#1गेल GAIL GAIL (India) Ltd. India's Youngest Maharatna Investors' Presentation April 21-28, 2018 Abu Dhabi | London | New York | Boston | San Francisco CNOR CNG#2Safe Harbor Statement This presentation has been prepared by GAIL (India) Ltd (Company or GAIL) solely for providing information about the Company. The information contained in this presentation is only current as of its date. Certain statements made in this presentation may not be based on historical information or facts and may be "forward-looking statements", including those relating to the Company's general business plans and strategy, its future financial condition and growth prospects, and future developments in its industry and its competitive and regulatory environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in the Company's business, its competitive environment, information technology and political, economic, legal and social conditions in India. This communication is for general information purposes only, without regard to specific objectives, financial situations and needs of any particular person. Company do not accept any liability whatsoever, direct or indirect, that may arise from the use of the information herein. The Company may alter, modify or otherwise change in any manner the content of this presentation, without obligation to notify any person of such revision or changes 2#3Agenda Introduction Performance Highlights Industry Outlook & Opportunities Q&A CNOR CNG#4Introduction CNOR CNG#5Overview: GAIL (India) Ltd. गेल G GAIL • Over 11,000 km of network (206MMSCMD) • • Pursuing for expansion, Participation in 5 MMTPA LNG Regasification Facility at Dabhol Long-term Import Portfolio: 24 MMTPA • Domestic market share ~ 15% • Petrochemical Plant in Pata(UP) with capacity of 0.81 MMTPA + 0.28 MMTPA in BCPL • 6 Gas Processing Plants producing LPG, Propane, Pentane, Naphtha etc. (1308 TMT) • LPG Transport Capacity 3.8 MMTPA (2038 Km.) •E&P-a part of vertical integration Participation in 10 blocks (operator-1 blocks) Presence in Myanmar & US 118 MW Wind Power Plant and 10.7 MW Solar Power Participation in RGPPL (Capacity 1967 MW) Operates 3/4th of the total NG transmission in India Contributes 3/5th of the natural gas sold in India Produces 1/5th of the polyethylene produced in India of India's total LPG transmission Responsible for 1/6th Produces every 21th LPG Cylinder Supplies gas for about 3/4th Supplies gas for about 3/4th Operating more than 2/3rd in India of India's fertilizer produced of India's gas based power of India's total CNG stations#6Shareholding Structure & Share price movement Market Capitalization as on 31st Mar'18: $ 11,506 mn Foreign Portfolio ■Mutual Funds 12.16% Investors 17.29% Paid up Equity $ 350 mn President of India 53.59% ■CPSES 7.38% 25 Others 9.58% 20 Volume (in mn) 15 45 10 5 6 8 7 6 5 st 3 2 1 0 0 Year 13-14 14-15 15-16 16-17 17-18 Price-Volume chart for the period of 1-4-2017 to 31-3-2018 Dividend Declared 0.17 0.10 0.08 0.17 0.12* ($/Share) Dividend Pay-out 30 Ratio 25 25 31 4 44 $/Share GAIL Issued