Natural Gas Segment Analysis

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Register to read the introduction… The proposed gas grid would connect the gas sources to major demand centers such as industrial clusters, big cities etc.

Natural Gas Scenario in India
Natural gas has a multitude of industrial uses, including providing the base ingredients for such varied products such as plastic, fertilizer, anti-freeze, and fabrics. In fact, industry is the largest consumer of natural gas, accounting for 43 percent of natural gas use across all sectors. Natural gas is the second most used energy source in industry, trailing only electricity. Lighting is the main use of energy in the industrial sector, which accounts for the tremendous electricity requirements of this sector. The graph below shows current as well as projected energy consumption by fuel in the industrial sector.

Although industry accounts for a great deal of natural gas consumption in India, this industrial consumption is concentrated in a relatively small number of industries. Natural gas is consumed primarily in the pulp and paper, metals, chemicals, petroleum refining, stone, clay and glass, plastic, and food processing industries. These businesses account for over 84 percent of all industrial natural gas
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The demand for Natural Gas is increasing significantly in India due to various factors like rising concerns towards pollution by fossil fuels, depletion of liquid fuels and competitive fuel prices.
One of the areas where Natural Gas is prominently used in the form of compressed gas, called
CNG, is the transportation sector. The demand of CNG is dynamic and is expected to increase or even double by 2021-22.
Natural gas has significant advantages over gasoline and diesel fuel. Natural gas vehicles emit
60-90% less smog-producing pollutants and 30-40% less greenhouse gas emissions. It also costs less per mile to operate a natural gas vehicle compared to a gasoline or diesel vehicle. And, natural gas is produced locally instead of imported.

LNG in India’s Energy Basket
Asia is the largest regional market for LNG, accounting for around 70% of LNG imports in
2012. The Asian LNG market is also the fastest growing, being the location for more than half of the global capacity of LNG re-gasification terminals currently under construction. Japan, South
Korea and Taiwan are well established LNG markets, while China is emerging as a major

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