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Natural gas to come under focus – Set to play a pre-eminent role in India’s Energy Mix.

Oil constitutes 32% of current energy basket. Major concerns here are meager oil assets, high import dependency and rising fuel bill.

India as a globally significant oil consumer

Reserves: India has total reserves (proved & indicated) of 5.8 bn bbl of crude oil as on 2009.(World reserves - 1333 bn bbl)

Consumption: In 2009, India consumed 3.2mn bbl/d making it the fourth largest consumer of oil in the world. (Total world consumption - 84mn bbl/d)

Although, the government would like the share of renewables in electricity production to increase, prima-facie higher capital investment and security concerns surrounding construction may make it difficult to fully capitalise upon this domestic energy resource.

Significant developments in nuclear trade:

In Sep 2008, the Nuclear Suppliers Group (NSG) adjusted its guidelines to remove India from the list of countries barred from nuclear trade. The NSG Waiver along with Indo US nuclear deal(2005) is expected to generate an additional 25,000 MW of nuclear power by 2020.

Coal will continue to be the predominant form of energy in future. To keep up, coal production will need to accelerate to catch upto rising energy requirement. However, there is not enough coal supply planned and relying on imports in future may not sustain.

New capacity of 5mmtpa at Kochi operational by FY15

Agressive capex plan of ~Rs30bn by FY15 and ability to pass price hike

Increase in CNG stations from 200 to 300 and PNG customers from 182K to 300K by FY12