CONVENTIONAL ENERGY IN INDIA

CONVENTIONAL ENERGY IN INDIA

Overview

• Conventional sources of energy contribute about 67% of India’s power production
• Conventional sources include coal, oil and natural gas.
• Thermal energy (coal, oil, gas) is the largest energy source in India.

COAL ENERGY IN INDIA

Overview

• India has the fourth largest reserves of coal in the world (behind USA, Russia and China).
• India is the world’s third largest consumer and fourth largest producer of coal
• Coal mining in India began at the initiative of Governor General Warren Hastings at Raniganj (West Bengal) in 1774.
• The East India Company set up M/s Sumner and Heatly for coal mining purpose.
• Coal mining was nationalised in 1971 (coking coal) and 1973 (non-coking coal). Only the Tata Iron and Steel Company and Indian Iron and Steel Company were exempt.
• Coal in India is under the purview of the Ministry of Coal.

Important coal mines

Coal mine	Location	Operator	Notes
Singareni	Pranahita-Godavari valley (Andhra Pradesh)	Singareni Collieries Company Ltd	Jointly owned by AP govt. (51%) and Union govt. (49%)
Neyveli	Tamil Nadu	Neyveli Lignite Corporation
Raniganj	West Bengal	Bharat Coking Coal Limited
Jharia	Jharkhand	Bharat Coking Coal Ltd	Produces bituminous coal suitable for coke Most of India’s coal comes from Jharia Largest supplier of prime coke coal used in blast furnaces in India Jharia is famous for a coal field fire that has burnt underground for nearly a century
Talcher	Orissa	Mahanadi Coalfields Ltd
IB Valley	Sambalpur, Orissa	Neyveli Lignite Corporation Ltd
Korba	Chattisgarh	Southeastern Coalfields Ltd
Wardah	Maharashtra	Western Coalfields Ltd

Ultra Mega Power Projects

• Scheme launched by the government to meet National Electricity Policy stipulation of ‘Power for All by 2012′
• The Ultra Mega Power Projects (UMPP) scheme envisions adding 100,000 MW of installed capacity by 2012
• This involves construction of super large power plants each of capacity 4000 MW or more. The UMPP power plants will use coal as fuel
• The nodal agency for implementing the UMPP scheme is the Power Finance Corporation Ltd

List of UMPP projects

Project location	State	Type of project (coal source)	Awarded to
Sasan	Madhya Pradesh	Pit-head (local)	Reliance Power
Akaltara	Chhattisgarh	Pit-head (local)
Tilaiya	Jharkhand	Pit-head (local)	Reliance Power
Mundra	Gujarat	Coastal (imported)	Tata Power
Krishnapatnam	Andhra Pradesh	Coastal (imported)	Reliance Power
Girye	Maharashtra	Coastal (imported)
Tadri	Karnataka	Coastal (imported)

Coal India Ltd. (CIL)

• Established 1975, headquarters Kolkata.
• CIL is the largest coal miner in the world. It contributes about 85% of India’s coal production
• Largest corporate employer and second largest employer in India (after Indian Railways)
• Second largest owner of land in India (after the Indian Railways)
• Functions under the Ministry of Coal
• CIL is a Navaratna company
• CIL has successfully bid for two coal mines in Mozambique and is in the process of formalising the process
• CIL has eight subsidiaries:
• Central Mine Planning & Design Institute, Ranchi
• Eastern Coalfield Ltd, Asansol (West Bengal)
• Northern Coalfields Ltd., Singrauli (Madhya Pradesh)
• Southeastern Coalfields Ltd, Bilaspur (Chattisgarh)
• Western Coalfields Ltd, Nagpur
• Mahanadi Coalfields Ltd, Sambalpur (Orissa)
• Central Coalfields Ltd, Ranchi
• Bharat Coking Coal Ltd, Dhanbad (Jharkhand)

Neyveli Lignite Coporation Ltd. (NLC)

• Established in 1956, headquarters Chennai.
• Functions under the Ministry of Coal.
• Lignite has only about 70% carbon and so produces less energy, but burns without coking and has low ash content.
• The NLC operates the nation’s largest open pit lignite mines.
• NLC operates thermal power plants in addition to three large mines. The Neyveli Thermal Power Stations are India’s first and only lignite fired thermal power stations.
• The Neyveli mines are located on a huge ground water aquifer. The NLC supplies this sweet water is supplied to Chennai city.

OIL AND NATURAL GAS IN INDIA

Overview

• India has total crude oil reserves of 775 million metric tonnes and natural gas reserves of 1074 billion cubic metres.
• The primary sources of natural gas in India are the offshore platforms on the western coast. Other sources include onshore fields in Assam, Andhra Pradesh, Gujarat, and lesser quantities in Tamil Nadu, Tripura and Rajasthan
• The largest oil fields in India are the Bombay High offshore fields. Bombay High contributes about 38% of domestic production and 14% of national consumption
• The largest natural gas reserves have been found to be in the Krishna-Godavari basin. This discovery was made by Reliance Industries in 2002
• The largest petroleum refinery in India is located at Jamnagar (Gujarat). It is owned by Reliance Petroleum Ltd
• The oldest petroleum refinery is at Guwahati. It was established in 1962 with assistance from Romania
• Part of the natural gas produced in Maharashtra is fed into the HBJ national pipeline. Gas from other sources is usually used locally
• The primary markets for petroleum and natural gas in India include power generation, industrial and domestic fuels, tea plantations, and non-energy applications such as manufacture of fertilizers and petrochemicals
• The first discovery of oil in India was in Digboi, Assam in 1889.
• Oil and natural gas comes under the purview of the Ministry of Petroleum and Natural Gas

