WINTER PROJECT REPORT ON

MARKET POTENTIAL OF CBM GAS

IN ASANSOL REGION

SUBMITTED TO:

SUBMITTED BY:

Prof. Sanjeev S. Padashetty

Alliance School of Business,
Bangalore.

Akash Kumar
Department of Marketing
Alliance School of Business,
Bangalore.
Batch 2013-2016

Bachelor of Business Management

Certificate

This is to certify that Mr. Akash Kumar Regn. No. 13010141126 has completed the
report titled Market Potential of CBM gas in Asansol region under my guidance
for the partial fulfillment of the Course: Industry Internship Programme (IIP) in
Semester VI of the Bachelor of Business Management.

Signature of Faculty Guide:

Name of the Faculty Guide:

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Prof. Sanjeev S. Padashetty

Bachelor of Business Management

Industry Internship Programme (IIP)

Declaration
This is to declare that the Report titled MARKET POTENTIAL OF CBM GAS IN ASANSOL
REGION has been made for the partial fulfillment of the Course: Industry Internship
Programme (IIP) in Semester VI by me at Essar Oil & Gas Pvt. Ltd, Durgapur under the
guidance of Prof. Sanjeev S. Padashetty .

I confirm that this Report truly represents my work undertaken as a part of my Industry
Internship Programme (IIP). This work is not a replication of work done previously by
any other person. I also confirm that the contents of the report and the views contained
therein have been discussed and deliberated with the faculty guide.

Signature of the Student

Name of the Student (in Capital Letters)

Akash kumar

Registration No

13010141126

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ACKNOWLEDGEMENT
A winter project is a golden opportunity for learning and self-development. I consider myself
very lucky and honored to have so many wonderful people to lead me through in completion of
this project.
On the very outset of this report, I would like to extend my sincerest & heart felt obligation
towards all the people who have helped me in this endeavor. Without their active guidance, help,
cooperation & encouragement, I would not have made headway in the project.
First of all I would like to thanks Mr. Manoj Kumar Head HR (unconventional), Essar Oil
Limited, Durgapur for allowing me to do my winter internship from his organization from 23rd
December, 2015 to 10th February, 2016.
I am ineffably indebted to Mr. Indu S Mishra, Territory Sales Manager, Essar oil limited,
Durgapur, who in spite of being extraordinarily busy with his duties, took time out to hear, guide
and keep me on the correct path and allowing me to carry out my project work. Each and every
doubt of my was explained by him which made it easy for me to understand. All the industrial
visits and field works, interaction with customers was done under the guidance of him, this gave
me the practical exposure by which I understood the reality of the market and help me a lot to do
the analysis.
I would also like to thanks Mrs. Mousomi Dey, Marketing executive, Essar Oil Limited for her
friendly advice and never-ending support that I have received from her thoroughly during the
project work.
My thanks will also go to Mrs. Debjani Chatterjee, HR Executive, Essar Oil limited, Durgapur
for providing me with useful information about the CBM blocks and other useful resources
which helped me a lot to complete my report.
I express my deepest thanks to Dr. Sanjeev S. Padashetty, Professor, Alliance School of
Business for his guidance and support. He supported me at every moment when I asked for his
help. He helped all time when I needed and he gave right direction toward completion of project.
At last but not least gratitude goes to all the employees of Essar Oil & Gas Ltd. who directly or
indirectly helped me to complete this project report.
Thank you
Sincerely,
Akash Kumar
BBM- MARKETING
Alliance School of Business, Bangalore.

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Contents
EXECUTIVE SUMMARY ............................................................................................................ 6
INTRODUCTION .......................................................................................................................... 7
Company Overview: Essar Group............................................................................................... 7
Product and Services Offered ...................................................................................................... 8
Energy ......................................................................................................................................... 8
Shipping ...................................................................................................................................... 9
Objective of Marketing Study ................................................................................................... 14
Study Region ............................................................................................................................. 14
Approach and methodology ...................................................................................................... 15
Secondary Research ............................................................................................................... 15
Fossil fuels ............................................................................................................................. 15
Nuclear Power ....................................................................................................................... 17
Renewable Energy ................................................................................................................. 17
Key regions ............................................................................................................................... 21
Industry challenges .................................................................................................................... 22
Drilling costs.......................................................................................................................... 22
Fastest growing energy market ................................................................................................. 22
Energy Statistics In India .............................................................................................................. 23
Coal ........................................................................................................................................... 24
Petroleum and natural gas ......................................................................................................... 26
................................................................................................................................................... 30
Production of energy sources. ................................................................................................... 30
Demand and supply scenario..................................................................................................... 31
Import and export of energy sources ......................................................................................... 32
Natural Gas ................................................................................................................................... 34
Advantages of Natural Gas ....................................................................................................... 34
Coal Bed Methane (CBM) ........................................................................................................ 35
Significance of CBM Gas ......................................................................................................... 37
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Advantages of Gas vs Oil ............................................................................................................. 38

ASANSOL An Overview .......................................................................................................... 38
Economy.................................................................................................................................... 39
Steel ....................................................................................................................................... 39
Coal ........................................................................................................................................ 39
Railways ................................................................................................................................ 39
Other business ventures ......................................................................................................... 39
Identification of Geographical Area .......................................................................................... 40
INDUSTRIES VISITED ........................................................................................................... 40
Essar CBM extraction blocks .................................................................................................... 41
Clearance Required For Selling, Marketing, Distributing Gas In Market: ................................... 42
Environmental Clearance - The Process ................................................................................... 42
Conclusion .................................................................................................................................... 45
Reference ...................................................................................................................................... 46

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EXECUTIVE SUMMARY
This report is an attempt to find the Market Potential of CBM gas in Asansol region. As a
student of BBM, it is a part of study for everyone to undergo winter project at some good
institute or organization. So for this purpose, I got opportunity of winter training at Essar Oil
& Gas limited, E&P division, Durgapur.
In the first part of the project report, the general information of the company has been
collected, global scenario and industry analysis, information has been gathered through the
primary and secondary sources as well.
In second part of the report, contains the holistic study of the demand and supply of
natural gas and other natural resource in India. The objective was to compare the demand and
supply with every state in India to get the information which state is high on demand and
supply.
Essar is building new pipeline to Asansol region, hence, the main focus is to reach the
target customer, and make a marketing strategy with the help of this report. The data given in
this report is updated and is taken from the authentic sources.
The rapid demand of Gas in India is observed and the supply is very less as compare to
the demand. The cost analysis is also given for CBM in compare to different energy sources.
Hence the conclusion according to my report is that the demand is very high in compare
to the current supply of the gas. The gas can be supplied in every sector like automobile,
Power, Fertilizer, cement, metallurgic and mineral sectors.

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INTRODUCTION
Company Overview: Essar Group
Our vision
We will be a respected global entrepreneur, through the power of positive action.
Our mission
We are committed to innovative growth, through our personal passion, reinforced by a
professional mindset, creating value for all those we touch.

Essar Group is an Indian multinational conglomerate with investments in the sectors

of steel, energy (oil & gas and power), infrastructure (ports, projects & concessions)
and services (shipping, telecom, realty and outsourcing and technology solutions). With
operations in more than 25 countries across five continents, Essar employs over 73,000
people and has revenues of $39 billion.
Essar began as a construction company in 1969 and diversified into manufacturing, services
and retail. Essar is managed by Shashi Ruia Chairman, and Ravi Ruia Vice Chairman.
Essar began its first operation with the construction of an outer breakwater in Chennai port.
The name Essar is derived by combining the first letter of the Chairman's and ViceChairman's names Shashi and Ravi, i.e. S plus R sounds like Essar. The company was
incorporated in June 1976 under the name of Essar Construction Limited and was engaged
primarily in core sector activities, including marine construction, pipeline laying, dredging
and other port related activities. In 1984, the company ventured further into other core
sectors mainly the field of exploration and development, drilling onshore and offshore oil
and gas wells for Indian Public Sector oil exploration companies. The company's name was
then changed to Essar Offshore and Exploration Limited in May 1987.
In August 2000, the company's name was changed to Essar Gujarat Limited, to reflect its
highly diversified business interest. In 1988, the company made an initial public offer for its
shares, which are now listed in Bombay Stock Exchange, National Stock Exchange of
India and two other Indian stock exchanges.
In the 1990s the group entered into steel making with its Hazira plant in Gujarat and a pellet
plant in Visakhapatnam. During the same decade the Essar expanded its scope into other
businesses gas exploration, oil refinery, construction and GSM telephony.
As part of its business strategy of focusing on the iron and steel sector, the company hived
off its unrelated business to a series of different companies. Offshore and energy operations
were transferred to Essar Oil Limited in May 1992, Civil and mechanical construction
business were transferred to Essar Projects Limited in March 1993.
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With a vertical integration program in mind, construction of a technology Hot Rolled (HR)
sheets and coil plant began in 1992. The plan commenced trial production in April 1995 and
commercial production in April 1996.
The name of the company was changed from Essar Gujarat Limited to Essar Steel Limited
in December 1995. The company operates the following facilities at Hazira, Gujarat state:
MMTPA gas based Hot Briquetted Iron (HBI) plant; and MMTPA Hot Rolled Coils (HRC)
plant.
Essar Oil has been awarded the Talcher Block in the CBM IV and IB Valley Block in the
CBM IV round of bidding conducted by the Government of India and covers an area of
557sq. km and 209sq. km respectively. The initial exploration period for Talcher block and
IB Valley Block is for a period of two years from the effective date. It will be required to
complete 30 core holes and two test wells during this exploration phase in Talcher block and
25 core holes and two test wells in IB Valley block.

