The report study provides a detailed insight on the use of CNG as a renewable fuel and an alternative source of energy to India's transportation sector and other facilities.

1. MECE 739 – 01: Alternative Fuels & Energy Efficiency
Project
Denny George Sebastian
RIT

2. COMPRESSED NATURAL GAS- India’s Path to Clean Energy
CNG
Compressed natural gas (CNG) is made by compressing natural gas to less than 1
percent volume occupied at standard atmospheric pressure. It is mainly composed of
methane (CH4). It is stored at a pressure of 200-248 bar in cylindrical containers. It can
be found above oil deposits such as shale deposits, from landfills or wastewater
treatment plants where it is also known as biogas.
They can be used in place of gasoline, diesel fuel and LPG. The combustion of CNG
produces lesser undesirable gases than other fuels. It is also safer than other fuels in
the event of a spill as CNG is lighter than air and disperses quickly when released. The
volumetric energy density of CNG is 9 MJ/L which is 40% that of liquefied natural gas
(22.2 MJ/L) and 24% that of diesel fuel (37.3 MJ/L). 5.66 pounds or 16.67 cubic feet of
CNG has 100% of the energy content of 1 gallon of gasoline.
Energy content
Fuel Type Specific Energy(MJ/kg) Energy Density(MJ/L)
Natural Gas 53.6 0.0364
LNG (NG at -160 o
C) 53.6 22.2
CNG (NG at 250 bar) 53.6 9
Gasoline 46.4 34.2
Gasohol E10 43.54 33.18
Gasohol E85 33.1 25.65
Diesel 46.2 37.3
LPG propane 49.6 25.3
Ethanol 30 24
CNG can be used in traditional gasoline vehicles by modifying the engine and fitting a
conversion kit for CNG use. It can be used as a dedicated CNG vehicle, or in
conjunction with gasoline as a dual fuel, or with diesel as a bi-fuel. Natural gas vehicles
have grown in number over the years. The Asia-Pacific region has the largest usage of
CNG powered vehicles with 5.7 million NGVs (Natural Gas Vehicles). India has 1.1
million NGVs on road. Delhi, Ahmedabad, Mumbai, Kolkata, Chennai, Bangalore,
Lucknow, Kanpur, etc., are such places where CNG vehicles are extensively used.
CNG are mostly used in transit buses, auto rickshaws, taxis, trucks. The passenger
market use of CNG vehicles is steadily growing as more and more people find
acceptance in CNG powered vehicles.
The cost and placement of fuel storage tanks is the major barrier to the adoption of
CNG as a fuel. Municipal government, public transportation vehicles were the most
visible early adopters of it, as they can invest the money in new and cheaper fuel. The
number of vehicles in the world using CNG has grown steadily by 30 percent per year.

3. CNG as a clean fuel
Burning natural gas results in very low emissions of nitrogen oxides and sulfur dioxide
and no emissions of mercury or particulates (soot). Use of CNG in vehicles, electricity
generation, mass transportation, etc., can lead to cleaner and more economical energy
use.
Replacing coal power plants by building new and efficient natural gas power plants
would reduce carbon dioxide emissions. It would also cost about 40% less compared to
an equivalent amount of wind generation. Producing electricity from natural gas is highly
efficient and requires smaller, less costly equipment pieces.
Natural gas has environmental benefits as well. A natural gas power plant use about
60% less water than coal and 75 % less water than nuclear power plants for the same
electricity output. Natural gas power plants require least amount of land per megawatt
capacity. Wind and solar power require 20 times more land to power the same number
of homes as a natural gas plant.
Natural gas power plants are a more reliable source of electricity generation compared
to wind or solar generated electricity, especially when there is lack of sunshine or wind.
These benefits can help India in attaining a better energy security compared to other
fuels.
CNG in India
Located in Southern Asia, India is geographically the world's seventh largest country,
with a total area of 3,287,263 sq. km. It is home to more than 1.2 billion people, which
makes it the world's second most populous country, and the largest democracy. India's
economy has witnessed rapid growth over the past two decades; however, due to the
large population, poverty eradication remains a massive challenge. Improvement of the
standards of living of the population is an avowed objective of the Indian Government,
with sustained economic growth being seen as the key means towards this end.
In 2011, India was the fourth largest energy consumer in the world after the United
States, China, and Russia. India's economy grew at an annual rate of approximately 7
percent since 2000 and proved relatively resilient to the 2008 global financial crisis.
India was the 10th largest economy in the world in 2011, as measured by nominal gross
domestic product (GDP).
India’s total GHG emissions in 2007, including land use change and forestry (LULUCF),
were 1727.71 million tonnes of CO2 equivalent, gross CO2 emissions were 1497.03
million tonnes. CO2 generation per capita was 1.3 million tonnes, excluding land use
change.
66% of India's gross CO2 emissions came from the energy sector in 2007, with
electricity generation accounting for almost 48% of the gross emissions. The industrial
sector accounted for most of the remaining CO2 emissions, with 27% of the total
emissions.

