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Natural gas is a colorless, odorless, naturally occurring gaseous mixture of hydrocarbon components. Natural gas is used in a variety of applications, such as feedstock in fertilizer in the petrochemical industry and as fuel in the power generation manufacturing of steel, textile, ceramic, glass and other industrial products. As a fuel, natural gas competes with a range of alternative products such as coal and lignite as well as petroleum products such as liquefied petroleum gas, naphtha, high speed diesel, light diesel oil and fuel oil. However, due to lower fuel, operating costs and better combustion characteristics, natural gas has distinct economic advantages over other sources of energy. In addition, natural gas has substantial environmental advantages over other energy sources, due to lower emissions.
Worldwide, the percentage of global primary energy consumption of natural gas rose from 19% in 1980 to 24% in 2002. High growth in demand of natural gas is expected to occur in developing countries at a rate of 3.9% per year between 2001 and 2025. The Indian natural gas market is relatively underdeveloped compared to other regions of the world. By the years 2024 to 2025, the share of natural gas would increase to 20% of total primary energy consumption, according to Hydrocarbon Vision 2025.
Gujarat is one of the largest oil and natural gas producing states in the country. Today, Gujarat has the most developed natural gas market in India. Gujarat not only has competing natural gas suppliers but also has competing pipeline network operators. The natural gas suppliers in Gujarat are GAIL (which is currently marketing the natural gas produced by ONGC and joint venture companies), Panna Mukta Tapti JV, GSPC/Niko, IOCL, BPCL, Cairn Energy, Petronet LNG Terminal, Hazira LNG Terminal.
Gujarat has the largest natural gas pipeline network among all the Indian
states. The pipeline network in Gujarat comprises of the North Gujarat
and South Gujarat network of GAIL, a part of the HBJ pipeline network,
the ex-Hazira network of GAIL, a part of the DVPL pipeline network,
the pipeline network of GGCL and pipeline network of GSPL. Gujarat
has the only two operational LNG terminals in India. Supplies to Gujarat
are expected to increase manifold, with Petronet and Shell expanding
their LNG re-gasification capacity. Industrialization, proximity to
supply sources and developed natural gas transportation infrastructure
have resulted in Gujarat emerging as the largest natural gas consuming
state in the country, with more than 35% of India's total natural
gas consumed in Gujarat. |
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