Natural Gas requirement by fertilizer sector in India

Natural Gas is one of the important fossil fuel energy resources in India. Anchor customers of natural gas are the power sector and nitrogenous fertilizer. It is the cleanest form of energy derived from the fossil fuel basket. Because of clean combustion characteristics, natural gas is the fuel choice for many sections of Indian industry. The demand for natural gas will grow with time. Currently natural gas accounts for 7% of the primary energy consumption of India. The Government of India has its commitment to food security and energy security. The policies are directed toward greater allocation of natural gas on a priority basis to fertilizer and the power sector. Natural gas is the main and preferred feedstock for urea manufacture. This paper analyzes and estimates projected demand of natural gas in the next two decades. The demand projections have been reviewed in the context of changing government policies regarding the fertilizer industry, such as farm gate price regulation and self-sufficiency level of indigenous urea production. The current growth plan of natural gas supply and evolving supply scenario in the future are also considered in the study.