CGD BASICS

[Natural Gas Business]

For internal circulation only
Index
Page
Chapter 1 Natural Gas in Overall Energy Scenario of India
Introduction 2
Natural Gas Industry 3
Exploration and Production (E&P) sector of India 5
LNG Supply Scenario in India
!d"antages of Natural Gas
Chapter 2 City Gas Distribution CGD! Net"or#
Introduction #
E"olution of $G% in India #
%e&and '
%e&and dri"ers for $G% Net(or)s *+
Gas ,rans&ission & %istri-ution Syste& *2
%e&and Esti&ation *3
%esigning of a $G% Net(or) *.
Integrated GIS for Gas %istri-ution Syste& 2*
Petroleu& & Natural Gas /egulatory 0oard (PNG/0) on $G%Ns 3+
$o&&ercial issues in de"elop&ent and operations of a $G% Net(or) 35
Chapter $ Co%pressed Natural Gas
Introduction 3#
Econo&ics .+
1actors t2at influence de&and for $NG .2
$o&pression of Natural Gas .3
$NG Stations3 %ispensing of $NG & $NG transportation in $ascades ..
Chapter & 'iped Natural Gas 'NG! for Do%estic( Co%%ercial ) Industrial
Consu%ers
Introduction 5+
!pplication of PNG in a $G% Net(or) 5+
City Gas Distribution
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Chapter 1* Natural Gas in Overall Energy Scenario of India
+his chapter discusses the i%portance of natural gas in the overall energy %ix of India( about the
natural gas industry( gas exploration ) production activities( ,NG supply scenario and also
brings out the advantages of natural gas-
Energy is t2e pri&e &o"er of econo&ic gro(t2 and is "ital to t2e sustenance of a &odern econo&y4
1uture econo&ic gro(t2 crucially depends on t2e long5ter& a"aila-ility of energy fro& sources t2at are
afforda-le3 accessi-le and en"iron&entally friendly4 India ran)s sixt2 in t2e (orld in total energy
consu&ption and needs to accelerate t2e de"elop&ent of t2e sector to &eet its gro(t2 aspirations4 ,2e
country3 t2oug2 ric2 in coal and a-undantly endo(ed (it2 rene(a-le energy in t2e for& of solar3 (ind3
2ydro and -io5energy 2as "ery s&all 2ydrocar-on reser"es (+4.6 of t2e (orld7s reser"e)4 India3 li)e
&any ot2er de"eloping countries3 is a net i&porter of energy3 &ore t2an 25 percent of pri&ary energy
needs -eing &et t2roug2 i&ports &ainly in t2e for& of crude oil and natural gas4 ,2e rising oil i&port
-ill 2as -een t2e focus of serious concerns due to t2e pressure it 2as placed on scarce foreign exc2ange
resources and is also largely responsi-le for energy supply s2ortages4 ,2e su-5opti&al consu&ption of
co&&ercial energy ad"ersely affects t2e producti"e sectors3 (2ic2 in turn 2a&pers econo&ic gro(t24
If (e loo) at t2e pattern of energy production3 coal and oil account for 5. percent and 3. percent
respecti"ely (it2 natural gas3 2ydro and nuclear contri-uting to t2e -alance4 In t2e po(er generation
front3 nearly 2 percent of po(er generation is fro& coal fired t2er&al po(er plants and 8+ percent of
t2e coal produced e"ery year in India 2as -een used for t2er&al generation4
,2e distri-ution of pri&ary co&&ercial energy resources in India is 9uite s)e(ed4 8+ percent of t2e
total 2ydro potential is located in t2e Nort2ern and Nort25eastern regions3 (2ereas t2e Eastern region
accounts for nearly 8+ percent of t2e total coal reser"es in t2e country4 ,2e Sout2ern region3 (2ic2 2as
only percent of t2e total coal reser"es and *+ percent of t2e total 2ydro potential3 2as &ost of t2e
lignite deposits occurring in t2e country4 :n t2e consu&ption front3 t2e industrial sector in India is a
&a;or energy user accounting for a-out 52 percent of co&&ercial energy consu&ption4 Per capita
energy consu&ption in India is one of t2e lo(est in t2e (orld4 0ut3 energy intensity3 (2ic2 is energy
consu&ption per unit of G%P3 is one of t2e 2ig2est in co&parison to ot2er de"eloped and de"eloping
countries4 1or exa&ple3 it is 348 ti&es t2at of <apan3 *455 ti&es t2at of t2e =nited States3 *4.8 ti&es t2at
of !sia and *45 ti&es t2at of t2e (orld a"erage4
%uring t2e pre5refor& period3 t2e co&&ercial energy sector (as totally regulated -y t2e go"ern&ent4
,2e econo&ic refor& and li-erali>ation3 in t2e post '+s3 2as gradually (elco&ed pri"ate sector
participation in t2e coal3 oil3 gas and electricity sectors in India- Energy prices in India 2a"e -een under
an ad&inistrated regi&e (it2 su-sidies pro"ided to &eet certain socio5econo&ic needs of t2e pu-lic4
,2is 2as led to distortion and inefficiency in t2e use of different sources of energy4 ,2e go"ern&ent 2as
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ta)en serious steps to deregulate t2e energy price fro& an !d&inistered Price ?ec2anis& (!P?)
