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LNG Supply Chain in India and a hypothetical scenario that increase in the future energy demand will wholly be met by Natural Gas.
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Supply Chain of LNG Business and Demand Forecasting of LNG in India
Presented by:Atul Bhatt M-11-004Kamal Pant M-11-007
Rajeev Gandhi Institute of Petroleum Technology MBA 2011-13
ContentsIntroductionIndia NG mixGas import OptionsLNG importing contractsLNG value ChainCase Study: PLLCase study: Shell HaziraSupply Chain Risks & MitigationsDemand AnalysisConclusion
Introduction Natural Gas is playing a vital role in meeting
global energy demands. Last 30 years a shift of global energy mix
towards natural gas is being witnessed and the importance is poised to increase in future.
In India, total production of natural gas in 2010 was 50.9 BCM while consumption was 61.9 BCM, the gap was bridged was more costly LNG.
India needs to look for alternatives for meeting its energy demand if it has to sustain its GDP growth.
India Natural Gas MixDomestic ProductionCross-country PipelinesLiquefied Natural Gas (LNG)
Since the cross-country pipelines option is mired in geo-poilitical issues, LNG is poised to be the solution to bridge the demand-supply gap.
Qatar, Oman
Iran
Yemen
Turkmenistan
Malaysia, IndonesiaAustralia
Cochin
Delhi
Dahej
GAS IMPORT OPTIONSGAS IMPORT OPTIONS
Gas Pipeline Import
LNG Import
Myanmar
LNG imports would supplement
gas pipeline imports and help in
development of pipeline grid
LNG Importing OptionsSpot marketShort Term contractLong Term contract
LNG Value ChainE&PLiquefactionShippingRegasificationTransport
LNG Route to Gas Value Chain- Up/ Mid/ Down stream
Gas Production
Gas Sweetening
NGL Extraction Liquefaction
Cryogenic
Vessels
for
LNG Transport
LNG send-out pipeline
R-Gas Terminal
Pipelines
NGL Transporta
tion
CGD Network
ENPNatural gas is discovered during the
search for oil. The activities under E&P extend
from1. exploring, drilling and assessing
new sources. 2. executing projects for developing
those reserves.3. planning and running production
operations.
Liquefaction
The liquefaction process can purify the LNG to almost 100 percent methane.
Cooling the clean feed gas by using refrigerants.
Temperature of approximately -161°C.
By liquefying the gas, its volume is reduced by a factor of 600.
TransportationMembrane TypeSpherical Type
RegasificationThis occurs at import terminal.Heat exchange using seawater to
warm up the gas. The vaporized gas is then
regulated for pressure and enters the pipeline system as natural gas.
Transport as GasPipelinesTrucks (Cascades)
For residential & commercial use as fuel or for power generation.
Petronet LNG Supply Chain
Petronet LNG- Dahej
Petronet LNG- Dahej
IOCLIOCL
BPCLBPCL
LNG Taral Gas MarketLNG Taral
Gas Market
GAILGAILSpot TradingSpot Trading
QatarQatar
Shell HaziraShell Hazira
HVJHVJ
Dahej-Uran Pipeline
Dahej-Uran Pipeline
EWPLEWPL
GSPLGSPL
Qatargas 4Qatargas 4
Oman LNGOman LNG
Malaysia LNGMalaysia LNG
Shell Hazira Supply Chain
Supply Chain Risks & Mitigation
1. Political and RegulatoryThe risk of cost overruns on the
political and regulatory relationship with the host government.
Must learn how to manage political and regulatory risks.
Supply Chain Risks & Mitigation
2. Safety & SecurityConsequence-based approach Risk-based approach
3. Environmental Impact Strict review and complianceThoughtful planning and risk
analysis
Supply Chain Risks & Mitigation
4. Public perceptionActive and continuous
engagement of the public and recognition of the local community.
Engage stakeholders early in the process and to provide all the necessary information.
Developers should also use public relations and media relations effectively.
Consumption and Production Pattern of natural gas
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
0.0
10.0
20.0
30.0
40.0
50.0
60.0
All figures in MTOE. Source :BP Statistics 2012
Consumption and Production Pattern of Coal
All figures in MTOE. Source :BP Statistics 2012
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
Consumption and Production Pattern of Crude oil
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
ProductionConsumptionDeficit
All figures in MTOE. Source :BP Statistics
2012
Dynamics among LNG, Crude oil & Coal
-10
0
10
20
30
40
50
% Change NG% Change Crude% Change Coal
All figures in MTOE. Source :BP Statistics
2012
Average Growth rate
Natural Gas
Crude oil
Coal
0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00
Source :BP Statistics
2012
Energy Requirements from Crude, Coal & NG
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
90.0
All figures in MTOE. Source :BP Statistics
2012
LNG Requirements
All figures in MTOE. Source :BP Statistics
2012
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
Regasification requirement
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20250
10
20
30
40
50
60
3
5
8
11
14
18
22
26
30
35
40
46
51
58
All figures in MTOE. Source :BP Statistics
2012
ConclusionTo bridge demand-supply gap huge re-
gasification capacity is needed.Two LNG terminals are currently in
operations with 2 more facilities coming up in less than a year time & 4 more units are planned.
It is envisaged that the capacity will be augmented by 50 MMTPA by the year 2020 changing the energy dynamics of the country.
ReferencesBP Statistics 2012 tepco.comeia.gov.inmospi.nic.inFor any more clarifications mail us @
Thank You!!!