Product and Services Offered

Energy
Essar Energy is a world-class, low-cost, integrated energy company focused on India and
positioned to capitalize on Indias rapidly growing energy demand. We have an established
track-record and assets worth US$12 billion across the power and oil and gas industries
Essar Energy's operations straddle the global power, and oil and gas industries with existing
operations and projects under development in both.
The company is one of India's largest private power producers with over 14-year operating
track record. Its power business currently has seven operational power plants in India and
one in Algoma, Canada, with a total installed generation capacity of 3,910 MW.
In the oil and gas sector, the company has 15 blocks and fields for the exploration and
production of oil and gas in India, Indonesia, Madagascar, Nigeria and Vietnam. Total
reserves and resources across these blocks is 2,034 mmboe.
Essar Energy's refining and marketing business primarily consists of the Vadinar Refinery in
Gujarat. Indias second-largest refinery, and the Stanlow refinery, UKs second largest
refinery. Essar Energy serves retail customers in India through a modern, countrywide
network of 2,000 operational and under-construction retail fuel outlets.
In India, the company operates its oil and gas business through Essar Oil, which is listed on
the Bombay Stock Exchange and the National Stock Exchange of India. Essar Oil is amongst
Indias top 10 companies by revenue.

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Shipping
Essar began its operations with the construction of an outer breakwater in Chennai port. It
quickly moved to capitalize on every emerging business opportunity, becoming Indias first
private company to buy a tanker in 1976. The company also invested in a diverse shipping
fleet and oil rigs, when the Government of India opened up the shipping and drilling
businesses to private players in the 1980s.
Then, in the 1990s, Essar began its steelmaking business by setting up Indias first sponge
iron plant in Hazira, a coastal town in the western Indian state of Gujarat. The company went
on to build a pellet plant in Visakhapatnam, and eventually a fully integrated steel plant in
Hazira.
Through the 1990s, with the gradual liberalization of the Indian economy, Essar seized every
opportunity that came its way. It diversified its shipping fleet, started oil and gas exploration
and production, laid the foundation of its oil refinery at Vadinar, Gujarat, and set up a power
plant near the steel complex in Hazira. The construction business helped the company build
most of its business assets. Essar also entered the GSM telephony business, establishing
Indias first mobile phone service in Delhi (branded Essar Cellphone) with Swiss PTT as the
joint venture partner.
The 21st century for Essar has been all about consolidating and growing the businesses, with
mergers and acquisitions, new revenue streams and strategic geographical expansion.
BPO
1. Aegis
Founded 30 years ago Aegis India Ltd. is a global outsourcing and technology company
committed to impacting clients' business outcomes by focusing on enhancing customer
experience across all touch points and channels. The Company specializes in providing
customized solutions which cover the entire spectrum of end-user experiences across
Business Process Management, Technology, Shared Services and Analytics, and offer
engagement and delivery models which focus on creating value for clients and improving
their revenues and profits.
Being present across six continents with its 43 locations across 9 countries with more than
40,000 employees, Aegis has a diverse client base, providing BPM services to over 150
clients across Banking and Financial Services, Insurance, Technology, Telecom, Healthcare,
Travel & Hospitality, Consumer Goods, Retail, and Energy & Utilities.. Focus on certain
industry sectors has enabled the Company gain operational insights into the business contexts
of the processes which it manages for its clients and has allowed the Company to improve its
service delivery. The Company believes that the greatest value it provides to its clients is not
only the understanding of the industry in which they operate, but also the understanding of
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the particular challenges they face, the culture of the business or geography within which a
process is operated, and the ability to improve a process through their knowledge of practices
across different industries as well as an understanding of the solutions which can be
implemented in the context of their clients' operating environment.
The Company follows a "right-shoring" approach, which is to provide clients with services
depending on their specific needs.
2. AGC Networks
Founded more than 28 years ago, AGC Networks Limited (AGC) is a leading Global
Technology Integrator with a significant presence in five global markets. Over the years,
AGC has been an unprecedented leader in the Solution Integrator space with a differentiated
vertical approach, providing innovative solutions in the following four quadrants:

Unified Communications
Data Center and Virtualization
Networking Infrastructure
Enterprise Applications

With a 3000+ strong, diverse customer base including Fortune 500 companies, the verticals
covered are Banking, Financial Services and Insurance, Government, PSUs and Defence,
Healthcare, Travel and Hospitality, IT / ITes, Manufacturing, Energy and Utilities and SMB
Solutions.
The company has been passionately delivering customized business solutions to help
organizations accelerate revenue growth, increase market penetration, optimize operating
costs and improve employee productivity by embedding communication in their business
processes.
Today AGC Networks has grown multifold and is a family of 600+ employees constantly
striving to deliver unmatched experience to its valued clientele. AGC Networks Limited is an
Essar Enterprise.

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Telecom Retail
India's first countrywide chain of multi-brand and multi-service outlets in the telecom retail
space The MobileStore was launched by Essar in 2007.
Today, The MobileStore currently runs over 450 outlets (including Lounge format) in over
77 Indian cities and towns. The MobileStore is the largest Indian telecom retail network in
the organized sector

Reality
Equinox Realty, headquartered in Mumbai, made its entry into the real estate business in
2007. It has grown rapidly since its inception and has a current portfolio of approximately 16
million sq. ft. under various stages of development. A part of the multinational conglomerate,
Essar, it is currently present in the Indian states of Maharashtra, Karnataka, Gujarat and
Madhya Pradesh.
The company plans to develop best-in-class residential projects across various price points,
and mid- to large-size integrated developments across asset classes. Equinox aims to be
recognized as a developer who adheres to the highest standards of quality and timeliness to
ensure that we not only satisfy but also delight our customers.
Equinox Realty's projects are being implemented with the latest construction technologies
and will feature world-renowned architectural and services consultants for efficient planning
and design. Equinox Realty employs experienced professionals with extensive crossfunctional and technical expertise. The team has a varied experience across finance, design,
project, execution and facility management.
Travels
Futura Travels Limited was incorporated in 1990. Essar started expanding its business
interest in India & worldwide & hence a need was felt to diversify into the Travel Business to
enable all Essar Executives to get the best possible deal available in the market for Essar
Executives
Infrastructure
1. Ports
Essar Ports Limited (EPL) develops and operates ports and terminals. It is one of the largest
private sector port companies in India by capacity and throughput. It is listed on the Bombay
Stock Exchange (BSE) and the National Stock Exchange of India (NSE).

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Essar Ports develops and operates ports and terminals for handling liquid, dry bulk, break
bulk and general cargo. It has an existing aggregate capacity of 120MTPA across facilities
located at Vadinar and Hazira in the state of Gujarat on the west coast of India and one dry
bulk export terminal at Paradip in the state of Orissa and two iron ore berths in outer harbor
of Visakhapatnam Port in the state of Andhra Pradesh on the east coast of India.
The facilities at Vadinar and Hazira are used primarily for the receipt of raw materials such
as crude oil, iron ore / pellets, limestone, dolomite and coal, and for the despatch of finished
goods such as petroleum products and steel products. The facilities at Paradip are used for
handling dry bulk cargo while in Visakhapatnam for the dispatch of iron ore.
The company is in the process of increasing its aggregate ports capacity to 214 MTPA with
expansion of the Hazira facility from 30 MTPA at present to 50 MTPA; a new 20MTPA dry
bulk terminal at Salaya in Gujarat; an18 MMTPA coal import terminal at Paradip in Orissa
and expanding iron ore terminals consisting of three berths from 16 MTPA to 32 MTPA at
Visakhapatnam in the state of Andhra Pradesh and a 20 MMTPA Coal Terminal in the Port
of Beira, Mozambique.
2. Projects
Essar Projects Limited (EPL) is a class-leading Engineering, Procurement and
Construction (EPC) contractor offering innovative execution and delivery solutions to its
clients in multiple sectors for projects of scale and complexity, whilst managing diverse
technological interfaces.
From its early beginnings as India's first independent marine contractor, EPL has developed
an enviable capability spectrum. Essar Projects has successfully completed the EPC delivery
of a 20 MMTPA refining capacity, over 3,900 MW of power generation capacity and a 10
MMTPA integrated steel plant on a turnkey basis. Our lines of business spread across core
minerals and metals, power, upstream oil and gas (including offshore), refining and
downstream sectors and infrastructure (including ports and pipelines).
Essar Projects is uniquely positioned amongst the global contracting fraternity with its
integrated EPC capability that includes both backward integration into steel and steel
processing supply chain and forward integration into fabrication and modularization services.
This, combined with advantages of incorporating operational experience of sister companies
into the design and engineering phase of new projects, gives Essar Projects the ability to offer
a comprehensive full-spectrum 'value-engineered' EPC capability to clients. Our technical
EPC solutions come with the ability to manage a large workforce across diverse locations in
challenging terrains and environments.
At Essar Projects, safe working practices are at the center of our operating philosophy. We
are committed to executing projects and delivering value to our clients within the parameters
of highest quality and safety standards. Our certifications of ISO 9001:2008, ISO 9001:2001
and OHSAS 18001:2007 are a testimony of our commitment to adhere to best industry
practices in health and safety.
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Some of our key projects (delivered and ongoing) are:

20 MMTPA capacity refinery with a Nelson Complexity Index of 11.8

10 MMTPA integrated steel plant capacity
26 MMTPA Overall of pelletisation capacity
34.5 MMTPA Overall of beneficiation capacity
Over 3,900 MW of multi-fuel power generation capacity
120 MTPA port capacity capable to handle dry as well as liquid bulk cargo
Marine berths for vessels of 40,000 to 180,000 DWT capacity
5,000 km of multi-use and cross-country pipelines including more than 500 Km of slurry
pipeline
3 MTPA fertilizer complex
Erection and refurbishment of offshore platform

SWOT Analysis of Essar Energy

Strength
1.

World class, low cost integrated energy company focused on India and positioned to capitalize on Indias
rapidly growing energy demand

2.

