Airvoice Oil Natural Gas Private Limited

3 / 3

Gas
Gas demand in India is dominated by the power and fertilizer sectors which account for 66 per cent of the current consumption. In 2006, the total gas demand was around 152 MSCMD. The gas demand is expected to increase to 320 MSCMD, according to a report by Ernst & Young. Significantly, the share of natural gas in the overall fuel mix is expected to increase from 8 per cent in 2006 to 20 per cent by 2025.

Government Initiatives
The government has been taking many progressive measures to create a conducive policy and regulatory framework for attracting investments.

• Allowing 100 per cent foreign direct investment (FDI) in private refineries through automatic route and 26 per cent in government-owned refineries.

• Implementation of the NELP in 1997.

• Abolition of the administered pricing policy.

• 100 per cent FDI is also allowed in petroleum products, exploration, gas pipelines and marketing/retail through the automatic route.

• Vision-2015 for the oil sector which will focus on providing better services to customers covering four broad areas of LPG (liquefied petroleum gas), kerosene, auto fuels and compressed natural gas/piped natural gas.


Production
• Refinery production in terms of crude throughput increased to 160.77 MT in 2008-09 as compared to 156.10 MT in 2007-08.

• The production of natural gas went up to 32.84 billion cubic metres tonnes (BCM) in 2008-09, from 32.40 BCM in 2007-08.

• The projected production of crude oil during the 11th Five-Year Plan (2007-2012) is 206.76 MMT, while that of natural gas is 255.27 BCM.

• Production of gas from Reliance Industries' eastern offshore KG D-6 fields, with a life of 11 years, started on April 1, 2009 and will increase to 80 million standard cubic metres per day (MSCMD) by the end of the year. Production will help save US$ 9 billion in oil import.

• Cairn India is anticipating over 1.3 million tonnes of crude oil production from the Ravva field in the Krishna Godavari basin during the current financial year. Moreover, according to a Goldman Sachs report, production from Cairn India's prolific Rajasthan oil fields will bring down India's oil import bill by US$ 6.8 billion.

• Cairn has commenced crude oil production from the Mangala oilfield in Rajasthan, where output is set to touch a peak of 175,000 bpd (8.75 million tonnes a year) by 2011.


Consumption

India's domestic demand for oil and gas is on the rise. As per the Ministry of Petroleum, demand for oil and gas is likely to increase from 186.54 million tonnes of oil equivalent (mmtoe) in 2009-10 to 233.58 mmtoe in 2011-12.


Global Refining Hub
India is emerging as the global hub for oil refining with capital costs lower by 25 to 50 per cent over other Asian countries. Already, the fifth largest country in the world in terms of refining capacity, with a share of 3 per cent of the global capacity, India is likely to boost its refining capacity by 45 per cent or 65.3 mtpa (million tonne per annum) over the next five years, according to a Deutsche Bank report. Indian companies plan to increase their refining capacity to 242 mtpa by 2011-12 from about 149 mtpa in 2007.

3 / 3


Bookmark this site
Copyright © 2010 Airvoicegroup. All rights reserved.
Optimized for high speed broadband internet access, Internet Explorer 5.5 and above. 1024x768. 32bit Colour.

Web Analytics