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ROLE OF OIL & GAS SECTOR REGULATOR TO ACCELERATE INVESTMENT IN INDIA

ROLE OF OIL & GAS SECTOR REGULATOR TO ACCELERATE INVESTMENT IN INDIA. Indian Oil & Gas Sector Statistics. Domestic E&P oil – 30 mmtpa Refining Capacity – 160 mmtpa Product Consumption– 128 mmtpa Gas production – 31 bcm Consumption – 39 bcm LNG Import: 5 mmtpa – long term

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ROLE OF OIL & GAS SECTOR REGULATOR TO ACCELERATE INVESTMENT IN INDIA

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  1. ROLE OF OIL & GAS SECTOR REGULATOR TO ACCELERATE INVESTMENT IN INDIA

  2. Indian Oil & Gas Sector Statistics • Domestic E&P oil – 30 mmtpa • Refining Capacity – 160 mmtpa • Product Consumption– 128 mmtpa • Gas production – 31 bcm • Consumption – 39 bcm • LNG Import: • 5 mmtpa – long term • 1 mmtpa- spot

  3. Indian Oil & Gas Sector Statistics Contd... • Pipeline (Gas) • Transmission – 4000 kms • Distribution – 4500 kms • Regional Network – 7 nos. • Pipeline (Products) • LPG -1870 kms. • Other petroleum Products -10000 kms.

  4. Indian Oil & Gas Sector Statistics contd… • City Gas Distribution (CGD) • Sixteen Cities • Approx. 0.30 million vehicles on CNG • Approx. 0.50 million dwelling on PNG

  5. India – the great country • Area – 3287263 sq. kms. (Approx. 3.3 million sq.kms.) • Population – 1028 million (as of 1.3.2001) • States – 28 • Union Territory – 7 • Therefore; • More E&P activities in oil & gas • More Infrastructure • More Gas • More Investment

  6. India-Africa Oil & Gas sector comparison • Reserves India Africa* • Oil (kmbbl) 5.7(0.5%) 17.2(9.7%) • Gas (tcf) 37.95(0.6%) 500.67(7.8%) • Production • Oil (kbbl) 807 (1%) 9990 (12.1%) • Gas (bcm) 31.8(1.1%) 180.5 (6.3%) • Consumption • Oil (kbbl) 2575 (3.1%) 2790 (3.4%) • Gas (bcm) 39.7 (1.4%) 75.8 (2.6%)

  7. India-Africa Oil & Gas sector comparison contd… • Country* Oil gas • Algeria ^ ^ • Angola ^ • Chad ^ • Egypt ^ ^ • Equatorial guinea ^ • Gabon ^ • Libya ^ ^ • Nigeria ^ ^ • Sudan ^ • Tunisia ^ • Others ^ ^

  8. More Investment • Investment is required in • E&P – Oil & Gas • Rigs for Exploration • Refining • Pipeline – transmission and distribution • CGD – infrastructure, equipments & fittings, project implementation • Gas trading • Storage – Oil, Gas (UG,LNG)

  9. Contd... • LNG Terminal • LNG Shipping • Marine Facilities • Port Development • Establishing ROs • Consultants along value chain (E&P to Retail)

  10. Proposed investment XI five Year Plan(2007-2012) -Gas value chain • Gas transmission pipelines Rs. 21,121 Crores • LNG terminals Rs. 9,220 ,, • CGD Rs. 9,000 ,, • Total ( Gas Value Chain) Rs. 39,341 ,, • Based on the report of the working group on Petroleum& Natural Gas

  11. Proposed Investment Oil& Gas sector-XI five year plan • OVL Rs. 58,674 Crores • ONGC Rs. 82,672 ,, • OIL Rs. 10,176 ,, • GAIL Rs. 12,159 ,, • IOCL Rs. 45,215 ,, • HPCL Rs. 32,285 ,, • BPCL Rs. 12,553 ,,

  12. Proposed Investment Oil& Gas sector-XI five year plan contd… • CPCL Rs. 3,825 Crores • BRPL Rs. 2,020 ,, • MRPL Rs. 8,561 ,, • NRL Rs. 498 ,, • Bal.Lawrie Rs. 205 ,, • Biecco ,, Rs. 34 ,, • RGIPT Rs. 174 ,, • Total Rs. 2,69,049 ,,