one bonus share for every three shares held in FY 2017-18 Shareholding of President of India came down from 54.43 % to 53.59% on account of divestment via CPSE ETF Source: BSE Website; Note: All data as on 31st March 2018 as per BSE website; above number are adjusted for bonus share issued in FY 217-18 :* Interim dividend only 9#7Presence in Gas Value Chain Exploration and Production Gas Pipelines Fertilizer Natural Gas (Methane, Ethane, Propane, Butane, Pentane) Petrochemical Gas Pipelines LNG Regasification Power City Gas Imported LNG Gas Processing (LHC/LPG) Petrochemicals Methane Fertilizer, Power, CGD Ethane Petrochemical Propane & Butane : LPG Pentane Industries LPG Port/ Refineries & Other Refineries LPG Pipelines Industries#8Global Presence USA⭑ GGUI (Eagle Ford Basin) GGULL (Dominion Cove) GAIL-Sabine Pass EGYPT✰ Equity in 2 Retail China Gas CHINA ✰ MYANMAR ☐ Myanmar-China Gas Pipeline A1, A3 E&P Blocks Gas Companies SINGAPORE GAIL Global (Singapore) Pte. Limited#9Energizing Tomorrow with Cleaner fuel GAIL's Commitment to Sustainable Development In FY 17-18 GAIL installed India's second largest solar PV rooftop of 5.76MW at the country's largest natural gas based petrochemical complex at Pata. This led to total renewable portfolio of GAIL to over 128 MW GAIL is now the a part of 'FTSE4 Good Emerging Market Index' GAIL is committed to Sustainable Development Goals 180 200 81.5 75.5 IFY12 FY13 FY14 FY15 435 811 FTSE Russell #WorldFood Day FACTORIES KE PET MAIN NO MORE COKE 000 CUENAZE If you care... Change the Air Switch to Natural Gas CNG | PNG Zawa Ainitiative by GAIL (India) Limited Natural Gas stoves provide even heat distribution for better cooked food. CERTIFICATE OF MEMBERSHIP This is to certify that Gail India is a constituent company in the FTSE4Good Index Series fin #hawabadlo FTSE4Good June 2017 The FTSE4Good Index Seness designed to derofy companies that demonstrate strong environmental, social and governance practices measured against globally recognised standards Mad Matzen Mark Manapeace Group Dir, fanation Series 3G & Mel Medhat. Se Merk Moody-Stuart Cm FTSE ESG Avisory Commi FY16 ■FY17 CEO SE Procurement from MSE (in Crore) FSC L Benefits of Natural Gas Replacing one older diesel bus with a NATURAL GAS BUS equivalant to taking 21 CARS off the road#10GAIL Hriday - CSR Initiative of GAIL KAUSHAL (Skill Dev.) UJJWAL (Education) SWACHH BHARAT स्वच्छ भारत HRIDAY AROGYA (Health) UNNATI (Rural Dev.) SASHAKT (Women empowerment) HARIT (Environment projects) SAKSHAM (Care for elderly & differently abled) GAIL has incurred 2.26% and 2.6% of the average Profit of the preceding 3 years on CSR in FY 2016-17 and FY 2017-18 respectively against the stipulated 2% spend as per the statute.