4. Sectoral Breakup of India’s CO2 emissions Breakup of emissions from energy sector
India’s fuel reserves are tabulated below. India is the world’s largest coal producer, the
coal is of low quality, and this necessitates the import of metallurgical coal for steel
making. Coal is important part of India’s energy security.
Resource
Annual
production
Annual
consumption
Resources/Reserves
Coal (million tonnes) 570.00 653.00 114001.60
Oil (million tonnes) 37.71 206.15 757.44
Natural gas (billion cubic
metre)
52.80 64.95 1240.92
However with rising levels of GHG emissions and projections of CO2 generation
expected to be in the range of 3.9 and 5.5 billion tonnes, depending on India’s economic
growth, use of renewable energy sources and other factors. There is a need for use of
alternative fuels to lower GHG emissions and promote green and clean living. Natural
gas is now the need of the hour to realize India’s goal of a clean energy nation.
From 2007, India had 38 trillion cubic feet (Tcf) of proven natural gas reserves. The total
gas production in India was about 31,400 million cubic meters (mcm) in 2002-03
compared with 2,358 mcm in 1980-81. At this level of production, India’s reserves of
natural gas are likely to last longer than oil reserves. Almost 70 % of India’s natural gas
reserves are found in the Bombay High basin and in Gujarat. Offshore gas reserves are
also located in Andhra Pradesh and Tamil Nadu coast. Onshore reserves are located in
Gujarat and the North Eastern states.

5. Indian Government Initiatives
The Indian government has proposed various initiatives to promote the use of natural
gas. A natural gas pipeline grid of 30,000 km connecting fuel stations to source of fuels,
with a capacity of 875 million standard cubic meters per day (mmscmd), by 2017 has
been proposed by the Oil Ministry. Currently, the gas pipelines have a capacity to
transport 230 million standard cubic meter per day (mmscmd) of gas.
Natural gas is the fuel of choice since it is an efficient fuel for power generation, a
cheaper feedstock for industries, a cleaner alternative fuel for vehicles and leads to an
improvement in the quality of life.
The Delhi government in 2004 made it mandatory for all city buses and auto rickshaws
to run on CNG to reduce air pollution. CNG can be utilized as a fuel for any existing
gasoline vehicle by converting it to a dual-fuel vehicle (gasoline/CNG). Vehicles are
retrofitted with a CNG cylinder, installing a plumbing system, CNG injection system and
electronics.
The Delhi government proposed subsidies on CNG powered vehicles, primarily for 3
wheelers and taxis. The government also proposed a loan package with a four percent
interest subsidy to the Delhi Finance Corporation. Initially, the incentive was not utilized
well in the three wheeler segment as the owners did not meet the criteria for obtaining
the loan. However they were encouraged to switch to CNG vehicles due to the
enormous price difference between petrol and CNG which led to lowered operational
costs and allowed quick recovery of conversion cost. The government also exempted
CNG fuel from sales tax for automotive use. This helped replace diesel fuel in the public
transport buses, and petrol in three wheelers. These initiatives helped expand the use
of CNG fuel in mass transport and domestic sector.

