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City Gas in India Approach Paper

City Gas in India Approach Paper



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Published by: dennisjoh on Jun 20, 2009
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City Gas Stakeholders – 1
Eurasian Conference
An Approach Paper 1. Introduction
With the hydrocarbons finds in India way back in 1889 in upper Assam, the journey for exploring hydrocarbons reserves continued. There had been Oil &Gas finds in various regions at various times. The major gas finds of BombayHigh and South Basein change energy consumption pattern in India. Naturalgas is most eco friendly fuel among the hydrocarbons group and next only tosolar energy, wind energy, hydel energy and hydrogen. The Indian EnergyBasket has a share of Natural gas touching 9% as against 24% of the worldaverage.The most benign use of Natural Gas is in City Gas Application. This sector comprises of:i.Domestic household useii.Commercial use in hotels, hospitals, restaurant and officesiii.Transport sector use in Three wheelers, buses, trucks and carsiv.Industrial Sector use in the Small Scale Industry including Powegeneration.The Household use of gas has picked up in India especially when multiple useof Natural Gas in the houses was demonstrated. The gas can be used for cooking, water heating, space heating, air conditioning, refrigeration, power generation and fuelling the vehicle. The concept of a single switch solution inthe household sector is picking up momentum. This concept provides that ahousehold could be self contained gas users to meet its all energy needs atone go that means once the gas supply is switched on, all these services canbe secured which are all gas based of course selectively or need based.In the commercial sector the city gas has found to be very useful in theapplication like cooking, air conditioning, power generation. In fact a conceptof Combined Heat & Power (CHP) is getting popular in India. This system hasmuch higher thermal efficiency as compared to other conventional services.The use of Natural gas in the transport sector has contributed to a greatextent to contain the pollution due to vehicular exhaust emissions. Apart fromthis natural gas as CNG has been able to replace high priced hydrocarboncommodity like petrol and diesel. This has further helped India to reduce itsOil Import Bill. As a matter of fact, the international Gas Price is always 10-15% less as compared to crude oil price in energy terms.Natural gas supply to industries in and around a city or local area hasconsiderably helped reducing pollution in the cities apart from providing easeof operation and fuel handling to the industries.
2. Development of City Gas in India
In the early stage, the city gas was only started on experimental basis,primarily to utilize the locally produced gas. Such locations had been Duliajan,Moran, Nazira, Sibsagar in Assam, and Baroda in Gujarat. The structured useof Natural Gas in domestic sector in Assam, started after formation of AssamGas Company in 1962. In addition, the metros of Mumbai and Kolkata usedCoal Gas for City Gas Usage way back since pre-independence. The coalgas which is also known as Synthesis Gas did not find a commercial businessmodel and abandoned in Mumbai way back in 1981. In Kolkata this concept isstill working after the original company the Oriental Gas was succeeded byGreater Calcutta Gas Supply Corporation in 1987, however it is on theretardation phase.The development of City Gas in India remained localized for quite long time. Itwas only in 80’s when structured development of City Gas took place in India.The Gujarat Gas Company is the example of this initiative when Govt. of Indiaallocated gas for development of City Gas in Ankleshwar and Bharuch.In early 90’s Supreme Court on a PIL filed by Sh N.C. Mehta directed that theCity Gas should be implemented in Delhi, Mumbai and Baroda by GAIL (I)Ltd. In pursuant to this direction, the CNG was introduced in all these threetowns in 1993. In Mumbai a JV of GAIL, BG and Govt. of Maharashtra wasformed to pursue City Gas Business. A company was registered in 1995 asMahanagar Gas Limited. This company has been performing verysuccessfully since then.In Delhi after continuing its activities for 5 years, GAIL formed a JV withBharat Petroleum Corp. Ltd. and Govt. of NCT of Delhi and created a newcompany in 1998 by the name of Indraprastha Gas Limited.Subsequently, there have been various initiatives in the City Gas Distribution(CGD) Projects. As of now, the numbers of companies operating in CGD areas under:1.Assam Gas Company Ltd, Duliajan, Assam2.Tripura Natural Gas Company Ltd, Agartala, Tripura3.Gujarat Gas Company Ltd (GGCL), Surat, Gujarat4.Baroda Municipal Corporation Ltd, Baroda, Gujarat5.Charotar Gas Sehkari Mandali Limited6.Great Eastern Energy Corporation Ltd.7.Mahanagar Gas Ltd (MGL), Mumbai, Maharashtra8.Maharashtra Natural Gas Company Ltd, Pune, Maharashtra9.Indraprastha Gas Ltd (IGL), Delhi10.Bhagyanagar Gas Ltd, Hyderabad, AP11.Green Gas Ltd, Lucknow, UP12.Central UP Gas Ltd, Kanpur, UP13.Avantika Gas Ltd. MP14.Gujarat State Petroleum Corporation Ltd, Ahmedabad, Gujarat15.Adani Energy Ltd, Ahmedabad, Gujarat16.Sabarmati Gas Ltd, Gandhinagar, Gujarat
17.Kolkata City Gas Co. Kolkata WB18.Haryana City Gas Limited, Gurgaon, Haryana*19.Sity Energy Limited, Delhi*20.Reliance Industries Ltd*21.Reliance Energy Ltd*22.Krishna Godavari Gas Ltd (JV of GSPCL & Govt of AP)*
*- Operation yet to start
The major players among above companies are MGL, IGL and GGCL. Their major achievements in regard to market penetration and infrastructure are asunder:
Domestic Connection3,17,00095,0002,12,000Vehicle Conversion1,83,0001,75,00058,000CNG Outlet12715422Gas Sold (MMSCMD)1.261.550.31** Total gas marketed is more than 3mmscmd, which include Industrial also.
3. City Gas Stakeholders
There are many other stakeholders in the business of CGD implementationapart from the entities which develop and own the assets. These are asfollows:i.Gas Suppliersii.Manufacturers of Equipments such as compressors, pipes and pipefittings, metering equipments, filters, safety devices, CNG kits, CNGCylinders and Car manufacturers.iii.Consultants, who prepare feasibility report, develop basic engineeringand network design etc.iv.Contractors, who execute the project for steel pipe laying, PE pipelaying, CNG Compressors, filters, pressure reduction unit and meteringinstallation including plumbing of the household connections.v.The users which comprise of household, commercial unit, vehicleowners and industrial units.The list of above type of stakeholder is growing day by day and some of theentities which are participating in the conference are listed below:
CompaniesAreas of Interest
1.Actaris, GermanyGas Metering & Fittings2.Adani EnergyCGD Infrastructure3.Advantica, UKGas Majo4.Amin Group, BangladeshCGD Infrastructure5.Aplab MumbaiSoftware Solutions & Metering6.Arrow Energy, AustraliaCoalbed Methen

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