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Scope of Presentation :<br /><ul><li> Introduction- CGD
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 />
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 />
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 />
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 />
World Natural Gas Reserves by Region,1980-2006<br />World Natural Gas Resources by Geographic Region,2006-2025<br />
26 % Internationally traded</li></ul> of which-<br /><ul><li> 72 % transport by pipeline
28 % as LNG </li></li></ul><li>LNG Trading : <br />
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 />
Robust growth of CGD despite of economic crisis.
The key market drivers for CGD in the world are the growth the ROI in India being around 20%globally around 13-20%.
Increase in Pipeline infrastructure resulted in growth of CGD globally.
CGD Supply gas to Industrial, household & commercial markets around the world.
In Industries globally, high dependence especially steel and power on gas demand compared to other fuels like oil and crude.
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
Total no of NG in household is 42 MMSCMD which is 13 % of the total demand 336 MMSCMD</li></ul>IN MMSCMD<br />
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 />
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 />
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 />
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 />
CGD location in Gujarat :<br />City Not Included in MAP- Halol,Palej.<br />
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 />
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 />
References:<br />Project Report on Global Natural Gas Scenario.<br />http://www.pngrb.gov.in/<br />http://www.eia.gov/<br />http://www.slideshare.net/<br />http://www.indianpetro.com/<br />PPT & Slides of the different CGD company<br />Wikipedia<br />Crisil Energy Analysis Report<br />