Global scenario of cgd


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Global scenario of cgd

  1. 1. Global Scenario of CGD<br />
  2. 2. Disclaimer<br />The information and data contained in this presentation & the associated slides is based on the various public and private sources related to economy, energy and hydrocarbon including gas sector. Effort have been made to verify the information contained in this presentation. The presentation does not accept any responsibility with respect to the accuracy and completeness of the information contained in this presentation.<br />Nothing in this presentation constitutes or shall be taken to constitute an offer, invitation or inducement to any person to invest in India and no relevance should be placed on the information contained in it connection with any investment decision.<br />This presentation provides general information. The presentation is meant for general guidance only and carry no responsibility for loss arising to any person. It is recommended that professional advise should be taken before acting on any guidance or information. <br />
  3. 3. Scope of Presentation :<br /><ul><li> Introduction- CGD
  4. 4. Natural Gas – Global & Indian Scenario
  5. 5. Demand Supply Outlook
  6. 6. Why CGD ??
  7. 7. Global Scenario of CGD
  8. 8. Need of policy & Regulatory Measure i.e. PNGRB
  9. 9. GSPC GAS – A Profile
  10. 10. Suggestive Framework for successful CGD’s</li></li></ul><li>City Gas Distribution :<br />CGD commonly described as the final component of the natural gas value chain . <br />UPSTREAM GAS PRODUCTION<br />GAS TRANSMISSION/<br />DISTRIBUTION<br />CITY GAS DISTRIBUTION<br />CGD offers one of the best values for utilization of natural gas.<br />
  11. 11. Natural gas is preferred fuel of 21st century.<br />Natural gas is colourless,odorless, and cleanest burning fuel.<br />Natural gas is all set to grow its role in India’s expanding primary energy basket.<br />NG Value Chain:<br />Natural Gas<br />
  12. 12. Natural Gas Resources :<br />
  13. 13. Gas-rich shale is the source rock for many natural gas resources, but, until now, has not been a focus for production.Horizoantal drilling and hydraulic fracturing Horizontalhave made shale gas an economically viable alternative to conventional gas resources.<br />Conventional gas accumulations occur when gas migrates from gas-rich shale into an overlying sandstone formation, and then becomes trapped by an overlying impermeable formation, called the seal. Associated gas accumulates in conjunction with oil, while non-associated gas does not accumulate with oil.<br />Tight sand gas accumulations occur in a variety of geologic settings where gas migrates from a source rock into a sandstone formation, but is limited in its ability to migrate upward due to reduced permeability in the sandstone.<br />Coal bed methane does not migrate from shale, but is generated during the transformation of organic material to coal.<br />
  14. 14. Natural Gas : Global & Indian Scenario:<br />As per Oil & gas journal, proved world natural gas reserves were estimated 6040 TCF.<br />Almost three-quarters of the world’s natural gas reserves are located in the Middle East and Eurasia.Russia,Iran, and Qatar combined accounted for about 58 % of the world’s natural gas reserves.<br />Despite of high rates of increase in natural gas consumption, particularly over the past decade, most regional reserves-to production ratios remained high. Worldwide the reserve-to-production ratio is estimated at 66.7 years.<br />Non –OECD Europe and Eurasia and the Middle East account for almost there-quarters of the world’s natural gas reserve.<br />OECD countries accounted for 39 % of the world’s total natural gas production<br />As per the Oil & Gas journal; India had 38 % TCF of confirmed natural gas reserves which accounts 0.4% of the world’s natural gas reserves.<br />Russia alone hold more than 58% of world gas reserves; other countries which have significant quantity of gas are Saudi Arabia,UAE,US,Nigeria,Algeria,Venezuela and Iraq.<br />Asia Pacific has 15% and India has 1.4% share in global gas production.<br />Asia pacific gas production growth rate 7.5%.<br />India gas production growth rate 13%.<br />
  15. 15. World Natural Gas Reserves by Region,1980-2006<br />World Natural Gas Resources by Geographic Region,2006-2025<br />
  16. 16. Natural Gas Sector wise Breakdown:<br />Power & Fertilizer- Anchor Market<br />Industrial & CGD – Growing Market<br />
  17. 17. Gas Demand Supply Projections:<br /> CHALLENGE <br />How to meet the Gap ???<br />
  18. 18. Natural Gas Demand Outlook :<br />Estimated demand in 2025 is 395 MMSCMD of which 25 to 30 % may be met through LNG route, however the demand is highly price sensitive.<br />
  19. 19. Supply Breakdown of NG in India:<br /><ul><li> 2,851 bcm gas consumed.