6. CNG has benefitted the public and the Government through:
 Generation of employment: - Creation of CNG infrastructure has resulted in
generation of direct and indirect employment opportunities for hundreds of
thousands of people.
 Low Public Transport fares: - The common man using buses, taxis and auto -
rickshaws are getting highly benefitted due to low fares of public transport
vehicles running on CNG fuel.
 Increase in Govt. Revenues: - Revenue to government in the form of sale tax /
Excise duty.
 Saving of foreign Exchange for less crude oil imports.
 Reduction in air pollution resulting in reduced Government expenditure on
public health care.

7. Auto Fuel Policy
The Government of India undertook an initiative on the automotive sector through the
Auto Fuel Policy which seeks to control vehicular pollution arising out of dramatic rise in
vehicular traffic in the country. The Auto Fuel Policy has set standards regarding the
quality of fuels and emissions over varies states in the county.
The guidelines for the Auto Fuel Policy are shown below:
 Institutionalization of certification of vehicles and fuels, as also the monitoring
and enforcement measures.
 Availability of adequate quantity of fuel at affordable cost to support economic
and social development.
 Periodic revision in the Auto Fuel Policy preferably at an interval of 5 years.
 Road map fixed for vehicular emissions.
 Use of CNG and LPG to be encouraged in the cities affected by high vehicular
pollution to enable the vehicle owners to have the choice of fuel and technology
combination to meet the tighter emission norms in such cities.
The table below shows the various fuel standards by the Auto Fuel Policy, set over the
years, in improving fuel quality and emissions.
Standard Reference Date Region
India 2000 Euro 1 2000 Nationwide
Bharat Stage II Euro 2 2001 NCR, Mumbai, Kolkata,
Chennai
Apr. 2003 NCR, 10 Cities
Apr 2005 Nationwide
Bharat Stage III Euro 3 Apr 2005 NCR, 10 Cities
Apr 2010 Nationwide
Bharat Stage IV Euro 4 Apr 2010 NCR, 10 Cities

8. Natural Gas Infrastructure and Consumption
India's gas pipeline infrastructure is relatively underdeveloped when compared to some
developed countries. However, it is growing rapidly in tune with increasing demand and
growing natural gas supplies. India, currently, has a network of 13,000 km of natural gas
transmission pipelines with a design capacity of 337 mmscmd. This networl is expected
to expand to 28,000 kms of pipelines with a total design capacity of around 721
mmscmd in the next 5-6 years.
The figure below showcases the infrastructure and distribution of the natural gas sector
in India.
India is the 13th
largest gas consumer with 6 bcm, the 5th
largest LNG importer with 7
bcm. According to the Oil & Gas Journal, India had 43.8 trillion cubic feet (Tcf) of
proved natural gas reserves at the end of 2012. About 30 percent of these are onshore
reserves, while 70 percent are offshore reserves. In 2002, energy companies made a
number of large gas discoveries in the Krishna-Godavari basin off of India's eastern
coast, pushing up both the reserve base and production. However, some of the more
mature fields have declined in recent years, and RIL cut the reserves of the major D6
field in the KG basin from 10.3 Tcf estimated in December 2006 to 3.4 Tcf in 2012
because of unexpected declines.
The two biggest state-owned companies, ONGC and Oil India Ltd. (OIL), dominate
India's upstream gas sector. ONGC operates the Mumbai High Field, which provides a
large amount of India's natural gas supply. However, the government has encouraged
private and foreign companies to enter the upstream sector in recent years. Reliance

9. Industries Limited (RIL) is becoming a major upstream force because of natural gas
discoveries in Krishna-Godavari basin.
The D6 field came on line in early 2009, ramping up production from about 3 billion
cubic feet/day (Bcf/d) in March 2009 to almost 6 Bcf/d a year later. However, the field
has experienced production shortfalls in recent years and output dropped to about 1
Bcf/d in mid-2012. RIL has considered shutting down the D6 fields because of the
disappointing performance.
ONGC and Gujarat State Petroleum Corporation Limited (GSPCL) are also developing
several offshore areas in Krishna-Godavari basin. Another promising producing area is
the Cambay basin in western India, where independent company Oilex has done some
preliminary work assessing the potential for "tight" natural gas.