Established track record, and US$18 billion of assets across the power and oil and gas industries.
Modern, countrywide network of 1,600 operational and under construction retail fuel outlets.

3.

One of India's largest private power producers with a 15-year operating track record

4.

Strong, captive infrastructure like port / jetty, power plants in proximity.

5.

Large proportion of operating costs under control through long-term contracts.

Weakness
1.
2.
3.

Company operations are bound by govt. regulations and fluctuations

Higher level of debt due to adverse sales tax ruling and historical backlog of CDR period interest impacting
capability to take up future growth projects.
Exposure to geo-political risks for crude sourcing due to lack of equity crude

Opportunities
1.
2.
3.

Optimise performance of all existing assets

Pursue growth through both brown field and green field energy projects in various energy areas
Leverage skills and Indian asset base to identify growth opportunities Increasing natural gas market
globally

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Threats
1.

Rising oil prices, overheating, high inflation are posing new threat to world economic recovery thus
impacting growth of oil industry

2.

Environmental and Safety regulations

3.

Economic instability and fluctuations in India's policies

4.

The intense competition faced by the group can erode its market share and operating margins

Competitors Analysis
GEECL's Raniganj (South) block licence area covers 210 sq. km (52,500 acres). We will drill
300 wells in the contracted area. A 5-well cluster pattern will be followed for drilling the
wells. The wells are connected by an internal MDPE pipeline network going into our Gas
Gathering Station and then feeding the gas into our dedicated external steel pipeline network.

Area of 210 sq. km;

TCF of Gas-in-Place (as estimated by Advance Resources International, Inc)
156 wells drilled;
A further 144 wells planned to be drilled;
56 deviated wells have been successfully drilled;
Dedicated pipeline of 77.62 km running through the heart of the Asansol-Durgapur
industrial belt;
Franchisee agreements with Indian Oil Corporation Limited and Bharat Petroleum
Corporation Limited for supply of Compressed Natural Gas (CNG).

Objective of Marketing Study

The primary objectives of the study are summarized as follows:

Demand Assessment: To assess the demand for CBM gas in the Commercial & Industrial
segment.
Gas pricing: Evaluate the current and forecasted Prices of Competitive fuels to different
types of customers and applicable taxes.

Study Region
The study region includes areas of Mangalpur, Angadpur, and Sagarbhanga coming under
Asansol region where sufficient demand for CBM Gas (present and future) is present and fall
in the supply vicinity of the CBM block of EOL.

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Approach and methodology

Secondary Research
The study commenced with desk-based research for obtaining relevant secondary data. Deskbased research also involved scanning of published data and available information related to
the industry, commercial and domestic sectors in the study region. Information was collected
from internet. Relevant information and secondary data were also collected from various
sources, association, agencies and government authorities.

Global Energy Scenario

World energy consumption refers to the total energy used by all of human civilization. Typically
measured per year, it involves all energy harnessed from every energy source applied towards
humanity's endeavors across every single industrial and technological sector, across every
country. World total primary energy supply (TPES), or "primary energy" differs from the world
final energy consumption because much of the energy that is acquired by humans is lost as other
forms of energy during the process of its refinement into usable forms of energy and its transport
from its initial place of supply to consumers. For instance, when oil is extracted from the ground
it must be refined into gasoline, so that it can be used in a car, and transported over long
distances to gas stations where it can be used by consumers. World final energy consumption
refers to the fraction of the world's primary energy that is used in its final form by humanity.
Recently there has been a large increase in international agreements and national Energy Action
Plans, such as the EU 2009 Renewable Energy Directive, to increase the use of renewable energy
due to the growing concerns about pollution from energy sources that come from fossil fuels
such as oil, coal, and natural gas. One such initiative was the United Nations Development
Programme's World Energy Assessment in 2000 that highlighted many challenges humanity
would have to overcome in order to shift from fossil fuels to renewable energy sources.[3] From
2000 - 2012 renewable energy grew at a rate higher than any other point in history, with a
consumption increase of 176.5 million tonnes of oil. During this period, oil, coal, and natural gas
continued to grow and had increases that were much higher than the increase in renewable
energy.
Fossil fuels
The twentieth century saw a rapid twenty-fold increase in the use of fossil fuels. Between 1980
and 2006, the worldwide annual growth rate was 2%. According to the US Energy Information
Administration's 2006 estimate, the estimated 471.8 EJ total consumption in 2004, was divided
as given in the table above, with fossil fuels supplying 86% of the world's energy:

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Coal
In 2000, China accounted for 28% of world coal consumption, other Asia consumed 19%, North
America 25% and the EU 14%. The single greatest coal-consuming country is China. Its share of
the world coal production was 28% in 2000 and rose to 48% in 2009. In contrast to China's
~70% increase in coal consumption, world coal use increased 48% from 2000 to 2009. In
practice, the majority of this growth occurred in China and the rest in other Asia. China's energy
consumption is mostly driven by the industry sector, the majority of which comes from coal
consumption.
World annual coal production increased 1,905 Mt or 32% in 6 years in 2011 compared to 2005,
of which over 70% was in China and 8% in India. Coal production was in 2011 7,783 Mt, and
2009 6,903 Mt, equal to 12.7% production increase in two years.[30]
If production and consumption of coal continue at the rate as in 2008, proven and economically
recoverable world reserves of coal would last for about 150 years. This is much more than
needed for an irreversible climate catastrophe. Coal is the largest source of carbon
dioxide emissions in the world. According to IEA Coal Information (2007) world production and
use of coal have increased considerably in recent years. According to James Hansen the single
most important action needed to tackle the climate crisis is to reduce CO2 emissions
from coal. Indonesia and Australia exported together 57.1% of the world coal export in 2011.
China, Japan, South Korea, India and Taiwan had 65% share of all the world coal import in
2011.

Oil
Coal fueled the industrial revolution in the 18th and 19th century. With the advent of the
automobile, airplanes and the spreading use of electricity, oil became the dominant fuel during
the twentieth century. The growth of oil as the largest fossil fuel was further enabled by steadily
dropping prices from 1920 until 1973. After the oil shocks of 1973 and 1979, during which the
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price of oil increased from 5 to 45 US dollars per barrel, there was a shift away from oil.[36] Coal,
natural gas, and nuclear became the fuels of choice for electricity generation and conservation
measures increased energy efficiency. In the U.S. the average car more than doubled the number
of miles per gallon. Japan, which bore the brunt of the oil shocks, made spectacular
improvements and now has the highest energy efficiency in the world. From 1965 to 2008, the
use of fossil fuels has continued to grow and their share of the energy supply has increased. From
2003 to 2008, coal was the fastest growing fossil fuel.
It is estimated that between 100 and 135 billion tonnes of oil has been consumed between 1850
and the present.

Gas
In 2009, the world use of gas was 131% compared to year 2000. 66% of this growth was outside
EU, North America Latin America and Russia. Others include Middle East, Asia and Africa. The
gas supply increased also in the previous regions: 8.6% in the EU and 16% in the North America
20002009.
Nuclear Power
As of 7 March 2013, the world had 434 operable reactors with 66 others currently under
construction. Since commercial nuclear energy began in the mid 1950s, 2008 was the first year
that no new nuclear power plant was connected to the grid, although two were connected in
2009.
Annual generation of nuclear power has been on a slight downward trend since 2007, decreasing
1.8% in 2009 to 2558 TWh, and another 1.6% in 2011 to 2518 TWh despite in increases in
production from most countries worldwide while Germany and Japan showed significant drops
in output. Nuclear power met 11.7% of the world's electricity demand in 2011.
Renewable Energy
Renewable energy is generally defined as energy that comes from resources that are not
significantly depleted by their use, such as sunlight, wind, rain, tides, waves and geothermal
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heat. Renewable energy is gradually replacing conventional fuels in four distinct

areas: electricity generation, hot water/space heating, motor fuels, and rural (off-grid) energy
services.
Based on REN21's 2014 report, renewables contributed 19 percent to our energy consumption
and 22 percent to our electricity generation in 2012 and 2013, respectively. This energy
consumption is divided as 9% coming from traditional biomass, 4.2% as heat energy (nonbiomass), 3.8% hydroelectricity and 2% electricity from wind, solar, geothermal, and biomass.
Worldwide investments in renewable technologies amounted to more than US$214 billion in
2013, with countries like China and the United States heavily investing in wind, hydro, solar and
biofuels. Renewable energy resources exist over wide geographical areas, in contrast to other
energy sources, which are concentrated in a limited number of countries. Rapid deployment of
renewable energy and energy efficiency is resulting in significant energy security, climate
change mitigation, and economic benefits. In international public opinion surveys there is strong
support for promoting renewable sources such as solar power and wind power. At the national
level, at least 30 nations around the world already have renewable energy contributing more than
20 percent of energy supply. National renewable energy markets are projected to continue to
grow strongly in the coming decade and beyond.
The following table shows increasing nameplate capacity, and has capacity factors that range
from 11% for solar, to 40% for hydropower.
Hydro
Hydroelectricity is the term referring to electricity generated by hydropower; the production of
electrical power through the use of the kinetic energy of falling or flowing water. It is the most
widely used form of renewable energy, accounting for 16% of global electricity consumption,
and 12,340 PJ (3,427 TWh) of electricity production in 2010, which continues the rapid rate of
increase experienced between 2003 and 2009. Hydropower is produced in 150 countries, with
the Asia-Pacific region generating 32 percent of global hydropower in 2010. China is the largest
hydroelectricity producer, with 2,600 PJ (721 TWh) of production in 2010, representing around
17% of domestic electricity use. There are now three hydroelectricity plants larger than 10 GW:
the Three Gorges Dam in China, Itaipu Dam in Brazil, and Guri Dam in Venezuela.
Marine energy
Marine energy, also known as ocean energy and marine and hydrokinetic energy (MHK)
includes tidal and wave power and is a relatively new sector of renewable energy, with most
projects still in the pilot phase, but the theoretical potential is equivalent to 418 million tonne of
oil equivalent (toe). MHK development in U.S. and international waters includes projects using
devices such as, wave energy converters in open coastal areas with significant waves, tidal
turbines placed in coastal and estuarine areas, in-stream turbines in fast-moving rivers, ocean
current turbines in areas of strong marine currents, and ocean thermal energy converters in deep
tropical waters.

