Natural Gas A Greener Alternative. Bengaluru

Transcription

1 Natural Gas A Greener Alternative Bengaluru 20 th June 2012

2 Presentation Outline Objective of Public Transport Need for sustainability Natural Gas A feasible option Why Natural Gas CGD Authorization JV Structure & Scope Project Execution

3 Objective of Public Transport Transport implies mobility and transport systems exist to provide social and economic connections - to work, education, goods and services, friends and family. People quickly take up the opportunities offered by increased mobility. The public transport system provides economic mobility access to the larger section of the society with a welfare cum-economic objective. Studies also indicate that mass rapid transport systems impact the environment to a lesser extent than individual modes of transport.

4 The economic, social and environmental cost But at the same time, advantages of increased mobility need to be weighed against the environmental, social and economic costs that transport systems pose. Transport systems have significant impacts on the environment, accounting for between 20% and 25% of world energy consumption, carbon dioxide emissions, local air pollution and smog. The social costs of transport include health problems, high stress levels, road crashes, air pollution, physical inactivity and time taken away from the family while commuting. Traffic congestion and air pollution impose huge economic costs by wasting people's time, slowing the delivery of goods and services and increased healthcare cost.

5 Need for sustainability This is where sustainability comes in. Sustainable transport or green transport refers to any means of transport with low impact on the environment. It includes: Non-motorized transport, i.e. walking and cycling Transit oriented development (TOD townships) Green vehicles CNG, hybrids, electric, hydrogen cell, solar. Car Sharing Building energy efficient urban mass rapid transport systems. Sustainable transport systems make a positive contribution to the environmental, social and economic sustainability of the communities they serve by saving space and promoting healthy lifestyles

6 Natural Gas : A feasible option While non-motorized transport may apparently seem like a good alternative, severe space constraint in urban locations in our country render this option unfeasible. The TOD model has been implemented successfully only in some Canadian and Scandinavian cities owing to a sparse population density. Development of alternative technologies like electric, solar, hybrid on a commercially feasible scale will take a longer time to fructify. Car pooling as an option is limited to moderately high income society. Mass rapid transport systems have been and are being successfully implemented by Governments including Karnataka.

7 Natural Gas : A feasible option Natural gas is considered to be the most benign among all the fossil fuels. Due to its limited availability in India, the priority sectors like Power and Fertilizer are supplied most of the indigenous natural gas However, domestic availability constraint has been adequately supplemented by LNG imports from global suppliers. Owing to environment concerns, use of Natural Gas for use in the transport sector in Delhi and Mumbai was first enforced by SC. Availability of supply infrastructure has prompted cities like Vadodara, Ankaleshwar, Surat, Agra, Kanpur, Lucknow, Pune, Indore,Agartala, Vijaywada and Hyderabad to implement natural gas usage in the transport sector.

8 Natural Gas Mixture of hydrocarbons (predominantly methane). Specific gravity : w.r.t air. Gross Calorific value : Kcal/SCM Flammability Limit : 4 14 % by volume in air. Auto ignition temperature : 540 degree Centigrade. Flame temperature : 1790 degree Centigrade

9 Composition SL. NO. COMPONENTS COMPOSITION 1 C 1 (Methane) C 2 (Ethane C 3 (propane) IC 4 (I Butane) NC 4 (N Butane) IC 5 (I Pentane) NC 5 (N Pentane) C 6 (Hexane) CO N TOTAL 100

10 Compressed Natural Gas (CNG) Natural gas is Received at a pressure of Kg/cm2g Compressed to 250 Kg/cm2g at Mother and On-Line CNG Stations. CNG is dispensed to vehicles at maximum 200 Kg/cm2g pressure. Physical Properties of CNG: - Colourless - Odourless - Non-toxic - Lighter than air - Non - corrosive

11 CNG Station Layout

12 WHY CNG?

13 Benefits Of CNG Today, the benefits of CNG are manifold. Environmental friendly hence better health. Economical. Safer fuel.

14 CLEAN AND BETTER FUEL

15 CNG Is The Least Polluting (gm/100km) FUEL/ EMISSIONS CO2 UHC CO NOx SOx PM PETROL 22, DIESEL 21, CNG 16, Source: US energy department ENVIRONMENT

16 CNG Implementation In Delhi Change in Environment Use of CNG resulted in significant benefits to the environment by bringing down level of various pollutants in the ambient air. In 2003, Delhi won the Clean Cities International Award from the US Department of Energy Carbon-Monoxide Sulphur-di-oxide ug/m % Yr Yr ug/m % 5 Yr Yr Year 2000 Year 2007 ug/m SPM 405 ug/m3 6% 379 Yr Yr Source: NAAQS 2008, CPCB Growth in number of vehicles over 2000 to 2007 has been around 50%

