Liquefied natural gas is used to transport natural gas over long distances, often by sea.

In most cases, LNG terminals are purpose built ports used exclusively to export or import LNG. LNG a physical change process converting natural gas to liquid for ease of transportation.

LNG has the obvious advantage of being established for the past 40 years and has to-date enjoyed robust growth and has an excellent safety record.

In recent years LNG has grown from an industry of 80 (MMTPA) in 1993 to 140 (MMTPA) today and is set to double in the next 10 years.

1. 2. 3. 4.

The supply-demand balance for LNG in the short to medium term is forecasted to remain very competitive putting considerable pressure on the players to develop competitive projects and gain market share. In asia some of the existing liquefaction terminals are as follows: Oman LNG Qatar gas, Qatar Ras Laffan, Qatar Rasgas, Qatar

LNG terminals in India are: Dahej Terminal, Petronet LNG Ltd, Gujarat Hazira Terminal, Hazira LNG Pvt Ltd, Gujarat Dabhol Terminal, Ratnagiri Power (NTPC) LTD, Maharashtra from Nov 2009 Kochi Terminal, Petronet LNG Ltd, Kerala

Currently, India has two operational LNG import terminals, Dahej and Hazira. India received its first LNG shipments in January 2004 with the start-up of the Dahej terminal in Gujarat state. Petronet LNG, a consortium of state-owned Indian companies and international investors, owns and operates the Dahej LNG facility with a capacity of 5 million tons per year (mtpa)

Indias second terminal, Hazira LNG, started operations in April 2005, and is owned by a joint venture of Shell and Total. The facility has a capacity of 2.5 mtpa, which may be expanded to 5 mtpa, in the future. The 5 mtpa, LNG processing plant in Dabhol continues to face delays. Currently operating as a power plant, the LNG receiving terminal may be operational in 2011 after dredging operations are complete so that a breakwater can be built.

In addition, Petronet LNG has begun construction of a 2.5 mtpa LNG import facility at Kochi. The facility is expected to be completed in the first quarter of 2012 and has secured a 1.5 mtpa supply from Australias Gorgon LNG project In order to secure supply of natural gas to India and meet growing demand, India is currently looking to invest in liquefaction projects abroad. For example, ONGC and the UK-based Hinduja Group are considering service contracts in Iran to supply 5 mtpa of LNG to India. The country is also exploring the possibility of investing more in the Sakhalin I LNG project.

Why Natural Gas? The Fuel of the 21st Century Natural Gas could overtake oil as the global number one fuel of choice by 2025
125 100

mln boe/d 150

Clean Abundant Cost competitive

Oil Gas

75
50 25 0 1980
Natural Gas as the fuel of the twenty-first century with increasingly diverse supply, driven by emerging technologies and the development of broader gas markets.

1990

2000

2010

2020

2030

Evolution of LNG Markets.increasing global trade

1990

2003

LNG Imports (% gas supply)

bcf/d 20 20 20

202 0
50%

14%
10 10

17%
10

62% 65%

0.3%
1990

2%
0 2003 2020

6%
1990

8%
0 2003 2020

1990

2003

2020

North America

Europe

Asia
Korea, Japan, Taiwan, India and China

Sources: Cedigaz, bp statistical review 2004, Shell

The World Energy Outlook projects that worlds primary energy needs would grow by 16.8 billion TOE in 2030. As for natural gas, the global gas demand is projected to increase to around 4.3 TCM in 2030 i.e. an average growth rate of 1.5% per year with the share of gas in the global primary energy mix. But that would depend largely on the world economic growth, gas prices and government policies and hence there are large uncertainties.

Estimated Sector-wise Demand*(MMSCMD)

Sector
Fertilizers Power City Gas Industrial Petrochemical / Refineries Sponge Iron / Steel

11-12
79.36 148.38 15.83 21.96 23.25 7.86

16-17
95.0 221.0 31.0 45.0 38.0 12.0

Total Demand (A)

300.64

442.0

Estimated Domestic Gas Supply**(MMSMCD) - Optimistic

Source
ONGC (FIRM + INDICATIVE) OIL Pvt. / JVs (As per DGH)

11-12
51.65 10.00 109.07

16-17
75.0 10.00 180.09

Total Projected Supply (B) Demand Supply Gap (C) = (A B)

170.72 129.92

265.0 177.0

* - 11-12 figures are as per XIth Five -year Plan estimates and 16-17 figures are projected. ** - Based on revised estimate of ONGC (Firm + Indicative) and DGH.

Supply Side: Creation of economically sound LNG export projects

Ensuring commercialization of resources in gasrich countries for their economic benefits.

Consumption Side: Establishing a solid network of import facilities

These facilities must be built on a stable regulatory and economic foundation to ensure reliable, longterm service to customers at competitive prices.

Linking Source to Markets:

Linking through transportation and flexible contracting that can withstand the twists and turns of a changing LNG marketplace.

LNG IMPORT

LNG EXPORT

Pipe line infrastructure

Existing P/L Capacity - 142 MMSCMD Capacity after new P/Ls - 390 MMSMCD
MUNDRA 5 mmtpa
NANGAL BHATINDA DELHI

GURGAUN MATHANIA AGRA

BAREILLY AURAIYA LUCKNOW

JAGDISHPUR KANPUR

DISPUR PATNA

DAHEJ I & II 10 mmtpa*

BARMER GWALIOR

PHOOLPUR

RAJKOT

JHANSI UJJAIN VIJAYPUR BHOPAL

AHMEDABAD

KOTA

VARANASI GAYA BOKARO

AGARTALA

LNG Existing Existing to start Construction

KOLKATA

HAZIRA 3.6 mmtpa

BHARUCH BARODA SURAT

CUTTACK

Upcoming
DAMRA BHUBANESHWAR

Transmission Pipelines
Existing GAILs Planned Pipeline RILs East West Pipeline RILs Planned Pipeline

MUMBAI

PUNE SOLAPUR
RAJAMUNDRY

KRISHNAPATNAM KAKINADA

DABHOL 5 mmtpa

KOLHAPUR GOA

HYDERABAD

VIJAYAWADA NELLORE

MANGALORE 5 mmtpa

HASAN MANGLORE

BANGLORE

CHENNAI

ENNORE 2.5 mmtpa

City Gas/ CNG

Existing Planned LNG Terminal

KANJIKKOD
COIMBTORE

TIRUCHCHIRAPALLI

KOCHI 2.5 mmtpa

TUTICORIN

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

 Viability and sustainability

Strategic
Economic Social
Local Sentiment

Environmental approval Technical

Permitting and regulatory

The challenges of operation: Scheduling

Multiple shippers Single shipper terminals require careful scheduling as well Fitting deliveries into slotted time Weather, tide, supplier delays

Managing storage space and its limitations The unexpected

Terminals often challenged to achieve 100% utilization