SPM, GANDHINAGAR

City Gas Distribution

Submitted to: Prof. Pramod Paliwal
Submitted By: Dimple Singh

2010

SCHOOL OF PETROLEUM MANAGEMENT

Table of Contents
Chapter 1: Natural Gas Overview in India .......................................................................................... 3
Production & Imports .................................................................................................................... 3
Domestic Gas fields in India ........................................................................................................... 5
Recent discoveries ......................................................................................................................... 5
India’s Natural Gas Supply Options ................................................................................................ 5
Outlook for Regional LNG Supply ................................................................................................... 6
Chapter 2: CGD Overview of India ..................................................................................................... 9
Objectives of developing CGD Network ....................................................................................... 10
Compressed Natural Gas ............................................................................................................. 11
Piped Natural Gas ........................................................................................................................ 12
Comparison of CNG with PNG ...................................................................................................... 13
Supply Scenario ........................................................................................................................... 13
Domestic Production ................................................................................................................... 14
APM and Non-APM Supply .......................................................................................................... 14
Constraints .................................................................................................................................. 15
Chapter 3: CGD Infrastructure ......................................................................................................... 16
City Gate Station.......................................................................................................................... 16
CGD Layout.................................................................................................................................. 17
Pressure Regime .......................................................................................................................... 18
Regulatory Body Framework........................................................................................................ 18
Regulatory Aspects of Laying Pipeline ...................................................................................... 18
Chapter 4: CGD Network Safety ....................................................................................................... 20

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Chapter 1: Natural Gas Overview in India
India’s association with natural gas dates back to 1886 when oil and gas were struck at
Digboi, Assam. But the gas market evolved rather slowly, due to inadequate production and
supplies and until recently India accounted for just 0.5% of the world’s total natural gas
reserves. Usage of gas was localized near the production point. The situation changed
dramatically after the discovery of a massive oil and gas field off the western coast, Bombay
High, which went into commercial production in 1976. This was soon followed by the South
Bassein free gas field in 1978.

Gas occupies about 9% of the total energy basket of the country. However, the scenario is
fast changing in the country, largely because of the expected increase in the availability of
natural gas in the country.

India and World’s Energy Basket (2006)

Source: Planning Commission of India, BP Statistics

Presently, fertilizers and power sectors continue to be the major consumers of natural gas
at 33% and 45% respectively. As per the GUP, fertilizers sector should get the highest
priority in allocation of natural gas. It has also been directed that the power sector should
be encouraged to rely more on natural gas for new capacities. At present, there is an acute
shortage of natural gas in the country. As against the current estimated demand of about
180 MMSCMD, the availability is around 120 MMSCMD. Presently gas supply is being made
from the domestic fields of ONGC, OIL, Private JV operators and from the import of LNG.

Production & Imports

Natural gas accounted for about 9 percent of total energy consumption in India which stood
at 404.4 million tons in 2007 as per BP Statistical Review of World Energy. The primary

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energy consumption grew by about 6.8 percent as compared to previous year. The demand
for natural gas in India is more than the supply. Total proven reserves of natural gas in India
were estimated at about 1,060 billion cubic meters (billion cubic meters) in 2007. In the last
five years supply of gas has increased by approximately 35 percent.

Source: Heritage.org

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Domestic Gas fields in India

Source: Directorate General of India

Recent discoveries
Year Discovery Operator
2000 Gas – Gulf of Cambay Cairn
2001 Oil & Gas Krishna Godavari Deep waters Cairn
2002 Gas KG Basin Deep Water (world’s biggest discovery for the year) RIL
2003 Oil in Barmer Sanchor Basin (Rajasthan) Cairn
2004 Gas in Mahanandi Basin Shallow Water RIL
2005 Gas in KG Basin Shallow waters GSPC
2005 Oil in KG Basin in Shallow waters RIL
2005 Gas in KG Basin Shallow waters GSPC
2005 Oil in KG Basin in Shallow waters RIL

India’s Natural Gas Supply Options

India has three options to meet the anticipated growth in natural gas consumption over the
period to 2025 — increase domestic gas production; increase LNG imports; and introduce
pipeline natural gas imports.

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India’s current gas producing fields are maturing and are expected to decline in the coming
years. India has significant reserves of natural gas, including recently discovered fields in the
Krishna-Godavari Basin that have the potential to significantly expand domestic gas
production.

