Gas production in 2016-17-II: The jury is till out on the future of gas in India
May 04: Nothing highlights the highly regulated nature of the Indian gas industry than the fact that largest consumers of gas are those where the gas prices are regulated. 8Of the available 140 mmscmd of total gas, the fertilizer sector consumes 4128 mmscmd, followed by power at 31.97 mmscmd and city gas at 21.19 mmscmd 8Industrial consumption, which is dependent on RLNG, is a mere 1.46 mmscmd 8The petrochemicals sector and the refinery sector, including the production of LPG, along with shrinkages etc make up the rest 8There is no immediate possibility of deregulation of the fertilizer and CGD sector 8Gas based power demand will come under increasing pressure from renewables and coal based power is unlikely to disappear from the horizon any time soon. 8That leaves only a very narrow segment from where the bulk of the future gas demand in India is likely to come from. 8Unless there is a large tax on carbon, coal based sources will continue to dominate, followed by renewable energy. 8Gas, because it is far more expensive in India to use because it needs to be imported, will continue to remain dependent on a narrow segment for growth. Click on Reports for the disaggregated picture.