Demand Assessment of Natural Gas in Selected Sectors in Faridabad

Demand Assessment of Natural Gas in Selected Sectors in Faridabad
A PROJECT Submitted in partial fulfillment of the requirements for MBA (Retail Management)
by
Vikram Singh (Pgrm/03/33)
Under the guidance of Mr. Bhasik Dholakiya (General Manager, Adani Gas Limited) Ms. Charu Vermani (Sr. Manager, Adani Gas Limited)
JULY, 2010
ACKNOWLEDGEMENT
It is said that the road to success begins with just a step in the right direction. What are required are the urge to excel and the ability to work hard consistently. Proper application of knowledge and expert guidance are essential ingredients of success. The project work titled Demand Assessment of Natural gas in Selected Sectors in Faridabad being submitted will remain incomplete unless I thank all those who helped me directly and indirectly for the successful completion of this project. I would like to express my deep sense of gratitude towards my guides Mr. Bhasik Dholakiya (General Manager, Adani Gas Limited), Ms. Charu Vermani (Sr. Manager, Adani Gas Limited), Mr. Mani Ratan Singh (Asst. Manager, Adani Gas Limited) and Mr. Rakesh yadav (Asst. Manager, Adani Gas Limited) who have been a constant source of inspiration and encouragement in my endeavor. Their thoughts, ideas, concepts and above all their modest efforts contributed in a big way in completing this project. I am also indebted to members of the Management for the facilities provided and support without which my project would not have turned into an actuality. At last, I would like to thank all organizations of the four sectors sector 6, 24, 59 and NIT Industrial Area of Faridabad city for devoting their precious time in filling up the questionnaire.
CONTENTS
Items
LIST OF TABLES LIST OF FIRGURES EXECUTIVE SUMMERY Chapter 1: About Adani Gas Chapter 2: Introduction Chapter 3: Natural Gas Scenario in India Chapter 4: Property, Use and Safety of Natural Gas Chapter 5: What is City Gas? Chapter 6: Economics of City Gas Chapter 7: Demand Assessment of City gas in selected sectors in Faridabad city Chapter 8: Conclusion Annexure References
Page No.
i ii iii-iv 1 2-4 5-13 14-18 19-37 38-44 45-68 69
I
LIST OF TABLES
Table No. Table 2.1 Table 3.1 Table 3.2 Table 3.3 Table 3.4 Table 4.1 Table 5.1 Table 5.2 Table 5.3 Table 7.1 Table 7.2 Table 7.3 Table 7.4 Table 7.5 Table 7.6 Table 7.7 Table 7.8 Table 7.9 Table 7.10 Table 7.11 Table 7.12 Table 7.13 Table 7.14 Table 7.15 Table 7.16 Table 7.17 Estimated Energy Reserves Domestic vs Global gas reserves (2008) Natural gas Supply Outlook (in MMSCMD) Sector wise natural gas demand outlook (in MMSCMD) Snapshot of Previous Rounds of NELP Components of Natural Gas Property Comparison of CNG with other Fuels Players in CGD New Trunk Pipelines Projects Small Scale Industries Medium Scale Industries Large Scale Industries Type and Number of industry in sector 6 Types of Fuels used in industry Total Daily fuel consumption in Industries in sector 6 Equivalent NG consumption with & without power requirement in sector 6 Type and Number of industry in sector 24 Total Daily fuel consumption in Industries in sector 24 Equivalent NG consumption with & without power requirement in sector 24 Type and Number of industry in sector 59 Total Daily fuel consumption in Industries in sector 59 Equivalent NG consumption with & without power requirement in sector 59 Type and Number of industry in NIT Industrial Area Total Daily fuel consumption in Industries in NIT Industrial Area Equivalent NG consumption with & without power requirement in NIT Industrial Area Total demand of PNG in these four sectors: Table Name Page No. 4 5 8 9 13 14 22 35 36 47-55 55-57 58 59 60 60 61 62 62 63 64 64 65 66 66 67 68
LIST OF FIGURES
Figure No. Fig 2.1 Fig 2.2 Fig 3.1 Figure Name Per capita Energy consumption world-wide (Kgoe) Primary energy Mix of India & World Productions and Consumption of Natural Gas in India during 2000-08 (in BCM) Fig 3.2 Fig 3.3 Fig 3.4 Fig 4.1 Fig 5.1 Fig 6.1 Fig 6.2 Fig 6.3 Fig. 7.1 Fig 7.2 Fig 7.3 Fig 7.4 Fig 7.5 Fig 7.6 Fig 7.7 Natural Gas Consumption pattern in India (2009-10) Estimates for NG Supplies from Domestic Fields Exploration Status Symptoms of CO Poisoning Existing and Upcoming pipelines in India Mother Station Daughter Booster Station Online Station Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 6 Equivalent NG consumption with & without power requirement in sector 6 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 24 Equivalent NG consumption with & without power requirement in sector 24 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 59 Equivalent NG consumption with & without power requirement in sector 59 Share of Different fuels to be replaced by Natural Gas (SCMD) in NIT Industrial Area Fig 7.8 Equivalent NG consumption with & without power requirement in NIT Industrial Area 67 7 8 12 17 37 41 42 43 61 61 63 63 65 65 67 Page No. 2 4 6
ii
Executive Summary
Due to environmental concerns and price competitiveness, the Natural Gas has become fuel for the future. It is called the fuel of the 21st century. Gas consumption is increasing every year by leaps and bounds all over the world. In India with recent discoveries of Gas fields, has been spotted in the world map of gas producers. BP Statistical Review of World Energy, June 2009, the R/P ratio of domestic gas reserve is 35.6 years. According to ICRA report, domestic natural gas supplies to increase to around 230 MMSCMD by 2018-19, from around 145 MMSCMD in 2009-10. Besides RILs KG D6 field, the other sources which will contribute towards supply increase include: KG basin satellite fields (owned by RIL consortium); NEC field (RIL consortium); Deen Dayal block in KG basin (GSPC consortium); KG-DWN-98/2 (ONGC); and MN-DWN-98/3 (ONGC). The demand of natural gas will always surpass the supply. For meeting this demand supply gap, several initiative are being taken such as importing LNG, trans-national pipelines, NELP, CBM production etc. The current natural gas consumption is primarily shared by the power and fertilizer sector to the tune of 39 percent and 25 percent respectively. This is followed by the Petro Chemical, Refinery & Internal Consumption 13% percent, city gas (CNG/PNG) 4 percent, Industrial &Captive Power 14 percent and sponge iron/steel sector 5 percent. The increase in gas supplies and gas transmission infrastructure is also likely to provide a fillip to City Gas Distribution (CGD) players. As of now, CNG and PNG are available in 40 cities in India. Natural gas being clean, energy efficient and cost efficient in comparison with other fuels it competes, customers are attracted towards natural gas. Adani Gas has already set up a Gas Distribution Network in Ahmedabad and Vadodara city of Gujarat and Faridabad city of Haryana. In Faridabad city, presently only 4 CNG stations are there and 44,314 Kg of CNG is being sold everyday. Faridabad is a hub of industry. Sector 6, 24, 59 and NIT Industrial Area were being surveyed for estimating the PNG demand potential in the industrial sector. There are around 400 small, medium and large industries in those sectors.
iii
These industries are presently consuming LPG, Diesel Coal, Petcoke, FO as their fuels. PNG can replace these conventional fuels in the existing plants. Based on their daily consumption of different fuels, the demand for equivalent (energy equivalent) amount of piped natural gas would be 0.06847367 MMSCMD for Sector 6, 0.0441559122 MMSCMD for Sector 24, 0.035599505 MMSCMD for Sector 59 and 0.04039581801 MMSCMD for NIT Industrial Area. Therefore, total demand of PNG in these four industrial regions would be 0.188625 MMSCMD or approximately 0.20 MMSCMD.
iv
Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..
Chapter 1
****************
About Adani Gas

Adani Gas is a wholly owned subsidiary of the Adani Enterprise Ltd (AEL) and was incorporated for setting up distribution network in various cities to supply natural gas to industrial, Commercial, Domestic and CNG Customers. The company has forayed into the business of Gas Distribution Business with an objective of providing safe, convenient, reliable and environment friendly fuel. Adani Gas has already set up a Gas Distribution Network in GUJARAT: Ahmedabad and Vadodara HARYANA: Faridabad Till date, in Ahmedabad city 418 industrial customers are being served with their total PNG requirement is 2,27,898 SCMD, 669 commercial customers are being served with PNG consumption 12,279 SCMD, 82,876 domestic customers are being served with total gas consumption 45,582 SCMD and 1,90,054 kg of CNG sales per day. In Vadodara, 71 industrial customers are being served with their total PNG requirement is 44.628 SCMD and 47,698 kg of CNG sales per day. In Faridabad city, presently only 4 CNG stations are there and 44,314 Kg of CNG is being sold everyday. Adani Gas has received NOCs to develop City Gas Distribution networks to repeat the similar success stories in UTTAR PRADESH: Noida, Lucknow & Khurja, and RAJASTHAN: Udaipur and Jaipur. Adani Gas has already initiated the infrastructure development in these cities to meet the fuel needs of industrial, domestic, commercial & Transport sectors.
Chapter 2
****************
Introduction
India has been experiencing unprecedented economic growth at the rate 7-9% per year for the last few years and is aspiring to become a leading economic power in the world in the next few decades. India has set itself an ambitious target of 9 % sustained growth rate during the Eleventh Five Year Plan. Energy consumption is seen as one of the indicators of economic development. Being the driver of any economy, energy has seen its demand rising with economic growth. India is currently the world's fourth largest economy in Purchasing Power Parity (PPP) terms and the fifth largest energy consumer in the world. However, due to its high population of approximately 1.1 billion, the per-capita consumption of most energy related products is extremely low. The per capita energy consumption is estimated to be a very modest 530 kgoe while the world average is approximately 1820 kgoe. With the targeted GDP growth rate of 8 to 9 percent, Indias energy requirement is bound to increase in the coming years. India will face significant challenges to meet this growing energy demand. India is well endowed with coal which is expected to continue to be the dominant energy source. At the current level of consumption, the proven reserves of coal, can last for about 80 years. If all the inferred reserves also materialize then coal and lignite can last for over 2
Fig 2.1 Per capita Energy consumption world-wide (Kgoe)
140 years at the current rate of extraction. Of course coal and lignite consumption will increase in the future and the reserves would last for far fewer years. If domestic coal production continues to grow at 5% per year, the total (including proven, indicated and inferred) extractable coal reserves will run out in around 45 years as per Integrated Energy Policy 2006. Therefore, India would have to actively pursue and develop non-coal energy sources. Indias oil assets are meager. In addition, some of the existing oil and gas fields were experiencing a decline in their production since they had already been in production for several years and were past their 3 plateau phase. As India is poorly endowed with oil assets, it has to depend on crude imports to meet a major share of its needs, close to 78 percent with its oil import bill being close to USD 90 billion in 2008-09. According to the IEA, we will be import dependent to the extent of 94 per cent by 2030. Beside this, the price of crude oil has seen dramatic fluctuations in the last one year from a high of about $147 per barrel to $35 per barrel & currently it hovers at roughly $78/barrel. Such wild fluctuations in crude oil prices make growing economies such as ours vulnerable from an energy security viewpoint. The price swing seen in the past 12 months further highlights how precariously the demand and supply is balanced and how the growing demand from developing countries can cause demand-supply imbalances. This has led governments across the world to search for viable alternative sources of energy in order to increase their energy self-reliance. Many countries have significant investments in renewable sources of energy to help reduce carbon emissions. India can not boast of its gas assets but recent discoveries hold promise for Indias gas reserves and coal bed methane. India has vast reserves of the nuclear fuel thorium but the technology is not yet developed for its commercial use. Renewable energy currently contributes about 9% and it is expected to grow very rapidly especially in areas like wind and solar power.
Demand Assessment of Natural Gas in Selected Sectors in Faridabad .. Table 2.1 Estimated Energy Reserves
Resource Coal Oil Gas including coal bed methane Uranium metal Thorium metal Hydel
Source: Planning Commission of India, 2006
Unit Mtoe Mtoe Mtoe Tonnes Tonnes MW
Reserve 13,489 786 1,866 61,000 225,000 150,000
Indias primary energy mix

Indias primary energy mix is dominated by coal (231.4 MTOE), followed by oil (135 MMT), gas (37.2 MTOE), hydro (26.2 MTOE) and nuclear (3.5 MTOE). The proportion of natural gas in Indias primary energy basket is approximately one-third that of the world average, indicating the potential for rapid growth. It may be noted in this context, that a heavy reliance on coal in India is not optimal, given that coal is a far more polluting fossil fuel as compared to natural gas.
India's primary energy mix in 2008

Hydro 6% Gas 9%
World's primary energy mix in 2008

Hydro 6% Gas 24% Coal 29%
Oil 31%
Coal 53%
Oil 35% Nuclear 1% Nuclear 6%
Fig 2.2 Primary energy Mix of India & World
Chapter 3
****************
Natural Gas Scenario in India

Natural gas has emerged as the most preferred fuel due to its inherent environmentally benign nature, greater efficiency and cost effectiveness. The demand of natural gas has sharply increased in the last two decades at the global level. In India too, the natural gas sector has gained importance, particularly over the last decade, and is being termed as the Fuel of the 21st Century. Natural gas is often termed as the cleanest fossil fuel, producing less carbon dioxide per joule delivered than either coal or oil hence plays a crucial role in the primary energy basket of India.
3.1 Natural gas reserves