India will need to source additional gas supplies via imports. The requirement for additional
gas is projected to reach around 4 billion cubic meters a year (3 million tonnes) in 2015,
expanding to 32 billion cubic meters a year (23 million tonnes) in 2025. The additional gas
requirements will be even greater in the high economic growth scenario.

India's Potential Natural Gas Supply Options

Source: http://www.energyindia.org/

Assuming India’s additional gas import requirements are all met by LNG, India’s total LNG
imports in the reference case could reach 10 million tonnes in 2015, 21 million tonnes in
2020, and 31 million tonnes in 2025.

Outlook for Regional LNG Supply

The potential volume of additional gas required will provide a challenge for India in the
coming years. There are currently a number of LNG supply projects in the Asia Pacific region,
both under construction and planned, that would have capacity to meet India’s long term
gas requirements. However, many of these projects would require long term contracts with
buyers to underpin their development.
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India is also likely to face competition in the next few years from established LNG buyers
such as Japan and Korea who are willing to pay higher prices.

Source: http://www.energyindia.org/

Qatar will be a swing supplier, and arbitrage opportunities will favor large portfolio players
with widespread sources of supply and captive shipping. Pipeline gas demand will mirror
LNG demand growth, but is more constrained by cross-border pricing and ownership issues.
Prospective pipeline projects to deliver gas from West and East Siberia, Sakhalin,
Kazakhstan, and Turkmenistan into northeast Asia, and via the Trans-Asian system into
southeast Asia, have been discussed for more than a decade, but are hampered by
infrastructure costs, competition between importing countries, and (at least in the case of
northeast Asia) an absence of viable commercial frameworks and pricing mechanisms.

Source: http://www.energyindia.org/

Middle East can be one of the largest sources for LNG in future due to the following factors,

Large Gas reserves in Middle East

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 Nearest Proximity to market that Gas through LNG
Transportation advantage
Better Price
Long term commitments

In the long term the extent to which higher LNG capacities can be absorbed would depend
on the size of domestic finds. As such timing, volume and pricing of imported gas would be
critical for sourcing LNG for the Indian market. However, the demand of gas in the country
would remain buoyant and price afford ability would keep on improving with the overall
economic growth of the country.

Project Capacity
S. No. Developer LNG Suppliers Project Completion
Location (MMTPA)
Commercial
1 Dahej (Gujarat) Petronet LNG Ltd. 6.5 Ras Laffan Operations began in
April 2004.
Spot cargoes from mostly Commercial
Hazira
2 Shell, BV & Total 2.5 Shell operated LNG Operations began in
(Gujarat)
terminals June 2005
Dabhol ( Oman LNG & Abu Dhabi
3 GE, Bechtel, MSEB 5 2010
Maharashtra) Liquefaction company
4 Kochi ( Kerala) Petronet LNG Ltd. 2.5 Ras Laffan 2011
Mundra (
5 GSPC, Adani 7.5 Talks in progress 2012
Gujarat)
Haldia (West
6 Spice Energy 2.5 Pertamina, Indonesia 2011
Bengal)
Ennore ( Tamil
7 IOC 2.5 Talks in progress Nothing concrete
Nadu)
Source: Infraline

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Chapter 2: CGD Overview of India
With the emphasis being laid on a cleaner environment and lower pollution levels in cities,
CGD is expected to get a push in the coming years. Thus, apart from GAIL, a few players
have drawn up ambitious plans to roll out city gas infrastructure across a number of cities in
the country. States which are likely to see further activity include Uttar Pradesh,
Maharashtra, Andhra Pradesh, Rajasthan, Karnataka, Kerala, Madhya Pradesh and West
Bengal. The main driver for the development of gas transmission and CGD shall be the
availability of requisite volumes of gas. With the development of RIL's KG Basin and other
fields, opportunities are available but the challenge is whether the CGD license-holders can
obtain gas supplies and develop gas distribution infrastructure. The Indian CGD players are
shown in the figure.

