MUMBAI (PRWEB) February 2, 2005
Natural Gas is emerging as the preferred fuel and, in the coming years, it could become the dominating source of energy across the world, said Mr Suresh Mathur, MD & CEO, Petronet LNG Limited, adding, Given the rising price of oil, Natural Gas with its lower price and higher efficiency of use vis-à-vis oil and coal, will be the fuel of the 21st century. He was speaking at a seminar on The Natural Gas & LNG Primer Role of LNG in Indian Energy, organized by the Indian School of Petroleum and Petronet LNG Limited, on Saturday, in Mumbai.
India is not self-sufficient in energy production and, according to the International Energy Outlook 2003; its energy consumption is growing at a rate more than 4%. Currently, almost 70% of the countrys import bill is towards oil imports, which by the year 2020 is expected to go up to 85%. The growth for Natural Gas is at a rate of 6.1% in comparison to a growth rate of 2.6% for coal and 4% for oil.
Natural Gas is today emerging as a major and cheaper source of energy. This large demand for natural gas has lead the government to encourage the infrastructural development of Liquefied Natural Gas (LNG) as a cost effective, environmentally friendly and premium fuel for the country. LNG is Natural Gas liquefied at -160 C, which reduces it to 1/600 of its volume, making for easy transportation to receiving terminals where it is re gasified.
Mr Mathur emphasized that the country had turned to LNG as a preferred choice of fuel despite earlier skepticism. LNG serves as a viable fuel for the power generation industry, fertilizer industry and in its form as compressed natural gas (CNG) is a major emerging alternate fuel for the transportation sector. In Mumbai and Delhi, it is mandatory to use CNG in all commercial vehicles, an option that is also being considered by the Gujarat government.
He drew the audiences attention to Indias first LNG terminal at Dahej, a world class project set up by Petronet LNG Ltd (PLL) in record time. The company is doubling the capacity of the terminal to 10MMPTA at a cost of Rs1,000 crore and will be completed by 2008. It is also setting up another LNG terminal at Kochi, in Kerala, of 2.5 MMTPA capacity, with an expansion provision up to 5 MMPTA. With this, the company will be supplying 12.5 MMPTA LNG by 2009, constituting 30% of the gas supply share. PLL has tied up with RasGas of Qatar as the preferred LNG supplier for 7.5 MMPTA for the two terminals for the next 25 years.
Presenting the Indian perspective on LNG as a cost effective fuel alternative,Mr Prosad Dasgupta, Director (Finance), Petronet LNG Ltd, informed that India holds the freight advantage of import of LNG from the Middle East as compared to other nations like Europe and the US. India, he said, can make a saving of $ 3-4 Billion if 20% of its crude oil imports are replaced by LNG.
Delivering the inaugural address, Mr Sanjay Kaul, Managing Director, Indian School of Petroleum, gave a macro picture of the LNG business and the new international perspective and said that Indias rapidly growing economy is well located to exploit the vast reserves of Natural Gas which are close to the developing Asian markets.
Senior technical and commercial directors from Petronet LNG presented the different perspectives both national and international of the LNG business and trade. The regulations and development of LNG projects in India were presented by Mr Swami Singh, IAS, Director, Ministry of Petroleum and Natural Gas, Government of India. Mr Singh was of the view that market reforms are rapidly taking shape with investment in E&P, pipeline and marketing getting liberalized. He informed that the government was in the process of constituting a regulatory board for the gas sector which would oversee availability of gas, safety and environmental issues, fair and transparent mechanism and for promoting competition.
Dr Parag Diwan, Vice Chancellor, University of Petroleum and Energy Studies, emphasized that to cater to the ever growing energy markets a long term strategy is needed to be put in place
About Petronet LNG Limited
Petronet LNG Limited is a joint venture company formed with the purpose of importing LNG into the country at the most competitive rate. Petronet LNG is a consortium of large NOCs and multinational oil companies such ONGC, IOC, GAIL, BPCL, GDF.
About Indian School of Petroleum
The Indian School of Petroleum (ISP) is a premier institution providing management education and training to professionals in the Oil and Gas Industry. ISP was set up by the Hydrocarbons Education and Research Society in New Delhi and is a forerunner to the University of Petroleum & Energy Studies (UPES).
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