1. Ensuring Natural Gas
For
Power Sector

2. PRESENTATION FLOW GAIL : A BRIEF PROFILE
CURRENT ENERGY SCENARIO IN INDIA
POWER SECTOR SNAPSHOT
NATURAL GAS AVAILABILITY IN INDIA
GAS SUPPLY OUTLOOK
GAS SOURCING OPTIONS
CONCLUSION

3. AN INTEGRATED GAS MAJOR
GAIL –
AN INTEGRATED GAS MAJOR

4. Mission Vision GAIL’S MISSION & VISION Formed in 1984 as Gas Authority
of India Limited with
“TO ACCELERATE AND OPTIMIZE
THE EFFECTIVE AND ECONOMIC USE
OF NATURAL GAS AND ITS FRACTIONS
TO THE BENEFIT OF NATIONAL ECONOMY.”
Mission
In 2002
Changed name
As GAIL (India) Ltd
redefined
“BE THE LEADING COMPANY IN NATURAL
GAS & BEYOND, WITH GLOBAL FOCUS,
COMMITTED TO CUSTOMER CARE,
VALUE CREATION FOR ALL STAKEHOLDERS
AND ENVIRONMENTAL RESPONSIBILITY”
Vision

5. GAIL – SCALE OF OPERATIONS
GAS PIPELINES
5,600 KMS (133 MMSCMD)
11 States
LPG PIPELINES
1922 KMS
(3.8 MMTPA)
NATURAL GAS PIPELINE
GANDHAR
VAGHODIA
USAR
VIJAIPUR
LAKWA
TRIPURA
KG BASIN
VSPL
CAUVERY
BASIN
HVJ, DVPL
JLPL
RAJASTHAN
LPG PIPELINE
LPG PLANT
PATA
PETROCHEM PLANT
GAS PROCESSING
7 Plants
(1.2 MMTPA LPG)
PETROCHEMICALS
310,000 TPA

6. GAIL – SCALE OF OPERATIONS
OFC Connectivity
13,000 KMS
E&P
16 blocks (3 – Farm In Blocks)
R-LNG
PLL- Dahej (5MTPA)
Gas Retailing (8 JVs)
IGL,MGL,BGL,CUGL,GGL, MNGL,TNGCL, AGL
Power
156 MW GSEG, Hazira
Globalization
Subsidiary
100% subsidiary – GAIL Global
Retail Gas
Fayum Gas, Shell CNG, China Gas & NAT Gas
OFC CONNECTIVITY
E&P BLOCKS
INDIA
DAHEJ LNG TERMINAL
MYANMAR BLOCK
CITYGAS

7. TRACK RECORD OF STEADY GROWTH
FINANCIAL PERFORMANCE
In Rupees Crores
Consistent growth in Top & Bottom line
5 years CAGR for Revenue =10 %
5 years CAGR for PAT = 15%
Profit After Tax
Revenue
TRACK RECORD OF STEADY GROWTH

8. Current Energy Scenario

9. World Primary Energy Consumption, 2005
India is the Fifth Largest Energy Consuming nation
Source: BP Stats 2006

10. World Per Capita Total Primary Energy Consumption, 2003
Low per capita Cn
Monthly Per capita consumption in India of :
Kerosene (Ltrs) 0.57(Rural), 0.71 (Urban)
LPG (KG) 0.14 (Rural) & 1.31 (Urban)
Petroleum Products KG ( )
Naptha 11.5 KG ( )
Motor Spirit 7.3 KG ( )
HSDO 35.5 KG ( )

11. Energy intensity
High Energy Intensity
BTU per USD
Total Primary Energy Consumption per Dollar of GDP , 2003
High specific energy consumption by Industries : Poor fuel use efficiency and Conservation norms
Energy savings potential in India: 23%

12. Energy Source 2003-04 2026-27 % Increase Oil 119 365 207 Coal 167 622
Primary Commercial Energy Consumption/Demand in India (8% GDP growth scenario)
Mtoe
Energy Source
% Increase
Oil
119
365
207
Coal
167
622
272
Hydro 7 29
314
Natural Gas
135
366
Total Primary
Energy Supply
327
1222
274
Nuclear energy contribution to increase substantially ~ 13 times
Source: Integrated Energy Policy

13. POWER SECTOR SNAPSHOT

14. World Total Electricity Generation = 16661 TWh
Power Generation in the World
2003 Fuel Shares of Electricity Generation
World Total Electricity Generation = TWh
*Other includes geothermal, solar, wind, combustible renewables & waste.
Source : IEA-2005

15. Fuelwise Installed Capacity
Power Capacity Profile In India,
Fuelwise Installed Capacity
(Total Generation : Billion KW)

16. Generating Capacity In India
Installed capacity around end of the period (MW)

17. Natural Gas Demand & Availability in India

18. Sectoral Gas Consumption, 2004-05
Indian Gas Sector
Sectoral Gas Consumption,

19. Accounts for 9% of commercial energy consumption
Natural Gas
Accounts for 9% of commercial energy consumption
Consumption ~ 31 BCM( ); Projected to grow around 3/4 times by 2025
Power and Fertiliser sectors account for 2/3rd of the total consumption
Present demand estimated around 71 BCM
Primary uses:
Power 39%
Fertilizer 27%
Captive Use/LPG Shrinkage 16%
Industrial Fuel 12%
Others %