As per BP Statistical review of world energy 2009, India had proved natural gas reserve of 1.09 TCM at the end of 2008. This reserve is approximately 0.6% of total worlds proved gas reserves of 185.02 TCM. The bulk of Indias natural gas production comes from the western offshore regions, especially the Mumbai High complex. The onshore fields in Assam, Andhra Pradesh, and Gujarat states are also major producers of natural gas. India produced 30.6 BCM of natural gas. Presently, Reliances KG basin gas production has come as a boon.
Table 3.1 Domestic vs Global gas reserves (2008)
Place World India Reserves (TCM) 185.02 1.09 Production (BCM) 3065.3 30.6 R/P 60.4 years 35.6 years
Source: BP Statistical Review of World Energy, June 2009
3.2 Production and Consumption of Natural Gas in India

India is one of the largest Energy consumers in the world. Gas consumption is always at rise since early 1980s. The gas market in India is emerging, mainly because of shift of fertilizer industries towards gas from Naphtha/fuel oil as their feed stock. Power sector is also a 5
major reason for India to emerge as a major gas market in the world, because power sector is using large quantity of gas for their power production. Another major driver for natural gas consumption would be city gas. Many cities are taking up CNG program for their transportation, which is going to surge in natural gas demand by huge margin. PNG is also a part of city gas, which is also going to affect the demand for natural gas.
Fig 3.1 Productions and Consumption of Natural Gas in India during 2000-08 (in BCM) Production 45 40 35 30 25
29.2 31.9 29.6 35.7 37.3
Consumption
20
29.5 29.5 26.4 26.4 26.4 26.4 27.6 27.6
40.1
15 10 5 0
2000
2001
2002
2003
2004
2005
2006
29.3
2007
30.1
2008
Source: BP Statistical Review of World Energy, June 2009
Fig 2.1 indicates that the consumption of natural gas is increasing and the demand s bound to increase in the coming years. As per EIAs International Energy outlook 2009, Non-OECD Asia, which accounted for 9 percent of the worlds total consumption of natural gas in 2006, shows the most rapid growth in natural gas use in the reference case and accounts for 31 percent of the total increase in world natural gas consumption from 2006 to 2030. In both China and India, natural gas currently is a minor fuel in the overall energy mix, representing only 3 percent and 8 percent, respectively, of total primary energy consumption in 2006. In the International Energy outlook 2009 reference case, natural gas consumption rises rapidly in both countries, growing by 5.2 percent per year in China and 4.2 percent per year in India, on average from 2006 to 2030.
30.6
40.4
3.3 Natural Gas Consumption Pattern in India

Gas demand in India continues to be influenced by the cost economics vis-vis alternative fuels pertaining to each of the end use sectors, primarily power and fertilizer, as also the dynamics of these sectors. The current natural gas
Pet Chem.+ Ref+ IC: 13% City gas: 4%
Fig. 3.2 Natural Gas Consumption pattern in India (2009-10)

Industrial+Cap Power: 14%
Power: 39%
consumption is primarily shared by the power and fertilizer sector to the tune of 39 percent and 25 percent respectively. This is followed by the Petro Chemical, Refinery & Internal Consumption 13% percent, city gas (CNG/PNG) 4 percent,
Source: Industry Outlook-Indian Downstream Natural Gas, ICRA Report Fertilizer: 25% Sponge Iron/Steel: 5%
Industrial &Captive Power 14 percent and sponge iron/steel sector 5 percent.
3.4 Natural Gas Demand-Supply Outlook

The Indian natural gas market reported a significant increase in supply in 2009-10 with the KG D6 field of RIL going into production. In fact, the actual supply could have been higher but for the capacity constraints in the trunk pipelines. The large increase in supply has been absorbed comfortably by the Indian market, reinforcing its significant growth potential. The Indian natural gas market saw an unprecedented 65% increase in gas supplies in 20092010 with RIL commencing production from its KG basin D6 block, in the process pushing up supplies from domestic fields to around 145 MMSCMD, from 87 MMSCMD in 2008-09. With KG D6 going on stream, RIL became the largest producer of natural gas in the country, a position held till then by ONGC for over five decades. According to ICRA report, domestic natural gas supplies to increase to around 230 MMSCMD by 2018-19, from around 145 MMSCMD in 2009-10. Besides RILs KG D6 field, the other sources which will contribute towards supply increase include: KG basin satellite fields (owned by RIL consortium); NEC 7
field (RIL consortium); Deen Dayal block in KG basin (GSPC consortium); KG-DWN-98/2 (ONGC); and MN-DWN-98/3 (ONGC). Further, ONGC is expected to begin gas production from several small and marginal fields that have been given to it on nomination by GoI. However, given that the output from the existing fields of ONGC has been falling by 7-8% annually, there wont be any significant net additions to production by ONGC from the nominated fields.
Table 3.2 Natural gas Supply Outlook (in MMSCMD) Sources ONGC+OIL (A) 2007-08 57.28 2008-09 58.42 2009-10 55.69 2010-11 54.67 2011-12 51.08
Pvt./JVs(As per DGH) (B) Additional Gas Anticipated (C) Total Projected Supply Under Normal Scenario (A+B) Total Projected Supply Under Optimistic Scenario (A+B+C)
23.26 80.54
61.56 119.98
60.28 74 115.97
58.42 84 113.09
57.22 94 108.30
80.54
119.98
189.97
197.09
202.30
Source: Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012)
Fig 3.3 Estimates for NG Supplies from Domestic Fields
Source: ICRA Estimates
Demand Assessment of Natural Gas in Selected Sectors in Faridabad .. Table 3.3 Sector wise natural gas demand outlook (in MMSCMD)
Sectors Power Fertilizer City Gas Industrial Petrochemicals/Refineries/Internal Consumption Sponge Iron/Steel Total 6.00 179.17 6.42 196.64 6.87 225.52 7.35 262.07 7.86 279.43 2007-08 79.70 41.02 12.08 15.00 25.37 2008-09 91.20 42.89 12.93 16.05 27.15 2009-10 102.70 55.90 13.83 17.17 29.05 2010-11 114.20 76.26 14.80 18.38 31.08 2011-12 126.57 76.26 15.83 19.66 33.25
Source: Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012)
3.5 Meeting the Demand-Supply Gap

The overall demand projections and even the most optimistic scenario of expected domestic supplies, it is very clear that there would be a supply shortfall. There is a large gap between demand and supply of natural gas in the country. The Government of India has adopted a multi-pronged strategy to augment supplies and to bridge the gap between supply and demand for the domestic market through(a) To help meet this gap and growing demand, a number of import schemes including both LNG and transnational pipeline projects have either been implemented or considered. (b) Exploitation of unconventional gas, like Coal Bed Methane (CBM). (c) Intensification of domestic Exploration & Production activities under New Exploration Licensing Policy (NELP).
3.5.1 Liquefied Natural Gas (LNG):

Currently, India has two LNG import terminals, with several others that are planned or proposed. India started receiving LNG shipments in January 2004 with the start-up of the Dahej terminal with a nameplate capacity of 5 MMTPA in Gujarat state. Petronet LNG, a consortium of state-owned Indian companies and international investors, owns and operates the Dahej LNG facility. The capacity of the terminal has been expanded to 10 9
MMTPA and the same has been commissioned in June, 2009. Petronet LNG is also building a second LNG receiving terminal at Kochi, which is expected to have a capacity of 2.5 MMTPA, when completed in 1st quarter of 2012. Indias second LNG terminal started operations in April 2005 near Surat in Gujarat state. The facility is owned by Hazira LNG, a joint venture of Shell and Total. The facility has an initial throughput capacity of 2.5 MMTPA, with the option of expanding that to 5 MMTPA in the future. Meanwhile, some progress is also being made to bring the partially constructed terminal at Dabhol into operation in which GAIL and National Thermal Power Corporation (NTPC) have a majority stake. Besides the gas meant for the Ratnagiri (the erstwhile Dabhol) plant, it appears that other parties may be allowed to use this terminal to re-gassify LNG obtained3 from various sources in return for a fee. The confirmation of Mangalore LNG terminal could be a possibility and 1.25 MMTPA imports could perhaps be expected at this terminal by 2011-12. Given this scenario, the LNG supply is projected to reach a level of 23.75 MMTPA by the year 2011-12 (Potentially it can add up 83.12 MMSCMD supplies at full capacity).
3.5.2 Trans-national Pipelines:

The Government has been exploring the possibility of importing gas from countries such as Iran, Turkmenistan, Bangladesh and Myanmar through pipelines. Various initiatives are under consideration, which include: The Iran-Pakistan-India (IPI) Gas Pipeline Project: The IPI Gas Pipeline Project has been conceived as a tripartite arrangement between Iran, Pakistan and India, with the volumes being divided between the two importing countries of India and Pakistan. The pipeline is estimated to cost around USD 7.5 billion and is expected to be 2300 km in length.
10
Although some progress was made, several outstanding issues remain. Issues around pricing, delivery point transit fees to be paid to Pakistan, certification of reserves of the fields meant to supply gas are yet to be resolved. Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project: This Asian Development Bank (ADB) sponsored project is likely to connect sources of supply, in Turkmenistan to sources of demand in Pakistan and India. The pipeline being considered will have a length of approximately 1680 km (including 145 km in Turkmenistan, 735 km in Afghanistan and 800 km in Pakistan up to the India border) and a capacity of 90-100 MMSCMD. Once again, while some headway has been made in discussions, issues regarding gas pricing, transit price and security of the pipeline in Pakistan, transmission tariffs etc. are to be decided. Myanmar-India pipeline: A 1,575 km long pipeline connecting the Shwe field in the A-1 block in Myanmar, in which both ONGC Videsh and GAIL own a stake, was considered to bring gas to India, while passing through Bangladesh. However, not much progress has happened on this front in recent times.
3.5.3 Coal Bed Methane (CBM):

CBM is natural gas (methane) adsorbed in coal and lignite seams and is an eco-friendly non conventional source of energy. Coal is both the source and reservoir rock for CBM. A saturated CBM reservoir could contain up to five times the amount of gas contained in a conventional gas reservoir of comparative size, temperature and pressure. To harness this new source, the Government of India approved a comprehensive CBM policy in July, 1997 for exploration and production of CBM gas. Till date 4 rounds of CBM bidding have been conducted with 36 blocks were in offer. Up to III round 23 blocks have been awarded. Three blocks had already been awarded on nomination basis. Under IVth round of International bidding 10 CBM blocks were offered and a total of 27 bids were received for 8 blocks. 11
Commercial production of CBM has already commenced in Raniganj (South) CBM block in West Bengal. Efforts are also being made in Sohagpur blocks in Madhya Pradesh and Jharia block in Jharkhand for commencement of commercial production at the earliest. From a current level of a total CBM production of 0.15 MMSCMD in the country, it is expected to go up to 7.4 MMSCMD by the year 2013 - 14.
3.5.4 Indigenous E&P:

Exploration activity, prior to NELP, was dominated by public sector firms such as Oil and Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). The sector received a major boost in 1974, when the massive Mumbai High fields were discovered off India's west coast. Even after three decades, these fields continue to be the mainstay of India's indigenous production. Realizing that these fields would gradually deplete over time and no major discoveries were being brought into production, the Government introduced the NELP, with an aim of encouraging private sector participation in the oil and gas sector. Seven rounds of NELP have been conducted so far. The success of the rounds can be measured in the increased exploration activities in the country. The proportion of unexplored acreages has witnessed a significant drop, from 40 to 15 percent, according to the upstream regulator, the DGH. Similarly, there are now 14 producing basins, as opposed to just three in 1990. Several new operators too have entered the fray as opposed to just the Government owned ONGC and OIL earlier.
Fig 3.4 Exploration Status
Source: The Oil & Gas Sector Overview in India 2009, KPMG Report
12
A glance at the number of blocks and bids received during the previous rounds of NELP indicates the increased interest that the bidding process has received in recent times from both domestic and foreign players.
Table: 3.4 Snapshot of Previous Rounds of NELP
NELP I No. of blocks offered No. of blocks bid for Total No. of bids received No. of blocks awarded 48 28 45 25 NELP II 25 23 44 23 NELP III 27 24 52 23 NELP IV 24 21 44 21 NELP V 20 20 69 20 NELP VI 55 52 185 52 NELP VII 57 45 181 44
Source: The Oil & Gas Sector Overview in India 2009, KPMG Report
Recent rounds of NELP i.e. NELP VIII have proved attractive in gaining the interest of Indian private sector and foreign players, with the private sector giant, RIL, winning the maximum number of blocks after the state-owned ONGC. A number of foreign players such as Cairn, BHP Billiton etc have also participated in the bidding rounds, forming consortiums with domestic and other foreign players. The NELP VIII Licensing Round attracted a total of 76 bids for 36 out of 70 blocks on offer. Some of the major discoveries in the last decade have been that of Reliance in the KG Basin and Mahanadi fields, ONGC and Gujarat State Petronet Corporation's (GSPC) claimed finds also in the KG Basin and the discovery of oil in Barmer, Rajasthan, by Cairn in 2002-03. RIL is expected to be able to produce over 80 mmscmd of gas by 2010-11, thus doubling domestic availability and ameliorating the large-scale shortages currently prevalent in the country (the company has recently commenced production of gas and the first 40 mmscmd of gas volumes have been allocated by the Government to fertilizer, City Gas Distribution (CGD), petrochemical and power units). Cairn, in turn, is likely to produce close to 175,000 barrels of oil by 2010-11 from its Mangala, Bhagyam and Aishwarya fields, helping to address energy security issues to some extent.
13
Chapter 4
****************
Property, Use and Safety of Natural Gas

