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Published byDennis Gardner Modified over 6 years ago
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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
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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
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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.
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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.
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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 :
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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.
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