Friday November 15, 2019
Home India Demand for na...

Demand for natural gas in India will increase, so will domestic production: ICRA

0
//
NDTV

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)

Next Story

Instagram Likely to Expand its Private Like Counts Test Globally

'Restrict' was also a feature recently announced to protect your account from unwanted interactions

0
facebook, social media
Facebook, Messenger and Instagram apps are displayed on an iPhone, March 13, 2019, in New York. VOA

Instagram on Thursday announced to expand its Private Like Counts test globally, including in India.

In the test, you can still see your likes by tapping on the liker list, but others will not be able to see how many likes your post has received.

Likewise, you will not be able to see how many likes others’ posts have received.

Vishal Shah, Vice President of Product, Instagram, said that if you’re in the test, you’ll no longer see the total number of likes and views on photos and videos posted to Feed unless they’re your own.

facebook privacy
FILE – The Instagram icon is displayed on a mobile screen in Los Angeles. VOA

“While the feedback from early testing has been positive, this is a fundamental change to Instagram, so we’re continuing our test to learn more from our global community,” Shah said in a statement.

The test began in Canada in May 2019 and expanded to Australia, New Zealand, Japan, Brazil, Ireland and Italy in July this year.

Also Read: Rapper Badshah has Newfound Respect for Actors, Filmmakers After Acting Debut

The roll-out of this test comes close on the heels of the recent ‘Instagram Experience’ organised in Mumbai where an ‘Unlabel’ content series was announced in partnership with Yuvaa, a youth media platform, featuring young Indians challenging stereotypes to be their authentic selves.

‘Restrict’ was also a feature recently announced to protect your account from unwanted interactions. (IANS)