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### 1.

Ways and Applications of Natural Gas:

a) Electricity Generation:

- Usage: Natural gas is used by utilities as a fuel to generate electricity.

- Importance: This application provides a cleaner alternative to coal and other fossil fuels,
contributing to reduced emissions in the power generation sector.

b) Cooking and Household Needs (Piped Natural Gas - PNG):

- Usage: Natural gas is distributed through pipelines directly to homes for cooking and other
household needs.

- Importance: PNG is favored for its convenience, cleanliness, and efficiency compared to traditional
cooking fuels like wood or charcoal.

c) Industrial Applications:

- Usage: Natural gas serves as a fuel for industrial processes including boilers, furnaces, baking
ovens, and air conditioning.

- Importance: It provides efficient and cost-effective energy for industrial operations, contributing to
productivity and operational sustainability.

d) Transportation (Compressed Natural Gas - CNG):

- Usage: Natural gas is compressed and used as a fuel for vehicles, especially in urban transport
systems.

- Importance: CNG is considered a cleaner alternative to gasoline and diesel, reducing vehicular
emissions and improving air quality in urban areas.

e) Industrial Feedstock:

- Usage: Natural gas is used as a feedstock in petrochemical and fertilizer industries.

- Importance: It serves as a key raw material for producing various chemicals and fertilizers,
contributing to industrial growth and agricultural productivity.

### 2. Exploration and Production (E&P) Sector of India:

a) Introduction of NELP:
- Policy: The New Exploration and Licensing Policy (NELP I) was introduced in 1997 and implemented
in 1999.

- Objective: It aimed to attract investment and technology for exploration and production activities
in India's sedimentary basins.

b) Rounds of NELP:

- Activities: Six rounds of NELP have been conducted, resulting in the award of 162 blocks to various
entities including National Oil Companies (NOCs), PSUs, Joint Ventures (JVs), and foreign exploration
companies.

- Discoveries: Significant discoveries were made in basins like Cambay, Mahanadi, Krishna Godavari
(KG) offshore, and Rajasthan, encouraging further exploration.

c) Future Prospects:

- Expansion: Plans are underway to increase the exploration area from the current 44% coverage of
Indian sedimentary basins to 80% by 2015.

- Impact: This expansion aims to enhance domestic production of oil and gas, reducing dependence
on imports and bolstering energy security.

### 3. LNG Import Projections for India:

- Projection: India's LNG imports are projected to increase over the coming years:

- 10 million tonnes in 2015,

- 21 million tonnes in 2020,

- 31 million tonnes in 2025.

- Reasoning: These projections assume that additional gas import requirements will be met by LNG,
highlighting the growing role of LNG in meeting India's energy needs due to domestic production
constraints and increasing demand.

### Explanation:

- Natural Gas Applications: Natural gas is versatile, serving both residential (cooking, heating) and
industrial (process heating, electricity generation) needs. It's also pivotal in transportation as CNG
and as a feedstock in industrial processes.
- E&P Sector: The NELP initiative significantly boosted India's exploration and production capabilities,
leading to substantial discoveries in key basins. Future plans aim to expand exploration activities to
cover a larger portion of sedimentary basins, thereby enhancing domestic production.

- LNG Imports: Despite efforts to increase domestic production, India's demand for natural gas is
projected to outstrip supply, necessitating increased LNG imports to bridge the gap.

This structured approach clarifies how natural gas is utilized across various sectors in India, the
developments in the E&P sector, and the anticipated trajectory of LNG imports to meet future
energy demands.

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