10. India’s natural gas consumption has grown steadily over the years and is expected to
be the most sought after source of fuel for energy production as shown below.
Country 2001 2003 2004 2007 2009 2010
India 22,750,000,000 27,100,000,000 30,830,000,000 41,700,000,000 51,270,000,000 64,950,000,000
The projected consumption of natural gas, and the potential gas demand and supply is
projected to grow to more than 80 bcm by 2025.

11. The table below shows the sector-wise consumption of natural gas.
However there are certain drawbacks for CNG in India. They are listed below:
 It is not a renewable source of energy.
 Only limited reserves of natural gas, however further discoveries are being made
from recent explorations.
 Highly combustible due to high methane content.
 Process of extraction of natural gas requires fracking. Natural gas infrastructure
requires highly complex treatment plants and pipelines for its delivery.
 Natural gas occupies four times the space of a gasoline equivalent energy.
CNG for vehicles
At the beginning of 2005, India had 10,300 CNG buses, 55,000 CNG 3 wheeler taxis
(auto-rickshaws), 5000 CNG mini buses, 10,000 CNG taxis and 10,000 CNG cars. As of
2011, India had 1,080,000 NGVs and 560 fueling stations. Currently, India has
1,500,000 NGVs with a monthly sales average of 163.210 vehicles /month with 724
fueling stations. The Delhi Transport Corporation currently operates the world’s largest
fleet of CNG buses for public transport. Number of NGVs expected to reach 4 million by
2015.
 Cost
The initial cost of purchasing a natural gas vehicle is higher than gasoline vehicle
due to low market demand. However with more manufacturers making natural
gas vehicles, the cost is bound to reduce in the future. The cost of fitting a CNG
kit can come up from Rs.26,500 to Rs.54,000/- ($420 to $860) and is usually
reserved for mass transit vehicles or long distance vehicles.

12.  Performance
Generally natural gas vehicles are slower than gasoline vehicles as they have
lower energy content. A gasoline system delivers full power till it is empty,
whereas a natural gas system will only deliver power when it is under full
pressure. Power tails off when pressure in the tank reduces.
 Mileage
Mileage of a CNG vehicle depends on the size of the CNG tank. Although the
mileage of CNG is less than that of gasoline; the cost of a full tank of CNG is half
that of a full tank of gasoline.
 Emissions
A natural gas car is the cleanest engine oil of all fuels, including alternative fuels.
It releases the lowest amount of greenhouse gas emissions and is considered a
zero emissions vehicles. It improves air quality by reduction in emissions such
as:
- Reducing CO2 emissions by 20% to 30%.
- Reducing CO emissions upto 75%.
- Reducing NOx by approximately 50%.
- Reducing 95% of particulate matter emissions.
- Reducing volatile organic compound emissions by 55%.
- It has the lowest water intensity compared to other fuels as shown in the
graph.

13.  Advantages & Drawbacks
The advantages of CNG as a fuel for vehicles are listed below:
 CNG does not contain any leads- eliminates fouling of spark plugs
 CNG vehicles have lower maintenance costs than other hydrocarbon fuel
powered vehicles.
 CNG fuel systems are sealed. Any fuel spill will be evaporated as CNG is lighter
than air.
 CNG does not contaminate and dilute the crank case oil and thus increases the
life of lubricating oil.
 CNG mixes easily and evenly with air as it is a gaseous fuel.
 CNG is less likely to ignite on hot surfaces as it has a high auto ignition
temperature at 540 o
C.
 CNG emits fewer pollutants such as CO2, CO, NOx, SOx, unburned hydrocarbons
and particulate matter than petrol.
- A gasoline powered engine emits 22 kilograms of CO2 for 100 km, while CNG
powered engine emits only 16.3 kilograms of CO2 for the same distance.
 CNG can help mitigate greenhouse gas emissions as it has lower CO2 and NOx
emissions. The ability of CNG to reduce greenhouse gas emissions over the
entire fuel lifecycle will depend on the source of the natural gas and the fuel it is
replacing.
- CNG produced from landfill biogas has the lowest greenhouse gas emissions,
with a value of 11.26 gCO2e/MJ, which is 88% lower than conventional
gasoline.