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Wind
Wind power is growing at the rate of 30% annually, with a worldwide installed capacity of
238,351 megawatts (MW) at the end of 2011, and is widely used in Europe, Asia, and the United
States. Several countries have achieved relatively high levels of wind power penetration, such as
21% of stationary electricity production in Denmark, 18% in Portugal, 16% in Spain, 14%
in Ireland and 9% in Germany in 2010. As of 2011, 83 countries around the world are using wind
power on a commercial basis. In 2013 wind generated almost 3% of the worlds total electricity.

Solar
Solar energy, radiant light and heat from the sun, has been harnessed by humans since ancient
times using a range of ever-evolving technologies. Solar energy technologies include solar
heating, solar photovoltaics, concentrated solar power and solar architecture, which can make
considerable contributions to solving some of the most urgent problems the world now faces.
The International Energy Agency projected that solar power could provide "a third of the global
final energy demand after 2060, while CO2emissions would be reduced to very low levels." Solar
technologies are broadly characterized as either passive solar or active solar depending on the
way they capture, convert and distribute solar energy. Active solar techniques include the use
of photovoltaic systems and solar thermal collectors to harness the energy. Passive solar
techniques include orienting a building to the Sun, selecting materials with favorable thermal
mass or light dispersing properties, and designing spaces that naturally circulate air.

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Geothermal
Geothermal energy is used commercially in over 70 countries. In 2004, 200 pet joules (56 TWh)
of electricity was generated from geothermal resources, and an additional 270 pet joules
(75 TWh) of geothermal energy was used directly, mostly for space heating. In 2007, the world
had a global capacity for 10 GW of electricity generation and an additional 28 GW of direct
heating, including extraction by geothermal heat pumps. Heat pumps are small and widely
distributed, so estimates of their total capacity are uncertain and range up to 100 GW.
Bio energy
Until the beginning of the nineteenth century biomass was the predominant fuel, today it has
only a small share of the overall energy supply. Electricity produced from biomass sources was
estimated at 44 GW for 2005. Biomass electricity generation increased by over 100% in
Germany, Hungary, the Netherlands, Poland, and Spain. A further 220 GW was used for heating
(in 2004), bringing the total energy consumed from biomass to around 264 GW. The use of
biomass fires for cooking is excluded. World production of bioethanol increased by 8% in 2005
to reach 33 gigalitres (8.7109 US gal), with most of the increase in the United States, bringing it
level to the levels of consumption in Brazil. Biodiesel increased by 85% to 3.9 gigalitres
(1.0109 US gal), making it the fastest growing renewable energy source in 2005. Over 50% is
produced in Germany.

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Global Scenario of CBM Gas

New research suggests that the global coalbed methane (CBM) market is set for substantial gains
over years to 2020.
A recently released report, Global coal bed methane (CBM) market analysis size and segment
forecasts to 2020 says that depleting conventional natural gas reserves raise questions on its
sustainable status, which will likely lead to increased focus towards the use of unconventional
gas sources such as CBM, shale gas and tight gas.
The report says that recoverable unconventional sources of gas, including CBM are much larger
than the conventional natural gas resources, and this will help drive the industry to become a
multibillion dollar market in the next few years.
The CBM market will reach US$ 17.31 billion by 2020, growing at a CAGR of 5.9% from 2014
2020, the report says.
Exploration and commercialization of unconventional hydrocarbon energy sources is seen as a
critical step by energy agencies, to stabilize the energy supply-demand gap in the coming years.
With CBM being a pure natural gas form, producers and consumers also have the opportunity to
obtain much needed carbon credits and tax incentives, the report continues.
In 2013, global CBM production stood at just short of 3 billion ft3 this figure is expected to
reach 4,667.4 billion ft3 by 2020 growing 7% CAGR from 2014 2020.
64% of CBM is currently used for power generation and industrial applications. 35.3% of global
CBM volumes were used for power generation and this sector will see the fastest growth in
demand for CBM until 2020, growing at an estimated CAGR of 8.5%, according to the report.
Key regions
The US currently dominates CBM production, accounting for 61.8% of total CBM produced
globally in 2013. Canada follows in the global market, accounting for 11.5% of total production
in 2013. The growth of North American market is primarily driven by the growing demand for
sustainable fuel in the country and in order to reduce reliance on conventional sources of natural
gas.
However, the Asia Pacific on account of growing drilling activities mainly in coal rich
countries, such as China, India, Indonesia and Australia is expected to be the fastest growing
CBM market at an estimated CAGR of 14.9% from 2014 2020. The region is currently seeing
GDP growth rates due to growing disposable income of consumers are growing at rapid pace.
Growing GDP is leading to growing demand for energy in the region. The growth of Asia Pacific
energy is mainly driven by China, India and Indonesia. Along with being a large demand center,
Asia Pacific is also emerging as a large supply centre for unconventional gas resources including
CBM. China, India and Indonesia contains huge amount of unproven reserves for CBM, which
in turn has been attracting companies to invest in the region.
The Chinese Ministry of Land and Resources has already announced plans to produce 16 billion
m3 of coal bed methane by 2015, while Indonesia has already audited 1000 billion ft3 net
resources and has production target of over 15,000 billion ft3 by 2020.
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Industry challenges
The report, which features reports on CBM operations owned by companies including Arrow
Energy, Dart Energy, Santos, PetroChina and Petronas, says that firms operating in the CBM
market will, like their counterparts in other resource markets, face a number of key challenges
during this period of growth.
The strict framework designed for extraction by various environmental agencies coupled with
the highly capital intensive process is expected to be a key challenge for industry participants
over the next six years, the report notes.
The report also noted that competition in the market between companies will be rife with the
winners standing to gain significant rewards, should the CBM market grow as the report
suggests. Two companies Arrow Energy and BG Group currently account for half of the
global CBM market, while the rest of the market sees stiff competition between companies such
as Santos, Origin Energy, PetroChina, Great Eastern Energy and Dart Energy which is
currently subject to a takeover deal by iGas.
Drilling costs
The most significant outlay for a CBM extraction operation is drilling cost, the report notes.
Drilling cost is estimated to account for approximately 74.3% of the total cost for the production
of one cubic meter of CBM gas. Electricity accounts for the next biggest segment sharing 8.1%
of the total cost for producing CBM gas by the means of vertical drilling. Maintenance cost for
machinery and equipments used for the production of CBM accounts for 6.8% of the total cost.
Operational expenses shares approximately 5.4% of the total cost and other cost incurred for the
production of CBM accounts for 5.4% of the cost.
Fastest growing energy market
Natural gas is one of the fastest growing energy forms and has been gaining market share
significantly in the global energy mix. Its lower carbon emissions have seen it challenge coal, as
its supporters tout its ability to run below carbon emissions regulation imposed in countries such
as the US and Australia.
As natural gas reserves run dry, however, companies will increasingly turn to unconventional
sources of the fuel. Much has been heard of the shale gas revolution in the US, but CBM stands
to claim its fair share of financial rewards over the coming years. If the predictions in the report
turn out to be true, the CBM market is not one to bet against.

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Energy Statistics In India

The Indian economy uses a variety of energy sources, both commercial and non-commercial.
Fuel wood, animal waste and agricultural residue are the traditional or `non-commercial'
sources of energy that continue to meet the bulk of the rural energy requirements even today.
However, the share of these fuels in the primary energy supply has declined from over 70%
in the early 50's to a little over 30% as of today. The traditional fuels are gradually getting
replaced by the "commercial fuels" such as coal, lignite, petroleum products, natural gas and
electricity. At the time of Independence, the country had a very poor infrastructure in terms
of energy production and supply. The per capita consumption of energy was abysmally low
and the access to energy was very inadequate for the common people. The economy was
dependent largely on the non-commercial sources of energy for meeting the requirements of
the households and on animal and human energy in case of agriculture and transport.
During the 50 years that followed Independence, the demand for energy, particularly for
commercial energy, registered a high rate of growth contributed largely by the changes in the
demographic structure brought about through rapid urbanization, need for socio-economic
development and the need for attaining and sustaining self-reliance in different sectors of the
economy. If we look at the pattern of energy production, coal and oil account for 54 percent
and 34 percent respectively with natural gas, hydro and nuclear contributing to the balance.
In the power generation front, nearly 62 percent of power generation is from coal fired
thermal power plants and 70 percent of the coal produced every year in India has been used
for thermal generation. The distribution of primary commercial energy resources in India is
quite skewed. On the consumption front, the industrial sector in India is a major energy user
accounting for about 52 percent of commercial energy consumption.
India annually consumes about three percent of the world's total energy. The country is the
world's sixth largest energy consumer, and is in fact a net energy importer. India's year 2000
energy consumption by fuel. The energy intensity, which is energy consumption per unit of
GDP, has increased in India since the early 1970s and it is one of the highest in comparison
to other developed and developing countries. During the pre-reform period, the commercial
energy sector was totally regulated by the government. The economic reform and
liberalization, in the post 90s, has gradually welcomed private sector participation in the coal,
oil, gas and electricity sectors in India. By 2020, Indias demand for commercial energy is
expected to increase by more than 2.5 times (IEA World Energy Outlook 2000).For India to
tackle the economic and environmental challenge of its demand growth it is important to
have a good understanding of how these and other factors shape energy use in the various
sectors of the economy. Detailed and coherent information is needed in order to judge the
potential for energy efficiency improvements or to measure the progress of already
implemented policies.
Over the years, the high rate of growth of energy demand could be sustained primarily
through increased dependence on commercial energy sources such as coal, oil, natural gas
and electricity. However, the energy supply system that has developed over the years has
tended to depend more and more on non-renewable energy resources, the availability of
which is severely limited. Moreover, development of some of these energy resources is beset
with serious environmental implications. To some extent, subsidised prices of certain forms
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of energy also led to end-use inefficiencies and, therefore, an increase in the gross energy
demand. All these factors have raised questions about the long-term sustainability of such an
energy supply system. Moreover, with the rapid increase in demand for petroleum products,
the country has become a heavy importer of oil. The present trends indicate that in the
absence of adequate measures of demand management, the country may have to resort to
import of other forms of energy as well and this has raised issues of long-term energy
security of the country.
The two main sources of energy used for commercial purpose in India are Coal and
petroleum & natural gas.

