Question : NATURAL GAS RESOURCES



(a) the details of natural gas resources found in various parts of the country during the last three years, State-wise;

(b) the details of their potential and the extent to which the potential has so far been exploited; and

(c) the steps taken by the Government for optimum utilization of gas resources of the country?

Answer given by the minister

MINISTER OF PETROLEUM AND NATURAL GAS AND PANCHAYATI RAJ (SHRI MANI SHANKAR AIYAR)

(a) to (c): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE LOK SABHA STARRED QUESTION NO. 564 FOR 5TH MAY, 2005 ASKED BY S/SHRI BRAJA KISHORE TRIPATHY AND KISHANBHAI V. PATEL REGARDING NATURAL GAS RESOURCES

(a) & (b): During the last 3 years from 2001-02 to 2003-04, state-wise in-place accretion of gas reserves by ONGC, OIL and Private/Joint Venture companies are as under -

State	In-place Reserves 
in Billion Cubic Metres (BCM)
Andhra Pradesh 11.369 Arunachal Pradesh 3.690 Assam 37.758 Gujarat 9.928 Rajasthan 0.762 Tamil Nadu 9.764 Tripura 6.339
Total 79.610



In addition, 364.28 BCM of in-place gas reserves were accreted in offshore areas in the corresponding period.

So far, out of 79.61 BCM in-place reserves in onland areas, 56.49 BCM have been established as recoverable reserves.

(c) Administered Price Mechanism (APM) gas, produced by ONGC and OIL and purchased by GAIL from the Private/Joint Venture sector, is being supplied against allocations made by the Government, priority being given to the power and fertilizer sectors. With respect to gas produced by Private/Joint Ventures, where they have freedom to market the gas or have been allowed to made their own arrangements for marketing the gas as per the provisions of the respective Production Sharing Contracts (PSCs), these are governed by the terms of the PSCs.

As against the current APM allocation of about 120 Million Metric Standard Cubic Metres per Day (MMSCMD), the availability of APM gas is only about 63 MMSCMD. In addition, about 12 MMSCMD of domestic gas and about 18 MMSCMD of imported Re-gassified LNG is being sold to various consumers at market-related price.

With a view to substantially augmenting the availability of gas within the country, the following steps are being taken:-


(i) Under successive rounds of the 1997 New Exploration Licensing Policy(NELP), several improvement have been and are being made to exponentially enhance investment in the exploration and production of natural gas, both onshore and offshore, by attracting public and private sector investment and Foreign Direct Investment, as well as encouraging partnerships among interested national and foreign players.

(ii) Award of Coal Bed Methane Blocks, the first production of which is expected to commence in 2006-07.

(iii) Underground Coal Gasification in collaboration with the Skochinsky Institute of Mining, Moscow and ERGO of Canada.

(iv) LNG from Qatar, Iran and, possibly, Australia, as well as natural gas by pipeline from Iran, Mayanmar and possibly Turkmenistan: negotiations with them have commenced.

(v) R&D for gas hydrates.




These initiatives are aimed at substantially reducing and eventually eliminating the demand supply gap of natural gas in the country.