Introduction
Natural gas is a vital component of the world's supply of energy. It is one of the cleanest, safest, and most useful of all energy sources.
Natural gas is a combustible mixture of hydrocarbon gases. While natural gas is formed primarily of methane, it can also include ethane, propane, butane and pentane.
Natural gas is likely to play a greater role in the world energy mix given its growing resource base and its relatively low carbon emissions compared to other fossil fuels.
Natural gas, when compressed at a pressure of 250 bars, is termed as compressed natural gas (CNG).
Global Scenario
The world’s natural gas reserves are estimated to be 7,360.9 trillion cubic feet (tcf). The Middle East holds 38.4% of the world’s reserves, while an additional 21.4% is located in the former Soviet Union, with only 9% held in the OECD countries.
In 2011, the global natural gas production was 3,276.2 billion cubic metre (bcm), up 3.1% from 3,178.2 bcm in 2010, and consumption was 3,222.9 bcm, compared with 3,153.1 bcm in the previous year.
The US, Russia and Canada are the largest natural gas producing countries, while the US, Russia and Iran are the largest natural gas consuming countries in the world.
Indian Scenario
The balance recoverable natural gas reserves in the country is 1240.9 bcm, which accounts for only 0.6% of the world’s total natural gas reserves.
The share of natural gas in the country's primary energy mix decreased to 9.8% in 2011 from11% in 2010.
However, this share is quite low compared to the global average (24%), primarily due to the supply-side constraints.
The natural gas (including CBM) production in 2011 was 46.1 bcm, which is 12.8% higher than the actual production of 50.8 bcm in 2010.
India's consumption of natural gas was around 61.1 bcm in 2011, which accounts for only 1.9% of the world natural gas market.
As India does not have any pipeline connection, all the gas currently imported is LNG. India's current operational LNG import capacity is 18 bcm.
Price Moving Factors
Natural Gas inventory data
The US weather conditions and active hurricane season poses a threat to the US Gulf coast’s
natural gas production
Price of crude oil
Industrial and Residential demand in the US
