|
15
| |
14
|
Community Development
|
Construction of 3.8 Kms long water drain alongwith Culvert at Village's crossings to facilitate the drainage of excess rain water
|
40
| |
15
|
Skill Development/ Empowerment
|
Small scale unit for blanket weaving & production at Chota Khanpur from the sustainability of blanket weaving centres set up earlier under CSR projects undertaken during 2011-12 & 2012-13
|
40
| |
16
|
Infrastructure
|
Construction of Road in an extent of 8.5 Kms outside Pata Plant - Cost sharing of 50% between Govt. of UP and GAIL, Pata
|
661.27
| |
17
|
Infrastructure
|
Construction of CC Road & K C Drain at Village Chhachhund, Block Achalda, Dist. Auraiya
|
19.28
| |
18
|
Education/ Literacy Enhancement
|
Providing "Teaching Learning Material Kits" to Govt. Primary Schools (321) from Pratham Education Foundation, Delhi
|
1.56
| |
19
|
Community Development
|
Providing Blankets to District Administration for distribution to poor section of the district
|
3
| |
20
|
Drinking Water/ Sanitation
|
Electric Connection of Water Tank Tube-well to start water supply
|
2.98
| |
Total
|
1141.51
| |||
Details of CSR PROJECTS in District Auraiya taken up during FY 2014-15
| |||
Sl.
No. |
Thrust Area
|
Approved CSR
|
Amount
|
Programme
|
(Rs. in Lacs)
| ||
1
|
Infrastructure
|
Construction of CC Road along the outer boundary of GAIL Pata, Khanpur
|
42.8
|
2
|
Infrastructure
|
Construction of Road (3.5 Km) from Banka Purva to Pata Station via Pata Village
|
120.3
|
3
|
Education/ Literacy Enhancement
|
UP Block Excellence Programme covering 100 Govt. Primary Schools in Bhagyanagar Block and Pata, Mamrejpur, Sahnagra- Bankapurva and Mamrejpur
|
42
|
4
|
Healthcare/ Medical
|
Establishment of a Comprehensive Eye Care Unit in Auraiya
|
57
|
5
|
Healthcare/ Medical
|
Providing Blankets to Poors through Public Representatives
|
2.2
|
6
|
Healthcare/ Medical
|
HIV Prevention through Mass Awareness, STI Treatment & HIV Testing through STI Clinic for Truckers
|
21.1
|
285.4
| |||
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Low per 1000 sq. km. wells of oil and gas in the country
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Oil and gas wells are drilled based on geology of the area, reservoir characteristics, rock type etc., in order to achieve optimal production from the wells. As on date under PSC regime, a total of 571 oil & gas wells are under production in Petroleum Mining Lease area of about 8680 Sq. Kilometer i.e. about 66 wells per thousand kilometres of Mining Lease area.
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Resumption of Negotiations with Iran for Import of LNG
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Indian Buyers (GAIL, IOCL & BPCL) signed bilateral Sale & Purchase Agreement (SPA) with National Iranian Gas Export Company (NIGEC), Iran on 13th June 2005 for import of 5 MMTPA of LNG. Quantities required by the Buyers were as follows:
GAIL – 2 MMTPA
IOCL – 1.75 MMTPA
BCPL – 1.25 MMTPA
The contract price for Liquefied Natural Gas (LNG) was linked to Brent crude with a floor and cap of $10/bbl and $31/bbl respectively.
According to the side letter signed along with the contract, NIGEC was required to obtain approval of National Iranian Oil Company (NIOC) for the LNG SPA within 15 days. However, NIGEC neither secured this approval nor implemented the LNG SPA.
With the lifting of sanctions, Iran is again planning LNG liquefaction facilities. An Indian delegation visited Iran during last week of July, 2015, wherein Indian side indicated their willingness to off take LNG from Iran.
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Survey to Assess LPG/PNG Coverage
The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Rajya Sabha in a written reply today that Public Sector Oil Marketing Companies (OMCs) have reported that they have not conducted any survey to estimate LPG/PNG coverage in the States.
OMCs have reported that, as on 01.07.2015, there are 1300999 number of households having PNG connections. These LPG connections have been blocked/ terminated by OMCs. State/UT-wise details are at Annexure.
OMCs have advised all Area offices/Territory offices/ Regional offices to coordinate with City Gas Distribution (CGD) companies and conduct media awareness campaigns to surrender LPG connections. This Ministry has allowed PNG connection holders to retain one LPG connection at non-subsidized rate w.e.f. 9.1.2014.
Annexure
Number of Domestic LPG connections blocked by OMCs which are also having PNG conneciton.
Annexure in part(c) of Unstarred Rajya Sabha Parliament Question No. 2671 to be answered on 12.08.2015 asked by Shri Aayanur Manjunatha regardng Survey to assess LPG/PNG coverage
State
|
Total
| |
ANDHRA PRADESH
|
44
| |
ASSAM
|
890
| |
DELHI
|
194301
| |
GUJARAT
|
432824
| |
HARYANA
|
2947
| |
MADHYA PRADESH
|
374
| |
MAHARASHTRA
|
632634
| |
RAJASTHAN
|
34
| |
TELANGANA
|
131
| |
TRIPURA
|
3605
| |
UTTAR PRADESH
|
33215
| |
Total
|
1300999
|
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