regi&e4 ,2e prices of all grades of coal and petroleu& products 2a"e already -een deregulated4 0ut still
coo)ing fuels i4e4 @erosene and LPG re&ain 2ig2ly su-sidi>ed causing a serious fiscal deficit in t2e
-alance s2eets of :?$7s4 !lso t2e prices of transportation fuel (Gasoline and %iesel) still re&ain
under G:I influence due to "arious political &oti"es (2ic2 furt2er t2e -urden on :?$7s4
Natural Gas Industry
Natural Gas sector in India is in a critical stage of de"elop&ent and 2as (itnessed a flurry of acti"ity
o"er t2e recent past4 ,2e &ar)et (as initially closely regulated due to t2e supply security concerns as
(ell as t2e politically sensiti"e nature of t2e do(nstrea& product prices4 Ao(e"er 2a"ing recogni>ed
t2e need to attract pri"ate capital to de"elop t2e sector3 t2e Go"ern&ent initiated t2e Ne( Exploration
and Licensing Policy (NELP)4 ,2is allo(ed pri"ate players to participate in t2e exploration and
de"elop&ent of oil and gas fields4 Su-se9uently Natural gas prices fro& t2ese (ells (ere lin)ed to
international crude prices and t2e recent go"ern&ent efforts are -eing c2annelled to(ards dra(ing up a
co&pre2ensi"e policy for sector de"elop&ent4
Natural gas is a &ixture of 2ydrocar-on gases and is a colorless3 odorless fuel3 en"iron&ent friendly
energy source3 (2ic2 -urns cleaner t2an &any ot2er traditional fossil fuels4 It is 2ig2ly fla&&a-le
2ydrocar-on gas c2iefly consisting &et2ane $A. and on t2e -asis of t2e concentration of &et2ane it is
also ter&ed as %ry and Bet gas4 In addition to it natural gas &ay also include ot2er gases suc2 as
oxygen3 nitrogen3 2ydrogen3 et2ane3 et2ylene3 propane and e"en so&e 2eliu&4 !s far as its occurrence
is concerned it occurs deep -elo( t2e surface of t2e eart2 in t2ree principal for&s5 associated gas3 non5
associated gas and gas condensate4
!ssociated gas is found in crude oil reser"oirs3 eit2er dissol"ed in t2e crude oil or in con;unction (it2
t2e crude oil deposits (2ile Non5!ssociated gas occurs in reser"oirs separate fro& crude oil (ells4 It is
also ter&ed as dry gas4 Gas $ondensate is t2e 2ydrocar-on li9uid dissol"ed in saturated natural gas t2at
co&es out of solution (2en pressure drops -elo( de( point4 Natural gas is used &ainly in t2e
industrial3 co&&ercial3 transportation3 and do&estic sectors out of (2ic2 po(er and fertili>er sector
consu&e &axi&u& a&ount of natural gas in India4
Natural Gas occupies a-out #456 of t2e total energy -as)et of t2e country (2ic2 is &uc2 lesser t2an
t2e (orld a"erage of 2.64 Ao(e"er3 t2e scenario is fast c2anging3 largely -ecause of t2e expected
increase in t2e a"aila-ility of natural gas in t2e country4 ,2e structure of pri&ary energy consu&ption
in India s2o(s t2at coal (5*6) still do&inates as t2e &a;or energy source4 Aydrocar-on (.56) is t2e
next a"aila-le energy pro"ider of t2e nation4
Natural gas is fast e&erging as an alternati"eC it &eets around '6 of t2e pri&ary energy needs4
$onsidering t2e glo-al trend of s2ift in energy axis fro& oil to gas3 t2e s2are of gas in consu&ption
City Gas Distribution
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pattern3 in t2e Indian context is expected to increase exponentially in t2e days to co&e4
Natural gas is used -y t2e end user in different (ays as per need4 ,2e "arious (ays or applications of
natural gas in industry as (ell as 2ouse2old needs areD
a) Natural gas as a fuel in electricity generation -y utilitiesC
b) Natural gas as a clean fuel in coo)ing and 2ouse2old needs in t2e for& of Piped Natural GasC
c) Natural gas as a fuel for t2e -oilers3 furnaces3 -a)ing o"ens and air conditioning in IndustriesC
d) Natural gas as a &otor fuel in t2e for& of $o&pressed Natural Gas ($NG) andC
e) !s a petroc2e&ical and fertili>er industry feedstoc)4
Exploration and 'roduction E)'! sector of India
,2e E&P acti"ities (ere pro&oted (it2 t2e introduction of Ne( Exploration and Licensing Policy
(NELP I) in *''8 (2ic2 -eca&e effecti"e in year *'''4 So far NELP rounds 2a"e -een successfully
underta)en in (2ic2 *2 s2allo( (ater3 deep (ater and on land -loc)s are a(arded to t2e National :il
$o&panies (N:$)3 PS=s3 <Es and ot2er foreign exploration co&panies4 ,2e initial disco"eries of
$a&-ay -asin3 ?a2anadi -asin and @ris2na Goda"ari (@G) offs2ore (ere found to -e interesting
enoug2 to pro&ote &ore and &ore NELP -idding rounds4 Si&ilarly3 significant disco"eries (ere also
&ade in /a;ast2an4 !s per t2e draft utili>ation Policy52++8 of GoI E&P acti"ities accounts for nearly
36 of total esti&ated de&and for t2e current year and it is supposed to increase in t2e co&ing future4
!ccording to t2e %GA3 GoI is co&&itted to offer exploration -loc)s in co&ing years and in t2e next
fi"e years3 area under exploration for Indian sedi&entary -asins is expected to increase fro& ..6 at
present to #+64 0y 2+*53 (2ole sedi&entary -asin area is planned to -e -roug2t under exploration4
!ssu&ing India7s additional gas i&port re9uire&ents are all &et -y LNG3 India7s total LNG i&ports in
t2e reference case could reac2 *+ &illion tonnes in 2+*53 2* &illion tonnes in 2+2+3 and 3* &illion
tonnes in 2+254
,NG supply scenario in India
Bit2 t2e gro(ing energy de&and and t2e current state of energy deficiency3 Fatar LNG ca&e out as a
-oon and t2e future of Indian energy scenario 2ea"ily depends on t2e LNG supplies fro& ne( sources4
S2ell Aa>ira ter&inal (as set5up as a &erc2ant facility -ased on aggregation of gas de&and on spot or
s2ort5ter& -asis4 India is focusing on de"elop&ent of ne( gas ter&inals (it2 long ter& contracted
LNG supply at @oc2i3 Ennore and possi-ly at ?angalore and ?undra in addition to t2e existing
ter&inals at %a2e;3 Aa>ira and /atnagiri4 ,2e o"erall de&and5supply pro;ections for natural gas are
clearly s2o(s t2at /5LNG is a 2uge potential for gro(t2 in t2e countryD5
Supply
1./11 11/12 12/1$ 1$/1& 1&/10 10/11
%o&estic G Existing *3'485 *3'485 *3'485 *3'485 *3'485 *3'485
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%o&estic G !dditional *+425 .425 .425 .425 5425