Coal
Coal mining in India has a long history of commercial exploitation covering nearly 220 years
starting in 1774 with John Sumner and Suetonius Grant Heatly of the East India Company in
the Raniganj Coalfield along the Western bank of Damodar River. However, for about a
century the growth of Indian coal mining remained sluggish for want of demand but the
introduction of steam locomotives in 1853 gave a fillip to it. Within a short span, production
rose to an annual average of 1 million metric tons (1.1 million short tons). India could
produce 6.12 million metric tons (6.75 million short tons) per year by 1900 and 18 million
metric tons (20 million short tons) per year by 1920. The production got a sudden boost from
the First World War but went through a slump in the early thirties. The production reached a
level of 29 million metric tons (32 million short tons) by 1942 and 30 million metric tons
(33 million short tons) by 1946. With the advent of independence, the country embarked
upon the 5-year development plans. At the beginning of the 1st Plan, annual production went
up to 33 million metric tons (36 million short tons).
During the 1st Plan period itself, the need for increasing coal production efficiently by
systematic and scientific development
of the coal industry was being felt.
Setting up of the National Coal
Development Corporation (NCDC), a
Government of India Undertaking in
1956 with the collieries owned by the
railways as its nucleus was the first
major
step
towards
planned
development of Indian Coal Industry.
Along with the Singareni Collieries
Company Ltd. (SCCL) which was
already in operation since 1945 and
which became a Government company
under the control of Government of
Andhra Pradesh in 1956, India thus had
two Government coal companies in the
fifties. SCCL is now a joint undertaking
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Figure 1: Estimated Reserve of Coal

of Government of Telangana and Government of India sharing its equity in 51:49 ratios. Coal
reserves in India are one of the largest in the world. As on April 1, 2012, India had
293.5 billion metric tons (323.5 billion short tons) of the resource. The production of coal
was 532.69 million metric tons (587.19 million short tons) in 2010-11. The production
of lignite was 37.73 million metric tons (41.59 million short tons) in 2010-11. As on 2011,
India ranked 3rd in world coal production. The energy derived from coal in India is about
twice that of energy derived from oil, whereas worldwide, energy derived from coal is about
30% less than energy derived from oil.

In India approximately 52% of primary commercial energy depends upon coal. Coal
deposits are mainly confined to eastern and south central parts of the country. The states of
Jharkhand, Odisha, Chhattisgarh, West Bengal, Madhya Pradesh, Andhra Pradesh and
Maharashtra account for more than 99% of the total coal reserves in the country. The State of
Jharkhand had the maximum share (26.81%) in the overall reserves of coal in the country as
on 31st March 2014 followed by the State of Odisha (24.94%). As on 31.03.14 the estimated
reserves of coal was 301.05 billion tons, an addition of 2.11 billion over the last year. There
has been an increase of 0.7% in the estimated coal reserves during the year 2013-14 with
Odisha accounting for the maximum increase of 1.85%.

Figure 2: State wise Estimated Reserves of Coal in India as on 31.03.2013 and 31.03.2014

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Petroleum and natural gas

During pre-independence, the Assam Oil Company in the North-Eastern and Attock Oil
company in North-Western part of undivided India were the only oil companies producing
oil in the country. The major part of
Indian sedimentary basins was deemed
to be unfit for development of oil and
gas resources.
Pro-independence, the Government
realized the importance of oil and gas
for rapid industrial development and its
strategic role in defense. Consequently,
while framing the Industrial Policy
Statement of 1948, the development of
the hydrocarbon industry in the country
was considered to be of utmost
necessity.
Until 1955, private oil companies
mainly carried out exploration of
hydrocarbon resources of India. Assam
Oil Company was producing oil at
Digboi, Assam (discovered in 1889) and
Figure 3: Estimated Reserve of Crude Oil in India
the Oil India Ltd. (a 50% joint venture between
Government of India and Burmah Oil Company) was engaged in developing two fields
Naharkatiya and Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a
joint venture between Government of India and Standard Vacuum Oil Company of USA)
was engaged in exploration work. The vast sedimentary tract in other parts of India and
adjoining offshore remained largely unexplored.

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Figure 4: State wise Estimated Reserves@ of Crude Oil and Natural Gas in India as on in 31.03.2013 and 31.03.201

The estimated reserves of crude oil in India as on 31.03.2014 stood at 762.74 million tons
(MT). Geographical distribution of Crude oil indicates that the maximum reserves are in the
Western Offshore (42.91%) followed by Assam (22.69%), whereas the maximum reserves of
Natural Gas are in the Eastern Offshore (37.24%) followed by Western offshore (30.17%).
There was increase of 0.57% in the estimated reserve of crude oil for the country as a whole
by 31st March, 2014 as compared to the position a year ago. During the same period,
estimated reserves of crude oil in Rajasthan, Western offshore and Gujarat decreased by
24.24%, 2.66% and 1.26.% respectively, while the same in Eastern Offshore and Assam
increased by 84.69% and 0.56% respectively. The estimated reserves of natural gas in India
as on 31.03.2014 stood at 1427.15 billion cubic meters (BCM).
In case of Natural Gas, the increase in the estimated reserves over the same period was
5.34%. The maximum contribution to this increase has been from Eastern Offshore
(12.26%), followed by Western Offshore (3.6%).

Demand of energy resources

The estimated total demand of raw coal by industry has increased from 407.04 MTs
during 2005-06 to 571.89 MTs during 2013-14 with a CAGR of 3.85%. The annual
growth rate from 2012-13 to 2013-14 is 0.76%.

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Electricity generation is the biggest consumer of coal, followed by steel industries.

Industry-wise estimates of consumption of coal. During 2013-14 electricity generating
units consumed 427.23 MTs of coal, followed by steel industries (23.13 MTs), cement
industries (11.96 MTs) and paper industries (1.67 MTs).
The estimated consumption of crude oil has a steady increase, from 130.11 MMTs during
2005-06 to 222.50 MMTs during 2013-14 with CAGR of 6.14%. It increased from 219.21
MMTs in 2012-13 to 222.50 MMTs in 2013-14.
The maximum use of Natural Gas is in fertilizers industry (32.56%) followed by power
generation (31.02%) and 8.60% natural gas was used for domestic fuel.
Industry wise off-take of natural gas shows that natural gas has been used both for
Energy (59.42%) and Non-energy (40.58%) purposes.

Figure 5: Sector wise Consumption Of natural Gas during 2013-14

Figure 6: comparative (energy/non- energy) use of Natural Gas

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High speed diesel oil accounted for 38.83% of total consumption of all types of
petroleum products in 2013-14. This was followed by Refinery (10.15%), Petrol (9.73%),
LPG (9.28%) and Naphtha (6.50%). Consumption of Light Diesel oil continuously
decreased from 2005-06(0.88 MTs) to 2013-14 (0.39 MTs).
Sector-wise consumption of different petroleum products reveals that miscellaneous
service sector accounts for the lions share (88.25%) of the total consumption of
petroleum products

Figure 7: Sectorwise Consumption Of Petroleum Products During 2013-14

The estimated electricity demand increased from 4,11,887GWh during 2005-06 to

882,592GWh during 2013-14, showing a CAGR of 8.84%. The increase in electricity
consumption is 7.07% from 2012-13 (824,301GWh) to 2013-14 (882,592 GWh).
Of the total demand of electricity in 2013-14, industry sector accounted for the largest
share (43.83%), followed by domestic (22.46%), agriculture (18.03%) and commercial
sectors (8.72%).

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Figure 8: Sector wise consumption of Electricity during 2013-14

The electricity demand in Industry sector and commercial sector has increased at a much
faster pace compared to other sectors during 2005-06 to 2013-14 with CAGRs of 10.97%
and 8.82% respectively.

Figure 9: Source wise Consumption of Conventional Energy 2013-14

Production of energy sources.

Energy has been universally recognized as one of the most important inputs for economic
growth and human development. There is a strong two-way relationship between economic
development and energy consumption. On one hand, growth of an economy, with its global
competitiveness, hinges on the availability of cost-effective and environmentally benign
energy sources, and on the other hand, the level of economic development has been observed
to be reliant on the energy demand. Energy intensity is an indicator to show how efficiently
energy is used in the economy. The energy intensity of India is over twice that of the matured
economies, which are represented by the OECD (Organization of Economic Co-operation
and Development) member countries. Indias energy intensity is also much higher than the
emerging economiesthe Asian countries, which include the ASEAN member countries as
well as China. However, since 1999, Indias energy intensity has been decreasing and is
expected to continue to decrease.
The indicator of energyGDP (gross domestic product) elasticity, that is, the ratio of growth
rate of energy to the growth rate GDP, captures both the structure of the economy as well as
the efficiency. The energyGDP elasticity during 19532001 has been above unity.
However, the elasticity for primary commercial energy consumption for 19912000 was less
than unity (Planning Commission 2002). This could be attributed to several factors, some of
them being demographic shifts from rural to urban areas, structural economic changes
towards lesser energy industry, impressive growth of services, improvement in efficiency of
energy use, and inter-fuel substitution.
The energy sector in India has been receiving high priority in the planning process. The total
30 | P a g e

outlay on energy in the Tenth Five-year Plan has been projected to be 4.03 trillion rupees at
2001/02 prices, which is 26.7% of the total outlay. An increase of 84.2% is projected over the
Ninth Five-year Plan in terms of the total plan outlay on energy sector. The Government of
India in the mid-term review of the Tenth Plan recognized the fact that under-performance of
the energy sector can be a major constraint in delivering a growth rate of 8% GDP during the
plan period. It has, therefore, called for acceleration of the reforms process and adoption of
an integrated energy policy.
In the recent years, the government has rightly recognized the energy security concerns of the
nation and more importance is being placed on energy independence. On the eve of the 59th
Independence Day (on 14 August 2005), the President of India emphasized that energy
independence has to be the nations first and highest priority, and India must be determined
to achieve this within the next 25 years.