#11Performance Highlights CNOR CNG#12Major Highlights of FY 2017-18 GAIL's First LT-LNG cargo from USA to India - 'Meridian Spirit' received at Dabhol on 30th March 2018 GAIL favourably renegotiated LT Gas Purchase Contracts with Exxon Mobile & Gazprom De-merger of LNG Block at RGPPL is approved; New Entity Konkan LNG Pvt Ltd. commenced business Commissioning of Bhubaneswar CGD Operations, many more to follow in coming months Gross Turnover of ~$ 5,946 mn and PAT of ~ $ 559 mn for the period up to Q3 FY18 Received Capital Grant of $ 62 mn in Q3 FY18 (Cumulative Grant $ 130 mn) for PM Urja Ganga Project Interim Dividend paid @ 76.5% of paid up equity share capital for FY 2017-18 Bonus Shares Issued - 1 Equity share for every 3 Equity shares held Capex of ~$ 621 mn in FY 2017-18 12#13Major Highlights of FY 2017-18 Loan Repayment of ~ $ 468 mn including prepayment of ~ $ 140 mn PNGRB Authorized Barauni-Guwahati P/L (1,300 km) to GAIL New Long Term Tie-ups for Sale of Natural Gas ~ 3.36 MMTPA Additional Long Term Tie-up with existing Customers ~ 1.67 MMTPA Sale of Gorgon RLNG commenced from Kochi Terminal RLNG Supply commenced to RGPPL ~ 0.5 MMTPA Major Contracts for PM Urja Ganga Project Awarded, Execution in full swing Highest ever Polymer sales achieved of 674 TMT Credit Rating - Domestic 'AAA', International 'Baa2' (Moody's), BBB- stable outlook (Fitch) 13#14Physical Performance up to Q3 FY 2017-18 Gas Volume Trend 96 79 12 FY14 (MMSCMD) 100 105 92 92 81 84 72 74 Gas Transmission Mix Gas Marketing Mix 7% 9%3% 6% Q3 42% Q3 FY18 FY18 56% 26% 40% FY15 FY16 Gas Transmission FY17 Gas Marketing Upto Q3 FY18 ■APM/NAPM ■RLNG - РМТ ■Spot ■Mid Term ■RIL (TMT) Petrochemicals Sales LPG Transmission Liquid Hydrocarbons Sales 1,307 1,277 3,362 3,145 577 1085 1,082 3,093 2,819 445 483 953 2,739 441 334 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY14 FY15 FY16 FY17 Upto Q3 1Y18#15Financial Performance (Standalone) Turnover (Gross)* 9,571 9,067 7928 7,291 5,946 Gross Margin (PBDIT)* 1311 1089 1033 889 789 FY14 FY15 FY16 FY17 Upto Q3 FY14 FY15 FY16 FY17 FY18 Upto Q3 FY18 Profit Before Tax (PBT)* Profit After Tax (PAT)* 1056 722 809 831 678 481 523 559 467 339 (in $ mn) FY14 FY15 FY16 FY17 Upto Q3 FY14 FY15 FY16 FY17 FY18 Upto Q3 FY18 15 *Figures from FY 16 onward are as per Ind-AS#16Segment Wise Share of Turnover & PBT (up to Q3 FY18) (in $ mn) Profit before Tax $ 831 mn Turnover $ 5,946 mn 470 76 76 650 1% 8% 4160 530 60 11% 70% 9% 1% 31 256 31% 4% 31 329 40% 14 2% 4% 170 21% Gas Marketing NG Transmission LPG Trans Petchem LHC Unallocated incl. E&P 16#17Financial Profile Gross Block (in $ mn) 6550 6574 6649 7042 5619 Capital Employed ( in $ mn) Net Worth (in $ mn) 5540 7464 4431 4572 4680 4834 7200 7153 6584 6644 FY14 FY15 FY16 FY17 Upto Q3 FY14 FY18 FY15 FY16 FY17 Upto Q3 FY18 FY14 FY15 FY16 FY17 Upto Q3 FY18 Loans (in $ mn) 1694 1512 1229 756 387 Debt to Equity Ratio 0.38 0.33 0.26 0.16 0.07 Debt Service Coverage Ratio (DSCR) 4 3 3 2 2 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY14 FY15 FY16 FY17 Upto Q3 FY18 FY14 FY15 FY16 FY17 Upto Q3 FY18 17 *Figures from FY 16 onward are as per Ind-AS, Networth as per Companies Act 2013#18Capex & Source of Funds 1400 1200 1000 800 621 621 600 400 200 559 1025 1025 299 260 466 1320 1320 411 248 660 (in $ mn) 0 Capex 62 Source of Fund Capex Source of Fund Capex Source of Fund FY 2017-18 FY 2018-19 FY 2019-20 Capex Borrowings Grant Internal Generation 18#19Capital Expenditure FY17-18 $ 621 mn 89, 14% 84, 13% 5,1% 444, 72% ■Pipeline FY18-19E $ 1,025 mn 8, 1%. 