Table: Showing the chronological movement in CGD market in India

Year City Company

1880 Calcutta Calcutta Gas company
1900 Mumbai Bombay Gas Company
1972 Vadodara Vadodara Municipal Corporation
1980 Delhi Delhi Municipal Corporation
ONGC colony – Mehsana,
1982 ONGC
Sibsagar
1985 Duliajan Assam gas company
1986 Sibasagar Assam gas company
1989 Surat, Ankleshwar, Bharauch Gujarat Gas Company Ltd.
1994 Mumbai Mahanagar Gas ltd.
1995 Delhi Indraprastha Gas
2004 Vadodara, Ahmedabad Adani
2005 Hyderabad Bhagayanagar gas
2006 Kanpur, Lucknow CUGL & GGL
Gandhinagar, Kadi,
2006 Mehasana, Rajkot, Vapi, GSPC/ SGL
Morbi

Few years ago CGD was limited to only Mumbai and Delhi, but today we have 25 cities
where the infrastructure for CGD has been developed. Some of the major cities are Delhi,
Mumbai, Ankleshwar, Baruch and Surat, Vadodara, Agartala, Vijaywada, etc. For the year
2007-08 CGD contributed 7% of the total gas demand in India. The demand was 12.08
mmscmd. Gujarat as a state is the largest consumer of CGD with a consumption of 5.57
mmscmd which is about 55% of the total consumption of CGD. Delhi and Mumbai are the
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next two largest consumers with 2.3 mmscmd and 2 mmscmd respectively. The total
consumption was consumed by 509000 vehicles through over 375 CNG station, about
645000 domestic consumers, 1300 industrial and 4000 commercial customer. The
penetration of CGD has been limited as currently CNG is distributed through only 1% of the
total 35000 retail outlets of other transport fuels.

Figure: CGD's in India

Surat, Ahmedabad
Assam Baroda Bharuch,
Mumbai Delhi & Baroda
Morvi,
Ankleshwar Gandhinagar
Baroda Adani
MGL IGL
Assam Municipa GGCL Energy GSPC
Gas l
Comapny Corporat
ion
BPCL

SGL

Objectives of developing CGD Network

Consumers to get assured supply of CNG and PNG at cheapest possible price

Domestic PNG and CNG to be priority - both in terms of pricing & gas volumes

Incentivize maximum possible coverage for domestic PNG and CNG

Quickest geographical spread (overall network coverage) during exclusivity period

Monitor progress against measurable (with penal provisions, including termination

of authorization for failure to achieve commitments

Post-exclusivity, CGD network available to multiple players for marketing of PNG,

CNG and if required, laying and building network as well.

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The table below shows the consumption pattern of CNG in different sectors for different
cities.

CNG
Location Company mmscmd Vehicles Domestic Industrial Commercial
Delhi IGL 2.3 134608 107487 - 400
Vadodara GAIL 0.021 3222 - - -
Vadodara GAEL 0.075 75000 - 70 -
Ahmedabad GAEL 0.45 43500 20000 220 200
Surat,
Ankleshwar GGCL 4 50000 200000 800 2500
Gujarat GSPC Gas 1.025 - 20813 230 55
Mumbai MGL 2 179720 297163 40 882
Lucknow CUGL 0.056 8290 - - -
Kanpur CUGL 0.01 7400 400 - -
Agra GGL 0.0249 4048 - - -
Agartala TNGCL 0.0001 41 - - -
Vijayawada BGL 0.012 2000 - - -
Hyderabad BGL 0.0076 1700 - - -
Total 9.9816 509529 645863 1360 4037
Source: India Infrastructure Report

Compressed Natural Gas

Compressed Natural Gas (CNG) has been widely used in vehicles since the 1930s, in
countries that include Argentina, Russia and Italy. There are more than 1,050,000 vehicles
around the world, which are powered by CNG fuel. It is gaining increasing acceptance,
particularly for city transport vehicles such as taxis, buses and delivery trucks due to its
relative superiority over other conventional fuels.

CNG is a relatively clean fuel with lower emission levels of SOx, NOx and SPM. It is,
therefore, being promoted by the Government of India as a fuel for the transport sector
vide sales tax exemption and a lower custom duty of 5 per cent on imported CNG kits as
against a peak rate of 25 per cent. CNG as an automobile fuel improves engine efficiency.
The running cost of CNG is lower compared to diesel and gasoline. The maintenance cost is
also low due to better fuel quality. The energy content per kg of CNG is very similar to that
of petroleum based fuels, but it has a lower energy content per unit of volume. The
excellent knock resisting property of CNG allows for use of a higher compression ratio
resulting in an increased power output and greater fuel economy when compared to petrol.

