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New Delhi: The demand for natural gas in India will increase to 330 million standard cubic meters per day by 2024-25, while domestic production will rise by 60 percent to around 150 mscmd, research and ratings agency ICRA said on Friday.


Photo: http://www.livemint.com


Photo: http://www.livemint.com

The increase in supply will come from the likely commencement of Gujarat State Petroleum Corp’s Deen Dayal block and state-run ONGC’s KG basin blocks along with marginal increase in Mukesh Ambani-led Reliance Industries’ KG basin production and other sources, ICRA said in its latest report on Indian gas utilities.

“Despite high domestic demand-supply deficit, the demand for regasified liquefied natural gas (RLNG) in the country is critically dependent upon the prices of liquid fuels and global spot LNG prices,” it said.

“The prices of long-term RasGas LNG are expected to be at materially higher level than liquid fuel prices and spot LNG prices till FY17, thereby leading to significant pressure on demand and marketing margins of RasGas RLNG in view of lower prices of liquid fuels and spot LNG,” the report said.

The marketers are expected to partially mitigate the risk by taking recourse to offtake flexibility available under the GSPA and by marketing a higher share of spot LNG, it added.

Due to competition from liquid fuels and coal, the actual consumption of RLNG could be lower than demand potential resulting in significant competitive pressures among LNG terminals, said ICRA senior vice-president K.Ravichandran.

“Even though the government of India has ambitious plans to double the pipeline capacity to 30,000 km, the constrained gas availability may be a key hurdle for new pipeline projects, which require large investments,” he said.

Meanwhile a petroleum ministry source here told IANS on Friday that a decision is expected soon on the premium to be paid on natural gas for all new discoveries in ultra-deep-water and deep-water areas as well as in high pressure-high-temperature areas.

In October 2014, the government had announced an upward revision to $5.61 per unit against the industry’s demand for at least doubling it to a little over $8 per unit, as per the Rangarajan Committee recommendations.

As per the mechanism approved in October 2014, the new price of $5.61 per unit will be applied for normal categories of gas.

But for all new discoveries in ultra-deep-water areas, deep-water areas and the high pressure-high-temperature areas, it said that a premium will be given but did not spell out further details on how it will be calculated.

While shallow-water blocks are at a depth of up to 100-500 metres, deep-water blocks descend to around 1,000 metres. Those at depths beyond 1,500 metres are classified as ultra-deep-water blocks.

These are the areas where the Reliance Industries-led consortium has maximum discoveries.

Reliance Industries will not immediately be able to avail the new price as it remains locked in an arbitration with the government over alleged shortfall in production from its Krishna-Godavari basin fields.

The government has announced a new rate, effective April 1, at $4.66 a unit – lowering it by 8 percent from the earlier $5.61 owing to lower international prices.

(IANS)


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The aim of the book is to teach children that families can exist in different forms, and show them how to accept the diversity in family backgrounds.

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Delhi-based author Pritisha Borthakur is set to release her new book, 'Puhor and Niyor's Mural of Family Stories'. The 1,404-word children's book was put together to address a new kind of societal debacle in the family system. The author says the aim is to teach children that families can exist in different forms, and show them how to accept the diversity in family backgrounds.

The author who named the book after her twin sons -- Puhor and Niyor -- is a parent who has seen and heard the tales of ridicule and discrimination suffered by many in India and beyond. She says the book is an artistic illustration for kids that details how different families can live and coexist. Whether it's children with two dads or two moms, children with a single dad or single mom, and even multiracial family units, Borthakur's book teaches love, understanding, and compassion towards unconventional families.

Beyond race, gender, color, and ethnicity which have formed the bases for discrimination since the beginning of time, this book aims to bring to light a largely ignored issue. For so long, single parents have been treated like a taboo without any attempt to understand their situations; no one really cares how or why one's marriage ended but just wants to treat single parents as villains simply for choosing happiness and loving their children.

Homosexual parents, a relatively new family system, is another form that has suffered hate and discrimination for many years. Pritisha emphasizes the need to understand that diversity in people and family is what makes the world beautiful and colourful. 'Puhor and Niyor's Mural of Family Stories' is a firm but compassionate statement against all forms of discrimination on the bases of sexual identity, gender, race, and even differences in background

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