  13. Proposed Investment Oil& Gas sector-XI five year plan • Upstream Rs.159,161 Crores= 39800 m$ • Refining Rs. 81,545 ,, 20000 ,, • Gas Sector Rs. 13,079 ,, 3200 ,, • Marketing Rs. 6,080 ,, 1500 ,, • Crude (P/L,Terminal) Rs. 4,230 ,, 1000 ,, • R&D Rs. 1,418 ,, 350 ,, • Other Incl.RGIPT Rs. 3,536 ,, 900 ,, • Total Rs.2,69,049 ,, 66750 ,,

  14. Kind of Investors • Infrastructure Developers • Consultants • Equipment Manufacturers • Pipe, Fitting, Meter Regulator and Metering, CNG Kit etc. manufacturers • Contractors

  15. Kind of Investors contd… • E&P Specialists • Marketers • Energy specialist • Large investment funds • Investment Companies (FIIs)

  16. Functions of the Regulator • Protect interest of consumer – foster fair trade and competition • Register entities to - • Market (P,PP&NG) • Establish LNG Terminal • Establish Storage Facilities • Authorize entities to • Lay, built, operate or expand pipelines • Lay, build, operate or expand CGD networks

  17. Functions of the Regulator… • Declare pipelines as common carrier or contract carrier • Regulate by regulations- • Access to common carrier • Transportation tariff • Access to CGD

  18. Functions of the Regulator… • In respect of notified P,PP& NG • Ensure adequate availability • Display price • Monitor prices, prevent restrictive trade practice • Secure equitable distribution for P,PP& NG

  19. Functions of the Regulator… • Provide by regulation and enforce • Marker service obligations for entities • Retail service obligations for ROs • Monitor transportation rates, prevent restrictive trade practices • Maintain data bank on Petroleum, PP&NG • Lay down Technical and Safety stds for d/s Petroleum & NG sector

  20. Functions of the Regulator… • Levy fee and other charges • Other functions as entrusted by Govt.

  21. PNGRB conducive to investment growth- Benefit to Consumer • To get access to P,PP&NG • No monopoly • Safety in services • Price display – mandatory • Better services through competition • Retail service obligations – quality of products & services, complaint redressal

  22. PNGRB conducive to investment growth- Benefit to Consumer… • Codes/standards/best practices to – • improve quality of products & services • ensure safety • Environmental benefits – use of CNG/PNG • Genuine price – market determined • Economy in transportation – regulator decides tariff by regulation

  23. PNGRB conducive to investment growth • Foster Fair Trade • Create Competition • Selection of entities on transparent way- rules of the game pre determined by regulations • Determine pipeline tariff by regulation • Pipelines as common carrier or contract carrier

  24. PNGRB conducive to investment growth… • Open access to pipelines transportation • Access code by regulation • Infrastructure status to pipelines and CGD • Market determined pricing • Access to Information- Registration, Authorization, Dispute resolution etc. • FDI allowed • Independent Regulator- PNGRB

  25. PNGRB conducive to investment growth… • Fair chance of selection/ success • Unbundling • Affiliate code • Nascent Gas Market- First mover advantage • New Gas finds • Additional Gas Sources • CBM • Insitu gasification- Coal/Lignite

  26. PNGRB conducive to investment growth… • LNG import • Bio gas • Gas from stranded/ Isolated, marginal fields • LNG by tankers • Hydrogen for transport sector

  27. PNGRB conducive to investment growth… • Dispute resolution made easy- • Disputes between entities-PNGRB to resolve • Appeal to Appellate tribunal against PNGRB decision • Appeal to Supreme Court against the decision of Appellate tribunal

  28. PNGRB conducive to investment growth… • Obligation of entities • Maintain documents/ records-show to PNGRB on demand • Comply with marketing service obligations • Monitoring of conditions of Registration/ Authorization • Obliged to carry out the directions of the Board

  29. PNGRB conducive to investment growth… • Govt. Initiatives • Support for the sector - PNGRB established • FDI allowed-100% • Gas Advisory Body (GAB) • Long term plan- • National Gas Grid • Sourcing Gas – LNG, Cross Boarder Pipelines • National Gas Hydrate plan • Infrastructure status for Pipelines

  30. Issues • Pricing • P,PP&NG distribution • Subsidy Management • Transportation tariff – Pipelines & CGD • Mandating codes, standards, best practices including safety standards • Common Carrier/Contract carrier • Open Access

  31. Issues contd… • Access Code • Gas availability – new sources • Gas trading • Entity selection for CGD • Exclusivity • Existing CGD entities • Unbundling • Affiliate code of Conduct

  32. Thank You

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