Strategic petroleum reserves

• Government has decided to set up 5 million metric tonnes of crude oil reserves to ensure energy security. These strategic reserves will be in addition to existing storages at the oil companies
• These storage facilities are to be established at Mangalore, Vishakapatnam and Padur (near Udipi, Karnataka).
• Proposed strategic reserves to be under Indian Strategic Petroleum Reserves Ltd (ISPRL), a Special Purpose Vehicle under the Oil Industry Development Board.
• The proposed sites are located in the east and west coasts so that they are readily accessible to refineries through marine route.
• The strategic reserves are to be in underground rock caverns, which are considered to be the safest means of storing hydrocarbons.
• The strategic crude oil reserves are expected to be operational by 2012.

Important foreign exploration & production projects of Indian companies

Project	Location	Type	Executor
Rakhine	Myanmar	Natural gas	ONGC, GAIL
Sakhalin	Far east Russia	Oil, gas	ONGC
Tomsk	Western Siberia, Russia	Oil	ONGC
Lan Tay	Vietnam	Gas	ONGC
Farsi	Iran	Gas	ONGC, OIL, IOCL
Western Desert	Iraq	Oil	ONGC (contract to be renegotiated)
Eastern Syria	Syria	Oil	ONGC
MTPN	Congo	Oil	ONGC
North Ramadan	Egypt	Oil	ONGC
North East Mediterranean Deepwater Concession (NEMED)	Egypt	Gas	ONGC
Campos Basin	Brazil	Oil	ONGC
Mansarovar Energy Project	Colombia	Oil	ONGC
San Cristobal Project	Venezuela	Oil	ONGC
Muglad Basin	Sudan	Oil	ONGC
Greater Nile Oil Project	Sudan	Oil	ONGC
Block Shakti	Gabon		OIL, IOCL
Sirte Basin	Libya		OIL, ONGC, IOCL
Ghadames Basin	Libya		OIL, IOCL
Niger Delta	Nigeria		OIL, IOCL
Messila Basin	Yemen		OIL, IOCL

Oil and Natural Gas Corporation (ONGC)

• Established 1956, headquarters Dehradun.
• The ONGC contributes 77% of India’s oil production and 81% of natural gas production.
• The ONGC is the highest profit making corporation in India (USD 5 billion). It is also the largest Indian company in oil exploration.
• ONGC Videsh Ltd (OVL) has a presence in 16 countries esp. in Latin America, Africa, Middle East, CIS and the Far East.
• OVL’s first overseas oil exploration project was the Rostam and Raksh oil fields in Iran.
• OVL’s first major oil find was the LanTay and LanDo oil fields in Vietnam.
• Functions under the Ministry of Petroleum and Natural Gas.

Oil India Ltd (OIL)

• OIL is Asia’s oldest petroleum and natural gas company.
• Established 1889, incorporated 1959. Headquarters Noida.
• The predecessor of OIL made the first oil discovery in India 1889.
• OIL’s operations are mostly concentrated in the northeast.
• Functions under the Ministry of Petroleum and Natural Gas.

Gas Authority of India Ltd (GAIL)

• It is India’s largest natural gas company.
• Established 1984, headquarters New Delhi.
• GAIL commissioned the 2800 km Hazira-Vijaipur-Jagdishpur (HVJ) natural gas pipeline in 1991.
• GAIL set up north India’s only petrochemical at Pata (Uttar Pradesh) in 1999.
• Functions under the Ministry of Petroleum and Natural Gas.

Directorate General of Hydrocarbons (DGH)

• Established in 1993, office in New Delhi.
• Acts as an advisory and regulatory body for oil and gas exploration and production in India.
• Objectives of the DGH include
• Promote sound management of oil and natural gas resources
• Develop balanced regard for environment, safety, technology and R&D
• The DGH is responsible for implementation of New Exploration Licensing Policy (NELP), production sharing contracts for oil and gas discoveries, and monitoring and review of reservoir performance of producing fields.
• Functions under the Ministry of Petroleum and Natural Gas.

Petroleum refinement

• There are three public sector enterprises and two private enterprises in petroleum refinement: Indian Oil, Bharat Petroleum, Hindustan Petroleum, Reliance Petroleum and Essar Oil.
• Indian Oil Corporation Ltd (IOCL) is the largest in petroleum refinement and distribution. It accounts for 47% of petroleum products and 40% of refining capacity.
• The IOCL is also the largest commercial enterprise in India.

Refinery	State	Operator	Notes
Digboi	Assam	Indian Oil	India’s oldest refinery (1901)
Guwahati	Assam	Indian Oil	First public sector refinery
Barauni	Bihar	Indian Oil
Koyali	Gujarat	Indian Oil
Haldia	West Bengal	Indian Oil
Mathura	Uttar Pradesh	Indian Oil
Panipat	Haryana	Indian Oil
Jamnagar	Gujarat	Reliance	Largest refining complex in the world
Manali	Tamil Nadu	Indian Oil (Chennai Petroleum Corporation Ltd)
Bombay High	Maharashtra	Bharat Petroleum
Kochi	Kerala	Bharat Petroleum
Vishakapatnam	Andhra Pradesh	Hindustan Petroleum
Vadinagar	Gujarat	Essar Oil