| Introduction |
- Natural gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources.
- Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, it can also include ethane, propane, butane and pentane.
- Natural gas is likely to play a greater role in the world energy mix given its growing resource base and its relatively low carbon emissions compared to other fossil fuels.
- Natural gas, when compressed at a pressure of 250 bars, is termed as compressed natural gas (CNG).
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| Global Scenario |
- The world’s natural gas reserves are estimated to be 7,360.9 trillion cubic feet (tcf). The Middle East holds 38.4% of the world’s reserves, while an additional 21.4% is located in the former Soviet Union, with only 9% held in the OECD countries.
- In 2011, the global natural gas production was 3,276.2 billion cubic metre (bcm), up 3.1% from 3,178.2 bcm in 2010, and consumption was 3,222.9 bcm, compared with 3,153.1 bcm in the previous year.
- The US, Russia and Canada are the largest natural gas producing countries, while the US, Russia and Iran are the largest natural gas consuming countries in the world.
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| Indian Scenario |
- The balance recoverable natural gas reserves in the country is 1240.9 bcm, which accounts for only 0.6% of the world’s total natural gas reserves.
- The share of natural gas in the country's primary energy mix decreased to 9.8% in 2011 from11% in 2010.
- However, this share is quite low compared to the global average (24%), primarily due to the supply-side constraints.
- The natural gas (including CBM) production in 2011 was 46.1 bcm, which is 12.8% higher than the actual production of 50.8 bcm in 2010.
- India's consumption of natural gas was around 61.1 bcm in 2011, which accounts for only 1.9% of the world natural gas market.
- As India does not have any pipeline connection, all the gas currently imported is LNG. India's current operational LNG import capacity is 18 bcm.
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| Price Moving Factors |
- Natural Gas inventory data
- The US weather conditions and active hurricane season poses a threat to the US Gulf coast’s
- natural gas production
- Price of crude oil
- Industrial and Residential demand in the US
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