GAS ECONOMY
Several new gas pipelines will converge into a gas network, to bring cheap, abundant supplies across India. High costs of the pipelines (see comments) are mitigated by setting up city gas distributions in large urban centres and by supplying future economic corridors. It's a godsend for reviving fertilizer plants in fertilizer deficient (eastern) states, and for creating large numbers of food processing units close to farming centres. The plan also envisages gas exploration, NE gas exploitation & linkages,  doubling of LNG import capacity, universal domestic LPG gas coverage and revival of gas power plants. Gas is also being promoted for transport, eg KL trialling LNG in buses.

ISSUES
1. A glut in world markets has lowered costs. Imported LNG works out slightly more expensive. Transnational gas pipeline offers a low-cost, long-term solution but ties India into a strategic dependency. Domestic gas exploitation, Waste to Energy and Coal gasification are attractive indigenous options for the future.

2. Long term affordable gas is essential. Diversity of LNG sourcing helps India's bargaining position and reduces dependency. India has quite a few options.

3. The Right of way delays have plagued previous pipe-laying efforts. Kochi-TN-Bangalore- Mangalore route is finally seeing traction. Unimpeded access is essential for the plan to work. Land along rail and road corridors can expedite laying for gas, oil and optical fibre. Additional non-fare/ non-toll income helps rail and road respectively.

PLAN
* LPG demand at 5.1% pa - will more than double under plan.
* Seismic surveys and other explorations for gas and oil, to be done by oil PSUs, @ Rs 5,000+ crore.
* LPG import capacity - more than double (in MTPA)
Dahej, GJ from 10.0 /  15.0 --> 18.0
Dabhol, MH from 1.2 --> 5.0
Hazira, GL         5.0
Kochi, KL           5.0 (idle)
Mundra, GJ       0 -->   5.0
Dhamra in OD   0--->   5.0
Ennore, TN        0--->   5.0
Kakinada, AP    0--->   1.75

TRANSNATIONAL
* Russia  - India trade ("pipeline") - Russian options for supply or long-term price security.
> Supply security: the direct route through Himalayas & West China costs $25 to $40 billion; or via Myanmar/ East China at a lesser cost. Both parties may contribute.
> Supply security: link to TAPI. Gives supply security only if there is one other pipeline, and at least one remains open at all times.
> Price security: price swap allows India to source gas from Iran and price difference is settled between India-Russia.
* TAPI:  $9 billion. 1820km route. Turkmenistan - India via Afg, Pak, is u/c and proceeding fast. Multi-partite agreement in place. India's share is 13.9MTPA. Supplies gas directly to North India (PJ, HY, Raj).
* Iran-India via Oman undersea: $5 billion dollars. India may fund the entire cost. It will have to verify technical aspects and bear the whole risk.

NATIONAL
* Eastern Gas network for city gas, fertilizer plants, food processing  Rs 50,000 crore. (see comments)
* South India gas pipeline
* NE exploration and transnational linkages

GAS DISTRIBUTION
* LPG gas connections  Rs 8,000. Free 50m connections by 2018.
* Gas power plants: subsidized gas is provided to stranded gas power projects. Due to current low prices, projects suffice with purchase agreements and minimal subsidy. Power ministry is looking for long-term gas deals with LNG suppliers. Gas power generation is good at balancing the grid because it can be switched on/ off quickly. Indian Railway has revived Dabhol gas plant because it wants clean energy.

Reviving and expanding Urea fertilizer plants
Food processing and co.

CITY GAS DISTRIBUTION
* City gas distribution: From 6%pa in CNG or transportation sector, CGD is set for immense growth due to PNG or piped natural gas. Many private and PSUs are building the city network. Distributors (those selling gas to customers) are buoyant.
1. CNG - domestic and commercial vehicles (like taxis, light commercial vans) are growing numbers.
2. Piped natural gas - will see wide demand from residential, commercial (hotels, offices, canteens) and industrial (dryers, boilers, furnaces).

http://smartcities.gov.in/writereaddata/PPT_on_CGD.pdf
Natural Gas is the least polluting fuel - PNG is ideal for any Smart City. However, India currently has very poor coverage and limited gas connections. Even after 101 CGDs are effected, 60% of the proposed 98 smart cities will be left out. Similarly, 95% of all connections are in Gujarat, NCR and Mumbai/Pune.

Central Govt is facilitating PNG and intends to cover all cities:
1. Unserved East, NE and South India will get trunk gas pipeline. CGD spurs will be built at the same time.
2. Work on CGD is planned ahead. Delays and the high cost of last mile connections can be tackled thus, eg if the city authority (eg Kolkata) doesn't facilitate pipe laying and/or inexpensive connections, it doesn't get the spur.
3. Gas availability for CGD is guaranteed.
4. Gas distributors are delivering very good service.

India’s LNG demand set to double in next 4 years: Report