70,7% 47,4% FY19-20E $1,320 mn (in $ mn) 23, 2% 241, 18% 16, 1% 901, 88% 1040, 79% E&P Equity Investments ■Operational Capex * capital expenditure include plan, non-plan and operational capex 19#20Projects / Initiatives (Ongoing & Upcoming) ➤ 4000+ Km gas pipelines under execution in Eastern and Southern India ➤ Jamnagar-Loni LPG Pipeline Expansion (2.5 MTPA to 3.25 MTPA) Greenfield Petrochemical Project in Andhra Pradesh in JV with HPCL (Under Study) ➤ Coal Gasification at Talcher in JV with RCF/CIL ➤ Equity Participation in Fertilizer Plant 20 20#21Industry Outlook CNOR CNG#22Global Primary Energy Basket - A Comparison Nuclear Hydro Region Oil Natural Gas Coal Renewables TPE (MTOE) Energy electric World 33.3% 24.2% 28.0% 4.5% 6.8% 3.2% 13376 OECD 37.7% 27.0% 16.5% 8.1% 5.7% 4.9% 5529 Non- OECD 30.1% 22.1% 36.4% 1.9% 7.7% 1.9% 7747 Asia Pacific 27.9% 11.7% 49.4% 1.9% 6.6% 2.6% 5579 China 19.0% 6.2% 61.8% 1.6% 8.6% 2.8% 3053 India 29.4% 6.2% 56.9% 1.2% 4.0% 2.3% 724 Bangladesh 20.3% 76.4% 2.5% 0.6% 0.1% 32 Pakistan 33.0% 49.2% 6.5% 1.5% 9.3% 0.5% 83 (Source: BP Statistical World energy Review, 2017) India is the 3rd largest energy consumer after China and US, 2nd in Coal and 3rd in Oil. Natural gas consumption in India is 6.2% against World average of 24% (14th largest consumer)#23India's Primary Energy 800 700 Figures are in MTOE 596 600 563 535 524 480 500 638 685 400 360 324 298 278 271 251 300 724 397 412 Natural Gas Share in India's primary energy mix has gone down from 11% in 2010 to 6.2% in 2016. Renewables Hydro electric Nuclear Energy 45 200 55 49 46 46 56 46 14 41 Coal Natural Gas 213 100 151 156 163 172 175 181 196 Oil Total 0 2009 2010 2011 2012 2013 2014 2015 2016 (Source: BP Statistical World energy Review, 2017)#2415% Share of Gas in Primary Energy Mix - What it Translates to 347 610 310 697 361 625 139 BP Energy Outlook ■2016 - Current Consumption 139 IEA World Energy Outlook ■2030- Estimated Consumption 139 IESS 2047 2030 - Estimated Consumption at 15% share in PE Mix (MMSCMD) As per various projections, gas consumption is likely to grow at CAGR of around 6% from 2015 to 2030 with marginal change of share in primary energy basket ■Consumption will increase from ~140 MMSCMD in 2016 to > 300 MMSCMD in 2030 at current momentum To achieve gas share of 15% in primary energy mix, a CAGR of 10% in gas consumption needs to be achieved which implies >600 MMSCMD consumption of gas by 2030 Source: Source: BP Energy Outlook,, WEO by IEA, India Energy Security Scenarios 2047 (NITI Aayog, India) 24 24#25Historical Production & Consumption Pattern 180 160 140 120 112 104 103 100 74 80 74 74 144 126 113 94 79 73 69 68 162 155 139 134 128 128 124 60 40 20 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 Net avb. for sale Consumption Declining domestic production is a major concern for Indian gas market 2 per. Mov. Avg. (Net avb. for sale) All fig. in MMSCMD LNG consumption has increased but price affordability is still a challenge for Indian Gas market Source: PPAC. Volumes available for sale in domestic market are approx. 