/5LNG G Existing 284++ 284++ 284++ 284++ 284++ 284++
,otal Supplies *485 *884++ 2*34++ 2*34++ 2*34++ 2324++
%e&and5Supply Gap (H) (..4.') (**243') ('4'2) (*#+4+5) (22'42*)
(2.543#
)
(H) Proposed to -e -ridged t2roug2 !dditional /5LNG i&ports
Sectoral De%and Supply Gap
2++'5*+
incldg
LNG
=n&et
de&and
*+5** **5*2 *25*3 *35*. *.5*5 *55*
1ertili>er .343' *4*+ *4*+ *42 2458 .24'3 .24'3 384*
Po(er 4# *34++ *34++ *84.5 54#3 3.4'' .4* #5435
$G% 42 *4.8 *4.8 455 '43* *543* 2*43* 254+
:t2ers 5+42. 348* 2#4'2 #48# 8'422 #4#2 *++4#2 '4#3
,otal
%e&and
*485 5242# ..4.' **243' '4'2 *#+4+5 22'42* 2.543#
2dvantage of using Natural Gas
Natural Gas offers &ultitude of ad"antages pertaining to t2e en"iron&ent as (ell as t2e energy
efficiency4 So&e &a;or ad"antages or -enefits t2at it offers areD
I) It is a clean3 efficient3 safe and en"iron&ent friendly fuel 2ence offers &ore efficiency (it2out
sacrificing t2e en"iron&ental concernC
II) It does not re9uired storage yard as t2e gas is directly deli"ered to t2e pipeline 2ence offer less
c2ances of any &is2ap due to storage lea)age and spillage of storage tan)sC
III) ,2ere is no ris) of -rea)do(n in fuel supply due to order processing delays to replenis2 t2e fuel
in"entoryC
IV) It &ini&i>es t2e &anpo(er and &ec2anical po(er re9uired for 2andling t2e fuelC
V) In ter&s of t2e current glo-al oil scarcity it offers t2e ad"antage of -eing t2e &ost efficient and
profita-le alternati"e fuel4
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Chapter 2* City Gas Distribution CGD! Net"or#
+his Chapter discusses brings about the concept of a CGD Net"or#( ho" has the sa%e evolved in
India( de%and in a CGD net"or# and the drivers( gas trans%ission and distribution activities(
designing of a CGD Net"or#( concept of GIS in a CGD Net"or#( 'etroleu% ) Natural Gas
3egulatory 4oard5s role in develop%ent of CGD net"or#s and co%%ercial issues in the
develop%ent of CGD Net"or#s-
!s t2e na&e suggests3 $G% is t2e last co&ponent in t2e natural gas "alue c2ain deli"ering natural gas
to end users in to(ns and cities4 B2ile large custo&ers suc2 as t2e po(er and fertili>er industry recei"e
natural gas directly t2roug2 t2e 2ig2 pressure interstate trans&ission pipelines3 $G% is pro"ided
t2roug2 t2e net(or) of &ediu& to lo( pressure distri-ution pipelines -y a local distri-ution co&pany4
,2e tap off point fro& (2ere t2e city distri-ution net(or) ta)es its supply fro& t2e trans&ission
syste& for t2e city distri-ution syste& is referred to as t2e city gate4 $G% in"ol"es &o"e&ent of s&all
"olu&es of gas t2roug2 s&all dia&eter3 lo( pressure pipelines to a large nu&-er of retail custo&ers4
,ypically3 t2e net(or) co&prises co&pressed natural gas ($NG) dispensing stations t2roug2out t2e
net(or) t2at supplies natural gas for auto&oti"e use3 and a piped natural gas net(or) t2at pro"ides
natural gas as a fuel for city5-ased co&&ercialI industrialI do&estic purposes4 Since natural gas is
odourless and colourless3 ?ercaptan is added to it and (2en it enters t2e $G% net(or)3 (2ic2 gi"es it
a typical s&ell of rotten eggs to ease lea) detections4
Evolution of CGD in India
$G% is not a ne( -usiness for India4 ! re"ie( of its 2istory re"eals t2at t2e gas retail -usiness in t2e
country started as early as *##+ -y t2e $alcutta Gas $o&pany3 (2ic2 is operating e"en today4 ,2e
co&pany runs on coal gas and faces losses4 ,2e ot2er $G% operator3 (2ic2 2as no( gone out of
-usiness3 (as t2e 0o&-ay Gas $o&pany t2at started (ay -ac) in *'++ and (ent out of -usiness during
t2e *'+s4 ,2e %el2i ?unicipal $orporation operated a gas distri-ution syste& in :)2la (it2 -iogas3
(2ic2 (or)ed for a long ti&e4 ,2e syste& 2as no( -een con"erted to natural gas4 So&e of t2e s&aller
initiati"es in city gas include t2e net(or)s in :NG$ to(ns2ips in ?e2sana3 Aa>ira3 etc4 !not2er suc2
social initiati"e (as -y !ssa& Gas in %ulia;an3 (2ic2 (as targeted at disad"antaged sections of t2e
population4 ,2e -ig i&petus for t2e $G% net(or) ca&e in t2e *''# (2en t2e Supre&e $ourt issued
orders to con"ert all pu-lic transport "e2icles plying in %el2i to $NG in response to a pu-lic interest
litigation on account of rising air pollution in %el2i4 ,2is (as follo(ed -y a si&ilar initiati"e in
?u&-ai4 Eig2ty $NG stations (ere set up -y 2+++4 ,2ereafter3 it rolled into ot2er cities li)e !gra3
Luc)no(3 Pune3 etc3 in 2++23 and furt2er to !2&eda-ad3 @anpur3 ?u&-ai3 @ol)atta3 $2ennai3 etc3 in
2++34 ,2e Gu;arat Gas $o&pany Li&ited (GG$L) started (it2 a fe( $NG stations in Surat and
!n)les2(ar4 !dani ca&e in t2is -usiness in 2++2 and GSP$ Gas is t2e latest entrant in t2is sector4
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De%and
,2e t(o -iggest natural gas custo&er seg&ents in India are po(er plants and fertili>er producers4
,2ese are follo(ed -y t2e petroc2e&icals sector3 $G%3 li9uefied petroleu& gas (LPG)I ot2er li9uid
2ydrocar-ons3 and t2e sponge steel sector4 ,2e de&and fro& t2e po(er seg&ent co&es fro& gas5fired
po(er plants3 located along t2e AE< pipeline and in ,a&il Nadu3 !nd2ra Prades23 and ?a2aras2tra3
including ?u&-ai4 N,P$ is t2e -iggest consu&er4 :t2er )ey custo&ers include t2e ?a2aras2tra State
Electricity 0oard (?SE0)3 Gu;arat Po(ergen Energy $orporation Li&ited (GPE$)3 GE@ Po(er and
Infrastructure (GE@)3 and Spectru& Po(er Generation Li&ited4 ,2e custo&ers in t2e fertili>er
seg&ent are urea5producers (it2 nitrogen5-ased plants3 t2e -iggest of (2ic2 include Indian 1ar&ers
$ooperation (I11$:)3 National 1ertili>ers Li&ited3 :s(al 1ertili>ers3 and /as2triya $2e&icals and
1ertili>ers4 Industrial users are &ainly fro& t2e sponge iron3 petroc2e&icals3 textiles3 and glass
industries4 ?a;or industrial custo&ers include Indian Petroc2e&icals Li&ited (IP$L)3 Essar Steel3 Ispat
Steel3 =s2a and ?aruti =dyog4 ,2e PNG and $NG seg&ents are gro(ing fast3 too4 In t2e do&estic
seg&ent3 t2e )ey gro(t2 dri"ers are gas distri-ution co&panies li)e GG$L3 IGL and ?GL3 (2ic2 are
de"eloping t2e necessary infrastructure4 !long (it2 t2at3 t2e increasing price of LPG pro&pts