14.  CNG powered vehicles are considered to be safer than gasoline powered
vehicles.
Apart from the advantages, CNG vehicles have certain disadvantages:
 CNG vehicles require a greater amount of space for fuel storage than
conventional gasoline powered vehicles.
 CNG takes more space for each gasoline gallon equivalent due to its gaseous
nature. Therefore the CNG tanks take up additional space in the trunk of a car or
bed of a pickup truck in order to gain more miles.
- This issue can be resolved by means of fitting CNG tanks under the body of
factory-built vehicles. This frees up trunk space.
 Efficiency
CNG is found to be more efficient than other fuels with an energy efficiency of
88%.
 Verdict
Even though CNG vehicles are a low emission vehicle, it does not dramatically
reduce the amount of greenhouse gases produced from other alternative fuels,
especially ethanol. Moreover, CNG is not a renewable energy fuel.
There is no infinite supply of natural gas, but it is more abundant than gasoline
and is cleaner. CNG could be a reliable and excellent replacement to gasoline,
the technology and infrastructure needed for the extraction and distribution of
natural gas from recycled processes needs to be developed further.

15. Running Costs of CNG
CNG has comparatively lower running costs compared to other fuels. It offers high
mileage and has a lower fuel price.
Below shows the comparison of petrol, diesel and CNG fuel on a popular car model in
India, the Maruti Suzuki Ertiga.
From the comparison we observed the CNG powered Ertiga to have lower running
costs. The lower cost will cover the high initial price of the CNG model as compared to
its gasoline version.
Natural Gas Extraction
NG is extracted by means of drilling through the ground known as hydraulic fracturing or
fracking. New technology now makes it easier to extract gas from previously
inaccessible sites. Oil and Natural Gas Corp (ONGC) predicts that gas output will rise
by over 53 per cent to 100 million standard cubic meters a day by 2017-18 as new fields
start off the west and east coasts.
ONGC's western offshore C-Series gas field in Mumbai High has proved to be more
prolific than previously predicted. The reserves of 30 billion cubic meters have been
upgraded to 130 bcm as the drilling in some of the eight structures in the C-Series field
yielded more gas. The fields, which currently produce 3 mmscmd, will double output this
year and another 7 mmscmd would be added when the Daman structure in the field
starts output in 2016. The C-Series field, which is a 3 mmscmd field, will become 13
mmscmd.
The neighboring G-4 field will contribute 9 mmscmd and the entire east coast has the
potential to produce 35 mmscmd. ONGC plans to use Reliance's KG-D6 infrastructure
to bring the discovery in the Krishna Godavari basin, in Andhra Pradesh, to production.
The G-4 field lies about 10 km from Reliance's offshore facilities. Pipelines to carry gas

16. from the field to Reliance's offshore gas gathering station and then to its landfall
facilities at Gadimoga near Kakinada are being planned.
Nearly all natural gas extraction techniques are done by fracking in which dangerous
chemicals are mixed in large quantities with water and sand and injected into wells at
extremely high pressures. These methods have caused damage to environmental
ecology, water quality, air pollution and destruction of landscape. To reduce the dangers
of fracking, companies are required to abide by safeguards as listed below:
1. Fracking is banned at places where lands are most sensitive such as
watersheds.
2. Clean air standards are to be put in places such that methane leaks are well
under one percent of production to reduce global warming and air pollution.
3. Mandate sound well drilling and construction standards by requiring the strongest
well siting, casing and cementing and other best drilling practices.
4. Protect the landscape, air and water from pollution by reducing toxic waste,
holding toxic oil and gas waste and safely dispose them off.
5. Use of gas to replace fossil fuels like coal to reduce GHG emissions and
increase efficiency. Implementation of mercury, sulfur and other clean air
standards as well as carbon pollution standards.
6. Work with communities to protect themselves and their future by restricting
fracking through comprehensive zoning and planning.
Alternative Method of Natural Gas Extraction- FLNG
Floating Liquid Natural Gas (FLNG) is a water-based liquefied natural gas operation that
employs technologies to enable the development of offshore natural gas resources.