4.1 Chemical composition of Natural Gas
The primary component of natural gas is methane (CH4), the shortest and lightest hydrocarbon molecule. It also contains heavier gaseous hydrocarbons such as ethane (C2H6), propane (C3H8) and butane (C4H10), as well as other sulphur containing gases, in varying amounts. Natural gas also contains Nitrogen, helium, carbon dioxide and trace amounts of hydrogen sulfide, water and odorants can also be present. Mercury is also present in small amounts in natural gas extracted from some fields. The exact composition of natural gas varies between gas fields. Table 4.1 Components of Natural Gas
Component Methane (CH4) Ethane (C2H6) Propane (C3H8) and Butane (C4H10) CO2, N2, H2S, etc. wt. % 70-90 5-15 <5 balance
4.2 Energy content & statistics

Quantities of natural gas are measured in normal cubic meters (corresponding to 0 C at 1 atm) or in standard cubic feet (corresponding to 60 F and 30 in Hg). The gross heat of combustion of one normal cubic meter of commercial quality natural gas is around 39 mega joules (10.8 kWh), but this can vary by several percent. In US units, one standard cubic foot of natural gas produces around 1000 British Thermal Units (BTUs). The calorific value ranges from 9000-10,000 Kcal per standard cubic meter.
4.3 Natural Gas Use

Approximately 22 percent of the energy consumption of the U.S. comes from natural gas. Over one-half of the homes in the U.S. use natural gas as their main heating fuel. 14
Natural gas is also an essential raw material for many common products, such as: paints, fertilizer, plastics, antifreeze, dyes, photographic film, medicines, and explosives. We also get propane, a fuel we use in many of our backyard barbecue grills, when we process natural gas. Industry depends on it. Natural gas has thousands of uses. It's used to produce steel, glass, paper, clothing, brick, electricity and much more! Natural gas is used for heating buildings, heating water, cooking, drying clothes, lighting, and industrial purposes. Some household appliances that use natural gas include:

Furnaces Pool and Spa Heaters Clothes Dryers Outdoor Lights Barbecues Water Heaters Stoves/Ranges Fireplace Logs Patio Heaters and Fire Pits
4.4 Using Natural Gas Safely

4.4.1 How Natural Gas Burns When natural gas burns, energy is released in the form of heat. Three things are required to make this process happen properly in your home appliances: heat from a pilot light, the right amount of fuel and the right amount of air. In some newer appliances, the pilot light is an electrical spark that happens only when you turn on the appliance. Or, the pilot light may be a small flame that burns continuously, using a tiny amount of natural gas as its fuel.
15
By the way, if you smell a slight odor of natural gas, it may mean that a pilot light has gone out. 4.4.2 Kitchen Safety What colour is Your Flame? Ranges and other appliances are carefully adjusted to provide the correct gas-air mixture. A normal flame (steady, blue, and cone-shaped) means the gas-to-air mixture is perfect. While flecks of orange are okay, if the flame is yellow, large, and flickering the appliance may need a safety adjustment. Ask an adult to have it checked by a qualified repairperson. The exception is decorative gas appliances such as fire logs, which are designed to have a yellow flame. Use a heater to warm the house, not the oven. Natural gas ovens are designed to cook food, not to heat rooms. Using your oven to heat the kitchen could damage the oven Dont play with gas appliances or pipes Make sure younger sisters or brothers dont play with oven knobsthey could turn the natural gas on without anyone knowing it. Also make sure they dont play with the natural gas pipes or flexible connectors that run between the gas range and the wall. Make the flame fit the pot Remind the cooks in your family to set the flame just high enough to cover the bottom of the pot. Flames that are too high can make a fire hazard and waste energy. Its also a good idea to turn pot handles inward toward the back of the range to prevent them from getting bumped. 4.4.3 Alert from CO Youve probably heard of carbon dioxideour lungs produce it when we breathe, and trees and plants use it to make oxygen. Carbon monoxide (CO) sounds the same, but it is very different. 16
CO is a dangerous gas that you cant smell or see. It is produced when people use natural gas or other fuels (such as gasoline, propane, fuel oil, and wood) without enough oxygen. Common sources of CO include gasoline engines running in closed garages, fuel-burning space heaters or water heaters with improper venting, and blocked chimneys or vent pipes. Symptoms of CO Poisoning The following figure 3.4 shows the symptoms of CO poisoning
Fig 4.1 Symptoms of CO Poisoning
If you breathe in CO, it enters your bloodstream and robs oxygen from blood cells. This is called CO poisoning. The early effects of CO poisoning make you feel like you have the flu, but without the fever. Severe cases of CO poisoning can be deadly. If you or someone in your home has these symptoms, get out of the house right away. Call your local fire department, or local emergency medical service.
17
How to Prevent CO Poisoning? Tell the adults in your household they can prevent CO poisoning by paying attention to these four safety tips: 1. Routinely maintain and inspect all heating systems and any fuel-burning appliances annually. 2. Periodically check vents, flue and chimneys for corrosion or blockages. 3. Never run your vehicle or fuel-burning equipment in an enclosed space. 4. Consider installing a carbon monoxide alarm and maintaining it properly. CO alarms are similar to smoke detectors, but have a different purpose. 4.4.4 Heater Safety Keep papers and toys away from furnace and water heater. Dont store gasoline, paint thinner, or aerosol cans near them either, as the vapors could be ignited by lights or appliance flames. Remind adults to have regular inspections. Remind the adults in your home to have your furnace, vents, and chimney inspected every year or two by a qualified service person. Blockages or cracks can make it hard for heating equipment to work properly or can lead to dangerous CO buildup. Use space heaters safely. If you use a vented gas space heater, make sure that it is properly vented to the outside. If you use a vent-free heater, make sure it has a switch that shuts off the heater if indoor oxygen levels get too low. Keep space heaters away from any flammable objects like papers, draperies, etc.
18
Chapter 5
****************
What is City Gas?

