All content in this website is sourced legitimately

Page No: 1
Massive investment in gas infrastructure needed
Dec 26: Even though gas based electricity may have a fighting chance to stay relevant in the medium term, the ride so far has not been rosy
8Given India's gas production constraints, low cost-competitiveness of liquefied natural gas (LNG), and under-developed infrastructure, the share of gas-based power in total generation plunged to  around 4% in fiscal 2016 compared with 12% in 2011
8This is because of inadequate domestic supply and unviable LNG prices.
8Spot prices of electricity have fallen below Rs 3 per unit, while gas-based power costs Rs 4.7 per unit after subsidy.
8If the share of gas in India’s energy mix has to rise to say 10% by 2020, it would mean a doubling of gas consumption to over 100 billion cubic meter (BCM) from current levels. But given that domestic gas production is limited, demand for imported LNG would surge three-fold to 65 BCM, or over 50 million tonne.
8Collaterally, to import this LNG, India’s regasification capacity will have to increase to 60 MMTPA compared with 25 MMTPA now.
8This will involve big investments in the supply chain. The import infrastructure will entail a capex of  Rs 30,000-35,000 crore and an attendant requirement of 9,000 km of pipelines would cost another Rs 25,000-30,000 crore.
8For business development managers of equipment and service providers in these segments, busy days are up ahead.
Click on Reports to find out more


Back  |  Top