City Gas Stakeholders – 1st 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 Bombay
High and South Basein change energy consumption pattern in India. Natural
gas is most eco friendly fuel among the hydrocarbons group and next only to
solar energy, wind energy, hydel energy and hydrogen. The Indian Energy
Basket has a share of Natural gas touching 9% as against 24% of the world
average.

The most benign use of Natural Gas is in City Gas Application. This sector
comprises of:
i. Domestic household use
ii. Commercial use in hotels, hospitals, restaurant and offices
iii. Transport sector use in Three wheelers, buses, trucks and cars
iv. Industrial Sector use in the Small Scale Industry including Power
generation.

The Household use of gas has picked up in India especially when multiple use
of 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 in
the household sector is picking up momentum. This concept provides that a
household could be self contained gas users to meet its all energy needs at
one go that means once the gas supply is switched on, all these services can
be 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 the
application like cooking, air conditioning, power generation. In fact a concept
of Combined Heat & Power (CHP) is getting popular in India. This system has
much higher thermal efficiency as compared to other conventional services.

The use of Natural gas in the transport sector has contributed to a great
extent to contain the pollution due to vehicular exhaust emissions. Apart from
this natural gas as CNG has been able to replace high priced hydrocarbon
commodity like petrol and diesel. This has further helped India to reduce its
Oil 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 has
considerably helped reducing pollution in the cities apart from providing ease
of 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 use
of Natural Gas in domestic sector in Assam, started after formation of Assam
Gas Company in 1962. In addition, the metros of Mumbai and Kolkata used
Coal Gas for City Gas Usage way back since pre-independence. The coal
gas which is also known as Synthesis Gas did not find a commercial business
model and abandoned in Mumbai way back in 1981. In Kolkata this concept is
still working after the original company the Oriental Gas was succeeded by
Greater Calcutta Gas Supply Corporation in 1987, however it is on the
retardation phase.

The development of City Gas in India remained localized for quite long time. It
was 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 India
allocated 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 the
City 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 three
towns in 1993. In Mumbai a JV of GAIL, BG and Govt. of Maharashtra was
formed to pursue City Gas Business. A company was registered in 1995 as
Mahanagar Gas Limited. This company has been performing very
successfully since then.

In Delhi after continuing its activities for 5 years, GAIL formed a JV with
Bharat Petroleum Corp. Ltd. and Govt. of NCT of Delhi and created a new
company 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 are
as under:

1. Assam Gas Company Ltd, Duliajan, Assam

2. Tripura Natural Gas Company Ltd, Agartala, Tripura
3. Gujarat Gas Company Ltd (GGCL), Surat, Gujarat
4. Baroda Municipal Corporation Ltd, Baroda, Gujarat
5. Charotar Gas Sehkari Mandali Limited
6. Great Eastern Energy Corporation Ltd.
7. Mahanagar Gas Ltd (MGL), Mumbai, Maharashtra
8. Maharashtra Natural Gas Company Ltd, Pune, Maharashtra
9. Indraprastha Gas Ltd (IGL), Delhi
10. Bhagyanagar Gas Ltd, Hyderabad, AP
11. Green Gas Ltd, Lucknow, UP
12. Central UP Gas Ltd, Kanpur, UP
13. Avantika Gas Ltd. MP
14. Gujarat State Petroleum Corporation Ltd, Ahmedabad, Gujarat
15. Adani Energy Ltd, Ahmedabad, Gujarat
16. Sabarmati Gas Ltd, Gandhinagar, Gujarat
 17. Kolkata City Gas Co. Kolkata WB
18. 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 as
under:

Traits MGL IGL GGCL

Domestic Connection 3,17,000 95,000 2,12,000
Vehicle Conversion 1,83,000 1,75,000 58,000
CNG Outlet 127 154 22
Gas Sold (MMSCMD) 1.26 1.55 0.31*

* 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 implementation

apart from the entities which develop and own the assets. These are as
follows:

i. Gas Suppliers
ii. Manufacturers of Equipments such as compressors, pipes and pipe
fittings, metering equipments, filters, safety devices, CNG kits, CNG
Cylinders and Car manufacturers.
iii. Consultants, who prepare feasibility report, develop basic engineering
and network design etc.
iv. Contractors, who execute the project for steel pipe laying, PE pipe
laying, CNG Compressors, filters, pressure reduction unit and metering
installation including plumbing of the household connections.
v. The users which comprise of household, commercial unit, vehicle
owners and industrial units.