Demand and supply scenario

In the recent years, Indias energy consumption has been increasing at one of the fastest rates
in the world due to population growth and economic development. Primary commercial
energy demand grew at the rate of six per cent between 1981 and 2001 (Planning
Commission 2002). India ranks fifth in the world in terms of primary energy consumption,
accounting for about 3.5% of the world commercial energy demand in the year 2003. Despite
the overall increase in energy demand, per capita energy consumption in India is still very
low compared to other developing countries.
India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and
natural gas are the three primary commercial energy sources. Indias energy policy, till the
end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far
the largest source of energy. However, Indias primary energy mix has been changing over a
period of time.
Despite increasing dependency on commercial fuels, a sizeable quantum of energy
requirements (40% of total energy requirement), especially in the rural household sector, is
met by non-commercial energy sources, which include fuelwood, crop residue, and animal
waste, including human and draught animal power. However, other forms of commercial
energy of a much higher quality and efficiency are steadily replacing the traditional energy
resources being consumed in the rural sector.
Resource augmentation and growth in energy supply has not kept pace with increasing
demand and, therefore, India continues to face serious energy shortages. This has led to
increased reliance on imports to meet the energy demand.

Coal production in the country during the year 2013-14 was 565.77 million tons (MTs) as
compared to 556.40 MTs during 2012-13, registering a growth of 1.68%. The Lignite
production during the same period decreased by 4.70%.

From 2005-06 to 2013-14, it is observed that coal production in India was about 407.04
MTs during 2005-06, which increased to 565.77 MTs during 2013-14 with a CAGR of
3.73%. Considering this trend we can expect that the production will again increase by

31 | P a g e

min. 159.36 million tonnes. Therefore projected production of coal in 2021-2022 is

around 706.08 (more than this figure).
Production of crude petroleum increased from 32.19 MTs during 2005-06 to 37.79 MTs
during 2013-14, a CAGR of about 1.80%.
The CAGRs for natural gas and electricity were 1.06% and 3.99% respectively. Lignite
has experienced the highest CAGR i.e. 4.33% among all the conventional sources of
energy since 2005.
In the year 2013-14, the production of Petroleum Products in the country was 220.78
MTs as against 217.74 during 2012-13, an increase of 1.40%.
In the total production of Petroleum products during 2013-14, High speed diesel oil
accounted for the maximum share (42.47%), followed by Motor Gasoline (13.72%),
Naptha (8.38%), Fuel Oil (6.07%), Petroleum Coke (5.47%) and Aviation Turbine
Fuel(5.08%).
Production of Natural Gas decreased from 39.78 billion cubic meters (BCM) in 2012-13
to 34.64 BCM in 2013-14 registering a negative growth of 12.92% and a CAGR of
1.12% from 2005-06 to 2013-14.
The all India gross electricity generation from utilities, excluding that from the captive
generating plants, was 6,23,819 Giga Watt-Hours (GWh) during 2005-06. It rose to
1,022,614 GWh during 2013-14.
The production of electricity from utilities has increased from 9,63,811GWh during 2012-13
to 1,022,614 GWh during 2013-14, registering an annual growth rate of about 6.10%.
Electricity generation in the country, from utilities and non-utilities taken together during
2013-14 was 11, 79,256 GWh. Out of this 8,53,683 GWh was generated from thermal
and 1,34,731 GWh was from hydro and 34,200 GWh was generated from nuclear
sources. Total output from non-utilities was 1,56,642 GWh.

Import and export of energy sources

The average quality of the Indian coal is not very high and this necessitates the import of
high quality coal to meet the requirements of steel plants. There has been an increasing
trend in the import of coal.
Net Import of coal has steadily increased from 36.60 MTs during 2005-06 to 166.29 MTs
during 2013-14. During the said period, the quantum of coal exported increased from
1.99 MTs during 2005-06 to 2.15 MTs during 2013-14.
There is growth rate of 15.54% of gross import and 16.01% in net imports of coal in
2013-14 over the previous year. However there was decrease of 11.87% in export of coal
during the same period.
India is highly dependent on import of crude oil. Net imports of crude oil have increased
from 99.41MTs during 2005-06 to 189.24 MTs during 2013-14.
Although more than 70% of its crude oil requirements and part of the petroleum products
is met from imports, India has developed sufficient processing capacity over the years to
produce different petroleum products so as to become a net exporter of petroleum
products.

32 | P a g e

From all the above energy sources, CBM can be a replacement for each and every sources of
energy, be it coal, petroleum product, lignite, etc CBM has the usage in many industries
like, power sector, fertilizer sector, mineral & metallurgical sector, automobiles sector,
domestic & commercial sectors.

A big challenge lies in bridging the physical gap between demand and supply centers in an
efficient, safe and eco-friendly manner. Pipeline transportation of gas offers a safe, economic and
environmentally sound alternative to most other modes of energy transport.

Figure 10: CGD Distribution Map

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To meet the demand and supply gap govt. of India has also proposed to establish the LNG
terminals to import Natural Gas from abroad. Some of the existing LNG terminals are:

Natural Gas
Natural Gas is a fossil fuel that exist in a gaseous state and is composed mainly of methane
(CH4) a small percentage of other hydrocarbons (e.g. ethane). The use of natural gas is
becoming more and more popular as it can be used with commercial, industrial, electric
power generation and residential applications. Various schools, hospitals, hotels, motels,
restaurants, office buildings also use natural gas for cooking and water and space heating. It
is popular because of its property of instant heating and thus commercially used, in hotels,
restaurants, motels, small manufacturing units, commercial office buildings, hospitals and
schools mainly for cooking and heating purposes.
Natural gas is produced along with coal and oil beds. It is found deep inside the earth and
drilled in same way was oil. It is cheaper and cleaner than gasoline and produces
less greenhouse emissions than its counterparts. It burns completely and can be safely stored.
Natural gas can be used in the form of compressed natural gas (CNG) or liquified
petroleum gas (LPG).

Advantages of Natural Gas

Less Harmful than Coal or Oil: As compared to petroleum or coal, natural gas causes
less damage to the environment. It is made up of methane and results in less carbon
emissions. In fact emissions of carbon dioxide are 45% lesser than other conventional
fuels and 30% less than oil.
Easy Storage and Transport: Natural gas is easier to preserve than other fuels. It can be
stored and transported through pipelines, small storage units, cylinders or tankers on land
and sea.
Residential Use: Natural gas can be piped into houses for heating and cooking purposes
and running a variety of appliances. Where there are no pipes, it can be supplied in small
tanks.
Vehicle Fuel: Natural gas can be used as a fuel for vehicles (cars, trucks, jet engines). It
is a cleaner, cheaper fuel than diesel or gasoline.
Burns Cleaner: Natural gas burns cleaner without leaving any smell, ash or smoke.
Instant energy: Natural gas is an economic and instant fuel for heating water and large
areas as well as cooking. It is ideal because it provides precise control and quick results.
It helps in oven cooking as it does not require pre-heating.
Precision in Kitchen: Natural gas is the best fuel to power kitchens because of its
control, reliability and precision. A gas flame provides for precise temperature control
and variety of heat settings allowing shift from hot to cold or vice versa, with the turning
of the knob.

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Industrial use: Natural gas is used for producing hydrogen, ammonia for fertilizers and
some paints and plastics.
Abundant: It is relatively abundant compared to other fossil fuels, burns more cleanly
and is easy to distribute.
Safer: It is lighter than air and tends to dissipate when there is a leakage unlike Propane,
which being heavier than air, collects into explosive pockets.
Versatile: It can be used for heating, drying clothes, cooking, backing up generator
power, and many other uses.
Cheaper: Natural gas is cheaper than electricity. It is quicker when used for cooking and
heating water and majority of gas appliances are cheaper than electric appliances.
Neater: Gas appliances do not create electric fields which are unhealthy near your
homes.
Used to Produce Electricity: In the U.S., itself, 30% of natural gas is used to produce
electricity.

