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“Natural Gas” is the fuel for the future given that it is clean, abundantly available and cost competitive. Projections available from alternative sources on gas consumption points to the fact, that Natural Gas would be the most preferred fuel in the global energy basket by the year 2025. The major factors contributing to this include the increasing globalization of gas business, recent discoveries, inherent fuel efficiencies, opening up of the major gas markets, and projected growth in imports in the Asia – pacific region, Europe and North America and environmental concerns.
Natural gas is an important source of energy in power, fertilizer, petrochemical and other industries. As stated above, the Government policies which are promoting investment in the gas sector by providing sops for LNG, are proof that it recognizes the importance of this sector.
The Report of the Sub-Group on Natural Gas and marking of petroleum products for XI Five Year Plan in its Report stated as under:• It is a well known fact that Natural Gas, accounting for 24% of the total global primary energy supply, is the third largest contributor to the global energy basket and with a CAGR of about 3% over the last five years, it is growing at the fastest rate among fossil fuels.
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• In the power sector, only 11% of total power generation capacity of 1,26,839 MW is based on gas whereas in the fertilizer sector, about 58% of production is based on gas. The corresponding figures in the petrochemicals and LPG/Liquid Hydrocarbon Sectors are 43% and 31% respectively.
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• The Sub-Group on Gas Hydrocarbon Vision – 2025 also estimated the long term gas demand. According to this report, as against the requirement of 151MMSCMD in 2001-02, the domestic gas supply was 70MMSCMD. The Report forecast that in future, the demand supply gap would continue to exist, which will have to be met from imports and increase in domestic production.
• The Ministry of Power had also undertaken an exercise to identify gas based projects likely benefits from which could accrue during the XI plan period and beyond. The estimated capacity for these gas based power plants is of the order of 31765MW. Thus the overall new gas based capacity addition identified for future during XIth / XIIth Plan periods by the Power Sector are of the order of 33,655 MW. The magnitude of gas requirement for all these plants would be of the order of 100-120 MMSCMD, when the plants are set up.