20. Natural Gas Demand Scenario
Years
Quantities
(in MMSCMD)
231
313
391
As projected by Hydrocarbon Vision

21. Sustainability of domestic reserves, 2004-05
Fuel Type
Reserves*
Prod.
(per yr)
Cons.
R/P Ratio
Oil (Million MT)
786
33.98
127.12 23
Natural Gas (BCM)
1101
31.78
30.79 35
Coal (BMT)
210
0.38
0.44
243
If R/P Ratios calculated for proved + Indicated reserves
OIL Unchanged
Gas 58 BCM( incldg RIL, GSPC etc)
Coal 297 BMT
Source: Integ Energy Policy and MOPNG Petstat Statistics, 2005
*Proved & Indicated reserves as on ;
R/P ratio derived for Proved reserves

22. Current Scenario- Power Sector
No. of gas based power plants : 43
Installed capacity : MW
Gas requirement : 53.9 MMSCMD
Current Total supply : 36.6 MMSCMD
Current Supply by GAIL : 27.4 MMSCMD
Existing Shortfall : 17.3 MMSCMD

23. Gas Availability Projections
(MMSCMD)
SOURCE
AVAILABILITY (Projected)
DOMESTIC
ONGC 51 30
OIL 4 8
JV / PVT. 20 67
SUB TOTAL 75
105
LNG
QATAR 18 27
SHELL
Spot 9
IRAN 54
TOTAL 93
159
Large deficit between demand and availability

24. Gas Supply Augmentation
TURKMENISTAN
New Gas Discoveries at
Eastern Cost
Myanmar
Upcoming LNG Terminals
Dabhol
Kochi
Cross Border Pipeline
CBM
DAHEJ I & II
10 mmtpa*
IRAN
HAZIRA
2.5 mmtpa
VIJAIPUR
BANGLADESH
DAHEJ
JAMNAGAR
KOLKATA
HAZIRA
BHUBANESHWAR
MUMBAI
PUNE
A 1 BLOCK,
MYANMAR
MYANMAR
VIZAG
DABHOL
DABHOL
5 mmtpa
KAKINADA
KRISHNAPATTANAM
NEW GAS DISCOVERIES
LNG TERM’s- Upcoming
LNG TERM’s- Existing
TRANS – NATIONAL P/L
CBM
CHENNAI
KOCHI
5 mmtpa
TIRUCHCHIRAPALLI
KOCHI
MANAPPAD

25. Gas Sector Infrastructure: Current And Future
Iran-Pak-India Pipeline
Turk-Afg-Pak-India Pipeline
TOTAL INVESTMENT – US$ 8 Billion
BHATINDA
DELHI
BAREILLY
DAHEJ I & II
10 mmtpa*
HAZIRA
2.5 mmtpa
AURAIYA
LUCKNOW
KOTA
MATHANIA
GWALIOR
AGRA
JAGDISHPUR
KANPUR
DISPUR
KOLKATA
GAYA
BOKARO
VARANASI
PATNA
MYANMAR-India Pipeline
A 1 BLOCK,
MYANMAR
PHOOLPUR
JHANSI
UJJAIN
VIJAIPUR
INDORE
AGARTALA
RAJKOT
JAMNAGAR
AHMEDABAD
DAMRA
PUNE
BHARUCH
DABHOL
BHUBANESHWAR
KRISHNAPATNAM
BARODA
SURAT
LNG
Existing (7.5 MMTPA)
Transmission Pipelines
Existing (6,300 Kms)
MUMBAI
DABHOL
5 mmtpa
COCHIN
SOLAPUR
RAJAMUNDRY
VIJAYAWADA
Upcoming (15 MMTPA , US$ 2 Billion)
HASAN
BANGLORE
KOLHAPUR
HYDERABAD
NELLORE
Planned (8,400 Kms, US$ 4.5 Billion)
CHENNAI
TUTICORIN
TIRUCHCHIRAPALLI
City Gas/ CNG
Existing (10 cities)
COIMBTORE
MANGLORE
KOCHI
KANJIRKKOD
Planned (28 cities, US $ 1.8 Billion)
Gas By Sea Receipt (Likely Location)
LNG Terminal

26. Need to set up a Nation-wide Gas Grid
Equitable geographical distribution
Connecting Demand Centres to the Supply Sources: high investment requirement
Ready market access to the producers
Create choice to customers
Demand-Supply Management

27. Scale of Investments Required (next 5 years)
In billion USD, approx
Exploration & Production : 10
LNG Terminals/Re-gasification : 2
Domestic gas grid : 4.5
Cross Border pipelines
IPI : 7.1
TAPI : 3.3
Myanmar India : 2.9
Downstream Sectors
Power & Fertiliser : 5-6
Gas Retailing (CNG, Auto LPG, Residential) : 1.8
Total projected estimates ~ USD 35 Billion, subject to projects materializing

28. Challenges Many of these gas resources are “stranded” making
Creating market driven market
Creating upfront Infrastructure
Regulatory framework to attract & encourage investments in infrastructure
Sound energy security structures for cross border trade
Creating institutions for development of technology, standards and skilled manpower
Bridging geographic disparity between gas resources and demand centres
Synchronize transportation infrastructure with gas availability
Massive investment
Many of these gas resources are “stranded” making
them commercially non-exploitable

29. CONCLUSIONS…
Proactive initiatives taken by Government for sourcing gas from domestic and international sources
Concurrent connectivity to demand centres- planned by GAIL
Prompt response to market reality essential
Gas sourcing long term phenomenon
Capacity additions to match availability of gas

30. CONCLUSIONS
Early capacity bookings will facilitate required energy sourcing and ensure infrastructure development
Currently, limited international sources of LNG
As an immediate step Power plants using Naphtha can switch over to spot RLNG which is cheaper by 30-40%.
Most of additional demand for power generation to be met through LNG which is aligned to international market.
Power sector will have to be prepared to pay higher price for energy in future in line with global trend.

31. Thanks