consu&ers to s(itc2 o"er to PNG4 In addition3 t2e use of $NG in t2e transportation sector is rising
-ecause of court5-ac)ed en"iron&ental &easures against t2e use of diesel and ot2er polluting fuels4
,2e total natural gas de&and in 2++85+# (as *8' ??S$?%4 ,2e de&and fro& t2e $G% seg&ent of
t2e industry (as esti&ated to -e approxi&ately *24+# ??S$?%4
De%and Drivers for CGD Net"or#s
,2ere 2as -een a lo( geograp2ical spread of $G% pro;ects3 (2ic2 are li&ited to a fe( select cities4
Pri"ate sector participation 2as -een li&ited4 1urt2er3 li&ited gas allocation to t2is seg&ent of t2e
natural gas "alue c2ain3 no clear long5ter& strategic plan for $G% de"elop&ent -y t2e go"ern&ent and
no role -y t2e state go"ern&ents3 2a"e all &eant slo( de"elop&ent of t2e $G% &ar)et in t2e country4
Except in Gu;arat3 $G% de"elop&ent 2as -een &ainly dri"en -y en"iron&ent factors4
Ao(e"er3 since experiences 2as indicated t2at t2e $G% &ar)et is not as price5sensiti"e as t2e po(er
and fertili>er sectors3 t2ere is a gro(ing interest to tap &ore cities for $G% a&ong gas suppliers3 as gas
prices are increasingly &o"ing up(ards4 In addition3 for t2e co&ing years3 t2e go"ern&ent policy
fa"ors coal for t2e po(er sector4 :f t2e li)ely capacity addition during t2e Ele"ent2 1i"e Jear Plan
period of around 3+++ ?B3 t2e &a;or t2rust is on coal and 2ydel pro;ects (it2 li&ited ne( capacity
expected fro& gas4 Gas de&and in t2e fertili>er sector (ould -e dri"en -y alternate feedstoc) urea
units as t2e ne( policy for s(itc2ing fro& alternate feedstoc) to gasI LNG allo(s for &op up of
efficiency gains to pay -ac) t2e capital expenditure incurred on re"a&ps to gas -ased units4 In future3 it
is expected t2at t2ere (ill -e a &ore definiti"e &o"e to(ards pri"ate o(ners2ip of $G% pro;ects4 ,2is
is expected to lead to &ore aggressi"e &ar)et de"elop&ent atte&pts leading to greater "alue
propositions for in"estors in t2e $G% -usiness4 Not surprisingly3 a-out /s '+ -illion of in"est&ent is
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en"isaged in t2e Ele"ent2 1i"e Jear Plan period on t2e de"elop&ent $G% infrastructure4 ?ore t2an
2++ cities are expected to -e on t2e pipeline net(or) in t2e next *+ years3 (2ic2 is pri&arily expected
to -e dri"en -y t2e future larger a"aila-ility of gas4 !part fro& t2ese factors3 $G% co&panies 2a"e also
seen c2anges in t2e &ainfra&es of t2eir consu&ers4 Pre"iously3 (2ile co&plying (it2 t2e needs of
do&estic consu&ers3 $G% co&panies 2ad -een offering a K-undled ser"iceL including infrastructure
and gas supply4 Gas usage 2ad -een li&ited to coo)ing and 2eating in so&e 2ouse2olds4 Ao(e"er3 air
conditioning 2as no( -egun to -e considered as a "ia-le option as (ell4 Bit2 t2e go"ern&ent gradually
reducing t2e su-sidy pro"ided on do&estic LPG connections3 $G% co&panies 2ope to ac2ie"e 2ig2er
penetration in t2e do&estic coo)ing fuel &ar)et (it2 an increasing nu&-er of 2ouse2olds s(itc2ing
fro& LPG to pipe gas4 ,2e increase in consu&er density 2as t2e potential to increase -usiness &argins
for entities fro& t2is seg&ent4 1or t2e co&&ercial and industrial seg&ent3 apart fro& lig2ting and
2eating3 cooling 2as e&erged to -e "ia-le3 si&ilar to t2at in t2e do&estic sector4 ?oreo"er3 t2e need for
gas to operate a -ac)up po(er facility is e&erging to -e a &a;or dri"er for $G% in t2ese t(o seg&ents
of custo&ers4 In t2e s&all industrial seg&ent3 gas co&petes (ell (it2 alternati"es li)e fuel oil in ter&s
of price econo&ics4 ,2ere is also scope for gaining car-on credits -y t2e industrial seg&ent using gas4
,2e transport sector attracts attention for $NG3 as pollution (it2 petrolIdiesel is 2ig2ly "isi-le3 and t2e
Supre&e $ourt and ot2er en"iron&ental agencies are -eco&ing "ery strict (it2 t2eir nor&s4 ,2e sector
de&ands gas not only to reduce e&issions3 -ut also to reduce t2eir dependence on i&ported oil3 (2ic2
affects t2eir financials 2ea"ily4
Large scale con"ersion of petrol dri"en pri"ate "e2icles to $NG3 introduction of $NG "ariant &odels
-y car &anufacturers3 ne( &odels of $NG lig2t co&&ercial "e2icles3 t2e de&and fro& Nort2ern
/ail(ays for running t2eir diesel &ultiple units on a &ix of diesel and $NG3 and t2e introduction of
radio taxis and 2ig2 capacity -uses in "ie( of t2e $o&&on(ealt2 Ga&es3 all indicate potential
increase in $NG usage4
Gas +rans%ission ) Distribution Syste%
Natural gas t2at is recei"ed at t2e $ity Gate Stations is &ostly passed t2roug2 a cleaner to re&o"e
li9uids and dust4 ,2e pri&ary function of t2e city gate station is to &easure t2e a&ount ("olu&e) of
inco&ing gas4 It is generally &easured t2roug2 orifice &eters4 !not2er function is to reduce t2e
pressure of t2e gas to -e sent for distri-ution3 as t2e distri-ution syste& re9uires &uc2 lesser pressure
t2an t2at in long distance trans&ission4 ?ec2anical de"ices called pressure regulators lo(er t2e gas
pressure and 2elps to control t2e flo( rate to &aintain desired pressure le"el t2roug2out t2e distri-ution
syste&4 Bit2 t2e reduction in pressure3 t2e natural gas also -eco&es cooler3 so so&eti&es it 2as to -e
2eated up in regions (2ere t2e te&perature is -elo( >ero degree4 Last -ut not t2e least3 at t2e $ity Gate
station3 t2e odourisation of t2e natural gas ta)es place4 %ifferent types of odorants are used3 so t2at t2e
Ks&ellL &a)es t2e presence of t2e escaping3 un-urnt gas recogni>a-le at "ery lo( concentrations4 ,2is
ser"es as a (arning (ell -efore t2e gas accu&ulates to 2a>ardous le"elsC a &ixture of air and natural
City Gas Distribution
9
For internal circulation only
gas are explosi"e o"er t2e range of 56 to *56 natural gas4 ,o ensure safety3 odori>ed natural gas is
detecta-le at concentration of ;ust *64
,2e piping syste& also for&s a &a;or part in $ity Gas %istri-ution4 ?ainly t2ere are . types of piping
syste&s ot2er t2an supply &ainsD5
a) 1eeder &ains transport gas fro& t2e pressure regulator or supply &ain to t2e distri-ution
&ains4 1eeder &ains &ig2t also 2a"e so&e lines connected to large industrial users4
b) %istri-ution &ains supply gas pri&arily to residential3 co&&ercial3 and s&aller industrial