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CNG can be used in engines with a compression ratio as high as 12:1 compared to normal
gasoline (7.5:1 to 10:1). At this high compression ratio, natural gas-fuelled engines have
higher thermal efficiencies than those fuelled by gasoline. The fuel efficiency of CNG driven
engines is about 10-20% better than diesel engines.

CNG is the least polluting:

(gm/100 km)

Fuel/Emissions CO2 UHC CO NOx SOx PM

Petrol 22,000 85 634 78 8.3 1.1
Diesel 21,000 21 106 108 21 13
LPG 18,200 18 168 37 0.4 0.3
CNG 16,275 5.6 22 26 0.2 0.3

Piped Natural Gas

Presently allocation of gas to MGL for domestic PNG and CNG is 1.4 MMSCMD and demand
for these categories of customers is more than 1.4 MMSCMD. The quantity of gas supplied
to domestic, commercial and industrial customers of MGL is 0.065 MMSCMD, 0.065
MMSCMD and 0.035 MMSCMD respectively. The present allocation of 2 MMSCMD to IGL is
sufficient to meet the daily demand of CNG/PNG in the National Capital Territory of Delhi.
The demand for natural gas in the country is more than the availability. In order to bridge
the gap between demand and supply of natural gas, Government has adopted a multi
pronged strategy. These cover:-

i. Intensification of domestic E&P activities

ii. Exploitation of unconventional sources like Coal Bed Methane (GBM)

iii. Underground coal gasification

iv. Implementation of Natural (Tas Hydrate Programme (NGHP) for evaluation of

hydrate resources and their possible commercial exploitation

v. LNG imports & Gas sourcing through transnational gas pipelines.

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Comparison of CNG with PNG
GAIL, along with other vital CGD players, is implementing the CGD projects taking into
consideration the benefits of both the economical and technical benefits of PNG and CNG.

S.
CNG PNG
No.
Safe and assured supply of gas to domestic,
1 Economical
commercial and industrial sectors
a. Cheaper than conventional fuel Convenient to use
Economically more viable compared to other
b. Pay back period is short
fuels in same sector
No traffic disruption as supplied through
2 Technical
pipelines
Very high antiknock power (more
than 120 ON) allows greater
a. Continuous supply
performance compared to petrol
one
Does not require refining plant or No wastage, no under weight cylinders, no hassle
b. additive adding and can be used for replacement of cylinder, no need for cylinder
immediately after its extraction booking
It has no evaporation leaks and No advance payment for consumption of gas,
c. spills of fuel, both during refueling billing will done in once in two months based on
and feeding of the car consumption
Its combustion produces a very
low quantity of carbon deposits
d.
(permits a longer life of lubricant
oil)

Benefits of Usage of CNG vs. other Liquid Fuels (all India Basis)

Qty of Petrol &

% Vehicles converted to Forex Savings
Diesel Replaced
CNG From Petrol/Diesel (Cr)
(TMT)
20 17019 25,886
50 42548 64,715
75 63822 97,072
Source: Infraline.com

Supply Scenario
Supply of gas has always been a constraint for the development of CGD business. This sector
has always been neglected as the distribution of gas has been prioritized. At the end of 2007
the total proven reserves of natural gas was about 1645 billion cubic meters (bcm) which is
about 0.6% of the total reserve worldwide. According to an estimation with the current
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production level, India’s reserve are likely to last for around 30 years, but at the same time
the world reserve would last for 67 years. ONGC accounts for 60% of these reserves with
990 bcm gas, while Oil India Limited (OIL) accounts for another 10% with 170 bcm and other
private players and joint ventures accounts for 30% with about 483 bcm. Of the total supply
of gas, offshore fields contribute 72% and onshore fields contribute 28%. In the last five
years the supply of gas has risen by 35% that is form 84 mmscmd per day during 2003-04 to
114 mmscmd during 2007-08.

Domestic Production
In India there was a boom during the period between 1980 to 1996, during this period the
gas production grew to ten times that is from 2.36 bcm to 22.64 bcm and this was because
of the flaring of gas during that period was reduced to 68.5% at one go. During the period of
1997- 2007 the overall annual growth rate remained stagnant because the flaring was
almost constant. The utilization rate has increased from 93.7% in 1995-96 to about 97.2% in
2005-06.

