1. ECONOMICS ASSIGNMENT ON MARKET SHARE OF NATURAL GAS INDUSTRY
SUBMITTED TO : SUBMITTED BY :
Dr. Ritika Gugnani KUMAR AKASH
MIHIR GUPTA
MRINAL KUMAR
MANSI GUPTA
TANYA CHATURVEDI

2. Natural gas system industry overview. Gathering and processing
Introduction
The oil and gas sector is among the six core industries in India and plays a major role in influencing decision making for all the other important sections of the economy.
Natural gas systems encompass the following industry segments :
Natural gas system industry overview.
Production
Gathering and processing
Transmission
Distribution

3. NUMBER OF FIRMS IN NATURAL GAS INDUSTRY…
Reliance Industries Limited
Cairn Energy
Oil India Limited
Indian Oil Corporation Limited
Oil and Natural Gas Limited
Hindustan Petroleum Corporation Limited
Engineers India Limited
Bharat Petroleum Corporation Limited
GAIL
Premier Oil
Adani Group
Simon Carves
Petronet LNG Ltd.

4. TYPES OF PRODUCT… Products offered by Natural Gas Industry :
Natural Gas, LPG, Naptha, Ethane/Propane.
It is a Homogenous Product. The products offered by every company in the industry are SIMILAR.
The price of natural gas is set by market forces. Based upon the demand and supply average price is set.

5. BARRIERS TO ENTRY Extremely strong barriers to entry Includes :
High resource ownership
High start-up cost
Patents and copyrights
Propertiary Technology
Governmental and Environmental Regulations
High fixed costs
SUPPLY SIDE BARRIERS TO ENTRY :

6. PRICING POWER OF THE FIRMS (who decides the prices)
Unlike its cousin crude oil, the price of natural gas in India is not market- determined
 The domestic gas price is the weighted average price of four global benchmarks — the US-based Henry Hub, Canada-based Alberta gas, the UK-based NBP, and Russian gas
 The domestic price is based on the benchmark prices in the prior year and kicks in with a quarter’s lag
 It applies for six months. So, the price applicable from April 1 to September 30, 2017 is based on benchmark prices from January to December 2017.