consu&ers4
c) Ser"ice lines deli"er gas fro& t2e distri-ution &ain in t2e street to t2e consu&er7s &eter4
Ser"ice lines are usually t2e property and responsi-ility of t2e utility4 Ao(e"er3 so&e utilities
o(n only t2e portion of t2e ser"ice lines in t2e pu-lic do&ain4
d) 1uel lines are custo&er piping -eyond t2e &eter to "arious appliances4 ,2ese lines are t2e
property and responsi-ility of t2e -uilding o(ner4 $ity Gate Station is t2e tap5offs at t2e &ain
pipeline4 ,2ese are t2e ter&ination station for a city (2ere t2e "arious processes li)e pressure
reduction3 filtration3 and odouri>ation is done4 ,2e gas fro& t2e &ain pipeline is -roug2t do(n
to a pressure of *'522 -ars and t2en transferred t2roug2 steel pipeline to %/S4
District Regulation Station are installed (2ere t2e distri-ution is to -e done li)e in t2e industrial area
and co&&ercial seg&ent4 Gas to t2e "arious consu&ers is transferred after -eing &aintained at a
pressure of a-out .55 -ar4 ,2en t2e gas is trans&itted to Single Strea& /egulator (S/) t2roug2 . -ar
&ediu& pressure PE pipelines4 S/ furt2er reduces t2e pressure fro& .-ar to *++ &-ar4 1ro& S/ t2e
gas is supplied t2roug2 a *++ &-ar lo( pressure PE pipeline to a G4I4 /iser Isolation (all4 1ro& t2is
"al"e t2e gas is carried t2roug2 a G4I4 (Gal"ani>ed Iron) *++ &-ar pipelines to end user4 ,2e control
"al"e is placed at t2e 2eig2t of 5 ft (2ic2 controls t2e flo( in $ity Gas %istri-ution (2erein a regulator
is installed (2ic2 -rings do(n t2e pressure to 2* &-ar for -asic 2o&e users4 ! &eter is installed (2ic2
tells t2e a&ount of gas -eing used depending on (2ic2 t2ey are c2arged4
De%and Esti%ation
Natural gas 2as long -een considered as an alternati"e fuel for t2e transportation sector4 In fact3 natural
gas 2as -een used to fuel "e2icles since t2e *'3+MsN Ne( stringent state e&issions la(s re9uire an
i&pro"e&ent in "e2icle e&issions o"er t2e foreseea-le future4 Natural gas3 -eing t2e cleanest -urning
alternati"e transportation fuel a"aila-le today3 offers an opportunity to &eet t2ese stringent
en"iron&ental e&issions standards4 Natural gas "e2icles are &uc2 cleaner -urning t2an traditionally
City Gas Distribution
10
For internal circulation only
fuelled "e2icles due to t2e c2e&ical co&position of natural gas4 It is esti&ated t2at "e2icles on t2e road
&ain source of pollution in for& of 2ydrocar-on e&issions3 nitrogen oxide (N:x) e&issions and
car-on &onoxide4 !ll of t2ese e&issions released into t2e at&osp2ere contri-ute to s&og pollution3
and increase t2e le"els of dangerous ground le"el o>one4 ,2e en"iron&ental effects of natural gas
"e2icles (NGE) are &uc2 less detri&ental t2an traditionally fuelled "e2icles4 In addition3 natural gas is
"ery safe4 0eing lig2ter t2an air3 in t2e e"ent of an accident natural gas si&ply dissipates into t2e air3
instead of for&ing a dangerous fla&&a-le pool on t2e ground li)e ot2er li9uid fuels4 ,2is also pre"ents
t2e pollution of ground (ater in t2e e"ent of a spill4 Natural gas fuel storage tan)s on current NGEs are
stronger and sturdier t2an gasoline tan)s4 Natural gas is also an econo&ic alternati"e to gasoline and
ot2er transportation fuels4 ,raditionally3 natural gas "e2icles 2a"e -een around 3+ percent c2eaper t2an
gasoline "e2icles to refuel3 and in &any cases t2e &aintenance costs for NGEs is lo(er t2an traditional
gasoline "e2icles4 Natural gas "e2icles as t2ey exist today are -est suited for large fleets of "e2icles
t2at dri"e &any &iles a day4 ,axica-s3 transit and sc2ool -uses3 airport s2uttles3 deli"ery "e2icles3 and
pu-lic (or)s "e2icles are all (ell suited to natural gas fuelling4 0ecause t2ese "e2icles are centrally
&aintained and fuelled3 it is econo&ical and -eneficial to con"ert to natural gas4
Designing of a CGD Net"or#
In order to &eet t2e pro;ected gas de&and for $ity gas distri-ution net(or) for auto&o-ile3
co&&ercial3 industrial and do&estic sector consu&ption3 a pipeline is en"isaged to connect t2e city
fro& t2e $ity Gate Station ($GS) fro& &ain gas trans&ission pipeline4
Tap-off point
Gas tap5off point is a gas outlet pro"ided on &ain gas trans&ission trun) line laid -y gas producer or
trans&ission net(or) operator for transportation of gas fro& (ell2ead to far a(ay location in t2e
region4 ,2e gas pressure at tap5off point can -e a 2ig2 pressure ranging fro& .' to '' -ar4 ,2e -ul)
supplier &ay 2a"e gas &etering facility at tap5off point for &easuring t2e gas 9uantity -efore dispatc2
to $ity Gate Station4 ,2e Gas tapped off fro& -ul) suppliers trun) line tra"els up to $GS t2roug2 Spur
line4
City Gate Station
,2e $ity Gate Station ($GS) is a facility for recei"ing3 &easuring and conditioning t2e gas for
distri-ution in city4 ,2e e9uip&ents installed at $GS &easure t2e 9uantity of gas recei"ed and regulate
its pressure to *' -ar or less for safe distri-ution of natural gas in t2e city4 ,2e gas recei"ed at $GS is
odori>ed -y &ixing odorant c2e&ical in re9uired proportion for easy detection -y 2u&an nose in t2e
e"ent of lea)ageIescape4 ,2e $GS also 2ouses control roo& and ot2er facilities li)e spares stores3 s&all
(or)s2op3 S$!%! syste&3 stand -y po(er source and fire fig2ting facility etc4 Natural Gas is
generally &ade a"aila-le at t2e do(nstrea& of $GS at a pressure of *' -ars to cater to t2e de&and of
auto&o-ile3 co&&ercial3 industrial and do&estic sectors4
City Gas Distribution
11
For internal circulation only
So&e of t2e &a;or installations at $GS are descri-ed -elo(5
a) Odourizing Facilities
It is good practice to odori>e natural gas to ensure a safe natural gas distri-ution syste&4 ,2e
natural gas in t2e existing A0< pipeline is un5odori>ed and t2erefore it is necessary to install
odori>ing plants4 It is en"isaged to install one auto&atic3 gas flo( rate -ased odourant in;ection
syste& at $GS4 ,2is syste& (ill odori>e inco&ing un5odouri>ed gas -y in;ecting odourant in t2e
natural gas4 ,2e tec2nical3 safety standards & specifications of t2e PNG/0 re9uires odouri>ation