  20. 20. 74 % via domestic production
  21. 21. 26 % Internationally traded</li></ul> of which-<br /><ul><li> 72 % transport by pipeline
  22. 22. 28 % as LNG </li></li></ul><li>LNG Trading : <br />
  23. 23. Why CGD ??<br />Growing oil price acted as catalyst for NG usages<br />Economics<br />Global target on reducing carbon Intensity<br />Environment<br />Promoting recovery & usages of methane <br />M2M Initiative<br />Benefits to consumers,gove-rnment, society & upstream entities.<br />Benefits to all stakeholders<br />
  24. 24. Various stakeholders in CGD:<br />Gas Suppliers<br />CGD infrastructure developing entities/operators<br />Consultants: Feasibility report, Basic Engg.,project Managament,Network Design..<br />Equipment Manufacturer<br />Contractors: Pipeline execution,plumbing,CNG station construction, tubing contractors.<br />Users: NGV users,Households,commercial corporations.<br />Government/Exchequer<br />Statutory Authority/Civic Bodies<br />Financial Stake Holders/Investors<br />
  25. 25. Global Scenario of CGD:<br /><ul><li>8 % growth rate of CGD which comprises around 9% of the gas industry in India compared to the 24 % growth rate in the world.
  26. 26. Approx.4% share of CNG India compared to other developing countries like brazil which has a share of 14%.
  27. 27. Emerging CGD markets-Argentina, Brazil,India,Bangladesh,UAE,Egypt,Pakistan,Spain.
  28. 28. Robust growth of CGD despite of economic crisis.
  29. 29. The key market drivers for CGD in the world are the growth the ROI in India being around 20%globally around 13-20%.
  30. 30. Increase in Pipeline infrastructure resulted in growth of CGD globally.
  31. 31. CGD Supply gas to Industrial, household & commercial markets around the world.
  32. 32. In Industries globally, high dependence especially steel and power on gas demand compared to other fuels like oil and crude.
  33. 33. Growing oil price & increased pollution acted as catalyst for usages of NG as alternative fuel boosted CGD sector globally.</li></li></ul><li>Market Structure globally :<br />Countries<br />.<br />NASCENT MARKETS<br /><ul><li>Project focus
  34. 34. Integrated monopoly
  35. 35. Initial focus on associated gas
  36. 36. Replacing oil products</li></ul>Vietnam, Peru<br /> Oman, UAE<br />GROWING MARKETS<br /><ul><li>Focus on economies of scale
  37. 37. Market development
  38. 38. Long term contracts
  39. 39. Exclusive supply & transportation rights for distributors</li></ul>India, China,<br />South Korea,<br />Egypt, Brazil<br />DEVELOPED MARKET<br /><ul><li>Focus on Prices & efficiency
  40. 40. Increasing number of player
  41. 41. Choice for customer
  42. 42. Access to transmission & distribution</li></ul>Japan and<br /> Western Europe<br /><ul><li>Focus on promoting competition
  43. 43. Gas-on-gas competition
  44. 44. Governing trade markets
  45. 45. Deregulation of prices in competitive sectors</li></ul>MATURE MARKET<br />UK,USA<br />
  46. 46. CGD In India:<br />Total No of CGD Companies - 26<br />Total no Towns- 52<br />Volume being handled- 12.5 MMSCMD<br />Major Entities- IGL, MGL, Gujarat Gas, GSPC Gas, Adani Energy Limited,<br /> BGL , AGL.<br />India uses~ 9% of gases in CGD against 30-40% globally.<br />Customer Base- 12,50,000.<br />CNG Station -630 nos.<br />Industrial connection – 2500 nos.<br />Commercial connection – 12500<br />Steel Network-1,600 Kms<br />PE Network- 10,500 Kms<br />
  47. 47. Gas Infrastructure :<br />
  48. 48. CGD Demand Potential In India:<br /><ul><li> Total no of Towns as per 2001 census 4378 nos.
