OVERVIEW ON NATURAL GAS

The various forms of energy such as Conventional: oil, gas, coal; Non-Conventional: Hydro, Solar, Nuclear are being harnessed at a frenetic pace to meet our energy demands. These energies are used in varied applications from household cooking, transport fuel, electricity and industries. The current population of 1.2 billion and ever increasing numbers has put the availability of already scarce conventional energy resources as a grave concern to the policy makers, researchers and common man at large. A much deliberation has been given on harnessing renewable form of energy to a larger extent such as wind, water, solar, bio etc but a recent study performed by the TERI has put the usage of Non-conventional energy to a bare minimal of 4.5% of the total energy consumption considering the energy requirement based on the BAU (Business as Usual) expectant at current level of GDP in the next decades. At current rate of production of Crude Oil & Natural Gas against the proven reserves, India can sustain energy resources for next 30 years. So the use of other forms of energy to a greater extent is to be stressed upon. Also the new technologies and efficient handling during extraction / transportation / production of conventional resources is to be implemented for increased efficiency and better prospects to our future energy needs. The potential geological areas have to be explored with effective drilling technologies. Natural Gas is one of the cleanest energies available and is to be given due dedication for pollution free atmosphere. This article herewith covers Natural Gas which in near future is going to have a larger role to play in our ever evolving Energy Circus. The natural gas energy is found in various forms such as Coal Bed Methane (CBM), Tight Gas, Shale Gas (yet to be explored in India). India has very recently begun the extraction of CBM. Great Eastern Energy Corporation Limited was the first player to commercialize the sale of CBM in 2008 from Asansol. Essar also has CBM blocks with estimated recoverable reserves of 7 tcf. CBM is found in deep coal seams where the Gas is found on the coal surface. In the past, CBM gas was merely allowed to be vented to the atmosphere during the coal mining process. After having learnt that methane from this CBM acts as a major contributor to Global Warming through the Green House effect, the technologies were developed to extract and process this CBM from the coal beds to use it as an efficient energy source. But there are certain coal bed reserves which are buried deep beneath the earth where it is difficult and unviable to extract coal. It is now possible to extract methane gas from these deep coal bed reserves by use of effective low cost drilling technologies. Tight gas is found in reservoirs with very low impermeability rocks that can only be produced at economic rates through special production techniques. Shale gas is found in shale deposits (type of sedimentary rocks) which can be extracted by hydraulic fracturing and is successfully extracted in America in the last decade. It is expected that India has huge potential reserves of Shale Gas which if cost effectively extracted will lesser Indias dependent on the Natural Gas Imports. ONGC with help of Directorate General of Hydrocarbons have started working on various potential sites for Shale Gas extraction, though the commercial production of shale gas is yet to be seen in India. Natural Gas Production in India is approx 45 BCM which is expected to increase to 70 BCM by 2015. Most of this Gas is used in Power Generation, Industrial fuel, Domestic fuel, Fertilizer Industry,

petrochemical industry etc. India is expected to import lesser percentage of Natural Gas in coming years till 2015 owing to the production from KG-D6 basin. After 2015, percentage of Natural Gas imports is expected to increase as the production of Natural Gas from the existing fields will decline. So, new discoveries for Natural gas reserves and dedicated efforts on implementing successful extraction of shale gas would meet the necessitated demand. To meet its Natural Gas demand, India is in talks with countries such as Iran, Pakistan and Afghanistan for the pipeline projects to bring in Natural Gas and is building LNG imports infrastructure. Currently two LNG regasification terminals are operating in Dahej and Hazira and two at Dabhol and Kochi will be soon in operation. Regions such as Africa and Middle East have excessive Natural Gas reserves from where the LNG can be imported. LNG takes up much lesser space than in its Gaseous state and thus easier to transport and handle. Liquefaction plant converts extracted Natural Gas into condensed form by cooling Natural Gas to minus 160 degrees centigrade. Once transported LNG is stored in Storage Tanks and regassified, further distribution to end user is done. TAPI pipeline project which was under proposal for long has recently seen a day of light with Indian officials have inked a pact with the concerned countries. Though to put such a pipeline project which carries a huge potential of Natural Gas to meet our energy needs is an onerous task due to the political sensitivities. Still policies are to be effected, cost consideration is to be looked at and security concern is to be ascertained for TAPI project to materialize. India and China which were not affected much during the 2008-09 recession and are leading the growth path in the world and have aggressively started targeting Oil and Gas reserves outside their country to meet the ever growing demand. China has outperformed India in recent foreign energy related acquisitions against which India needs to vigour up to match the competition.