to t2e extent of *245 PP? dosage4 ,2e odorant usually consists of sulp2ur -ased c2e&ical
co&pounds and a co&-ination of t(o odorants O3+6 tetra52ydro5t2iop2ane (,A,) and 8+6 tetra
-utyl &ercaptan (,0?)P pro"ides a -etter odour i&pact t2an a single odorant3 especially if t2ere is
su-stantial -ac)ground odour suc2 as in a &ildly polluted en"iron&ent4 Indian style of coo)ing
(it2 pungent condi&ents and 2ig2 foul s&ell le"el due to open drainage in to(n also (ill re9uire
2ig2er le"el of odourisation4
b) SCADA System
S$!%! syste& in a $G% net(or) ensures effecti"e and relia-le control3 &anage&ent and
super"ision of t2e pipeline fro& $GS using (/,=s) located along t2e pipeline at suita-le
locations4 ,2e pipeline3 %/S and $NG station perfor&ance are &onitored and controlled fro&
central S$!%! syste& control centre installed at $GS4 ,2e S$!%! Syste& $ontrol is lin)ed
t2roug2 fi-er optics ca-le or re&ote ter&inal unit (/,=s) located along pipeline4 /,=s (ill -e
used for scanning and tele5&etering of pipeline para&eters suc2 as flo(3 te&perature3 pressure3
"al"es status3 $P para&eters3 etc43 to update t2e co&puter data4
Main Grid Line
! $G% net(or) 2as a Steel ?ain /ing route originating fro& t2e $GS and consists of steel pipelines
and spur lines of "arious si>es (generally of si>es *'L3 *2L3 *+L3 #L3 L or .L) -ased on t2e design load
and future de&and of gas4 Sectionali>ing "al"es are pro"ided in &ain steel line as (ell as in spur5lines
at designed inter"als for future extension and isolation purpose4 ,2e regulations of t2e PNG/0 re9uire
steel pipeline connecti"ity to all online $NG stations for co&pression of $NG4 Pro"isions are also
&ade for safe -lo( do(n of gas into t2e at&osp2ere t2roug2 "ent eit2er at t2e %/S or at suita-le safe
distance fro& t2e sectionali>ing "al"e asse&-ly4
Catodic !rotection System
1or efficient and satisfactory functioning of t2e &ain grid line syste&3 -ot2 fro& safety and econo&ic
point of "ie(3 t2e pipeline &ust -e protected against corrosion4 External protection s2all -e pro"ided
for pre"ention of pipeline corrosion4 ,2is external protection is a co&-ination of anti5corrosion coating
City Gas Distribution
12
For internal circulation only
and cat2odic protection tec2ni9ues4 $on"entional coating of pipelines -y 35layer Polyet2ylene (PE) I
$oal tar I 1usion 0onded Epoxy coating are used as Qpassi"eQ protection4 $o&plete corrosion
protection cannot -e ac2ie"ed practically -y coating3 as it is i&possi-le to fully a"oid &inor defects
suc2 as pores or crac)s in t2e coating4 Belded pipelines are particularly su-;ect to corrosion at coating
2olidays -ecause of t2eir lo( longitudinal resistance3 i4e43 t2ey practically do not resist t2e flo( of
current t2roug2 t2e pipeline4 !t t2ese 2olidays3 dangerous pitting corrosion is initiated -ecause of t2e
2ig2 corrosion current densityC t2is p2eno&enon often causes rapid corrosion and failure of pipeline4
$at2odic protection is a &et2od for protecting t2e pipe relia-ly e"en at undetected coating 2olidays4
,2e protecti"e current supplies electrons to t2e structure to -e protected and pre"ents corrosion4 0ased
on t2e experience and ot2er rele"ant data as (ell as indigenous a"aila-ility3 PEI 10E coating s2all -e
pro"ided as external corrosion coating for t2e pipeline4 ,2e field ;oints are coated -y 2eat s2rin)
slee"es4
Salient features of t2e $P syste& for ?ain Grid Line are as follo(sD
a) ,2e &ain grid line is cat2odically protected -y an i&pressed current $P syste& as a per&anent
facility4
b) ?easures adopted to &itigate stray current interference due to t2e interference along t2e pipelines
c) ,e&porary $at2odic Protection (,$P) is pro"ided during pro;ect construction p2ase4
d) !ll t2e used roadI rail crossings are pro"ided (it2 proper insulating spacers3 end seals3 drain and
"ent pipes4 ,2e casing pipes is independently protected -y sacrificial anodes3 (2ere"er necessary4
e) 1or &onitoring purposes in nor&al cases3 test stations are installed at closer inter"als in case of
congested areas4 In addition3 test points are pro"ided at all crossings and near insulating ;oints4 ,2e
transfor&er /ectifier and $ontrol panel 2a"e &onitoring gauges for indicating protection current
and "oltage4
f) Interference effects3 (2ere"er suspected or o-ser"ed are duly in"estigated and re&edial &easures
pro"ided for3 (2ere"er necessary4
g) Insulating ;oints are pro"ided on t2e pipelines at all necessary locations3 (2ere electrical isolation
is desira-le suc2 as at $NG Stations and %/S4 ,2e grounding cellsI spar) gap arresters are also
installed across insulating ;oints4
Distri"ution system
,2e city gas distri-ution net(or) is designed to operate (it2 natural gas at a pressure of *' -ar for
distri-ution to do&estic and co&&ercial consu&ers and t2e distri-ution syste& co&prises of t2e
follo(ing5
a) District Regulatory Stations #DRS$
City Gas Distribution
13
For internal circulation only
%/S enco&passes a pressure reduction syste&3 &etering e9uip&ent3 condensate re&o"ing facility
and cold "enting facility fitted in a single self5contained s)id &ounted ca-inet4 ,2is regulator
-rings do(n t2e gas pressure fro& *' -ar (&ax) to . -ar4 ,2e capacity of %/S "aries fro& 235++
S$?A and 53+++ S$?A R . -ar4 1ilter Separator are pro"ided at t2e inlet of eac2 run of t2e
pressure reduction &etering asse&-ly (it2 filtration efficiency of ''4'6 for t2e re&o"al of all
particles fro& 5 &icron si>e on(ards4 ,2e flo( &easure&ent &eter is of tur-ine type4 ,2e
regulating asse&-ly is a dual run asse&-ly (it2 eac2 run designed for t2e full flo( capacity
re9uired for t2e station and &anual isolating "al"es pro"ided to facilitate ser"icing of eac2 run
(it2out s2utdo(n of t2e station4 Nu&-er and P2asing of %/S is a function of de&and and
deli"era-le pressure4
b) %D!& pipe net'or(
1or co&&ercial and do&estic consu&ers lo( pressure3 generally . -ar underground net(or) is
pro"ided3 as it is safe for in2a-ited areas3 easy to lay and econo&ical4 ,2e lo( pressure PE
pipeline net(or) in t2e do(nstrea& of Ser"ice /egulator (S/) operates at 85 to *++ &illi -ar