Coal Bed Methane (CBM)

Coal bed methane is a form of natural gas extracted from coal beds. In recent decades it has
become an important source of energy in United States, Canada, Australia, and other
countries.
The term refers to methane adsorbed into the solid matrix of the coal. It is called 'sweet gas'
because of its lack of hydrogen sulfide. The presence of this gas is well known fromits
occurrence in underground coal mining, where it presents a serious safety risk. Coalbed
methane is distinct from typical sandstone or other conventional gas reservoir, as the methane
is stored within the coal by a process called adsorption. The methane is in a near-liquid state,
lining the inside of pores within the coal (called the matrix). The open fractures in the coal
(called the cleats) can also contain free gas or can be saturated with water.
Unlike much natural gas from conventional reservoirs, coalbed methane contains very little
heavier hydrocarbons such as propane or butane, and no natural-gas condensate. It often
contains up to a few percent carbon dioxide. Some coal seams, such as those in certain areas
of the Illawarra Coal Measures in New South Wales, contain little methane, with the
predominant coal seam gas being carbon dioxide. Coalbed methane grew out of venting
methane from coal seams. Some coal beds have long been known to be "gassy," and as a
safety measure, boreholes were drilled into the seams from the surface, and the methane
allowed to vent before mining.
Coalbed methane as a natural-gas resource received a major push from the US federal
government in the late 1970s. Federal price controls were discouraging natural gas drilling by
keeping natural gas prices below market levels; at the same time, the government wanted to
encourage more gas production. To extract the gas, a steel-encased hole is drilled into the
coal seam 100 to 1,500 meters (330 to 4,920 ft) below ground. As the pressure within the
coal seam declines due to natural production or the pumping of water from the coalbed, both
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gas and produced water come to the surface through tubing. Then the gas is sent to a
compressor station and into natural gas pipelines. The produced water is either reinjected into
isolated formations, released into streams, used for irrigation, or sent to evaporation ponds.
The water typically contains dissolved solids such as sodium bicarbonate and chloride but
varies depending on the formation geology.
Coalbed methane wells often produce at lower gas rates than conventional reservoirs,
typically peaking at near 300,000 cubic feet (8,500 m3) per day (about 0.100 m/s), and can
have large initial costs. The production profiles of CBM wells are typically characterized by
a "negative decline" in which the gas production rate initially increases as the water is
pumped off and gas begins to desorb and flow. A dry CBM well is similar to a standard gas
well.
The methane desorption process follows a curve (of gas content vs. reservoir pressure) called
a Langmuir isotherm. The isotherm can be analytically described by a maximum gas content
(at infinite pressure), and the pressure at which half that gas exists within the coal. These
parameters (called the Langmuir volume and Langmuir pressure, respectively) are properties
of the coal, and vary widely. A coal in Alabama and a coal in Colorado may have radically
different Langmuir parameters, despite otherwise similar coal properties.
As production occurs from a coal reservoir, the changes in pressure are believed to cause
changes in the porosity and permeability of the coal. This is commonly known as matrix
shrinkage/swelling. As the gas is desorbed, the pressure exerted by the gas inside the pores
decreases, causing them to shrink in size and restricting gas flow through the coal. As the
pores shrink, the overall matrix shrinks as well, which may eventually increase the space the
gas can travel through (the cleats), increasing gas flow.
The potential of a particular coalbed as a CBM source depends on the following criteria.
Cleat density/intensity: cleats are joints confined within coal sheets. They impart
permeability to the coal seam. A high cleat density is required for profitable exploitation of
CBM. Also important is the maceral composition: maceral is a microscopic, homogeneous,
petrographic entity of a corresponding sedimentary rock. A high vitrinite composition is ideal
for CBM extraction, while inertinite hampers the same.
The rank of coal has also been linked to CBM content: a vitrinite reflectance of 0.81.5% has
been found to imply higher productivity of the coalbed.
The gas composition must be considered, because natural gas appliances are designed for gas
with a heating value of about 1,000 BTU (British thermal units) per cubic foot, or nearly pure
methane. If the gas contains more than a few percent non-flammable gases such
as nitrogen or carbon dioxide, either these will have to be removed or it will have to be
blended with higher-BTU gas to achieve pipeline quality. If the methane composition of the
coalbed gas is less than 92%, it may not be commercially marketable.

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Significance of CBM Gas

India largely depends on Gulf countries for its oil & gas requirements. Currently 70% of
the domestic hydrocarbon requirements are being imported and are rapidly rising due to
the rapid development. The natural gas demand and supply figures are depicted in the
figure below. This is based on MOP&NG, Govt. of India Projections figures.
450
391

400
350

313

300
231

250

Supply

200
158

170

Demand

150
100

95

50
0
2006-2007

2011-2012

2024-2025

Figure 11: Natural Gas Demand and supply projection

The CBM Gas produced from the CBM blocks shall be used mainly for CNG in automobiles,
replacement of furnace oil in some industries, feedstock in fertilizer plants, power generation
and for heat generation in various small scale industries and for domestic use. There is a huge
demand for switching to cleaner fuels such as Natural Gas in the country in various sectors
viz. Steel, Power, and Fertilizer etc. Since there is a wide gap between demand and supply of
the natural gas in the country itself, there is no possibility to export the CBM gas produced.

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Advantages of Gas vs Oil

Parameters

Gas Fired Burners

Oil Fired Burner

Advantages of Gas
Fired Burner

Operability

Simple Operation
Atomizing agents not
required
Minimal Maintenance

Complex operation
Atomizing agent is
must
Frequent Maintenance
due to coke formation
in burner
Causes disturbance in
downstream plants
Frequent oil spillage
Low flame visibility
High utility usage to
maintain fluidity &
atomization of oil
More inventory cost

Easy to start and stop

Better control on
tempreture
Down time
minimization

Maintenance
Reliability
Safety &
Environment
Life time
economics

Increasesthe plant
reliability
Clean & less emission
High flame visibility
Low utility usage

Zero inventory cost

Uninterrupted supply
of flue gas to boiler
Environment friendly
Safer plant operation
Upto 20% savings in
Utility cost
Reduction ininventory
cost

ASANSOL An Overview
Asansol city is in Bardhaman District in the Indian state of West Bengal. It is the second
largest city in West Bengal after Kolkata and the 35th largest urban agglomeration in
India. According to a 2010 report released by the International Institute for Environment and
Development, a UK-based policy research non-governmental body, Asansol is ranked 11th
among Indian cities. and 42nd in the world in its list of 100 fastest-growing cities. The
traditional industrial base of the region chiefly supported by coal, iron and steel has
undergone a rapid diversification and new industrial ventures which include mainly heady
engineering, fertilizers and coal-based chemicals, are now making a dominant of the water
resources of the Damodar and a sustained programme of hydro-electric and coal-based
thermal power generation modernization by providing the infrastructure for the regions
growth.

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Economy
The economy of Asansol is primarily dependent on its steel, coal, railways and last but not
the least trade and commerce .

Steel
IISCO(Indian Iron and Steel Company Ltd.) was the first steel making unit established in
India at present day Kulti. The Burnpur unit came up later. The steel plant during the 60s and
70s made a name throughout the country and the shares of the company were quoted at
London Stock Exchange. However a decade later the company fell into losses until it was
revived in 2006 with the merger with SAIL. Modernization at IISCO Steel Plant (named after
acquisition by Steel Authority of India Limited) as seen the city develop at a very rapid pace.
The steel plant's capacity will be raised from 0.4 MT of saleable steel to 2.5 MT of saleable
steel with the biggest blast furnace of the country coming up of 2.5 MT.

Coal
Eastern Coalfields which has its headquarters in Sanctoria near Dishergarh, has a big
presence in the area due to the huge deposits of high quality Coal. However, most of the
coalfields and surrounding residential colonies are located away from the main city. Nearby
areas like Ranigunj, Chinakuri and Jamuria are of particular importance for coal blocks. As
on 1.4.2012, the total coal reserve in ECL command area up to 600 metre depth is 49.17
Billion tone out of which 30.61 billion tone is in the State of West Bengal and 18.56 Billion
tone is in the State of Jharkhand. Total proved reserve in the state of West Bengal is 12.42
billion tonnes.

Railways
Railways also is a big contributor to the economy of Asansol. Railways was the first
employer in the city and they are credited with developing the city in late 19th century.
Asansol is one of the four divisions of Eastern Railway Zone and among the major revenue
generating divisions in Indian Railways. Asansol also has the one of the largest locomotive
manufacturing units in the world, Chittaranjan Locomotive Works at Chittaranjan.
Production at CLW started on 26 January 1950, the same day India became a republic.
Currently it produces the WAP4, WAP 5, WAP 7, WAG 7 and WAG 9 locomotives.

Other business ventures

Other industries include Dishergarh Power Supply, Damodar Valley Corporation, Burn
Standard Co. which is now a subsidiary of Eastern Railways, Hindustan Cables Limited and
cement factories like Burnpur Cement. There is also presence of a big wholesale market.
Business over here is a source of income for a majority of people. Another source of income
is the high quality sands taken from the Damodar river ghats. More industries are on the way
as Videocon has already been provided land to develop a steel and power plant in Jamuria.

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Identification of Geographical Area

Asansol is a cosmopolitan city located in Barddhaman District of the Indian state of West
Bengal. It forms the lower Chota Nagpur plateau, which occupies most of Jharkhand. It is
located between the Damodar and Ajay rivers. Another river, Barakar, joins the Damodar near
Dishergarh. A small rivulet, Nunia, flows past Asansol. The other major locations that are
considered to be a part of Greater Asansol or suburbs of Asansol are Rupnarayanpur,
Chittaranjan, Salanpur, Barabani, Jemari and Churulia. While Dhanbad district lies on the
western side, Durgapur sub division of Barddhaman district lies on the eastern side. To the south,
across the Damodar river are the Purulia and Bankura districts. To the north are Dumka and
Birbhum districts. Dhanbad district across the Barakar river in Jharkhand is also a major mining
area and has close links with Asansol. Both lie in the Damodar valley.

Industries visited in Asansol

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S. NO.

COMPANY NAME

ADDRESS

1
2
3
4
5
6

Manbhum Ispat Pvt. Ltd.

Baba Ispat Pvt. Ltd.
JSIS Iron & Steel Ltd.
Shree Gopal Govind Pvt. Ltd
Jai Balaji Industries
Shyam Cement

Mangalpur
Mangalpur
Mangalpur
Mangalpur
Mangalpur
Mangalpur

Bhasker Sharchi Alloys Ltd.

Angadpur

Kajaria Iron & Steel Co. (P)

Ltd.

Angadpur

Haldia Steel Ltd.