Natural Gas has found its use in many areas. When natural gas use is more specified like into the cities, the natural gas is termed as city gas. All the uses of natural gas as piped natural gas to domestic households, CNG for the vehicles, commercial uses (hotels, restaurant, corporate, school, trusts, clubs, temples, burring ghats), small industries (industries with municipal limit or with the concession limit or industries consumes less than or equal to 50,000 scmd at a pressure of 19 bars) are termed as city gas. So, mainly city gas is CNG and PNG both. We will discuss the CNG & PNG in details along with other related issues in city gas.
5.1 CNG
5.1.1 World Scenario Compressed Natural Gas (CNG) is a substitute for gasoline (petrol) or diesel fuel. It is considered to be an environmentally "clean" alternative to those fuels. It is made by compressing methane (CH4) at 200 to 270 bar pressure extracted from natural gas. It is stored and distributed in hard containers, usually cylinders. Argentina and Brazil, in the Southern Cone of Latin America, are the two countries with the largest fleets of CNG vehicles. In response to high fuel prices and environmental concerns, compressed natural gas is starting to be used in light-duty passenger vehicles and pickup trucks, medium-duty delivery trucks, and in transit and school buses. CNG has grown into one of the major fuel sources used in car engines in Pakistan, Bangladesh and India. The use of CNG is mandated for the public transport system of New Delhi, India's capital city as well as mega city Ahmadabad in the state of Gujarat. The Delhi Transport Corporation operates the world's largest fleet of CNG buses. Today, many rickshaws as well as personal vehicles in India and Bangladesh are being converted to CNG 19
powered technology, the cost of this is in range of $400-$450. In the mega city Dhaka, not a single auto rickshaw is permitted without CNG from 2003. Pakistan is the largest user of CNG in Asia, and third largest in the world as of 2005. According to the International Association for Natural Gas Vehicles, Pakistan has the thirdlargest number of natural gas vehicles. In the Middle East and Africa, Egypt is a top ten country in the world with more than 63000 CNG vehicles and 95 fueling stations nationwide. Egypt was also the first nation in Africa and the Middle East to open a public CNG fuelling station in January 1996. During the 1970s and 1980s, CNG was commonly used in New Zealand in the wake of the oil crises, but fell into decline after petrol prices receded. In Germany, CNG-generated vehicles are expected to increase to two billion units of motortransport by the year 2020. The cost for CNG fuels are 1/3 less than LNG fuels, in Europe. CNG is often measured and sold in Gasoline Gallon Equivalent GGE to help American consumers when comparing to gasoline. 5.1.2 Technology CNG can be used in Otto-cycle (gasoline) and modified Diesel cycle engines. Lean-burn Ottocycle engines can achieve higher thermal efficiencies when compared with stoichiometric Otto-cycle engines at the expense of higher NOx and hydrocarbon emissions. Electronicallycontrolled stoichiometric engines offer the lowest emissions across the board and the highest possible power output, especially when combined with EGR, turbo charging and inter-cooling, and three way catalytic converters, but suffer in terms of heat rejection and fuel consumption. A suitably designed natural gas engine may have a higher output compared with a petrol engine because the octane number of natural gas is higher than that of petrol. CNG may be refueled from low-pressure ("slow-fill") or high-pressure ("fastfill") systems. The difference lies in the cost of the station vs. the refueling time. There are also some implementations to refuel out of a residential gas line during the night, but this is forbidden in some countries. 20
CNG cylinders can be made of steel, aluminium, or plastic. Lightweight composite (fibrewrapped plastic) cylinders are especially beneficial for vehicular use because they offer significant weight reductions when compared with earlier generation steel and aluminium cylinders, which leads to lower fuel consumption. The equipment required for CNG to be delivered to an Otto-cycle engine includes a pressure regulator (a device that converts the natural gas from storage pressure to metering pressure) and a gas mixer or gas injectors (fuel metering devices). Earliergeneration CNG conversion kits featured venturi-type gas mixers that metered fuel using the Venturi effect. Often assisting the gas mixer was a metering valve actuated by a stepper motor relying on feedback from an exhaust gas oxygen sensor. Newer CNG conversion kits feature electronic multi-point gas injection, similar to petrol injection systems found in most of today's cars. CNG requires a much larger volume to store the same mass of natural gas and the use of very high pressures (3000 to 4000 lbf/in, or 205 to 275 bar) compared to LNG. 5.1.3 CNG Benefits The advantages of using CNG are varied and distinct. The first and most important benefit of using CNG is that you are using a green fuel. Presented below is an outline of the benefits that CNG offers Green fuel Commonly referred to as the green fuel because of its lead and sulphur free character, CNG reduces harmful emissions. Being non-corrosive, it enhances the longevity of spark plugs. Due to the absence of any lead or benzene content in CNG, the lead fouling of spark plugs, and lead or benzene pollution are eliminated. Increased life of oils Another practical advantage observed is the increased life of lubricating oils, as CNG does not contaminate and dilute the crank case oil. Mixes evenly in air Being a gaseous fuel CNG mixes in the air easily and evenly.
21
Safety CNG is less likely to auto-ignite on hot surfaces, since it has a high auto-ignition temperature (540 degrees centigrade) and a narrow range (5%-15%) of inflammability. It means that if CNG concentration in the air is below 5% or above 15%, it will not burn. This high ignition temperature and limited flammability range makes accidental ignition or combustion very unlikely. Table 5.1: Property Comparison of CNG with other Fuels
Property Relative density Relative density Auto Ignition Temperature Flammability Range Flame Temperature Octane Number Unit Water = 1 Air =1 Degree C % in Air Degree C Petrol 0.74 360 1-8 2,030 87 Diesel 0.84 280 0.6-5.5 1,780 LPG 0.55 1.285 374 2.2-9.0 1,983 93 CNG 0.64 540 5-15 1,900 127
Low operational cost-The operational cost of vehicles running on CNG, as compared to those running on other fuels, is significantly low. At the prevailing price of fuel in Delhi, operational cost of CNG vehicles is 68% lower than petrol and 36% lower than diesel. 5.1.4 Risks involved: The darker side CNG technology is in a state of evolution and therefore changing all commercial vehicles to single-fuel CNG might not be feasible. The entire investment in changing the vehicles to CNG mode and acquiring new vehicles within a short span will lead to ageing of all the vehicles at approximately the same time. A huge cost required to set-up the infrastructure for CNG in a very short span is bound to reflect in budgetary deficit. Further, any mishap or disruption in a 1200 km pipeline supplying CNG can bring the entire public transport in Delhi to a standstill. A dedicated CNG vehicle can be stranded on the way for want of gas due to limited number of CNG filling stations. Therefore, a dedicated CNG vehicle has to be close to a refuelling facility, limiting its driving range. According to the Supreme Court order the entire public transport is to be converted to only single-mode CNG and hence dual-fuel technology cannot be operated in Delhi for public transport. (However later the Supreme
22
Court has clarified that taxis and auto-rickshaws with 4-stroke engines could run on low benzene petrol, but buses could only ply with CNG in Delhi). As, at present, CNG facilities are not available outside Delhi, tourist and transit buses that ply outside Delhi do not have access to CNG outside the city. Currently there are other problems: (a) it takes hours for refuelling of CNG vehicles because of long queues due to inadequate number of filling stations. (b) Most of the filling stations in Delhi are located in the southern half of the ring road because of which the vehicles have to travel a long way for filling gas and (c) Paucity of trained mechanics for CNG kits have made repairs expensive. Commitment is required on the part of the government, to improve the infrastructure quickly to eliminate the long queues. 5.1.5 Safety aspects Safety of CNG vehicles is a very important aspect. Authentic cylinders are priced between Rs 10,000 and 15,000 depending on the capacity, while spurious versions are reportedly available for Rs 5000 in Delhi and between Rs 1000 and 3000 in Mumbai. The spurious cylinders are the main cause of explosion and accidents in CNG vehicles. The BIS is preparing a status report on safety norms for CNG-run vehicles. The draft document of CNG safety has design requirements for the components of CNG-run system. Norms evolved for CNG vehicles by the International Organization of Standards (ISO) the apex body under the United Nations umbrella are in the final-draft stage. The BIS normally waits for international guidelines before coming out with its own ones. While ISO guidelines would be used as broad guidelines, the national standards would be more specific. 5.1.6 CNG Conversion As we know all types of vehicles can run on CNG by installing CNG kit. Kit is assembly of many components required to run existing vehicle on CNG. There are few basic components which are common in all type of kits, irrespective of the vehicles such as CNG storage cylinder, high pressure tube, pressure regulator, pressure gauge, change over switch, high pressure tube fittings, refueling receptacle and air fuel mixer. Major components of CNG kit for carburetor fitted petrol vehicle are illustrated below: 23
1. Pressure Regulator. 2. Petrol Solenoid Valve with manual override switch. (Stops petrol flow when operating on CNG) 3. On-Off valve and refueling connector. (Opens or stops gas flow to the regulator and includes a refueling device) 4. Control Module/Change-over Switch (Electronic control component with fuel selection switch) 5. CNG level Indicator (LED Indicator). 6. Gas Air Mixer. 7. CNG cylinder with valve, vapour bag & bracket 8. Petrol hose 9. Low-pressure gas hose. 10. Ignition advance processor 11. High pressure gas tube 12. Wire harness. 13. NRV in petrol return line. 14. Pressure gauge 5.1.7 Maintenance of Vehicles Following precautions are to be followed during servicing and repairing of CNG vehicles: In case of leakage in fuel system, vehicles shall not be parked within 6 m of any source of ignition or fire. In case of vehicles undergoing repairs involving welding, or heat application to any part (within 1.5 m) of the cylinder, the cylinder should be emptied first. Do's and Donts! 1. Always refer to the suppliers kit manual for the trouble-shooting guide and do not do it yourself. 2. In case of vehicles undergoing repairs involving welding, or heat application to any part (within 1.5 m) of the cylinder, the cylinder should be emptied first. 24
3. Do not install a LPG, Propane or any other cylinder in place of a CNG cylinder. It is illegal and unsafe. 4. For emergency handling of any CNG leak, users must be aware of the location and operation of cylinder valve, master shut-off valve and burst disc in the CNG system. Study the system and ask your mechanic to identify these parts for you. 5. Workshop doing the kit fitment should be able to demonstrate these operations to your satisfaction. It is advisable to operate the vehicle occasionally on petrol to ensure that the petrol system remains in good working conditions. The CNG kit installed in the vehicle should be insured along with vehicle accessories. The motorist should notify the insurance company to provide insurance on the CNG system, for which additional premium may be charged by the insurance company. Motorists should take the insurance cover for the additional CNG kit system. As per present government regulation, the pollution checks and pollution certificate is mandatory even after converting the vehicle on CNG. A pressurized gas cylinder is probably the strongest component on the vehicle. Vehicles that were totally destroyed in collisions show the only discernible component being the intact gas cylinder. It is unlikely that cylinders will rupture due to collision impact. Regarding the danger of fire from leaking cylinders, all we have is the experience to date that indicates that such an event is unlikely to occur. The risk of fire from leaking cylinders must be low since there are well over 03 million CNG vehicle installations worldwide that have not experienced such problems. It is worth pointing out that natural gas is lighter than air and in the unlikely event of a leak from piping or container; the gas will dissipate upwards quite quickly. In the case of petrol and LPG the vapour given off is heavier than air and will tend to pool near the ground.
25
5.2 PNG
Knowing fully well that Piped Natural Gas is the obvious choice for you to make, wouldn't it be just if we called PNG Positively Natural Gas!! PNG has several distinctions to its credit- of being a pollution-free fuel, easily accessible minus storage troubles, and being available at very competitive rates, are just a few of them. When you choose PNG, you are making a wise decision. Why not enhance your comfort and improve your lifestyle for the years to come? Experience the versatility and performance of this reliable energy source. With PNG you don't need to make any choices, for its characteristics make it the best option for domestic and commercial purposes. 5.2.1 PNG Benefits Uninterrupted supplyPNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problems of storing gas in cylinders. Unmatched convenienceThe domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and again. And then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exercise unnecessary. PNG also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it being underweight, at the time of delivery. Moreover, the user is spared the inconvenience of connecting and disconnecting the LPG cylinder when out of gas. Precious space, occupied by LPG cylinders is also saved. Safety The combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% of the air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world. Natural gas is lighter than air. Therefore, in case of a leak, it just rises and disperses into thin air given adequate ventilation. But LPG being heavier will settle at the bottom near the floor 26
surface. A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer since PNG installation inside your premises contains only a limited quantity of natural gas at low pressure i.e. 21 milli bar (mbar). On leakage, LPG expands 250 times, which is not the case with NG. Supply in PNG can be switched off through appliance valve (inside the kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply. Economy with PNG PNG has been positioned to be cheaper than alternative fuels being used viz domestic LPG in case of House Hold, commercial LPG in case of Small Commercial and LPG Bulk & LDO in case of Large Commercial. This is besides the amount you save by avoiding underweight cylinders delivered to you. BillingThe user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consumer pays the PNG bill only once in two months. Moreover, there are no minimum consumption charges i.e., if there hasnt been any consumption, there shall not be any bill. The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the users doorstep. Customer support Round-the-clock customer support is assured through 24 hrs toll free number backed by control rooms, which are manned by engineers and trained technicians. Thus complaints, if any, are promptly redressed. A versatile fuel Natural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and commercial applications, as a cooking fuel, for water heating, space heating, air conditioning, etc.
27
Environment friendly Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in place of other more polluting energy sources. Its combustion results in virtually no atmospheric emissions of sulphur-di-oxide (SO2), and far lower emissions of carbon monoxide (CO), reactive hydrocarbons and carbon dioxide, than combustion of other fossil fuels. In fact, when natural gas burns completely, it gives out carbon dioxide and water vapour. These are the very components that we give out while breathing! Additional Benefits of PNG that the commercial consumers can availNo storage problems and stock accounting PNG does not require any storage tank or storage space since it is supplied to you through pipelines. Also, the manpower and time that was earlier being used for ensuring minimum stock levels of LPG, HSD and LDO, can be used elsewhere. The other functions that accompany storing these fuels monitoring stock levels, checking the quality and quantity of fuels received have also been rendered unnecessary. Economy with PNG PNG has been presently positioned to be cheaper than alternative fuels. For small commercials the pricing is indexed to 19 Kg LPG cylinders after adjusting for heat values. For Large Commercials, pricing is indexed to 90% LDO and 10% Bulk LPG again after adjusting for heat values. These savings are in addition to the amount you save by avoiding spillage & pilferage of alternative fuels. No daily liasioningThe consumer is spared the task of liasioning with oil companies and co-ordinating with them for ensuring the daily supply of fuel, because PNG is supplied directly through pipes. The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too as per the meter reading.
28
No spillage and pilferage In case of spillage of fuels like HSD and LDO, there are liable to be immense product losses. Also, there are considerable chances of pilferage of these fuels. In case of PNG, these losses are invariably done away with, for PNG is supplied through pipes. Lower maintenance cost With PNG, soot or ash accumulation and greasy spillages are absent from your appliance. Maintenance costs are, thus, driven down.
5.3 Policy for Development of Natural Gas Pipelines and City or Local Natural Gas Distribution Networks
Regulatory reforms permit and encourage market forces to enhance competition and produce a more competitive and efficient industry structure. While there is growing recognition that competition can reduce the need for regulation, in many areas there exist some areas of monopoly where the benefits of regulation potentially outweigh the cost. Natural gas pipelines infrastructure and city or local natural gas distribution networks fall under this category. The natural gas sector is at the threshold of rapid growth in the country. With increased exploration efforts under NELP, large scale discoveries of gas in the East Coast, commissioning of the LNG import terminals in the West Coast, projected upcoming LNG terminals and the Governments initiatives in natural gas through transnational pipelines, there is an imminent need to provide a policy framework for the future growth of the pipeline infrastructure in the country with a view to facilitating the evolvement of a nationwide gas grid and the growth of city or local gas distribution networks. The objective of the policy is to promote investment from public as well as private sector in natural gas pipelines and city or local natural gas distribution networks, to facilitate open access for all players to the pipeline network on a non-discriminatory basis, promote competition among entities thereby avoiding any abuse of the dominant position by any
29
entity, and secure the consumer interest in terms of gas availability and reasonable tariff for natural gas pipelines and city or local natural gas distribution networks. 5.3.1 Grant of Authorization No gas pipeline or the city or local gas distribution network will be laid, built, operated or expanded without the authorization by the PNGRB (Board). Provided that such an authorization for gas pipeline shall be granted to any entity only if the design pipeline capacity is at least 33% more than the capacity requirements of the concerned entity plus the firmed up contracted capacity (termed as total capacity) and this extra capacity is available for use on common carrier basis by any third party on open access and non-discriminatory basis at transportation rates laid down by the Board. The capacity available under open access common carrier basis will be allocated in a transparent and objective manner in line with the regulations to be drafted by the Board in this regard. The entity authorized to lay, build, operate or expand a city or local natural gas distribution network will need to follow the marketing service obligations as may be prescribed by the Board in accordance with the provisions of the Act. The Board may decide on the period of exclusivity to lay, build, operate or expand a city or local natural gas distribution network in accordance with its regulations in a transparent manner while protecting the consumer interest. The Board may through regulations, decide on the principles for determining the number of years for which the city or local natural gas distribution network shall be excluded from the purview of a common carrier or contract carrier being guided by various objectives in the Act and by following the principles that should be transparently and objectively stated by the Board in its regulations. 5.3.2 Bid Bond and Performance Bond The entity proposing to lay, build, operate or expand a gas pipeline or city or local natural gas distribution network will be required to furnish to the Board a bid bond for an amount as may be decided by the Board with a view to ensuring that only serious bidders participate in the bidding process. It will be en-cashed if a bidder wins a bid but then walks 30
away from the bid. The successful bidder will have to furnish a performance bond for an amount as may be decided by the Board for ensuring timely construction as per the design /offer and for meeting performance undertakings during the operating phase. The Board will review the progress of projects periodically with the authorized entities to satisfy itself that the conditions of authorization and milestones given in the project report are being fully complied with. If the project is delayed beyond the stipulated period or the milestones and/or any other condition of authorization are not adhered to, the bond amount of the authorized entity may be forfeited and the authorization cancelled. However, if the Board is of the opinion that the reasons for delay are beyond the control of the entity implementing the project, the Board may take an appropriate view in a fair and transparent manner, and may also allow certain extension period, which it may deem fit for the commissioning of the project. Once the authorization of the entity is cancelled, the Central Government may withdraw the ROU from such an entity and make the same available to any other entity authorized by the Board. Once the project is commissioned, the performance bond would provide the guarantee for the satisfactory compliance of the conditions stated in the authorization during the life of the project. 5.3.3 Unbundling of Operations Any entity desirous of applying for building, operating or expanding common or contract carrier gas pipelines will have to give an undertaking that if such an entity has business interests in related areas of gas marketing or city or local gas distribution network or has a related entity (e.g., a parent company, group company, company under the same management, JV company, subsidiary or affiliated in any way to create a pecuniary interest) with business interests in such areas, it will ensure an arms length relationship between gas pipeline activity and these activities or between itself and the related entity as the case may be. Under such conditions, an Affiliate Code of Conduct between the authorized and related entities or between the gas pipeline activity and other activities of the authorized entity, as formulated by the Board under the regulations will have to be followed. Any existing entity 31
engaged in gas pipeline activity, which has business interests in related areas of gas marketing or city or local gas distribution network, will follow a similar Affiliate Code of Conduct. The Board will have the right to enquire about the managerial
structure/ownership pattern and accounts of the authorized entity and its related entities to determine that such a relationship is actually at arms length. For this purpose, the Authorized entity shall produce relevant records/documents in respect of itself as well as the related entities for examination by the Board, as and when called for. In the long run and with the maturing of gas markets, it is envisaged that the authorized entities will have transportation of natural gas as their sole business activity and will not have any business interests in the gas marketing or city or local gas distribution networks. Thus, the Board may intervene at an appropriate stage to ensure unbundling of transportation activity from other activities of the entity. The purpose of this policy is to ensure that pipeline ownership does not provide any competitive advantage to any gas seller and abuse of market power while establishing an efficient gas grid with open access for all the players on a non discriminatory basis. 5.3.4 Transportation Tariff The transportation tariffs of the common or contract carrier transmission pipelines or city or local natural gas distribution network as also the manner of determining such tariffs will be laid down by the Board as per the provisions under the Act and the regulations. 5.3.5 Role of State Governments The State Governments have a paramount role in facilitating speedy and timely completion and operation of gas pipeline and city or local natural gas distribution network projects by ensuring various statutory and other clearances on a fast track basis. The Central Government shall take up the matter with the State Governments accordingly. The State Governments shall prepare their plans for developing the city or local gas distribution networks wherein they shall prioritize the cities or local areas to be taken up for
32
setting up gas distribution networks. While prioritizing such cities or local areas, they may be guided by environmental concerns, domestic & industrial fuel requirements, etc. 5.3.6 Foreign Direct Investment Policy The need for attracting the FDI in the infrastructure sector has been recognized as one of the important drivers of the economic growth of our country. The Central Government has been making all efforts to invite and facilitate FDI to complement and supplement the domestic investment. FDI up to 100% is permitted in the laying of natural gas pipelines under the automatic approval route. 5.3.7 Long Term Plan With a view to facilitating the creation of a National Gas Grid and growth in the development of the city or local natural gas distribution networks, the Central Government may prepare a long-term perspective plan for creating gas pipeline network in consultation with the Board, State Governments, oil & gas industry, gas consuming industries and other stakeholders. The perspective plan will take into account the projected availability of gas/LNG from different sources, the demand centers and the need for Central Government intervention, if any, in making gas available to the consumers in different locations in the country. The long-term Plan will be kept in view by the Board, while authorizing/approving new gas pipelines or city or local natural gas distribution networks. The Central Government may review the perspective plan from time to time and modify the same appropriately.
5.4 Present Scenario of City Gas Distribution in India