80% of gross production#26LNG imports have consistently increased over the years 180 160 144.3 140 161.5 154.6 100% 90% 144.1 139.1 80% 133.7 128 127.5 124.2 70% 120 103.9 103 100 60% 50% 51% 41% 45% 50% 80 38% 73.1 69.9 40% 57.9 60 60 29% 30% 28% 27% 50.8 48.6 30% 22% 22% 42.1 39.6 40 40 32.4 29.9 28.9 20% 20 20 10% 0 0% 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 Total Sales LNG Import Share of LNG All fig. in MMSCMD#27Natural Gas Consumption Pattern - India (2017-18) Sector-wise Break-up Gas-wise Break-up Source: PPAC MMSCMD 47.63, 33% 39.76, 28% 33.49, 23% 23.24, 16% MMSCMD Fertilizer Power 73.06, 51% 71.06, 49% Domestic CGD Others RLNG Gas consumption during FY (2017-18), ~144 MMSCMD Power and Fertiliser - Anchor Markets Industrial and City Gas - Growing Markets * Others includes Refinery, Petrochemicals, LPG, IC and Manufacturing etc.#28India Gas Sectoral Demand Projections till 2021-22 200 180 160 140 120 100 80 60 40 20 0 2015-16 2016-17 Fertilizers Power CGD Sector ■Steel & Sponge iron Others All fig. in MMSCMD 2017-18 2018-19 2019-20 2020-21 2021-22 Actuals Projection Sector 2015-16 2016-17 2017-18 3 year CAGR 2018-19 2019-20 2020-21 2021-22 Fertilizers 43.83 42.27 39.76 -5% 39.91 41.7 43.3 46.5 Power 30.35 31.82 33.49 5% 33.74 34.19 34.19 34.19 CGD Sector 17.62 20.14 23.24 15% 26.69 30.65 35.2 40.43 Steel & Sponge iron 2.09 2.43 3.1 22% 3.78 4.6 5.6 6.82 Others 36.67 42.46 44.54 10% 49.09 54.1 59.62 65.71 Total (MMSCMD) 130.56 139.12 Total (BCM per annum) 47.65 50.77 144.13 52.6 5% 153.2 165.24 177.915 5% 55.91 60.31 64.93 193.65 70.67 Focus of Gol on increasing gas consumption resulting in increasing consumption in CGD and Others (Refinery, Petrochemical, Steel, LPG shrinkage and Industrial sectors) 28 *Source: Internal assesment of GAIL#29Gas pipeline infrastructure in India Jammu & Kashmir SRINAGAR Bathinda Brinegar P 740 KM 15 MMSCMD JAMMU AMRITSAR Mehsana-Bathinda P/L 2052 KM BATNOA GANGANAGAR RAJASTHAN PIPELINE 116 KM. 1.15 MMSCMD HVJ PIPELINE 2887 KM 18.5 MMSCMD JAISALMER KATHUA Himachal Pradesh Dad Bawan Nangal FL Shahdol-Phulpur P/L 700 KM 31 MMSCMD al 312 KM DEHRADUN CHANGARH HARDWAR PANIPAT Har BIKANER ADRI BARELLY AVER Chhainsa Qurgao How P Raia an Jodhp Udaipur KUTCHH Palanpur Mundra LNG Terminal GARSHIDHAM GSPL Gnd Network 2424 KM MEHSANA CHOTILA 54 KM 36 MMSCMID LWARA OREP OTA JAIPUR IOCL Dado Panipat P 132 KM 10 MMSCMD LUCKNOW JAGDISHPUR Dudri Vigur PIL POU M5 KM 14.9 MMSCMD Dahe Vjapur P 770 км 23.9 MMSOMO SAGAR Jabalpur Bhopal 60 MMSCMD JAMA RAKOTY Petronat LNG-Dah Terminal Existing 5.0 MTPA Expansion 2.5 MTPA Hazra Arkleshw 73 KM 8 MMBCMD AMRELI DANE ESHWAR AZRA SURAT Shell Hazira, LNG TD DAHEJ-URAN-PANVEL-DHABOL 144 км 12 MMBCMD Mumbai Regional PA Network 25 KM 23.6 MMSCMD URAN Dahej Vapur PL- 610KM Amaravati Jaigaon Nagpur AURANGABAD wharashtra AHMEDNAGAR NANDED