Natural gas

• Natural gas consists of primarily methane and ethane. (LPG is a mixture of butane and propane)
• Propane, butane, pentane, and hexane are also present.
• Natural gas is formed during the process of formation of Petroleum.
• Hence, it is often found dissolved in oil or as a gas cap above the oil.
• Sometimes, the pressure of natural gas forces oil up to the surface. Such natural gas is known as
associated gas or wet gas.
• Some reservoirs contain gas and no oil. This gas is termed non-associated gas or dry gas.
• Often natural gases contain substantial quantities of hydrogen sulphide or other organic
sulphur compounds. In this case, the gas is known as “sour gas.”
• Coalbed methane is called ‘sweet gas’ because of its lack of hydrogen sulphide.
Oil + Gas  Associated Gas or Wet Gas,
Only Gas  Non-Associated Gas or Dry Gas,
Hydrogen Sulphide in gas  Sour Gas,
Coalbed Methane  Sweet Gas.
• On the market, natural gas is usually bought and sold not by volume but by calorific value.
• In practice, purchases of natural gas are usually denoted as MMBTUs (millions of British thermal
units – BTU or Btu) = ~1,000 cubic feet of natural gas.
• The Government of India has set an ambitious target to increase the share of natural gas in the
energy mix from the existing 6% to 15% by 2030 to transform India into a gas-based economy.

Applications
• Electric power generation.
• Many buses and commercial vehicles now operate on Compressed Natural Gas (CNG).
• Ammonia is manufactured using hydrogen derived from methane.
• Ammonia is used to produce chemicals such as nitric acid, urea, and a range of fertilizers.
• Heating and Cooling: Natural gas is commonly used for residential and commercial heating, as
well as for cooling in the form of liquefied natural gas (LNG).

Formation of Natural Gas

• Organic matter deposition: Dead marine organisms and other organic matter settle on the
ocean floor and are buried by sediment.
• Compaction and burial: Over millions of years, the layers of sediment are compacted and buried
deeper, increasing the pressure and temperature.
• Kerogen formation: The organic matter is transformed into a waxy substance called kerogen.
• Catagenesis: As the temperature and pressure continue to increase, the kerogen breaks down
into hydrocarbons, including methane (CH4), the main component of natural gas.
• Migration: The newly formed natural gas migrates through the rock formations until it becomes
trapped in a reservoir rock capped by an impermeable layer.
• Natural gas reservoir: The trapped natural gas forms a reservoir that can be tapped for
extraction.

Source: flickr

Source: eia.gov
Distribution of Natural Gas across India and the World

Top Natural Gas Producers, Consumers, and Countries with Highest Reserves
Proven Reserves 2022 Production 2022 (Billion Consumption 2022 (Billion m³)
(Trillion m³) m³)
Country Reserves Country Production Country Consumption
1. Russia 47.8 1. United 978.6 1. United 857
States States
2. Iran 33.7 2. Russia 618.4 2. Russia 460
3. Qatar 24 3. Iran 259.4 3. China 306
4. United 15 4. China 221.8 4. Iran 220
States
Leading exporters (2022): United States, Russia, Qatar
Leading Importers – LNG (2022): Japan, China, South Korea, India.
• According to India's Climate & Energy Dashboard (ICED), India's proven gas reserves as of
2022 were 6,216 billion cubic meters (bcm).
• According to BP's Statistical Review of World Energy 2023, India's gas consumption in 2018
was approximately 60.7 billion cubic meters (bcm).
• In 2022, India's natural gas consumption reached 64 billion cubic meters (bcm).
• The production of natural gas (utilised) in India was 28,673 MMSCM in 2020-21.
• Offshore areas are the largest producer of natural gas (utilised) in India, accounting for 64%
of the total production, followed by Assam (10%), Rajasthan (7%), Tripura (6%), Gujarat (4%), Tamil
Nadu (3%), and other regions contributing the remaining 5%.

Russia • Some of the world’s largest gas fields occur in a region of West Siberia and
east of the Gulf of Ob on the Arctic Circle.
• The world’s largest gas field is Urengoy.
• Volga-Urals region also has significant gas reserves.
• The Yamal Peninsula holds another massive gas field called Yamburg, rivaling
Urengoy in size.
• Gazprom, the state-owned Russian gas giant, controls most of these fields.
North • The largest gas field of United States, Hugoton, extends through the
America Oklahoma, Texas and Kansas.
• The Marcellus Shale in the Appalachian Basin holds vast unconventional gas
reserves, contributing significantly to US production.
• Canada’s largest gas field is in Alberta.
• Much of Mexico’s natural comes from Gulf of Mexico.
• Mexico's Burgos Basin, onshore from the Gulf of Mexico, is major source of
natural gas.
Europe • Dutch coast and the North Sea (off the coast of Norway) have proven reserves.
• Norway and Netherlands are the leading producers in the region.
• The Groningen field in the Netherlands was historically the largest in Europe,
but production is being scaled back due to geological instability.
• Norway's Troll field in the North Sea is one of the largest offshore gas fields
globally.
• Ukraine also holds significant gas reserves, particularly in the Eastern Dnieper-
Donets Basin.
Africa • Central basin of Algeria and Niger Delta have proven reserves.
• Mozambique's Rovuma Basin holds massive offshore gas reserves, with
development underway.
• Tanzania's deepwater discoveries also hold significant potential.
Middle East • There is an enormous gas potential in the Middle East associated with the major
oil fields in the Arabian-Iranian basin.
• Iran and Qatar have significant proven natural gas reserves in the world.
• Qatar's North Field gas field, extending into Iranian territory, is the world's
largest non-associated gas field.
Asia • The largest gas field in Asia is in the North Sumatra basin of Indonesia.
• Malaysia and Indonesia combined have significant gas reserves.
• China's Sichuan Basin holds vast shale gas reserves, with ongoing
development efforts.
• Turkmenistan's Galkynysh field is one of the largest onshore gas fields
globally.
India • KG basin, Assam, Gulf of Khambhat, Cuddalore district of Tamil Nadu,
Barmer in Rajasthan etc.

Domestic Allocation and Supply of Natural Gas

Domestic Natural Gas and (ii) Imported Re-gasified Liquefied Natural Gas (R-
LNG).
Sector Domestic R-LNG Total
Fertilizers 22.04 20.51 42.55
Power 24.73 7.44 32.17
City gas distribution 11.55 8.12 19.67
Petroleum and Gas Value Chain

• Oil & gas industry is divided in Upstream, Midstream and Downstream sector.
Natural Gas Pipeline Network in India

Company Operational Total

Length (km) Length
(km)
GAIL 11,007 19,676
GSPL 2,716 2,816
IGL 1,479 1,935
IOC 1,431 1,431
CLP 107 107
AGCL 304 304
RGPL 734 734
GGL 224 224
DFPC 4,000 4,916
ONGC 1,5895 1,8095
Others* 240 4,886
Total 15,895 33,307
Source: duncanfertilizer