The list of above type of stakeholder is growing day by day and some of the
entities which are participating in the conference are listed below:

Companies Areas of Interest

1. Actaris, Germany
2. Adani Energy
3. Advantica, UK
4. Amin Group, Bangladesh
5. Aplab Mumbai
6. Arrow Energy, Australia
Gas Metering & Fittings
CGD Infrastructure
Gas Major
CGD Infrastructure
Software Solutions & Metering
Coalbed Methen
7. Assam Gas Co. Ltd.
8. Avana Software, India
9. Bhagyanagar Gas Ltd.
10. British Gas India
11. Bharat Petroleum Corp.
Ltd.
12. Carin Energy
13. Central U.P Gas
14. Chandralok International
15. Chicago Pneumatics
16. Crisil
17. Corretech International
18. Siti Energy
19. DCPL
20. DNC Group of
Companies
21. E & Y
22. Energy Infrastructure
Group
23. Engineers India Ltd.
24. Energy Solutions India
25. Everest Kento Cylinders
26. EPC Irrigation
27. Euro Tech Cylinders
28. Focus Energy
29. Foresight UK
30. Fusion, UK
31. GAIL (India) Ltd.
32. Gas de France
33. Gas Projects India
34. GSPCL, India
35. GEECL
36. George Fisher
Switzerland
37. GGCL India
38. Green Gas Ltd.
39. Harayana City Gas Corp.
CGD Infrastructure
Software Solutions
CGD Infrastructure
Along Gas Value Chain
Along Gas Value Chain
Upstream
CGD Infrastructure
Domestic Gas Appliances
CNG Compressor
Financial Consultant
Pipeline Construction, Plant &
Equipment
CGD Infrastructure
Pipeline & Plant Construction
Software Solution, Networking
Consultant
Integrated Energy Company
Consultant
Software based Gas Network
Solutions
CNG Cylinders
PE Pipes and Fittings
CNG Cylinders and Safety Devices
Upstream
Upstream
PE Pipes & Fittings
Integrated alone Gas Value Chain
Integrated Energy Company
Contractors
Integrated Energy Company
CBM and CGD Company
PE Fittings
CGD Infrastructure
CGD Infrastructure
CGD Infrastructure
40. Hindustan Petroleum
Corp. Ltd.
41. Hyundai Corp., Korea
42. Indraprastha Gas Ltd
43. Indian Oil Corp. Ltd.
44. Jain Irrigation
45. JP Autogas
46. Maruti Koatsu
47. Max Engineering
48. MECON, India
49. Mahanagar Gas Ltd.
50. MNGCL
51. Nirmal Industries
52. NTPC, India
53. Krishna Godawari Gas
54. OGP, India
55. Ofgem, UK
56. OISD
57. PDIL, India
58. Petronet LNG Ltd. India
59. Punj Lloyd
60. Raychem RPG
61. Redex, China
62. Relience Energy Ltd.
63. Relianci Industries Ltd.
64. Rotrex, Luxemburg
65. Sabarmati Gas
66. Sagas Mysore
67. Saxson Delhi
68. Smart Card Inc., USA
69. Shreemankar
70. Spectra, Bangladesh
71. Sui Gas, Pakistan
72. Silverwave, Myanmar
73. TNGCL, india
Oil and Gas E&P, Marketing & CGD
International Trade – Piping Systems
CGD Infrastructure
Oil and Gas E&P, Marketing & CGD
PE Pipes and Fittings
CGD Service Provider
CNG Cylinders
CGD Service Provider
Consultant
CGD Infrastructure
CGD Infrastructure
Equipments and Fittings
Integrated Power Company
CGD Infrastructure
Consultant & Contractors – CGD
UK Oil & Gas Regulator
Safety – Oil & Gas Industry
Consultant
LNG – Sourcing & Regas
Pipeline Contractors
Gas Meters & Fittings
Gas Meters
Integrated Energy Company
Integrated Energy Company and
Process Plants
Gas Systems Equipments and
Fittings
CGD Infrastructure
Kit Manufacturer & Auto LPG
Dispensers
Plants and Equipments
Software Solutions and Smart Cards
CNG Kit Fittings
CGD Services
Along Gas Value Chain
E&P and CGD
CGD Infrastructure
 74. Vanaz, India
75. Vimal Industries
76. Maharasatra Fabricators
77. Tractebel, Belgium
78. Turbo Genset, UK
CNG Kits, Gas Meters and Fittings
Fittings and Gas Meters
CGD Contractors
Consultants
Gas Appliances – Domestic & Power
Generation

Support from statutory authorities, academia and Govt. of India.

The conference has support from the Government of India through Ministry of
Petroleum and Natural Gas Ltd., Petroleum and Natural Gas Regulatory
Board, University of Petroleum and Energy Study, IIT Mumbai, Infraline
Energy and Technology Publications through their participation as speakers,
media partner and knowledge partner etc.

4. The Future of CGD in India

With the Petroleum and Natural Gas Regulatory Board in position and good
prospects of new gas finds in India the future of CGD Project is expected to
see an asymptotic growth. There are proposals for extending the existing
transmission pipe line network from nearly 7000 Kms to more than 10000
Kms in the coming years and subsequently to 15000 plus Kms. An exercise
done by the one of organizing company indicates that around 130 cities/towns
are expected to get city gas project in various stages in next XI – Five Year
Plan.

To summarize with, there would be a lot of opportunities in India for all

stakeholders associated with City Gas Distribution Projects.

This Eurasian conference cum exhibition is the first endeavor to bring various
stakeholders together for mutual benefits.