Barauni-Guwahati-Agartala P/L 1300 KM Phulpur-Haldia/Dhamra P/L 2539 KM, 16 MMSCMD PATNA DISPUR Category Length & including Spurlines (Km) Design Capacity (MMSCMD) Assam P Network 100 KM 6MMSCMO Existing Network (GAIL's -68%) ~ 16000 423 GAY Shabdd Jhark DURGAPU ПОКАМО Raipur HOWRAH HADA Agartais Pl, Network 61 KM 2.26 MMCMO Beng w Balangir niss PURI ADIP Bhubaneshwar ANJAM Chhatisgarh VISAKHAPATNAM GANGAVARAM MALLAVAL KAKINADA EAST WEST PL 1385 KM 80 MMSCMO Haldia-Paradip -Srikakulam P/L Surat Dhamra P/L 2112 KM Kakinada-Vizag-Srikakulam P/L 391 KM Mallavaram-Bhopal-Bhilwara P/L 2042 KM 700 KM PUNE Karimnagar DASHOL OSMANABAD SOLAPUR Warang KOLHAPUR Dabha LNG Terminal HYDERABAD GOKAK GOA Andhra Pradesh HUBLI Dabhol-Bengaluru P/L 1114 KM 16 MMSCMD NELLORE Kochi-Koottanad-Bangalore- Mangalore P/L, 1062 KM MANGALORE CHITTOOR SHENNA KASARGOD ENNORE KANNUR ALEM UVNNAMALA 9 MALAPURAM PALAKKAD MARA OCHE Petronet LNG-Kochi Terminal KAYAMKULAM TUTICORIN Ennore-Nellore P/L 220 KM Ennore-Thiruvallure-Bengaluru- Ponducherry-Nagapattinum - Madurai-Tutticoran P/L, 1175 KM Thin lines Bold lines Existing Upcoming/Ongoing Gol authorized Pipelines being executed by ~ 4300 32 GAIL PNGRB authorized ~9200 485 Pipelines since 2011 Total -29500 940#30Regasification Terminals in India DAHEJ I & II 10 + 5 mmtpa 2.5 (under Exp) chhara 5 mmtpa MUNDRA 5 mmtpa Jafrabad(FSRU) 5 mmtpa HAZIRA 5 mmtpa DABHOL 1.4 + 3.6 mmtpa JAIGARH 3-4 mmtpa KAKINADA 3-5 mmtpa Kolkata 2.5 mmtpa DHAMRA 5 mmtpa Krishnapatnam 2.5 mmtpa Existing LNG Terminal (30 MMTPA) Under Construction (12.5 MMTPA) Planned/Upcoming LNG Terminal (30 MMTPA) KOCHI 5 mmtpa ENNORE 5 mmtpa#31Petrochemical business Outlook... CAGR of growth in $40 billion Indian Petrochemicals industry ~ 14% Indian Petrochemicals industry likely to reach $100 billion by 2020 India's per capita consumption of plastics is just 11 kg vs. China per capita consumption of 38 kg. World average of per capita consumption of Plastics is around 28 Kg with US consuming as high as 60-70 kg per capita Polymer demand growth is estimated to be 8-9% per annum and this represents huge upside for Plastics in general and GAIL in particular ㅁㅁ India's per capita is one of the lowest in Asia India has big potential to grow & many opportunities Indian PE Demand v/s Capacity-Evenly matching Major Highlights of GAIL's Petrochemical Business in FY 2017-18 Actual Projections (in KTA) 2017-18 2018-19 2019-20 2020-21 Sold 674 KTA of polymers, which is highest ever sales Exports of polymers - 56,498 MTs during the year. Demand HDPE (1) 2,338 2,525 2,727 2,945 LLDPE (2) 1,820 1,966 2,123 2,293 HD+LLD 4,158 4,491 4,850 5,238 Capacity* HD+LLD 5,000 5,000 5,050 5,450 Growth drivers coupled with Capacity addition will result in growth in Top line as well as Bottom line for GAIL. *Source: Study by Assocham & Industry Estimates#32Petrochemical business Outlook (in KTA) Actual Projections Particulars 2017-18 2018-19 2019-20 2020-21 Demand 5017 5400 5850 6320 PE Capacity 5655 5655 5655 6055 Demand 4765 5145 5560 6000 PP Capacity 5120 5120 5120 5120 