The increase in gas supplies and gas transmission infrastructure is also likely to provide a fillip to City Gas Distribution (CGD) players. So far, only a handful of major players were present in the market: these are Indraprastha Gas, Mahanagar Gas, Gujarat Gas and GSPC Gas which distributes Piped Natural Gas and Compressed Natural Gas to cities in Delhi, Mumbai and Gujarat respectively. Recent years have seen some activity, with a number of players registering their presence. In particular, GAIL has formed Joint Ventures with other PSU firms to distribute gas in a number of cities.
33
Prospects for CGD business appear good for the medium to long term; recent regulatory uncertainty could however slow down momentum in the near term. As of now, CNG is available in 40 cities in India, where considerable conversion has happened from the traditional auto fuels such as MS and HSD. The conversion has been driven primarily by the heavy users such as buses, taxis and auto rickshaws, who have found the savings potential of CNG use attractive. Moreover, courts/states mandated conversions have also materialized in few cities. The prices of conversion kits have also declined by 20-25% during the last few years, making the switch to natural gas more economical; the savings potential is encouraging private vehicles to convert as well. Importantly, even with CNG being sold at market determined rates (Rs. 25-45/kg in most cities), demand has held its ground, underscoring the improving economics of conversion. Sale of PNG (domestic, commercial and industrial) has also gained traction because of the discounted-price strategy of the CGD players, wherein they sell PNG at a discount to the prices of alternative fuels to attract consumers. The regulations governing the CGD sector, formulated by PNGRB, are also attractive for the existing CGD players in that they propose a normative return of 21% (pre-tax) RoCE, network exclusivity for 25 years, and marketing exclusivity for five/three years for new players/incumbents, respectively. Under the new regulations, PNGRB had invited bids in 2009 for 13 cities in two rounds, against which licenses have been awarded for six cities (Kota (Rajasthan), Dewas (Madhya Pradesh), Sonepat (Haryana), Meerut (Uttar Pradesh), Mathura (Uttar Pradesh) and Kakinada (Andhra Pradesh)) in the first round; licenses are awaited for the balance seven (Ghaziabad (Uttar Pradesh), Allahabad (Uttar Pradesh), Jhansi (Uttar Pradesh), Rajahmundry (Andhra Pradesh), Yanam (Pondicherry), Shahdol (Madhya Pradesh), and Chandigarh (Punjab). With the gas transmission pipeline capacity poised for growth in future, the regulator has also laid a roadmap for increasing the penetration of city gas to 335 cities, the bids for which are expected to be announced in the near to medium term.
34
Table 5.2 Players in CGD

Cities Surat , Bharuch & Akleshwar Delhi Mumbai Agra & Lucknow Kanpur Bareily Ahmedabad, Faridabad Gandhinagar Indore, Ujjain & Gwalior Company Gujarat Gas Company Ltd. (GGCL) Indraprastha Gas Ltd. (IGL) Mahanagar Gas Ltd. (MGL) Green Gas Ltd. (GGL) Central UP Gas Ltd. (CUGL) Adani Energy Ltd. (AEL) Sabarmati Gas Ltd. (SGL) Aavantika Gas Ltd (AGL) A JV of GAIL (India) Limited and HPCL Meerut, Sonepat, Dewas and Kota Gurgaon Pune GAIL Gas Ltd. (GGL) Haryana City Gas Distribution Ltd. (HCGDL) Maharashtra Natural Gas Limited (MNGL), A JV of GAIL (India) Limited and BPCL. Hyderabad & Vijaywada Duliajan, Digboi, Dibrugarh, Moran, Naharkatiya, Sivasagar, Nazira, Simaluguri, Tinsukia Moradabad Asansol, Durgapur Siti Energy Great Eastern Energy Corporation Ltd. (GEECL) Anand Anand Cooperative Bhagyanagar Gas Limited (BGL) Assam Gas Ltd
Existing & Proposed Pipeline Infrastructures Indias current gas transmission pipeline length is estimated at 10,500 km (GAIL: 7200 km; GSPL: 1,420 km; RGTIL: 1,386 km; Oil India/AGCL: 500 km), and it has a capacity of around 270 MMSCMD. Although the capacity per se appears high in relation to the current gas availability in India, there are several bottlenecks in the existing infrastructure that prevent some potential end-users from being able to consume gas. Such bottlenecks include almost full capacity utilization of a few arterial pipelines and lack of balanced development of the pipeline infrastructure across India. As for capacity utilization, HVJ and DVPL of GAIL have been operating at almost full capacity during the last one year, thereby preventing any further transmission for end-users in the northern part of India. At the same time, GAIL has 35
a few regional pipelines in States/areas like Gujarat, Rajasthan, Mumbai, the Cauvery basin and Assam, which operate at less than optimum capacity utilization for want of gas. Also, the pipeline network in India currently covers mainly the western, central and northern parts, with the network being limited in southern and eastern India. Even within western, central and northern India, there are several cities that are yet to be connected. As a result, the market has developed only in areas that are in proximity to the existing pipeline network. This scenario is expected to change.
Table 5.3 New Trunk Pipelines Projects Company
Km
GAIL Dadri- Bawana-Nangal Chainsa-Jhajjar-Hissar Dahej-Vijaipur-GREP upgrade Dabhol-Bangalore Kochi-Mangalore-Bangalore Jagdishpur-Haldia RGTIL Kakinada-Basudevpur-Howrah Kakinada-Chennai Chennai-Tuticorin Chennai-Bangalore-Mangalore GSPL Gujarat expansion IOC (Dadri-Panipat) OIL/AGCL Under PNGRB bid/EOI submitted Mehsana-Bhatindia Bhatinda-Jammu-Srinagar Surat-Paradip Mallavaram-Vijiapur-Bhilwara Durgapur-Kolkata Total
Source: Public announcement of the companies concerned and PNGRB
621 443 1108 1389 1114 2050
1100 600 670 660
780 133 300
1670 740 1680 1585 160 16803
36
Fig 5.1 Existing and Upcoming pipelines in India
37
Chapter 6
****************
Economics of City Gas

We have already studied about what city gas is. Now we should see what kind of economics is related to city gas. For that we need to know all the component parts involved in the city gas and the cost involved in these components. Before discussing the economics of city gas let us see Faridabad customers city gas connection layout. From where do they get city gas? What does it take to reach them? All these are discussed in this chapter. The following figure 5.1 shows that HVJ pipeline is used to supply gas in NCR region. 24 diameter pipe is used in original HVJ pipeline. The gas found in Bombay High by ONGC is supplied through GAIL run HBJ pipeline. Initially the gas is pumped into HVJ pipeline at 90 bar. There are many users throughout the distance of the HVJ pipeline. Due to the tapping and long distance movement of gas, the pressure drops. To maintain the pressure five booster stations are installed throughout the pipeline. These booster stations are as follows1. Hazira 2. Vagodia 3. Jhabua 4. Vijaypur 5. Auraiya Initially 18 MMSCMD of gas was supplied through HVJ pipeline. An alternate route was found with evolution of Gas Rehabilitation & Expansion Project (GREP). The route bypasses many stations after Vijaypur. 36 diameter pipe is used for this route. This route requires no boosting in between, after boosting is done at Vijaypur. This has been possible due to reduction in length of pipeline and increment in the diameter of the pipe from 24 to 36. After this expansion the volume of gas transmitted through HVJ increased from 18 MMSCMD to 33 MMSCMD. 38
After supplying gas to all the consumers throughout the pipeline, gas ultimately reaches CHANSA (City Gate Station) terminal for supplying gas to NCR region.
6.1 City Gate Station (CGS)

City Gate Station is a terminal where scrubbing, filtering, pressure reduction and metering and then maneuvering of gas is done. Faridabad city has one CGS i.e. at Chansa. 6.1.1 Process Involved Without going into in depth of the technicality of the process involved we will just look into the overview of the process. Processes involved are: Scrubbing: Gas enters a chamber, where gas passes through a cyclonic process and particle size above 40 micron gets settled and rest escapes along with gas to filter separator. Filter Separator: In this process dust and liquid are separated. Particle size more than 5 micron gets separated. Pressure Reduction Station: DESU Terminal receives gas at 30-35 Kg/cm2 pressure. This pressure is reduced to 25 Kg/cm2. Filter Separator: Again filtration is done and particle sizes above 3 micron are separated. Metering: Metering is measuring the volume of gas 6.1.2 Cost Involved Cost involved in CGS is numerous. Including material and execution the total cost involved is around Rs 1.2 crore.
6.2 Steel Grid

Next stage of city gas distribution is the steel grid laying. This means all the pipelines used for transmitting gas from CGS to DRS, CNG station and other customers are of carbon steel. This steel pipes are used for transmitting gas of higher pressure (19 to 26 bar). Carbon steel pipe can withstand higher pressure.
39
6.2.1 Cost Involved 4 CS Pipe- Rs 35, 00,000/Km 6 CS Pipe- Rs 55, 00,000/Km 8 CS Pipe- Rs 75, 00,000/Km 12 CS Pipe- Rs 1, 00, 00,000/Km (It includes material, execution & statutory charges. Statutory charges are paid to MCD, NDMC, and PWD)
6.3 DRS
DRS is a station where gas is collected from CGS through steel grid. In this station filtering, gauging, and metering are done. First gas enters to filter machine and filtration is done. Then pressure is measured by pressure gauge which is around 20 bar. Then gas is passed through turbine meter to measure the amount of gas passed. The pressure of the gas is reduced to 4 bar. Then gas goes for PNG distribution. DRS is used for PNG distribution. Another form of DRS is FRS. Only difference between DRS and FRS is FRS is having higher capacity. For example DRS uses 500 SCMH and FRS uses 10000 SCMH for processing. 6.3.1 Cost Involved DRS or FRS costs around 30-40 lakhs. It includes material and execution costs too.
6.4 Mother Station

Mother CNG station is the station where all kinds of vehicles are filled with CNG. Here LCVs are also filled with CNG, which carry cascaded of CNG to daughter stations. In contrast to PNG, CNG is a high pressure gas required for fuelling vehicles. So gas after traveling through steel grid comes to compressor station. In mother station high capacity compressor is used. First, gas is metered to know the amount of gas flow. Then through suction pipe gas enters into compressor and compressed into three stages. First Stage- Gas compressed from 19 to 50 bars. Second Stage- Gas compressed from 50 to 120 bars. Third Stage- Gas compressed from 120 to 250 bars. 40
The compressed gas is send to dispensers and vehicles are filled by gas at 200 bars. Pressure can be adjusted in dispensers also. Now cascades loaded LCVs are also filled according to the requirement. The LCVs are used for providing gas to Daughter stations. Mother station is also having its own cascades which are kept for emergency. Buses are given highest priority for filling gas in CNG station, as it is public transporter. 6.4.1 Cost Involved Cascades of 2400 to 3000 liter cost around 10 to 12 lakhs/each. Dispensers costs around 16 to 18 lakhs. Compressors are available in different capacities like 250, 400, 600, 1200 SCMH. They costs around 0.75 to 1.5 crore. Mother Stations overall cost is around 4.5 crore. (Mother station includes building, compressor, dispensers, cascade, electrical connections, Air compressor, DG set, tubing, fitting) Fig 6.1 Mother Station
19 bar
41
6.5 Daughter Station or Daughter Booster Station Areas which are far from main gas line are served by gas through cascades. These cascades are brought to the daughter station by LCVs which are filled in mother station. Cascades are filled by gas at 250 bar pressure but pressure drops below 200 bars due to non usage of gas for time being. So, pressure has to be boosted up to 200 bars for filling the vehicle. So, gas is coming from cascade are boosted by a booster to 200 bar and gas is sent to the dispensers. From dispensers gas is filled in the vehicles. Now-a-days no daughter station is used without booster. In this station auto rickshaw, taxi, vans are filled with gas. 6.5.1 Cost involved A booster cost around 40-50 lakhs. The overall cost of the daughter station is around 1.5 crores. Fig 6.2 Daughter Booster Station
Cascades
Booster
Dispenser
Vehicle
6.6 Online station

Online CNG station is the station which uses online gases from the main gas line (HVJ pipeline) to fill the vehicle. Only difference between online station and the mother station is, online station uses smaller compressor and it does not have any LCVs. In this station auto rickshaw, van, RTVs are filled with gases.
42
6.6.1 Cost involved Overall cost of the online station is around 2.3 crores including materials and execution cost. Fig 6.3 Online Station
19 bar
In Faridabad city, Adani Gas has four CNG stations. All these stations are online stations.
6.7 MDPE network