17 Prominent Sources of PM 10 Sources of PM10 Vehicular exhaust Area Source Industrial Road(Paved & Unpaved) Kanpur Mumbai Delhi Bangalore Pune Chennai

18 ECONOMICS

19 CNG is Cheapest For Automobile PRODUCT PRICE (INR) PETROL (Non Branded) / LTR. DIESEL ( Non Branded) / LTR. AUTO LPG 55.68/LTR. * CNG / KG. Retail price in Bangalore as on date ECONOMICS * Tentative CNG price as no CNG is available in Bangalore as on date

20 CNG Improves Mileage FUEL CAR THREE BUS WHEELER (PETROL) PETROL (KM/ LTR DIESEL (KM/ LTR CNG (KM/KG ECONOMICS

21 SAFETY

22 Comparison Of Properties Of Fuels PROPERTIES UNIT PETROL DIESEL CNG CALORIFIC VALUE KCAL/KG RELATIVE DENSITY AIR= AUTOIGNITION TEMPERATURE 0 C FLAMMABILITY LIMIT % IN AIR FLAME TEMPERATURE 0 C OCTANE NO CETANE NO /4/2012 GAIL (India) Limited 22

23 Safety Aspects Of CNG Lighter than air in event of leak it will rise and disperse in atmosphere. Unlikely to ignite due to narrow combustible range (4% - 14% concentration in air). High auto ignition temperature (540 0 C). CNG Cylinders are seamless and structurally most sound. SAFETY

24 Apprehensions About CNG APPREHENSION FACT VEHICLE BECOMES UNSAFE TO RIDE HIGH MAINTENANCE COST AS COMPARED TO PETROL / DIESEL NG IS LIGHTER THAN AIR, IN CASE OF LEAK IT EASILY DISPERSES. HIGHER AUTO IGNITION TEMPERATURE NARROW COMBUSTIBLE LIMIT. NOT TRUE, MAINTENANCE COST IS COMPARABLE WITH PETROL/DIESEL. NO CONTAMINATION OR DILUTING OF CRANKCASE OIL. NO SPARK PLUG FOULING. NO DISTURBANCE OF LUBRICATING OIL IN THE ENGINE. LESSER MILEAGE NOT TRUE, CNG VEHICLE HAS MORE MILEAGE PER KG COMPARED PER LITER OF PETROL / DIESEL CARCINOGENIC CNG PRODUCES MUCH FEWER ULTRAFINE PARTICLES THAN HSD

25 CGD authorization process Petroleum and Natural Gas Regulatory Board(PNGRB) notifies the city/geographical area(ga) for CGD implementation. PNGRB invites expression of interest(eoi) from interested parties for creating CGD in the GA. Interested bidders shortlisted on Technical & Financial Criteria. Parameters used for finalizing the award of CGD authorization: a)domestic connection reach b)steel pipe volume c)tariff. Authorized entity can sell CNG to vehicles, piped gas to households and natural gas to industries/commercial establishments located within the GA, having requirement below SCMD.

26 JV Company Structure & Scope STRUCTURE Authorized share capital Rs.100 Crores. KSIIDC and GAIL combined equity stake 50 % Balance 50 % - Strategic Partners/FI s/non-govt. Companies SCOPE Development of Natural Gas infrastructure in industrial estates/areas/clusters. City Gas Networks in Karnataka. Setting up Distributed Power Generation project in Ind.Areas. Develop/promote Natural Gas application in steel /mining sector.

27 Advantages of this JV in CGD Implementation KSIIDC has the in-depth knowledge of the industrial sector in the state, experience in promoting and nurturing business ventures and the mandate to pursue the stated objectives of state government. GAIL brings along technical and project execution expertise, knowhow, skilled manpower and its gas sourcing capabilities to this venture,. Faster clearances for laying of P/L infrastructure and availability of land for CNG filling stations, SV stations, RT/DT, DRS installations etc., with State Government assistance

28 Support from Government in the states of Delhi Maharashtra Cases for successful CGD implementation

29 Support from Delhi State Government 100 land plots allotted to IGL for CNG stations, 6 allotted in No VAT on Natural Gas supplied to IGL for CNG purposes in Delhi. State Government has been facilitating IGL in obtaining requisite permissions for laying Pipeline and CNG station related infrastructure. As per the Master Plan for Delhi (MPD 2021), plot size for Petrol Pumps/CNG refuelling stations is 36 x 30 sq mts and 45 X 33 sq mts. However, IGL s request for plots of size 75 X 40 sq mts have also been allotted for Mega CNG stations

30 Support from Government of Maharashtra CNG Plots : GOM allotted plots to GAIL in Mumbai at concessional rates since the start of the business. Recent allotments of 300 m 2 each plots for CNG Filling Stations at Tardeo, Nariman Point and Wadala, at annual rent of Rs.1.60 Lacs per annum. 8 captive CNG filling stations operational in B.E.S.T. depots, 9 more in the pipeline. Land at City Gate Station : m 2 of land allotted to GAIL by GOM at a concessional rates. Sales Tax Deferment : MGL granted Sales Tax Deferment for 13 years, w.e.f Permissions : GOM extended full support for providing statutory permissions As on date, over 1100 Kms of pipeline have been laid on the government land.

