Globally natural gas in the form of piped gas, Coal Bed Methane and Liquified Natural Gas is increasingly making its presence in power generation. Similar pattern is emerging in India too. With substantial indigenous gas finds and LNG cargos set to reach the Indian shores, gas sector is set to move from a supply constrained phase into an eventual era of multi-source multi-market dynamics.

Natural Gas demand is expected to grow from 7% in the energy mix to 20% in the next 10 years. LNG Imports have already been initiated with the arrival of the first shipment at Dahej LNG Terminal. The role of natural gas in the industry is being redefined, with gas taking an increasingly vital role in future sustainable energy growth.

While demand projections are being made, the issue of LNG pricing vis-Ã -vis other options needs to be carefully analyzed. The fuel prices the world over are extremely volatile and are hitting the historical highs. The expectations of the major users viz. the power and fertliser sector is to benchmark the LNG prices with the power generation using indigenous coal, which seems to be quite unrealistic as the World over prices of LNG are much higher.

The other factors that will influence the development of gas markets are -

- Enabling policy and regulatory framework
- Development of new markets for gas usage
- Assured supply & Demand forecast
- Infrastructure - establishing integrated pipeline & associated infrastructure
- Unbundling of transportation and marketing
- Transportation network at state, regional, national & international level
- Technology and Environment Concerns

In order to discuss and debate the above-mentioned key issues, CII is organising a one day conference on “Natural Gas / LNG – The New Options in the Power Fuel Basket” on 7 May, 2004 at Crystal Ball Room, Hotel Intercontinental, New Delhi.