APM and Non-APM Supply

Of the total supply of gas in the country, 60% comes from Administered Pricing Mechanism
(APM), 20% from private players and joint ventures and the rest 10% from LNG. APM gas is
the gas produced by ONGC and OIL from the blocks that were given on a nomination basis,
and is sold at government determined rates. Non-APM gas is being produced by private
players and joint ventures from the blocks wan through bids, which are under production
sharing contracts with the government. This gas is sold at market-determined price. Because
of this kind of distribution there are two groups who are affected. They are the APM gas
producers and the buyers of the Non APM gas. APM gas prices are determined by
government so the prices are lower than the prevailing market price thus the buyers of APM
gas are benefited but at the same time the APM companies have to forgo the marginal
profit. The APM gas companies did not pay any bidding of license fees for the gas fields the
own.

Assessing the initial demand of gas for the City Gas projects, APM gas has been allocated as
follows:-

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 Sl. No. Name of the City Qty (mmscmd)
1 Mumbai 1.4
2 Navi Mumbai & Thane 0.5
3 Delhi 2
4 Noida, Faridabad & Gurgaon 0.7
5 Hyderabad 0.1
6 Kanpur 0.1
7 Lucknow 0.1
8 Bareilly 0.05
9 Pune 0.4
10 Agartala 0.13
11 Vadodara 0.1
Source: Infraline

Constraints
The biggest constraint is that the limited allocation of gas for CGD. It has to compete with
bulk consumers like power and fertilizers as well as petrochemicals. Moreover lack of
adequate transmission and distribution infrastructure connecting the demand and supply
regions within the country is a major constraint.

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Chapter 3: CGD Infrastructure

City Gate Station

The natural gas that is received at the City Gate Stations is mostly passed through a cleaner
to remove liquids and dust. The primary function of the city gate station is to measure the
amount (volume) of incoming gas. It is generally measured through orifice meters. Another
function is to reduce the pressure of the gas to be sent for distribution, as the distribution
system requires much lesser pressure than that in long distance transmission. Mechanical
devices called pressure regulators lower the gas pressure and helps to control the flow rate
to maintain desired pressure level throughout the distribution system. With the reduction in
pressure, the natural gas also becomes cooler, so sometimes it has to be heated up in
regions where the temperature is below zero degree. Last but not the least, at the City Gate
station, the odorization of the natural gas tales place. Different types of odorants are used,
so that the “smell” makes the presence of the escaping, un-burnt gas recognizable at very
low concentrations. This serves as a warning well before the gas accumulates to hazardous
levels; a mixture of air and natural gas are explosive over the range of 5% to 15% natural
gas. To ensure safety, odorized natural gas is detectable at concentration of just 1%.

The piping system also forms a major part in City Gas Distribution. Mainly there are 4 types
of piping systems other than supply mains:-

a) Feeder mains transport gas from the pressure regulator or supply main to the distribution
mains. Feeder mains might also have some lines connected to large industrial users.

b) Distribution mains supply gas primarily to residential, commercial, and smaller industrial
consumers.

c) Service lines deliver gas from the distribution main in the street to the consumer’s meter.
Service lines are usually the property and responsibility of the utility. However, some
utilities own only the portion of the service lines in the public domain.

d) Fuel lines are customer piping beyond the meter to various appliances. These lines are
the property and responsibility of the building owner.

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CGD Layout

As seen in the above figure CGD network consist of steel pipeline and PE (polyethylene)
pipes. City Gas Station are the tap-off’s at the main pipeline. These are the termination
station for a city where the various processes like pressure reduction, filtration, and
odorisation is done. The gas from the main pipeline is brought down to a pressure of 19-22
bars and then transferred through steel pipeline to DRS.

District Regulation Station are installed where the distribution is to be done like in the
industrial area and domestic/commercial segment. Gas to the various consumers is
transferred after being maintained at a pressure of about 4-5 bar. Then the gas is
transmitted to Single Stream Regulator (SR) through 4 bar medium pressure PE pipelines. SR
further reduces the pressure from 4bar to 100 mbar. From SR the gas is supplied through a
100 mbar low pressure PE pipeline to a G.I. Riser Isolation wall. From this valve the gas is
carried through a G.I. (Galvanized Iron) 100 mbar pipelines to end user. The control valve is
placed at the height of 5 ft which controls the flow and then a regulator are installed which

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brings down the pressure to 21 mbar for basic home users. A meter is installed which tells
the amount of gas being used depending on which they are charged.