  49. 49. Number of House hold-6.94 crores
  50. 50. Total no of NG in household is 42 MMSCMD which is 13 % of the total demand 336 MMSCMD</li></ul>IN MMSCMD<br />
  51. 51. PNGRB :<br />PNGRB act Enacted<br />CGD Regulation notified by PNGRB<br />Pipeline regulation notified<br />Potential refinements in regulation.<br />More cities<br />2006<br />2007<br />2008<br />2009<br />2010<br />GOI notified the Board & the act<br />PNGRB published EOIs for more than 60 cities & commenced bidding process for identified cities<br />
  52. 52. Function :<br />Register & Authorize entities<br />Protect consumer interest by fostering fair trade &<br />competition<br />Declare pipeline as common/contract carrier<br />Perform other function entrusted by central Government<br />Regulate access & transportation rate on common/contract carrier/CGD network<br />FUNCTION OF THE BOARD<br />Lay down technical standard/specification<br />Enforce retail & marketing service obligation<br />Maintain databank of Information<br />Ensure adequate availabilty,and equitable distribution<br />Monitor Prices & prevent restrictive trade practices<br />
  53. 53. Need to align indigenous gas field production with project execution schedules of transmission and distribution infrastructure- ensure gas reaches to consumers in the shortest possible time.<br />Priority to be given for domestic PNG in gas utilization policy.<br />CGD has a low priority as per gas utilization policy – but entity to secure gas<br /> supply with top priority for domestic PNG.<br />Need to encourage investment in domestic PNG by providing right mix of potential of domestic, industrial-commercial and transport segment.<br />Need different pricing for domestic PNG segment.<br />Creation of exclusive corridors for gas pipeline.<br />Grant of essential utility services status to Domestic PNG.<br />Single window system should be promoted by the Government for all the Statutory clearances to the entity.<br />Need for Policy & Regulatory Measures :<br />
  54. 54. GSPC GAS – A PROFILE<br />
  55. 55. GSPC GAS COMPANY LTD :<br />
  56. 56. Total no Towns- 21<br />Volume being handled- 3.8 MMSCMD<br />Customer Base- 260,500.<br />CNG Station -110 nos.<br />Industrial connection – 1250 nos.<br />Commercial connection – 1000.<br />GSPC GAS AT A GLANCE:<br />
  57. 57. CGD location in Gujarat :<br />City Not Included in MAP- Halol,Palej.<br />
  58. 58. Standard Followed :<br />Pipeline Design and Construction :ASME B31.8 ,OISD 141<br />Station Piping : ASME B31.3<br />Line pipe Manufacturing :API 5L X grades, PSL-2<br />Coating of Line pipe : DIN 30670<br />Welding of pipes : API 1104<br />Crossings : API 1102<br />Material : AII Valves - API 6D, ASTM standards.,<br /> type test for Fire Safety as per API 6FA / API 607.<br /> Pipe Flanges and Flanged ASME B16.5ASME B16.11<br />Operation & Maintenance :O&M -ASME B 31.8, OISD 138 and OISD 140.<br />Metering systems AGA 3, 7, 8, 9 & 11.<br />
  59. 59. List of Abbreviations:<br />OECD- Organization for Economic Cooperation and Development.<br />EIA- Energy Information Administration<br />IEA- International Energy Agency<br />LNG- Liquefied Natural Gas<br />MMSCMD- Million Metric Standard Cubic per Day<br />BCM- Billion Cubic Meter<br />PNGRB- Petroleum & Natural Gas Regulatory Board<br />CGD- City Gas Distribution<br />
  60. 60. References:<br />Project Report on Global Natural Gas Scenario.<br /><br /><br /><br /><br />PPT & Slides of the different CGD company<br />Wikipedia<br />Crisil Energy Analysis Report<br />
  61. 61.
  62. 62. Prepared By- Rohit Singh [ Valsad ] - Vivek Kumar [ Morbi ]<br />