Angadpur

10
11
12
13
14
15
16
17

KIC Mettalics Ltd

Sova Ispat Alloy Ltd.
Kharthik Alloys Ltd.
Shrinivas Ferro Alloys Ltd
Jagdamba Ispat
Graphite India Ltd
SRMB Industries
VSP Udyog Pvt. Ltd.

Angadpur
Angadpur
Angadpur
Angadpur
Sagarbhanga
Sagarbhanga
Sagarbhanga
Bamunara

18

Sri Parasnath Rerolling mills

Ltd

Angadpur

Essar CBM extraction blocks

The company's largest current CBM operation is at Raniganj in West Bengal. The total CBM
acreage of the Raniganj CBM gas field is 500 sq kms. It currently produces about 100,000 SCM
(standard cubic meters) of gas per day. Production is slated to rise to 3 million SCM per day next
year.
Essar Oil has received phase-3 environmental clearance from the Government of India's Ministry
of Environment and Forests for its Raniganj gas field operations, which allows it to drill up to
650 wells. Currently, 135 wells have been drilled, of which 57 are in production, with the
balance in dewatering stage. The drilling program is now being accelerated.
At Raniganj, 2P reserves are 113 billion cubic feet (bcf) gross, or 18.8 mmboe (million barrels of
oil equivalent). This was as per the NSAI's evaluation in September 2011. 2C resources also
increased to 445 bcf gross, or 74.1 mmboe. This compares with the previous evaluation of 201
bcf gross, or 34 mmboe. The 2011 evaluation shows there remains 297 bcf gross, or 49 mmboe,
of best estimate prospective resources of gas at Raniganj. In addition, NSAI also upgraded the
calorific value of the gas from 8,500 kcal/scm to 9,660 kcal/scm.
While awaiting a government decision on an appropriate commercial sales price for its Raniganj
CBM, Essar Oil is currently selling gas from the block at the approved test sales price. A 50km
pipeline (approximate length) connects the CBM blocks at Raniganj to the Gas Gathering
Stations, which, in turn, supplies gas to buyers such as Phillips Carbon Black and Graphite India.
Currently, gas is transported through pipelines as well as through cascades to customers. The
major part of the gas will be sold to the new Matix Fertilisers plant located approximately 30
kms from the Raniganj field.
Essar Oil is also exploring CBM and shale gas potential in other areas. Of the eight oil and gas
blocks it has secured, five are CBM blocks, estimated to have more than 10 trillion cubic feet
(tcf) of reserves and resources. The five CBM blocks cover a total acreage of 2,700 sq kms. In
addition to the Raniganj gas field (500 sq kms), this includes the large Rajmahal (1,128 sq kms)
gas field in Jharkand, which has around 4.7tcf of best estimate prospective resources, located 150
kms from Raniganj; other assets include the CBM gas field at Sohagpur (339 sq kms) spread
across Madhya Pradesh and Chhattisgarh, as well as the Talcher (557 sq kms) and Ib Valley (209
sq kms) gas fields in Odisha. While production has started at the Raniganj gas field, exploratory
activities are on at the other gas fields.

Project Status
No. of wells
drilled
147

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No. of wells
HF
143

No. of wells
completed
143

No. of wells
flowing
68

No. of wells
not flowing
29

Clearance Required For Selling, Marketing, Distributing Gas In Market:

To connect to the grid or to construct a dedicated pipeline an organization has to get certain
clearance from the statuary bodies of India.
It is must for every company before starting their business, they have to submit an
Environmental clearance report.

Environmental Clearance - The Process

The environmental clearance process is required for 39 types of projects and covers aspects
like screening, scoping and evaluation of the upcoming project. The main purpose is to assess
impact of the planned project on the environment and people and to try to abate/minimize the
same.
The process consists of following steps:

Project proponent identifies the location of proposed plant after ensuring compliance with
existing siting guidelines. If project site does not agree with the siting guideline, the
proponent has to identify other alternative site for the project

The project proponent then assesses if the proposed activity/project falls under the
purview of environmental clearance. If it is mentioned in schedule of the notification, the
proponent conducts an EIA study either directly or through a consultant. If the project
falls in B category, the project goes to state government for clearance which further
categorize into B1 and B2 projects. B2 projects do not require preparation of EIA reports.

After the EIA report is ready, the investor approaches the concerned State Pollution
Control Board (SPCB) and the State Forest Department (if the location involves use of
forestland). The SPCB evaluates and assesses the quantity and quality of effluents likely
to be generated by the proposed unit as well as the efficacy of the control measures
proposed by the investor to meet the prescribed standards. If the SPCB is satisfied that
the proposed unit will meet all the prescribed effluent and emissions standards, it issues
consent to establish (popularly known as NOC), which is valid for 15 years.

The public hearing is a mandatory step in the process of environmental clearance for
certain developmental projects. This provides a legal space for people of an area to come
face to face with the project proponent and the government and express their concerns.
The process of public hearing is conducted prior to the issue of NOC from SPCB. The
District Collector is the chairperson of the public hearing committee. Other members of
the committee includes the official from the district development body, SPCB,
Department of Environment and Forest, Taluka and Gram Panchayat representative, and
senior citizen of the district, etc. The hearing committee hears the objections/suggestions
from the public and after inserting certain clauses it is passed on to the next stage of
approval (Ministry of Forest and Environment).

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The project proponent submits an application for environmental clearance with the MoEF
if it falls under Project A category or the state government if it falls under project B
category. The application form is submitted with EIA report, EMP, details of public
hearing and NOC granted by the state regulators.

Environmental appraisal: The documents submitted by an investor are first scrutinized by

a multidisciplinary staff functioning in the Ministry of Environment and Forests who may
also undertake site visits wherever required, interact with the investors and hold
consultations with experts on specific issues as and when necessary. After this
preliminary scrutiny, the proposals are placed before specially constituted committees of
experts whose composition is specified in the EIA Notification. Such committees, known
as Environmental Appraisal Committees have been constituted for each sector such as
River Valley, Industries, Mining etc. and these committees meet regularly to appraise the
proposals received in the Ministry. In case of certain very special/controversial projects,
which have aroused considerable public interest, the committee may also decide to
arrange for public hearings on those projects to ensure public participation in
developmental decisions. Announcements for such public hearing shall be made at least
30 days before through newspapers. On the basis of the exercise described in the
foregoing paragraphs, the Appraisal Committees make their recommendations for
approval or rejection of particular projects. The recommendations of the Committees are
then processed in the Ministry of Environment and Forests for approval or rejection.

Issues of clearance or rejection letter: When a project requires both environmental

clearance as well as approval under the Forest (Conservation) Act, 1980. Proposals for
both are required to be given simultaneously to the concerned divisions of the ministry.
The processing is done simultaneously for clearance/rejection, although separate letters
may be issued. If the project does not involve diversion of forest land, the case is
processed only for environmental clearance.

Once all the requisite documents and data from the project authorities are received and
Public hearings (where required) have been held, assessment and evaluation of the project
from the environment angle is completed within 90 days and the decision of the ministry
shall be conveyed within 30 days thereafter. The clearance granted shall be valid for a period
of five years for commencements of the construction or operation ofthe project.

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The process is summarized in Figure: Environmental clearance process in India.

Figure 12: Steps of Environmental Clearances

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Conclusion
In regards with the above findings, we can say that the demand for Natural Gas is increasing
at a rapid as compared to the rate of supply. To help in promoting the use of natural gas,
govt. of India is also taking initiation. In the budget for 2014-15, finance minister Arun
Jaitley proposed that the government will set up 15,000 km of additional gas transport
infrastructure under the public-private-partnership mode. The enhanced grid will promote the
usage of gas, both domestic and imported, reducing dependence on one source of energy.
Domestic gas production at the moment stands at around 99 mmscmd and given the high
international prices. The situation is not expected to improve in the near to medium term
unless there is a dramatic change in gas availability or global prices (Source: economic times,
article, dated: Jul 18, 2014). Essar has no gas pipeline in Asansol region, but there are lots of
prospect, and market potential. By promoting the Pipelines in Asansol, Essar can reduce the
demand and supply gap The gas pipeline infrastructure has not only developed the much
needed industrialization but all brought socio-economic changes in the major regions from
where the gas pipeline passes. The Gas produced can be marketed in the following sectors
namely:

Power Sector
Fertilizer Sector
Mineral & metallurgical sector
Automobiles sector
Domestic and Commercial sectors.

The demand for natural gas in Asansol is in each in every sector, industrial sectors need as
well as domestic sectors also needs natural gas/CBM gas. As the economy is developing at a
very fast pace, there are several more investors coming to set up industries in Asansol region,
hence, the demand for natural gas will also increase. The cost of CBM gas compare to other
energy resources is very low and is environmental friendly. Energy resources like coal and
oil are becoming costlier and are in the stage of becoming extinct so the demand for natural
gas has increased. The industries that I have visited are using furnace oil, coal, electric
furnace or CBM gas from alternative company (GEECL). Essar can grab this opportunity as
they could supply CBM at much lower cost as compared to GEECL.

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Reference

mospi.nic.in/Mospi_New/upload/Energy_stats_2015_26mar15.pdf
http://en.wikipedia.org/wiki/Ib_Valley_Coalfield
www.pngrb.gov.in/pdf/vision/vision-NGPV-2030-06092013.pdf
http://www.naturalgasworld.in/governments-natural-gas-pipeline-grid-extension-unlikely-soondue-shortage-domestic-gas/

http://environmentclearance.nic.in/writereaddata/Online/TOR/0_0_19_Sep_2014_1601197601An
nexure-Pre-freasibilityReport(PFR)file.pdf

http://www.pngrb.gov.in/OurRegulation/CGD-Network-GSR196.html
http://peso.gov.in/PDF/Requirements_for_pipeline.pdf

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