Demand 3287 3485 3700 3915 PVC Capacity 1482 1482 1482 1482 Demand 13069 14030 15110 16235 Total Capacity 12257 12257 12257 12657 • PE/PP & PVC demand grew at 8% and 6% respectively HMEL'S PE plant (400 KTA) is expected to be commissioned by 2020-2021 No new PP, PVC capacity is expected by 2020-21 PE includes HDPE, LLDPE & LDPE *Source: Study by CPMA & Industry Estimates#33CNOR Opportunities CNG#34Opportunities Share of Natural Gas in Indian energy mix declined from 10.23% in 2010 to 6.2% in 2015 Gol has targeted increasing the gas share from 6.2% to 15% in the Primary Energy mix - Gas consumption of ~300 MMSCMD is needed to reach 15% of PE mix at 2016 level Huge investments are being made across the Natural Gas value chain : Gas Pipelines: $ 9,500- 11,000 Mn. • Existing capacity ~ 384 MMSCMD; Being executed by GAIL - ~32 MMSCMD; Authorized by PNGRB since 2011 & yet to be executed - ~ 531 MMSCMD. LNG terminals: $ 4,000 Mn. - Increase in capacity by ~ 24 MMTPA from existing of ~30 MMTPA Gas based Fertilizer sector: $ 4,500 Mn. 4 revival units, 1 expansion unit, 1 greenfield unit CGDS $11,000- 12,500 Mn. 91 existing Gas (~50 operational); another 225+ cities are expected to come E&P: out of total 41,872 MMTOE estimated hydrocarbon reserves 29,796 MMTOE (3/4th) is still undiscovered. Petrochemicals India's per capita consumption of plastics is just 11 kg vs. China per capita consumption of 38 kg.#35New Growth Areas for Gas LNG LNG LNG for Heavy vehicles LNG-run trucks represent a significant improvement over diesel fuel Building a network of fuelling stations to ensure the supply of LNG is major challenge Railways on LNG/CNG Railway to substitute 40% diesel by CNG in DEMUS under mission 41k Railways have launched their first CNG train in Jan'2015 Options are being explored to use LNG in locomotives Sagar Mala/National Waterway Government trying to start LNG barges on Ganga by 2018-end Globally, growing number of ship-owners turning to natural gas due to stringent emission rules and economic benefits 35#36Power Demand Government Thrust Smart Cities -------- Smart City MISSION TRANSFORM-NATION Peaking Power Peak Load Intermediate Load Base Load Time of day CGD GEAR NGREN ■ ■ NITI Aayog's 3 year agenda suggests extension of CGD to 100 smart cities. NITI Aayog advocates to use gas for PNG and CNG Gas is ideal solution for assured and quality power with clean environment Essential to ban petcoke, diesel based power within city limits Gas-fired plants - most responsive and flexible; Ideal for peaking power With growing renewables, gas based power can be positioned to balance grid Current installed capacity is 25,185 MW with only 22.5% PLF CGD has become the fastest growing sector in recent years Regulations like declaration of LPG Free zones, Public Utility status, Single window clearance can facilitate CGD sector growth Reforms such as Peaking Power Policy, Gas Purchase Obligations (GPO), LPG Free Zones, Hybrid Power, taxation etc. required to facilitate Gas Sector growth Source: NITI Aayog, CEA#37Thank you CNOR CNG