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Natural Gas Market in India Monitor H1 2020

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  • 200 Pages
  • June 2020
  • Region: India
  • Eninrac Consulting Private Limited
  • ID: 5203846
Amidst COVID 2019 pandemic, Natural gas prices in India are cut by a steep 25% beginning April, in line with the slump in global rates leading to INR 3000 crores revenue hit for giant ONGC

Stalling of manufacturing industry during the lockdown has put the economy on hold due to rise of pandemic COVID-19 in the country. Consequently, the demand for natural gas has fallen down and is expected to fall by 15-20% in Q2 2020. This shall lead to steep fall in the price of domestic natural gas price due to fall in demand. Statistically, the domestic natural gas prices fell by 50% from USD 3.36 per MMBTU to USD 2.39 per MMBTU April 2020 onwards. Hence, State-owned Oil and Natural Gas Corp (ONGC) will lose about INR 3,000 crore in revenue and start loosing out the working capital in next quarter. However, In early 2020, there were many bullish signs coming out of India. In January, the Government authorized $774 million to support a gas pipeline project in the northeast, anew LNG pipeline commissioned in Gujarat and another planned import facility, a floating storage unit, received a boost. At a time when demand in China was weakening due to COVID-19, there was a real sense that Indian buyers could step up and fill the void.

  • First hand sector knowledge and inputs
  • Primary research inputs from F2F interviews with domain experts
  • Experts insights and market reviews taken into consideration
  • Validated data and analysis
  • Opportunity mapping and market sizing
  • Germinates from minds that think fresh to evolve path finding guide for all stake holders through quality information and analysis
  • Free query handling and analyst support for three months from the date of report procurement

Key Investments
  • GAIL India Ltd, the country's largest gas utility, will invest Rs 1.05 lakh crore over the next five years to expand pipelines, lay city gas distribution network and raise petrochemical production capacity with capex of INR 45,000 to INR 50,000 crore in laying pipelines
  • India is investing USD 60 billion to build a national gas grid and import terminals by 2024 in a bid to cut its carbon emissions
  • Union government decided to provide ₹5,559 crore for the construction of the North East Gas Grid project across the states

Key Trends
  • India's oil import bill is expected to fall by a sharper 10% in Q1 2020 as the increasing spread of Coronavirus and now the fallout of talks between OPEC and Russia has depressed the crude oil prices to about USD 30 a barrel now against a high of over USD 70 a barrel in September, 2019
  • India set to become world's No.2 oil importer surpassing China by mid-2020
  • HPCL refining margins to fall by one-third during the current fiscal due to volatility in crude prices leading to inventory losses.

Must Buy for
  • National Oil and Gas Companies
  • LNG Players
  • LNG Traders
  • Players into LNG Terminal Infra
  • Energy Trading Players
  • Natural Gas Downstream Players
  • Fuel Retailers
  • Automobile Players
  • Project Consultants
  • Research Firms
  • Technical Consulting Groups

Table of Contents

  • This Half Yearly
  • Key Features
  • Leading Edge
  • Numbers to Learn
  • The Eighty - 20 of Industry - What Matters?
  • Key Signposts
  • Deployment Trends
  • Technology
  • Price Trends
  • Industry Activities & Corporate Strategies

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Oil and Natural Gas Limited
  • Gas Authority of India Limited
  • Assam Gas Company Limited
  • Oil India Limited
  • GAIL Gas Limited
  • Indian Oil Corporation Limited
  • IndianOil-Adani Gas Private Limited
  • Think Gas Investments PTE Limited
  • Adani Gas Limited
  • Torrent Gas Private Limited
  • Gujarat Gas Limited
  • Hindustan Petroleum Corporation Limited
  • Bharat Gas Resources Limited
  • Maharashtra Natural Gas Limited
  • Megha Engineering & Infrastructures Limited
  • Indraprastha Gas Limited
  • Green Gas Limited