November 01, 2001

'20'

DRAFT INTEGRATED LNG POLICY TO BE MADE PUBLIC SHORTLY: SHRI RAM NAIK

    The Minister for Petroleum and Natural Gas, Shri Ram Naik, has announced that the Draft Integrated Liquefied Natural Gas (LNG) Policy would be made public shortly, to promote public debate and seek suggestions from all quarters so as to make a vibrant and useful LNG policy for the country. The Minister said this while inaugurating the First Indo-French LNG Conference, here today, which was organised under the aegis of the Indo-French Working Group on Energy. Shri Naik further said that import of LNG is being encouraged in the country as there is a big gap between the demand and supply of natural gas in the country. The projected demand for gas will increase from a present level of about 120 Million Metric Standard Cubic Metres per day (MMSCMD) to 230 MMSCMD by 2007. This will further go upto more than 300 MMSCMD by 2012 and almost 400 MMSCMD in 2025 it will be almost 400 MMSCMD, he added. The growth in the gas demand would be mainly driven by new capacities required in the power sector and the fertilizer sector.

    Shri Ram Naik further said that 21st Century would be the 'Century of Gas' as the 20th and 19th centuries had been that of the Oil and Coal respectively. Natural Gas has over the last few years been the preferred fuel and feedstock with a variety of competing demands. The use of gas is also preferred as it is an eco-friendly and convenient fuel.

    The Minister further said that India offered a vast and growing market for LNG, but the energy costs have to be low so that LNG is attractive enough for the consumers to be able to use it. In this context he suggested that the oil exporting nations should evolve some suitable mechanism whereby LNG to developing countries like India is available at reasonable and stable prices.

    Recognising the importance of LNG import to meet the country's demand, the Minister of State for Petroleum & Natural Gas, Shri Santosh Kumar Gangwar emphasised the need to optimise utilisation of all our domestic finds. He referred to the availability of natural gas in Tripura where utilisation is of the order of only 1 MMSCMD as against the production potential of 3 MMSCMD. Besides this, there are alternative sources of coal bed methane and methane extraction from natural gas hydrates. He said action has been initiated for harnessing these resources. In addition, increasing availability of gas is being pursued through implementation of New Exploration Licensing Policy and import of natural gas through trans-border pipelines. The Iran-India gas pipeline, Central Asia gas pipeline, Bangladesh-India and the Myanmar-India gas pipelines are under consideration, which have a long term potential to meet the projected demand in the country.

    Shri V.N. Kaul, Secretary (Petroleum) who also spoke on the occasion said that he would welcome foreign capital and foreign investment. LNG is a new business in India. It has to be given a better shape by transparent implementation for which the Ministry is ready to welcome any specific suggestion.

    The Indo-French LNG conference becomes especially relevant for Indian and French companies from both public and private sectors, key players in the energy sector, who are planning to expand their operations. As one of the fastest growing markets for Energy in Asia Pacific region, India's increasing needs are reflected in the projected gap between demand and supply of natural gas. Besides GAIL, the Conference has been co-sponsored by Gaz de France, TOTAL FINA ELF, Electricite' de France, FMC Energy System, SN Technigaz, Gaz Transport & Technigaz and the Embassy of France in India. The French counterpart of GAIL, M/s Gaz de France, a leading French Gas company have been rendering technical advice to Petronet LNG. The Company has taken 10% equity in Petronet LNG Ltd. (PLL), a company promoted by leading oil PSUs ONGC, IOC, GAIL and BPCL to import LNG.