pressure4 1or industrial areas large dia&eter PE*++3 S%/** pipelines originating fro& Industrial
%/S are laid for supply of gas to s&all and &ediu& industrial consu&ers at . -ar pressure4 ,2ese
lines (ill -e laid as per t2e &ar)et penetration4 ,2e distri-ution syste& in a $G% net(or) is
constructed fro& A%PE pipes of *253 '+3 33 32 and 2+ && dia&eter pipes of S%/ ** grade
(Standard %i&ension /atioD /atio of outside dia&eter to &ini&u& (all t2ic)ness) ;oined -y
electro5fusion ;ointing syste&4 ,2e polyet2ylene fused ;oints are as strong as t2e parent pipe3
ensuring t2e integrity of t2e pipe syste&4 ,2e polyet2ylene co&pound used in t2e &anufacture of
pipes s2all -e free fro& cad&iu&4 :nly "irgin &aterial is used for extrusion of t2ese pipes and
fittings4
,2e %istri-ution net(or) is di"ided in t(o categories as per operating pressures4 ,2e &ediu&
pressure net(or) operates at . -ar pressure4 ,2is net(or) is laid -et(een %/S and Ser"ice
/egulator4 ,2e lo( pressure net(or) operating at 85 to *++ &illi -ars is aid -et(een Ser"ice
/egulator and %o&estic connection4
c) Medium !ressure Distri"ution Mains
,2e ?ediu& pressure %istri-ution &ains carry gas fro& %/S to Ser"ice /egulator (it2
standardi>ed si>es of *25 &&3 '+ && and 3 && and are of PE *++ grade orange &aterial4 ,2e
(all t2ic)ness of t2ese pipes is also as per S%/ **4 ,2ese pipes are laid underground in specially
prepared trenc2es at one &eter dept2 -elo( t2e ground4 ,2e pipes are padded and -ac) filled (it2
sie"ed fine sand for protection against t2ird party da&age4 Barning tape is installed on t2e pipeline
to (arn t2ird party against accidental da&age4 ,2ese pipelines also 2a"e isolation "al"es at regular
inter"als and -efore -ranc2 off4
City Gas Distribution
14
For internal circulation only
d) Lo' !ressure distri"ution ser)ices
Si&ilar to t2e &ediu& pressure distri-ution line3 lo( pressure distri-ution pipeline I ser"ice lines
are also laid underground in trenc2es (it2 padding and (arning tape laid on pipelines4 ,2e ser"ice
lines (si>e 3 &&3 32 && & 2+ &&) originate fro& t2e Ser"ice /egulator (S/) to reac2 do&estic
consu&ers and are of PE *++ grade S%/ ** orange colour4
e) *atural Gas Connection and Gas Metering
(i) %o&estic $onnection
,2e do&estic connection is gi"en fro& ser"ice line t2roug2 a transition fitting (2ic2 is used
to connect PE pipe line to GI pipeline net(or) inside t2e 2ouse2old4 ! &eter regulator is
installed on inlet of do&estic gas &eter to reduce t2e gas pressure fro& 85 &ili-ar to 2*
&ili-ar4 ,2e GI pipeline is installed in t2e 2ouse2old t2roug2 s2ortest route to reac2 up to
)itc2en sto"e4
(ii) $o&&ercial $onnection
,2e gas supply connection to co&&ercial consu&ers is gi"en eit2er fro& ser"ice lines or
distri-ution &ains depending upon gas re9uire&ent4 Ao(e"er3 large co&&ercial consu&er
can -e connected fro& &ediu& pressure lines and t2e pressure regulator and &eter for suc2
consu&er are accordingly selected4 S&all co&&ercial consu&ers can -e gi"en connection
fro& ser"ice lines and t2e &eter regulator arrange&ent for t2is consu&er (ill -e si&ilar to
do&estic connection except &etering capacity4
(iii) Industrial Connection
,2e natural gas supply connection to industrial consu&er can -e eit2er pro"ided directly -y
tapping steel &ains or t2roug2 industrial %/S located in industrial estate4 %irect connection
fro& steel &ains re9uires dedicated pressure reduction and &etering syste&4 ,2e gas &eter
can -e ultrasonic3 tur-ine or rotary positi"e displace&ent type depending upon flo( rate4
,2e pea) flo( rate -ased pipe line si>ing is done to opti&i>e on steel pipelines4 ,2e su& total of all t2e
%/S and $NG stations 2ourly flo( rates go"erns t2e -asic si>ing of t2e steel net(or)4 ,2e PE
pipelines are si>ed to flo( t2is gas to "arious c2arged areas in a $G% Net(or)4 ,2e %/S 2as pea)
flo( capacity of 5+++ S$?A and 25++ S$?A and Ser"ice /egulators 2a"e pea) flo( capacity of 5++
S$?A4 ,2e %/S and :nline $NG stations are located on steel net(or)4 ,2e pea) flo( capacity of
%istrict /egulating Station (%/S) go"erns design and si>ing of ?ediu& Pressure Polyet2ylene
(?PPE) and Lo( Pressure Polyet2ylene Pipelines (LPPE)4 $ity Gas %istri-ution syste& is designed as
per t2e tec2nical3 safety standards & specifications /egulation of t2e PNG/0 for a $ity Gas
City Gas Distribution
15
For internal circulation only
%istri-ution pro;ect are !NSII !S?E 0 3*4#3 KGas ,rans&ission and %istri-ution Piping Syste&L4
Since !S?E 0 3*4# does not ade9uately co"er plastic pipes3 for t2is IS:D..3* S0uried Polyet2ylene
(PE) pipes for t2e supply of gaseous fuels 5 ?etric Ser"ices Specifications7 is follo(ed for design of
polyet2ylene pipes4
Integrated GIS for Gas Distribution Syste%
! Geograp2ic Infor&ation Syste& (GIS) is playing a pi"otal role for utilities (it2 applications for
planning3 designing3 decision5&a)ing3 net(or) analysis and &onitoring of en"iron&ental degradation4
Glo-ally3 use of t2is tec2nology in gas distri-ution utilities 2as expanded tre&endously in t2e last
decade4 GIS applications (ere -uilt to &odel geospatial infor&ation and processes t2at support gas
distri-ution utility net(or) and operations in t2e real (orld4
GIS soft(are co&panies 2a"e co&e up (it2 solutions for different purpose suc2 as outage &anage&ent
Syste&3 engineering design3 trans&ission corridor &anage&ent3 and net(or) asset &anage&ent4 Gas
distri-ution co&panies 2a"e i&ple&ented t2ese products separately to support t2eir -usiness
(or)flo(s in "arious depart&ents3 suc2 as ser"ices groups3 consu&er groups3 operations groups3
-illing groups3 etc4 ,2e i&portance of co&&on single (or)flo( process p2eno&ena across all
depart&ents 2as led to t2e conception of integrated GIS for gas distri-ution4
,2e follo(ing discussion outlines t2e details of GIS -earing on gas distri-ution syste&C concept of
integrated GIS for gas distri-ution and 2o( single5"endor -ased integrated GIS is e"ol"ing as a
solution for a single (or)flo( for a gas distri-ution co&pany7s -usiness processes4