17. Royal Dutch Shell has invested Au$12 billion into the technology to access offshore gas
fields. Shell has started building a FLNG facility, called Prelude FLNG, to produce and
export LNG off the coast of Australia. The Prelude FLNG took 1.6 million man hours to
build for the front end engineering and design (FEED) phase of development. It will be
1,600 feet long, 240 feet wide and will displace around 600,000 tonnes of water, making
it the largest offshore facility in the world. It is being built at Samsung Heavy Industries
in Geoje Island shipyards in South Korea. It is capable of withstanding category 5
storms, and can be moored at the location for 20-25 years before needing to dock for
inspection and overhaul.
Natural gas provides a cleaner alternative for power generation. But not all gas fields
are located near to the towns and cities that need the energy. Chilling the gas converts
it into a liquid, reducing its volume so it can be shipped to markets around the world.
Once operational, the Prelude FLNG will chill the natural gas produced at the field to
minus 260o
F, shrinking its volume by 600 times so it can be shipped to other parts of
the world. It will produce at least 5.3 million tonnes per annum (mtpa) of liquids; 3.6
mtpa of LNG, 1.3 mtpa of condensate and 0.4 mtpa of LPG. The LNG, LPG and
condensate produced will be stored in tanks in the hull of the facility. LNG and LPG
carriers will moor alongside to offload the products.
This revolutionary technology will allow this process to take place at sea, without the
need to lay pipelines and build processing plants on land. It also reduces the impact on
sensitive coal habitats as it avoids the need for shoreline pipe crossings, dredging and
jetty works. It will be situated far away from coastal reefs or whale migration routes. By
moving the production and processing out to sea where the gas is found, it helps to
avoid the potential environmental impact of constructing and operating a plant on land,
including laying pipelines to shorelines and other infrastructure. The Prelude FLNG will
use significantly less materials, land and seabed area than an onshore facility.
The Prelude FLNG is well placed to help meet the growing natural gas demands of
Asia, especially India.
Conclusion
Natural gas is the cleanest burning fuel and is abundant in nature. The use of natural
gas could greatly benefit India’s energy sector in electricity generation and domestic
use. India’s transportation sector can benefit from the use of natural gas as it will lead to
reduced emissions, better maintenance and less running costs.
The government support and initiatives will help in the efficient use of natural gas and its
expansion. Government policies and guidelines to improve the distribution and
infrastructure of natural gas will help strengthen India’s energy security and promote
clean, green living in household, transportation, electricity and energy sectors.
More research on alternative methods of extraction of natural gas such as FLNG should
be invested and brought up so as to meet the energy demand and at the same time
reduce environmental impact. By following these steps in proper timeline, India could
well be on the path to clean energy living.

18. References
 http://en.wikipedia.org/wiki/Compressed_natural_gas
 http://en.wikipedia.org/wiki/Natural_gas_vehicle
 http://www.gail.nic.in/final_site/cng_overview.html
 http://timesofindia.indiatimes.com/topic/CNG
 http://www.eai.in/ref/fe/nag/nag.html
 http://en.wikipedia.org/wiki/Energy_density
 http://www.globalccsinstitute.com/publications/india-ccs-scoping-study-final-
report/online/109886
 http://www.consumerreports.org/cro/2012/03/the-natural-gas-alternative/index.htm
 http://www.eia.gov/countries/cab.cfm?fips=IN
 http://www.offshore-technology.com/projects/mumbai-high/
 http://en.wikipedia.org/wiki/Floating_liquefied_natural_gas
 http://www.shell.com/global/future-energy/natural-gas/flng.html
 http://www.shell.com/global/aboutshell/major-projects-2/prelude-flng/overview.html
 http://www.eai.in/ref/fe/nag/nag.html