31 Way forward for this JV Steering Committee has already been formed. Formulation of Business Plan for the whole state and DFR preparation initially for a few cities are in process. DFR to synchronize with PNGRB EOI for Geographical Areas. Incorporation of the company.

32 CNG CORRIDORS Ludhiana - Saharanpur 200 km Delhi Delhi-Jaipur 250 km Delhi Agra 200 km Agra Indore Vadodara 300 km Vadodara Delhi - Saharanpur 160 km Kanpur Lucknow 85 km Kanpur Agra - Allahabad 463 km Ahmedabad Mumbai 460 km Indore Agra Jaipur 220 km Haldia-Jagdishpur 900 km Mumbai Agra Indore 590 km Mumbai Pune 150 km Pune B lore Vijayawada Vijayawada Kakinada 230 km Dabhol-B lore Kochi-B lore- M lore 550 & 350 km Kochi Pondicherry Pondicherry-Karikal 120 km

33 Prospective cities for City Gas Distribution(CGD) CITY P/L SYSTEM Distance From P/L Demand Potential (MMSCMD) Belgaum DBPL On P/L 0.46 Hubli + Dharwad DBPL On spur P/L 0.8 Koppal DBPL 45 km 0.1 Davangere DBPL 50 km 0.37 Chitradurga DBPL On P/L 0.13 Tumkur DBPL 20 km 0.25 Bangalore DBPL On P/L 1.8 Mangalore KKBMPL On P/L 0.42

34 Salient Features of Dabhol Bangalore Pipeline Board approval Date 22 nd June 2009 Sch. Completion Date Ph-I: September 2012, Ph-II: March 2013 Approved Cost Rs 4994 Crore Ph-I: Rs 4508 Crore, Ph-II: Rs 486 Crore Length & Diameter 1414 Km (36, 30,24,18,10,8 ) Ph-I: 994 Km 36 x 247 Km; ; 30 x 498 Km; 24 x 175 Km; 18 x 74 Km Ph-II: 417 km 8 x299 Km; 10 x118 Km Capacity P/L passing through 3 States and 14 Districts. 16 MMSCMD Maharashtra(03): Ratnagiri, Sindhudurg & Kolhapur Goa (02) : North & South Goa Karnataka(09) : Belgaum, Dharwad, Gadag, Bellary Davangere, Chitradurga, Tumkur Bengaluru and Ramnagara.

35 Dabhol Bengaluru Pipeline DABHOL RATNAGIRI BELGAUM GOA SANGLI KOLHAPUR CHIKODI Phase II : Capacity : 1.69 MMSCMD Spurlines : 8 /10 /18 x 417 kms GOKAK TOP CAPEX : Rs. 486 Crs DHARWAD HARIHAR DEVANGERE MANGALORE KOPPAL TUMKUR BELLARY CH 665 CH 730 BIDADI BENGALURU Phase I : Capacity : MMSCMD Trunk line : 30 x 730 kms Spurlines : 18 x 242 C.APEX : 4058 Crs. LEGEND PHASE-I PIPELINE PHASE-II PIPELINE CUSTOMER LOCATION PROPOSED POWER PLANTS Phase I Sept Phase II Mar-2013

36 BANGALORE CITY LINE RT,Singsandra BDA 36

37 Kochi Koottanad- Bengaluru-Mangalore- Pipeline KASARGOD KANNUR KOZHIKODE States: 03 Districts:16 MANGALORE KOOTTANAD LEGEND ALWAYE CUSTOMER LOCATION KKBMPL PHASE I KKBMPL PHASE - II KOCHI BENGALURU TIRUPPUR KRISHNAGIRI COIMBATORE ERODE SALEM Kochi-Koottanad- Bengaluru- Mangalore Main line KM Spur line 200 KM Project Cost Rs Crore Phase I June-2012 HOSUR Phase II Sep-2013

38 WORK IN PROGRESS

39 Project Look Ahead based on Current Status Year Sl. WBS / Quarter ---> Oct- Dec Jan- Mar Apr- Jun July- Sep Oct- Dec Jan- Mar Apr- Jun July- Sep Oct- Dec Jan- Mar Apr- Jun July -Sep 1. Statutory Approvals 2. Basic / Detail Engg. 3. Tendering / Ordering Time Now 4. Manufacturing / Inspection / Delivery 5. Construction / Commissioning

40 THANK YOU