Pressure Regime
Depicting the Pressure Regime in CGD

Steel Transmission Mains

City Gate Station (90-100 bars)

Steel Distribution Mains

Industrial, CNG Distribution (26 bars)

Polyethylene Pipe Distribution Mains

Small Industrial, Commercial (4 bars)

Meter Regulator (100 millibars)

Residential Burner (21 millibars)

Through this diagram, I have tried to consolidate the learnings about the pressure regime
described in the CGD layout.

Regulatory Body Framework

The Ministry of Petroleum & Natural Gas was the policy maker and regulator in the initial
stages of implementation of City Gas Distribution. As time passed by, the increased activity
with respect to this distribution system instigated the need of a special regulatory body,
which would ensure the well being of this industry. The Petroleum and Natural Gas
Regulatory Board (PNGRB) act was passed in October, 2007 and most of the operations
were transferred to this authority.

Regulatory Aspects of Laying Pipeline

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

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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.
If any issue arises relating to the gas pipeline access, capacity booking or the
transportation tariff, the entities may approach the Board who may pass such orders
as deemed appropriate and fair on the facts of the case based on the provisions of
the Act and the regulations.
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.

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Chapter 4: CGD Network Safety
One of the primary concerns with respect to gas distribution is the safety and security of the
pipeline network. The mesh of pipelines being used to distribute the gas needs to be
maintained at the highest operating level, because any leak can lead to catastrophic
accidents. The safety regulations are given the highest priority while issuing new licenses.
The safety guidelines are coined by the Oil Industry Safety Directorate (OISD), a technical
body under the Ministry of Petroleum and Natural Gas (MoPNG). The functions of the OISD
are elaborated below:-

a. To oversee the implementation of all the decisions of the Safety Council,

b. To keep abreast of the latest design and operating practices in the area of safety and fire
fighting in the hydrocarbon processing industry in the developed countries, so as to develop
standards and codes that would be suitable for the conditions in India;

c. To liaise with the statutory organizations on current views and developments and help
evolve a concerted effort for the industry;

d. To carry out periodic safety audits, review, suggest procedures for improvements and
report on the implementation of the suggestions to Safety Council;

e. To collect the relevant information and exchange it with the members of the Oil Industry
including information regarding accidents and disasters occurring in the oil industry, and
also organize industry meetings for exchange of experience;

f. To carry out enquiries into accidents, whenever required, and provide support to Enquiry
Committees set up by the Government;

g. To ensure implementation of all approved codes of practices for industrial hygiene;

h. To review practices in the storage and handling of dangerous chemicals and ensure
compliance with latest standards;

i. To review disaster control procedures and company preparedness;

j. To review in plant training programmes with regard to safety;

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k. To Specify critical drawings / layouts that need to be vetted by Safety Specialists at the
design stage and carryout spot checks of design standards based on site audit findings to
serve as feed-back for establishing new standards at the design stage, and

l. To review zoning regulations around installations.

Thus we see that this body is entrusted by the government of India to look after the
technical standards and specifications that the companies must comply with, to do business
in the city gas distribution industry. The network and specific systems are implemented with
the assent of the Urban Local Body (ULB) present in the city. The company interested in
developing the infrastructure for the distribution of gas, needs to formulate the plan and
involve the ULB in the loop. The ULB ensures that the company has an effective master plan
and implements adequate safety measures. Few of the measures are:-

a) Leak Detection Equipment (LDE), and also follows industry regulations like adding the
right amount of Mercaptor in the gas for easy detection in case of leakage.

b) Safety Education Programmes (SEP) are also initiated through different channels public
broadcasting channels and locations for example awareness campaigns in schools, colleges.

c) Lastly but not the least, Emergency Preparedness (EP) and disaster management plans are
reviewed by the ULB as in this high risk business, the probability of occurrence of accidents
cannot be ruled out.

The companies which are in the process of establishing CGD have to collate with all these
organizations and get appropriate clearances from them. The companies also do follow
certain procedures as explained in the diagram follow to ensure the Health, Safety &
Environment factor is maintained at the highest levels

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Fig. Depicting the Model used for Safety Purposes (Source: Gujarat Adani Energy Limited)

This is one of the models in place and followed by the company, which shows the
implementation of policies and procedures with respect to the industry standards. The
prevalence of mock drills obviously confirms the concerns that organizations have regarding
the safe use of network. Effective feedback collection, analyzing and modifying procedures
and certification of the procedures helps the company to maintain operational performance
as well as ensure Health, Safety and Environment factors.

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