MDPE pipeline is used for PNG distribution. Gas is transported at 4 bar pressure in these lines. After gas is processed and metered in DRS, gas is distributed to domestic house hold through MDPE line. MDPE pipes are strictly used for underground laying, because of its non corrosive properties. MDPE pipes are goes straight up to the domestic building foundation and for riser GI pipes are used. MDPE pipes of different diameters are used, like 180mm, 125mm, 63mm, 32mm and 20mm. 6.7.1 Cost involved Costs of the MDPE pipes are as follows: 180 mm- Rs. 800/mt 125 mm Rs. 400/mt 43
63 mm Rs 100/mt 32 mm Rs. 40/mt 20 mm Rs. 25/mt 10-20 % of the costs are taken for fitting. Execution cost for 20 to 180 mm pipe is Rs.180 to Rs 320/mt. If a pipe has to be passed through road or some kind small physical structure then trenching or boring has to be done instead of digging. For these cost involve is Rs. 1100 to Rs 1800/mt. Other cost involved with MDPE pipeline are cost of domestic regulator and domestic meter which costs Rs 2300 and Rs 1000 respectively.
6.8 GI piping and Copper piping

GI pipes are used for risers in the building and providing connection to the kitchen. Even GI pipes are used in the kitchen pipe fittings. The gas is transmitted by GI pipe at 21 milli bar pressure. Pressure is regulated by pressure regulator at the joint of MDPE and GI pipe. These kinds of pipes are used for low pressure gas. Copper pipes are used exclusively for kitchen fittings. Copper pipes are used because of its aesthetic view. Copper pipe and GI pipe are almost equal in price. 6.8.1 Cost involved For GI piping, it costs around Rs 250/mt. It includes materials and execution cost also.
44
Chapter 7
****************
Demand Assessment of City gas in selected sectors of Faridabad city 7.1 About Faridabad City
Faridabad was founded in A.D. 1607 by Shaikh Farid, treasurer of Jahangir, with the object of protecting the highway which passed through the town. Shaikh Farid built a fort, a tank and a mosque which are in runins. Later, it becomes the head quarter of a pargana which was held in jagir by the Ballabgarh ruler. Faridabad became 12th District of Haryana State on 15th August, 1979. Faridabad is about 25 Kilometers from Delhi in 28o 25' 16" North Latitude and 77o 18' 28" East Longitude. It is bounded by Union Territory of Delhi (National Capital) on its north, Gurgaon District on the west, Palwal District on the south and State of Utter Pradesh on its east. Delhi-Mathura National Highway No.2 (Shershah Suri Marg) passes thru middle of District. Faridabad is famous for Heena Production on agriculture sector while tractors, motorcycles, switch gears, refrigerators, shoes and tyres are other famous industrial products of the city. Inititally there were about 4-5 industries and over a period of time this area has grown phenomenally beyond the expectations of original planners. There are now about 15,000 small, medium and large industries in this complex providing direct and indirect employment to nearly half a million people and ranks 9th largest industrial estate in Asia.The combined turnover is estimated to be about Rs. 1500 billion. Many international/ multinational companies like Whirlpool, Goodyear, Larsen & Toubro, Asia Brown Boveri, GKN Invel, Woodward Governer, Castrol besides Escorts, Eicher, Cutler Hammer, Hyderabad Asbestos, Nuchem are operating in this belt. A variety of engineering products from Forgings to Tractors, Clutch Assembly to leaf springs are being manufactured by the industries in this belt. The total land are occupied by the industries is about 6948 hectares.
45
Industrial Associations of Faridabad 1) Faridabad Industries Association 2) Faridabad Small Industries Association 3) Laghu Udhyog Bharti 4) Faridabad Manufactures Association 5) Faridabad Chamber of Commerce & Industries The Faridabad Industries Association popularly known as the FIA was started way back in 1952 initially by a group of enterprising industrialists. In the year 1965-66 the erstwhile Punjab manufacturing organization was merged with the Faridabad Industries Association to form a larger organization to represent the small medium and large scale industries in this area. Over the efflux of time, the Faridabad Industries Association has become one of the most outspoken and effective Associations in the Northern Region. Its views are listened to with respect by one and all authorities and it is entirely because of the continuous support which it gets from its members. The FIA members are contributing nearly 80% of the total turnover and employment in this industrial complex. The FIA is largely a service oriented organization and it its presence in all facets of Industrial activities is being actually felt by its members. The FIA is not only serving the industries but also extends its activities to other areas like Environment, Sports, Cultural, Rural Education etc. It is the main reason for its credibility and increased membership over a period of years. The industries including the Faridabad Industries Association are:
Small Scale Industries Medium Scale Industries Large Scale Industries
46
Table 7.1 Small Scale Industries

Name of the Industry Advance Forgings P. Ltd. AGI Switches P. Ltd. Agro Engineering Works Ajay Enterprises Alchem International P. Ltd. Alcon India Alloy Cast P. Ltd. Alpine Appearls Ambika Forge P. Ltd. Amforge Industries Ltd. Anil Rubber Mills P. Ltd. Anu Products Ltd. Archem Industries Aristocraft Int'l P. Ltd. Ashoka Insulations Associated Engg. Associated Strips P. Ltd. Auratrax P. Ltd. Auto Lamps Ltd. Bee Ell Industries Belmount Rubber Industries Belmaks Pvt. Ltd. Bhartiya Udyog Ltd. Bhupendra Steels Ltd. Bhartiya Electricals P. Ltd. Birla VXL Ltd. B. KAY Engineering Works BL Containers P. Ltd. Blue Stampings & Forgings Ltd. Raw Steel Forgings. Switch Fuse units, Starters & Switches for electrical appliances. Sheet Metal Pressed Fabricated Components for Automobiles. Fan Parts. Extraction of Herbs. Automobile Sheet Metal Parts. Die Casting. Driving gloves, Goggles. Brass Forgings & Turnes Components. Tractor & Wheel Rims. Rubber Conveyor Transmission & Train Light Beltings. Pesticides. Chemicals. Light Engg. Goods. Fibre Glass Sleeving Varnished, Fibre Glass Cable. Industries Auto Parts. Steel tubular poles, pipes & tubes. Wooven labels for garments. Automobile & Incadescent Electrical Lamps. Ceramic Products. Rubber Automotive Parts. Engineering Industry. Bull Gas Generators. Steel & Stainless Steel SG Iron Rounds squares flats of alloy steel, Casting, Hot rolles alloy steel bars in various grads. Wiring harness & Auto Parts. Ready made garments. Tractor Parts. Corrugated shipping containers & 'E' Flutes Mono Cartons. Forgings. Manufacturers of
47

Name of the Industry Bolton Pvt. Ltd. Bony Rubber Co. P. Ltd. BPR Tex Prints P. Ltd. Bright Oxygen & Actylene Co. Brawn Laboratories Ltd. Well Rope Intl. Ltd. Capital Flour Mills Centrifugal Casting Co. Century NF Chanda Enterprises Ltd. Charu Electrical P. Ltd. Classic Furniture Mfg. Co. P. Ltd. Colts Auto P. Ltd. Concord Controls P. Ltd. Consolidated Plastics P. Ltd. Creative Dying & Printing Mill Crystic Resins India P. Ltd Curewell India Ltd. Dalmia Electronic Corp. D & D Organics P. Ltd. Delhi Forgings Ltd. Delton Cables Ltd. Diana Organics P. Ltd. D.S. Diesel P. Ltd Dujodwala Industries Eastern Engg. Corpn. Elkay Strips Ltd. Elkay International P. Ltd. Elkay Telelinks Ltd. Elemec Tools & Devices P. Ltd. Elofic Industries Ltd. Loud Speakers. Rubber Moulded Parts & O ring bounded metal bushes & Engine Mountings, House Pipes etc. Dying & Printing of Fabrics. Industrial Oxygen Gas. Pharmaceuticals. PP Rope & Yarn. Maida, Suji Atta & All Types of Wheat Products. Tractor & Oil Engine Components. Casting Aluminium & Zinc Alloys. Electroplating Rims. Electrical Home Appliances. Wooden Furniture & Other Products. Motor Vehicle Parts. Low Tension Control Gear Accessories. Blowing & Injection Moulding. Dying & Printing. Unsaturated Polyster Resins. Human Gamma Globulin Serum. Electronic Consumer durable Audio Video Products. MS Castings, CI Graded Castings, SG Iron Castings. Rough Forging. Thermoplastic insulated cables & wire for telecommunication. S.O. Dyes. Tractor & Car Parts. Resing Allied Resins Synthetic Resins, Tarpene Oil. Sheet Metal Pressed Components. Cable Armouring Flat & Round Wire. LDPE/LLDPE/HDPE Sheathing Compound. Telecommunication/ Power & Control/ Instrumentation Cable Under Progress. Metal Components & Sub-assembly. Automotive, Agricultural, Earthmoving Industrial & marin filters. Manufacturers of
48

Name of the Industry EM EL Duggal & Sons P. Ltd. Encon Chemicals Ltd. Encon Thermal Engineers P. Ltd. EP Electro Pressings P. Ltd. Equipment Conductors & Cables Ltd. Everest Steel Fabrications Faridabad Fabrications P. Ltd. Fas Pack Industries P. Ltd. FER Auto India Fibretex Industries India Finesse Exports P. Ltd. Forgewell P. Ltd. Gallium Equipment P. Ltd. Gem International GD Industrial Engineers Globe Hi-Fabs Golden Peacock Overseas Ltd. Goyal Steels Bright Gopal Sons Auto P. Ltd. Gurdayal Shyamlal P. Ltd. Greiner Engg. Products GS Kochar & Co. Goyal Industrial Corpn. Gulati Industrial Fabrication Guru Nanak Industries Regd. Hammer Forge Haryana General Industry Haryana Radiators Ltd. Haryana United Tools India P. Ltd. Hemla Embroidery Mills P. Ltd. Manufacturers of Automobile Sheet Metal. Formaldehyde. Industrial Furnace. Sheet Metal Components. AASR & ACC Components. Bolts, Nuts & Rail Screws. Sheet Metal Works & Fabrication of Tractor Components. Corrugated Card Board Boxes Sheets etc. Auto Electrical Parts. FIBRECRETE Multipurpose Insulation Boards, Control Heat Humidity and Fungus in all Kinds of Buildings. Readymade garments. Steel Rough Forgings. Tube Mill Accessories & Equipments. Watch Analysers, Stop Watches, Timers, Hygrometers, Thermometers, Snooker, Billiards Tables. Steel Flats, Rounds etc. Aircraft Refueler, Dairy Equipment, Reaction Vessels & Storage Tanks. Assemble of lamp holders & brass parts. Steel Bars, Forging Sheet Metal Components Bright Steel Bars/ Turned & Ground Bar/ CHQ Wires. Inter Lining. Automotive Parts, Wheel Cylinder, Assemblies, Air Brake Couplings, Adaptors, Break Fittings & Sheet. Tractor Parts. Flush Doors, Panel Doors, Placrol Doors, Decorative Doors, Stain Glass Doors, Black Boards & Plywood. Steel Fabrication. Precision Printing & Converting Machines. Close Die Forgings. Pressure Die Castins. Radiators for Tractors & Automobiles. Sheet Metal Components Die Tools, Jigs & Fixtures. Embroidery Works.
49

Name of the Industry HPL Industries P. Ltd. H.S. Easwer & Co. Husaka Refractories Imperial Auto Industries Ilpea Paramount P. Ltd. Inco Wax Limited Indapco P. Ltd. Indication Instruments Ltd. Indo Industrial Engineers Indus Precision Castings India Fashion Jainco Steel Fasteners P. Ltd. Jagson Pal Pharmaceuticals Ltd. Jain Die Casters Jain Plastic Industries Jai Enterprises Pvt. Ltd. Jindal Gas Appliances P. Ltd. Kapoor Lamps Shade Co. Karam Engg. Works Karnita Tex Prints P. Ltd. Karma Processors P. Ltd. Kay Gees Keselec India P. Ltd. Khanna Industries Khaitan Electricals Ltd. Khemka Ispat Ltd. Kismet Industries K.K. Plastics Kobe Suspension Co. P. Ltd. Khanna Fabrications Ltd. KSF Products Kubera Alcot Manufacturers of Rubber & Plastic Chemicals Xerographic Plates & Drum Torch Reflectors. Steel Melting Shops & General Engg. Industries Fuel & Oil Hoses, Fuel Injection Pipes. PVC Extrusions. Paper Coating, Adhesives, Prinitng Inks & Wax Blends. PVC Rigid Semi Rigid & Soft Profiles. Dash Board Instruments. Sheet Metal Fabrication. Stainless Steel & Super Alloy Castings. Exporter of Readymade Garments. High Tensile Fasteners. Pharmaceuticals. Pressure Die Casting of Aluminium & Zinc Components. Bottons, Melamine Crockery, Industrial Moulding Components. Home Appliances LPG Gas Stove, Parts, Components. Decorative Light Tractor Parts Dyeing & Prinitng. Dyeing & Prinitng. Knitting Mills Knitted Fabrics. Street, Industrial, Commercial & Decorative Lighting Fixtures. Sheet Pressed Components. Electric Fans & Motors. Cold Rolled Sheet Strips Tempered Steel & Galvanised Steel Tapes. Trailers, Trollies & other Steel Structural Fabrication. Plastic Injection Moulding Parts. Leaf Spring. Sheet Metal Components. Dyestuff. Anodising & Mfg. of Almunium Nameplates.
50

Name of the Industry Kunal Automotive Components Ltd. Lakhani Rubber Works Laldee Pvt. Ltd. Lauls Ltd. Lemount Garments P. Ltd. Luthra Textiles Ltd. Maharishi Ayurveda Corpn. Ltd. Mahavir Enterprises Maharaj Prints P. Ltd. Mahavir Powders Mandap International P. Ltd. Mangla Udyog P. Ltd. Manish Vinyles Mega Forge P. Ltd. Meenasha Casting Melco India P. Ltd. Melco Precisions P. Ltd. Menon & Patel LPG Cylinders M.G. Shahani & Co. P. Ltd. Micro Precision Products Minstel Insulations P. Ltd. Mitasso Appliances Ltd. Mitasso Appliances P. Ltd. M.K. Petro Products P. Ltd. Mode Prints P. Ltd. Modern Engineering Co. M.R. Steel Forgings P. Ltd. Munchure Industries P. Ltd. Nagina Metals & Engineers. Nagpal Flooring. Nap Sales P. Ltd. Nestor Pharmaceuticals P. Ltd. Manufacturers of Tractor & Crane Parts. Automobile Rubber Components. Chaff Cutter Knives & Agricultural Implemts. Steel Rounds, Squares/ Flats, Angles & Channels. Readymade Garments. Textiles Dyeing & Printing. Ayurvedic Medicines. Moulded Rubber Plastic PVC, FRP, Components. Printing of Silk Fabrics. UF Powder/ MF Powder. Wheel Rims for Motor Cycle. Sheet Metal Components, Muffler Assy. Fasteners, Oil Pipes, Hydo Pipes, Brake & Fuel Pipes. Coated Cotton Fabrics. Mfg. of Iron & Steel Forgings. Graded grey Iron Casting Components. Ash Handling Plant Equipment & Spares for power houses, Fertiliser Plants etc. Alloy Steel Castings, Super Allloys & Wires etc. Filling Plant Equipment. Swan Office Paste Adhesives & Industrial Adhesives. Instrumentation Accessories. Steel & Foundry Fluxes and Chemicals. Home Appliances. Automotive Parts. Bitumen Water Proofing Felt & Components. Dyeing & Printing. Paper Corrugated Board & Box Making Machines. Auto Parts Forgings. Agricultural Machinery & Tractor Parts. Railway Coach Works. Venetian Blinds & its parts. Industrial Gases. Allopathic Medicines.
51

Name of the Industry New India Conduits P. Ltd. Niki Tasha India P. Ltd. Nipha Exporters P. Ltd. Northern Tools & Gauges P. Ltd. Northern India Leather NSP Engineers & Fabricators P. Ltd. NSP Forgings P. Ltd. Nufarm Chemicals Omega Bright Steels P. Ltd. Orient Packaging P. Ltd. PPL Feedback P. Ltd. Paramount Rubber Industries Pahwa Chemical P. Ltd. Pee Cee Castings P. Ltd. Pee Empro Exports P. Ltd. Perfect Pac Ltd. Pioneer Refractories Co. Polycast Delhi P. Ltd. Plastipack Industries Pooja Metal Processors P. Ltd. P.R. Packaging P. Ltd. Pratibha Ceramics P. Ltd. Precision Casting Print Craft Press Press Cast Industries Preswel Industries Progressive Packaging Industry Progressive Thermal Controls P. Ltd. Punjab Industries Rachitech Engineering P. Ltd. Rachna Sabun Udyog Ranivas Collection P. Ltd. Job Work of Pure Silk Saree Printing. Steel Castings. Plastic Moulded Goods. Slitting of CARNGO/CRCA Co. EPS Packaging & Printed Dulex Carton. Refractories & Kilns. Copper Base Alloy Castings. Printed Articles. Die Casting for Auto Parts. All Type of Hydraulic Pressed & Machine Tools. Corrugated Cardboard Boxes. Water Meter. Steel Rounds, Squares & Flats. Fabricated Equipment for Lavasa Cane Handling Arrangement. Manufacturers of ERW Steel, Conduit Steel, Steel Tubes & Oxygen Lacing Pipe. Fabrication of Automobile Parts. Cotton Ginning & Textile Machinery. HSS Cutting Tools, Precision Components & Assembly for Agro Space. PVC Leather Cloth Railway Components, Fish Plates, Clamps. Die Forgings & Railway Parts. Thermosetting resins & Moulding Powder. Bright Bar & Shafting. Corrugated Boxes. Flexible Packing Material. Rubber Moulding. Thermoplastic Adhesives Textile Auxillary. Aluminium Sand & Gravity Die Casting. Export of Readymade Garments. Corrugated Boxes, Thermocole Products
52

Name of the Industry Rare Edition Prints P. Ltd. Rare Prints P. Ltd. Refrigeration Accessories Ltd. Reunion Engg. Co. Ltd. RPG Transmission Ltd. R.R. Automotive Components P. Ltd. Ruchika Engg. P. Ltd. RV Industries Sadhu Auto P. Ltd. Sadhu Steel Forging Industries P. Ltd. Sai Security Printers P. Ltd. Samanta P. Ltd. Sandvik Auto P. Ltd. Sebros Enterprises SGS Associates Sheel Packaging P. Ltd. Shree Industries Shyam Alloys Shyam Metals Shyam Steels Shivani Locks P. Ltd. Sidwal Refrigeration Industries P. Ltd. Sirocco Pressings P. Ltd. Sita Singh Engineers & Sons. SJ Knitting & Finishing Mills P. Ltd. Skytone Electricals Skylab Industries S&P Threads Ltd. S.S.P. P. Ltd. Steel & Steel Fabrications Studds Limited Studds Accessories P. Ltd. Textile Prinitng. Printing of Silk Sarees. Brass Fittings & Refrigerator Valves. Rewinding/ Repairing of Electrical Motors/ Generators. Tools for Vehicle Service Center. Tractor & Automotive Components used by OEM. Pressure Die Castinf in Aluminium & Zinc Sheet Metal Components. Copper Wire All Types of Closed Die Steel Forgings & Open Forgings. Printing of Lottery Tickets, MICR Cheques, Share Debentures & other Security Prinitng. Job Work of Dying & Printing of Export Fabrics. Auto Electrical Equipments. Brake Pipes, Brake Hoses. Automobile Printing Cardboard Boxes. Printed, un-printed Card Board Boxes. Fan Blades. Manufacturing of Tractor Parts. Forgings. Rerolling of Carbon & Alloy Steels. Automotive Door Latch Locking System. Air Conditioners & Water Coolers. Clutch Systems. Auto Parts & Body Building Processing of Cotton & Art Silk Fabrics. India Electrical Wires & Cables. Plastic Injection Moulded Plastics. Sewing Thread Processing. Dairy Plant Food Processing & Chemical Plant Industrial Dryer, Evaporator, Miling M/c Steel Fabrication & Machining. Safety Helmets Helmets. Manufacturers of
53

Name of the Industry Sudtrack Linkage P. Ltd. Sud & Waren P. Ltd. Sumati Engineering P. Ltd. Sunder Service Center Sunflam Enterprises P. Ltd. Super Alloy Cast Super Auto Electricals P. Ltd. Super Auto India P. Ltd. Super Electrical & Engg. Co. Super Electro Capacitors P. Ltd. Superfine Packaging Super Fibre Ltd. Super Parts Ltd. Super Screws P. Ltd. Supreme Plastic industries Taj Forgings P. Ltd. Talbros P. Ltd. Tarachand Saluja & Sons TechnoFab Engg. P. Ltd. Technospring Industries The Chemicals of India. Thermosteel Enterprises Toshi Auto Industries Ltd. P.P. Engineering Works Tractor Tirfore India Limited Texico Tools P. Ltd. Unimax Laboratories Unisystem P. Ltd. United Oil Mill Machinery & Spares P. Ltd. Venus Industrial Corp. Ltd. Venus Fabrics Victoria Tool Engineers Forgings, Castings. Computer Forms mfg. Plant & Paper Conversion Machine. Mfg. of Tractor Parts. Petroleum Products LPG Appliances & OTG. Pressure Die Casting Components. Automobile Pressure Die Casting Parts. Automobile Parts. Aluminium Die Castings Capacitors. Corrugated Rolls, Sheets, Automobile Parts Jute Twine LPG & Electrical Home Appliances. Industrial Fasteners. Plastic Industries. Forgings. Rubberised Cork Sheets, Articles of Cork. Petroleum Products Heat Exchangers, Pressure Valves, Air Cannons,LP Piping Structure Conveyor Belt Cleaning System. Industrial Springs Chemicals, Paints & Varnish Hand tools & Tool Kits. Plastic Automobile Parts. Rolling Mill Equipments. Hoists, Cranes & Chains. Steel Beams & Automobile. Pharmaceutical Equipments. Corrugated Boxes. Vegetable Oil Mill Machinery & Spares. Sheet Metal Corp. Suitings, Shirtings & Sarees. Sheet Metal Componentd, SM Auto Electrical Parts. Manufacturers of
54

Name of the Industry Vijay Mallable Pvt. Ltd. Vikas Forgings P. Ltd. Vipul Plastics V & R Auto Gauges P. Ltd. Windorz India Limited C.I. Castings. Steel Forgings of all types. Plastic Components. Speedometers Aluminium Doors, Window, Curtain Wall, Structural Glazing. Manufacturers of
Table 7.2 Medium Scale Industries

Name of the Industry AAC Factory (C/o Ballarpur Industries Ltd.) Amforge Industries Ltd. Asea Brown Boveri Ltd. Auto Ignitions P. Ltd. Auto Pins India Ltd. Avery India Ltd. Batra Associates Ltd. Beco Engineering(A Division of Mukand Ltd.) Belliss India Ltd. Bhai Sunder Dass & Sons Co. P. Ltd. Birla Kent Taylor India Ltd. Castrol India Ltd. Clutch Auto Ltd. CMI Limited Continental Devices India Ltd. Delton Cables Ltd. Escorts Employees Escorts Communications Ltd Escorts Ltd. Escorts Ltd. Frick India Ltd. GE Motors India P. Ltd. Manufacturers of Autoclaved Aerated Concrete Blocks & Slabs Tractor & Wheel Rim LT Motors Ignition Coil, Oil Pressure Switch and Horn Relays Leaf Spring & Various Types of Pin Weighting Counting & Testing Machine Auto Head Lights, Tail Lights, Blinkers, Hyd. Jack Clips, LP Valves, Ind. Valves & Home Appliances Machine Tools- Lathes, Planners, Plano, Millers, Special Purpose Machines Steam Turbines & Parts, Pressure Reducing Valve & DE Super Heating STN --Process Control Instruments & Control Panels Filling of Lubricating Oil in Small Packs Automotive Clutches, Covers Assemblies & parts thereof Undergroung telephone cables, Optical fibre cable, Cat-5 computer cables Semiconductor devices Thermoplastic insulated cables & wire for telecommunications Ancillaries Carburators & Fuel cocks Electronic private automatic exchange & allied equipment (Crankshaft & hydraulic division) Crankshaft (Railway equipment division) Railway equipments Refrigeration & Air conditioning equipments Special purpose electric motors, Lamination pump etc.
55

Name of the Industry General Engineering Works Ltd. Gurera Gas Cylinders P. Ltd Haryana Coated Papers Ltd. Havells India Ltd. Hindustan Leathers Ltd. Hindustan Syrings & Medical Devices P. Ltd. Hindustan Vaccum Glass Ltd. Indian Gas Cylinders Injecto Limited Jagatjit Engg. Works P. Ltd JBM Tools Ltd. M Jhalani Tools India P. Ltd. JMA Industries Ltd. JV Electronics Ltd. Kaushico Machine Tools P. Ltd KG Khosla Compressors Ltd. Khemka Containers Ltd. KK Kohli & Bros (P) Ltd. Knorr Bremse India P. Ltd. Larsen & Toubro Ltd. Lumax Industries Ltd. Mik Fujiyama India Ltd. New Allenberry Works North West Switchgear Ltd. Orient Fans Orient Steel & Industries Ltd. Oswal Electricals Plasser India Ltd. Polar Industries Ltd. Polymer Papers Ltd. Manufacturers of ACSR, PC Wires, UR Wires, Spring fine, Clutch LPG Cylinder & Sheet metal components Art & Cromo Paper Motor Control Gear & Switch Gear Job work of finished leather Hypodemic Glass & surgical blades, disposable syrings & needles, scalp venis etc. Vaccum glass & Glassware items LPG gas cylinders Fuel injection pipes, fuel & oil pipes, metallic flexible tubes, aluminium & zinc pressure die cast Sheet metal for tractor components Tools, Dyes, Jigs Fixture, Sheet metal Componets,Welded assembly & sub assembly, SP Assorted Hand Tools Automobile Ancillaries Dipped mica capacitors & silvered mica plates, EMI filers, lamps, light dimmers and connectors Power press, Shearing machine Air & gas compressors, Chilling plants, Aluminium & Grey Iron castings Corrugated card box boxes Suiting & Shirtings Air brake equipment for Indian Railways Switch boards Automotive parts Auto electronic ignition systems Gears, Shafts & axle for tractor & automobiles Low tension switchgears Electric fans Hot & Cold rolled steel strips Pressure die castings, motors & pumps Railway track maintenance machine Electrical stampings & laminations Filter mant & testing machinery, Filter paper, Filer
56

Name of the Industry Pooja Forge Ltd. Porritts & Spencer Asia Ltd. Precision Stampings Schenk Avery Ltd. Samtel India Ltd. Sanden Vikas India Ltd. Sikands Ltd. SJ Knittings & Finishing SPL Industries Ltd. Sterling Tools (P) Ltd. Super Seals India Ltd. Suzler Flovel Hydro Ltd. Talbros Automotive Components Ltd. Talbros Engineering Works The Printer House Ltd. The Star Wire India Ltd. Thomson Press of India Ltd. United Metal & Plastic Pvt. Ltd. Usha India Ltd. UT Limited VXL Engineers Ltd. Woodward Governer India P. Ltd. Xpro India Manufacturers of Industrial Fasteners Industrial paper making Electrical stampings & lamination for fans, motors,dies Dynamic balancing machines, dynamometers, garage equipment, vibration measuring monitoring & control equipment 14" SVGA monitor, video monitor, 14" B/W TV ,14" TV kits Automobile air conditioning systems & parts thereof High tensile cold forged precision bolts & nuts Processing of cotton & art silk fabrics Dying & printing fabrics High tensile steel fasteners Oil seals & flexible hoses Hydro turbine Automotive gaskets of all types Automotive gaskets Automotive Printing Machine Special steel, valve steel, tool & die steel Printing books Auto & tractor parts Polyster capacitors Hydraulic pumps & valves Defence stores, relays, control panels Power control equipment Coextured plastic sheet & cast plastic films
57
Table 7.3 Large Scale Industries

Name of the Industry Bata India Ltd Bhartia Cutler Hammer Eicher Tractor Ltd. Escorts JCB Ltd. Escorts Ltd. Escorts Yamaha Motors India Ltd. GKN Invel Transmission Ltd. Goodyear India Ltd. Hindustan Wires Ltd. Hyderabad Industries Ltd. Jindal Strips Ltd. Lakhani India Ltd. Nuchem Limited Tecumseh India P. Ltd. Whirlpool India Ltd. Manufacturers of Hawai & canvas shoes Electrical/Electronics control devices & systems Automotive agriculture tractor Excavators Loaders Tractors & bi wheelers Motor cycle Front wheel drive shaft (CV Joint) Automobile tyres Steel Wire, LPG cylinder, valves & regulators Filbre & cement sheet jointing & pre fabricated prinitng panel HR plates, slabs, blooms strips of all grades oxygen gas & argon gas Canvas vulcanised shoes UF/MF resins & moulding powders, hexamine, formaldehyde, medium density fibre board Compressors Refrigerator
58
7.2 Demand Assessment

We have seen that Faridabad is an industrial hub. The demand potential of piped natural gas in different industrial units in sector 6, 24, 59 and NIT industrial area were assessed. Sector wise demand of natural is given below: 7.2.1 Sector 6 There are around 103 industries in sector 6 of Faridabad City. The details of types of industries are given in the table below: Table 7.4 Type and Number of industry in sector 6 Type of Industry
Textiles Forging Printing/Packaging Plastic Products Leather Die Casting Sheet Metal/Fabrication Rubber Products Export Casting Coating Heat Treatment Automobile Parts Manufacturing Unit Others Total Industries
No. of industries
5 6 1 1 2 9 6 2 2 2 2 3 3 18 41 103
PNG shall replace a conventional fuel in the existing plants. The presently used fuels can be classified into four categories as solid fuel, liquid fuel, gaseous fuel and electricity. These are detailed below:
59
7.5 Types of Fuels used in industry

Solid Fuel Coal Petcoke Liquid Fuel FO LDO HSD SKO Gaseous Fuel Coal Gas LPG Electricity Electricity
The industries in this sector are divided into categories by virtue of fuel used as detailed below: Solid fuel using units: units that consume solid fuel, like coal for the production process. Liquid fuel using units: units that consume various liquid fuels such as FO, HSD, etc for the main production process. Gaseous fuel using units: No units in this city consume gas as primary fuel. However, there are units that use LPG and propane for various uses. Electricity using units: Units that use electricity for the main production process. All industrial units use electricity connection from HSEB. The presently used fuels in different industry in this sector are LPG, Petcoke, Diesel and FO. The total daily fuel consumption is given in the table below: Table 7.6 Total Daily fuel consumption in Industries in sector 6
Type of fuel LPG Petcoke Diesel Furnace Oil Total daily consumption 2043 11650 10964 47299.99. UNIT kg kg Litr. Litr Equivalent NG (SCMD) 2594.61 6524.00 13376.08 52502.98 MMSCMD 0.00259461 0.006524 0.01337608 0.05250298 0.06847367
Demand of equivalent amount natural gas
60
Demand Assessment of Natural Gas in Selected Sectors in Faridabad .. Fig 7.1 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 6
2594.61 6524 13376.08
52502.98
LPG
Petcoke
Diesel
Furnace Oil
Table 7.7 Equivalent NG consumption with & without power requirement in sector 6
Equivalent NG consumption SCMD (With power requirement) 78182.74764 Equivalent NG consumption SCMD (Without power requirement) 51405.61072
80000 70000 60000 50000 40000 30000 20000 10000 0

With power requirement Without power requirement
78182.74764
Fig 7.2 Equivalent NG consumption with & without power requirement in sector 6
51405.61072
61
7.2.2 Sector 24 There are around 120 industries in sector 24 of Faridabad City. The details of types of industries are given in the table below: Table 7.8 Type and Number of industry in sector 24
Type of industry Sheet Metal Component Forging Fabrication Die Casting Casting Steel Heat Treatment Rubber Auto Components Export Coating Textile Manufacturing Others Total Industries No. of industries 7 7 13 5 4 3 2 4 4 2 1 1 12 54 120
PNG shall replace a conventional fuel in the existing plants. The presently used fuels in different industry in this sector are LPG, Coal, Diesel and FO. The total daily fuel consumption is given in the table below: Table 7.9 Total Daily fuel consumption in Industries in sector 24
Type of fuel LPG Coal Diesel Furnace Oil Total daily consumption 59.163 40000 10609.03 11833.2 UNIT kg kg Litr. Litr Equivalent NG (SCMD) 78.68679 18000 12943.7486 13134.852 MMSCMD 0.000078679 0.018 0.012943748 0.0131334852 0.0441559122
62
Demand Assessment of Natural Gas in Selected Sectors in Faridabad .. Fig 7.3 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 24
78.68679 13134.852 18000
12943.7486 LPG Coal Diesel Furnace Oil
30000 25000 20000 15000 10000 5000 0

26157.32765
18265.96505
63
7.2.3 Sector 59 There are around 82 industries in sector 59 of Faridabad City. The details of types of industries are given in the table below: Table 7.11 Type and Number of industry in sector 59
Type of industry Sheet Metal Component Forging Fabrication Die Casting Auto Components Coating Manufacturing Others Total Industries No. of industries 3 2 2 1 4 1 5 64 82
PNG shall replace a conventional fuel in the existing plants. The presently used fuels in different industry in this sector are LPG, Diesel and FO. The total daily fuel consumption is given in the table below: Table 7.12 Total Daily fuel consumption in Industries in sector 59
Type of fuel LPG Diesel Furnace Oil Total daily consumption 232.54966 24619.86 4733.32 UNIT kg Litr. Litr Equivalent NG (SCMD) 309.2910478 30036.2292 5253.9852 MMSCMD 0.000309291 0.030036229 0.005253985 0.035599505
64

Fig 7.5 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 59
5253.9852
309.2910478
30036.2292
LPG
Diesel
Furnace Oil
40000 35000 30000 25000 20000 15000 10000 5000 0

35599.50545
8003.276248
65
7.2.4 NIT Industrial Area There are around 88 industries in Nit Industrial Area of Faridabad City. The details of types of industries are given in the table below: Table 7.14 Type and Number of industry in NIT Industrial Area
Type of industry Sheet Metal Component Die Casting zzAuto Components Rubber Industries Manufacturing Casting Others Total Industries No. of industries 3 3 9 3 8 1 66 88
PNG shall replace a conventional fuel in the existing plants. The presently used fuels in different industry in this sector are LPG, Diesel and FO. The total daily fuel consumption is given in the table below: Table 7.15 Total Daily fuel consumption in Industries in NIT Industrial Area
Type of fuel LPG Diesel Furnace Oil Total daily consumption 934.043 23601.266 9333.33 UNIT kg Litr. Litr Equivalent NG (SCMD) 1242.27719 28793.54452 10359.9963 MMSCMD 0.00124227719 0.02879354452 0.0103599963 0.04039581801
66

Fig 7.7 Share of Different fuels to be replaced by Natural Gas (SCMD) in NIT Industrial Area
1242.27719 10359.9963
28793.54452
LPG
Diesel
Furnace Oil
Table 7.16 Equivalent NG consumption with & without power requirement in NIT Industrial Area
18000 14000 10000 8000 6000 4000 2000 0

Fig 7.8 Equivalent NG consumption with & without power requirement in NIT Industrial Area
14164.56929
12000
17807.9864
16000
67
Table 7.17 Total demand of PNG in these four sectors Sector Daily PNG Demand (MMSCMD) Sector 6 Sector 24 Sector 59 NIT Industrial Area Total Demand
0.06847367 0.0441559122 0.035599505 0.04039581801
0.188625~ 0.20 (approx.)
68
Chapter 8
****************
Conclusion
Natural Gas is the fuel of the future. Gas is not only cost efficient and also energy efficient. So, using gas is not only saving customers money but also saving energy for the country. All the commercial setups and Industries are focusing on gas for their fuel supply. Even if gas is priced by market driven forces, it will be of competitive advantage for the customers. Faridabad is the hub of industries. Sector 6, 24, 59 and NIT Industrial Area have around 400 small, medium and large industries. These industries are presently consuming LPG, Diesel Coal, Petcoke, FO as their fuels. PNG can replace these conventional fuels in the existing plants. Based on their daily consumption of different fuels, the demand for equivalent (energy equivalent) amount of piped natural gas would be 0.06847367 MMSCMD for Sector 6, 0.0441559122 MMSCMD for Sector 24, 0.035599505 MMSCMD for Sector 59 and 0.04039581801 MMSCMD for NIT Industrial Area. Therefore, total demand of PNG in these four industrial regions would be 0.188625 MMSCMD or approximately 0.20 MMSCMD.
69
Annexure I
Abbreviation
BCM CGD CGS CNG DGH DRS EIA FDI FO FRS GI Pipe GDP IEA Kgoe LPG LCV LNG MDPE
MTOE
Billion Cubic Meter City Gas Distribution City Gate Station

Compressed Natural Gas
Directorate General of Hydrocarbons District Regulatory System Energy Information Administration

Foreign Direct Investment Fuel Oil
Field Regulatory System Galvanized Iron Pipe

Gross Domestic Product
International Energy Agency kg of oil equivalent Liquefied Petroleum Gas Light Commercial Vehicle Liquefied Natural Gas Medium Density Polyethylene
Million Ton of Oil Equivalent
MW MMT MMSCMD NELP NG PNGRB PNG RoU SCMD TCM
Mega watt Million Metric Ton

Million Standard Cubic Meter per Day New Exploration Licensing Policy
Natural Gas Petroleum & Natural gas Regulatory Board Piped Natural Gas Right of User
Standard Cubic Meter per Day
Trillion Cubic Meter
References
petroleum.nic.in www.pngrb.gov.in IEA, Key World Statistics, 2009 Integrated Energy Policy 2006, Planning Commission of India BP Statistical Review of World Energy, June 2009 Industry Outlook-Indian Downstream Natural Gas, ICRA Report Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012) The Oil & Gas Sector Overview in India 2009, KPMG Report faridabad.nic.in

Demand Assessment of Natural Gas in Selected Sectors in Faridabad

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Demand Assessment of Natural Gas in Selected Sectors in Faridabad

Uploaded by

Copyright:

Available Formats

Demand Assessment of Natural Gas in Selected Sectors in Faridabad

Vikram Singh (Pgrm/03/33)

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

About Adani Gas

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Unit Mtoe Mtoe Mtoe Tonnes Tonnes MW

Reserve 13,489 786 1,866 61,000 225,000 150,000

Indias primary energy mix

India's primary energy mix in 2008

World's primary energy mix in 2008

Oil 35% Nuclear 1% Nuclear 6%

Fig 2.2 Primary energy Mix of India & World

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Natural Gas Scenario in India

3.1 Natural gas reserves

Source: BP Statistical Review of World Energy, June 2009

3.2 Production and Consumption of Natural Gas in India

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Source: BP Statistical Review of World Energy, June 2009

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

3.3 Natural Gas Consumption Pattern in India

Fig. 3.2 Natural Gas Consumption pattern in India (2009-10)

Industrial &Captive Power 14 percent and sponge iron/steel sector 5 percent.

3.4 Natural Gas Demand-Supply Outlook

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Fig 3.3 Estimates for NG Supplies from Domestic Fields

Source: ICRA Estimates

3.5 Meeting the Demand-Supply Gap

3.5.1 Liquefied Natural Gas (LNG):

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

3.5.2 Trans-national Pipelines:

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

3.5.3 Coal Bed Methane (CBM):

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

3.5.4 Indigenous E&P:

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Property, Use and Safety of Natural Gas

4.2 Energy content & statistics

4.3 Natural Gas Use

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

4.4 Using Natural Gas Safely

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

What is City Gas?

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

Demand Assessment of Natural Gas in Selected Sectors in Faridabad ..

5.4 Present Scenario of City Gas Distribution in India