Gas Distri"ution System
Gas distri-ution syste& is a connected pipeline syste& t2at carries natural gas fro& a source suc2 as a
city gate station or regulator station to t2e custo&er pre&ises4 ! typical gas distri-ution syste& consists
of assets suc2 as &ain pipes and ser"ice pipes to distri-ute gas3 "al"es3 and regulator de"ices to control
and regulate gas flo(3 ;oins and fittings to ;oin different pipes and &eters to &easure inlet and outlet of
gas4 Gas trans&ission pipelines reac2 city -orders and con"ert to gas distri-ution at city gate station4
Gas is typically3 regulated3 odouri>ed3 filtered and &easured at city gate station4 ,2en gas &ay pass
t2roug2 se"eral &ain pipelines to different localities (it2in t2e city4 Generally3 ser"ice pipes connected
to &ains carry gas fro& &ains to custo&er locations4 Gas distri-ution syste& is co&plex3 in contrast to
gas and electric trans&ission syste&s3 as it consists of &any s&all seg&ents of "arious dia&eter pipes
;oined -y "arious types of fittings and gas control co&ponents placed at regular lengt2s of net(or)4
,2e pipes usually run up on one street and do(n on next3 for&ing loops4 B2at &ost distinguis2es city
gas distri-ution fro& gas trans&ission is t2at distri-ution co&panies7 supply fuel to retail custo&ers4
City Gas Distribution
16
For internal circulation only
,2erefore3 gas utilities &ay li)e to &anage in"entory of t2eir Gas distri-ution assets4 ,2ey &ay -e
interested to )no( infor&ation suc2 as particulars of gas lea) locations and i&pact of en"iron&ent on
t2eir assets4 ,2ey &ay li)e to )no( (2at to put -ac) into (or)ing order and (2at to replace4 ,2ey &ay
also li)e to )no( (2ic2 of t2eir assets i&pact ot2er utilities3 near-y to t2eir o(n assets suc2 as
underground electric syste&s4 Since gas distri-ution lines are underground3 t2ey &ust protect t2ose
lines fro& delin9uent -ac)2oe operators digging t2e ground for ot2er pipelines or ca-les4
0esides finding suita-le site for ne( assets3 losses in gas distri-ution and t2e gro(ing concern o"er
en"iron&ental issues are areas of concern t2at a gas utility &ust address4 ,2is re9uires t2e utility to
accurately )eep trac) of its assets in t2e field3 suc2 as asset location3 si>e3 status and spatial -e2a"iour4
,2is tas) can -e o"er(2el&ing for t2e utility (it2out a GIS4
G+S for Gas Distri"ution System
Gas distri-ution co&panies are using GIS soft(are products to support t2eir engineering and operations
functions and are reali>ing en2anced custo&er ser"ice3 increased net(or) relia-ility and reduced cost4
GIS 2elps to &aintain asset )no(ledge3 (2ic2 ena-les -etter use of a"aila-le capacity suc2 as si>e3
pressure and inlet 9uantity of gas at station &a)ing it possi-le to use existing pipeline infrastructure
-efore e&-ar)ing on an expensi"e ne( -uild4 Bit2 t2e recent ad"ances in (e-5applications and
adoption of -road-and net(or)s3 it is no( possi-le to integrate GIS (it2 ot2er -usiness processes of
t2e utility enterprise4 1or exa&ple3 a (or) order t2at is raised for &aintenance of an underground
pipeline seg&ent can 2a"e a lin) to online GIS &ap to locate not only t2e area of (or)3 -ut also to get
infor&ation suc2 as dept2 at (2ic2 t2e pipeline is -uried3 "al"es to -e closed to isolate t2e &aintenance
region and details of ot2er assets in t2e neig2-our2ood4
+ntegrity Management in Gas Distri"ution
In t2e past3 go"ern&ents paid &ore attention to 2ig2 pressure gas trans&ission pipeline integrity and
(anted trans&ission co&panies to pu-lis2 t2eir integrity reports4 Ao(e"er3 in recent ti&es3
go"ern&ents3 pipeline safety regulators and &any industry representati"es 2a"e reali>ed t2at integrity
&anage&ent 2as to -e extended to t2e gas distri-ution net(or)s too3 considering t2eir "icinity to li"ing
areas of people4 I&ple&enting integrity &anage&ent en2ances safety and also reduces ris) to pu-lic
property3 i&pro"es gas distri-ution co&pany7s asset life and -uilds up custo&er confidence4
In t2e future3 integrity &anage&ent for gas distri-ution syste& can -eco&e &ore for&al4 <ust li)e
trans&ission3 issues can occur in gas distri-ution in t2e for& of lea)s3 corrosion3 exca"ation da&ages
and unplanned outages4 Gas distri-ution co&panies 2a"e to for&ulate progra&s to tac)le integrity
re9uire&ents4 :ne prere9uisite to integrity &anage&ent is to understand t2e existing net(or) ele&ents
suc2 as &ains3 ser"ices3 "al"es3 regulators3 cat2odic sections3 &eters etc4 ,2is is easily ac2ie"ed (it2
t2e 2elp of a GIS3 (2ic2 pro"ides infor&ation a-out &aterial used for piping3 dia&eter3 operating
City Gas Distribution
17
For internal circulation only
pressure3 if t2e pipe is exposed or cased3 lea)s on pipes and t2eir repair and &aintenance 2istory4 ,2is
infor&ation 2elps in identifying t2reats to distri-ution syste&7s integrity t2at can -e ris)y in t2e for&
of unpredicta-le da&ages to assets and people4
Lea( Management
! GIS can identify nearest "al"es or structures t2at need to -e closed3 to separate t2e lea) area fro&
rest of net(or) to &itigate loss4 !fter an accident or lea)3 t2e net(or) 2as to -e restored and da&aged
pipe seg&ents 2a"e to -e replaced4 GIS applications can 2elp in -uilding t2e footage net(or) t2at (ill
replace failed net(or) -y identifying types of pipes (cast iron or steel)3 lengt2 of pipes and nu&-er of
pipe seg&ents4 Lea) analysis is anot2er priority for integrity &anage&ent4 GIS interacts (it2 lea)
data-ase and disco"ers lea) locations4 ! cluster analysis on lea)s can -e perfor&ed to deter&ine t2e
areas3 (2ic2 need i&&ediate attention4
Ris( Management
GIS can interact (it2 pipe corrosion detection syste&s and s2o( unprotected and exposed pipes in an
area4 If custo&er de&and is expected to increase in t2at area3 t2en gas distri-ution co&pany can
i&&ediately &a)e plans to replace t2e (ea) pipes or protect t2e "ulnera-le pipes to reduce ris) of
da&age4
Safety
?ost of t2e ti&es it is a regulation t2at re9uires reporting perfor&ance and 2ealt2 of t2e syste&4 1or
exa&ple3 under certain conditions of pressure3 it is reco&&ended to 2a"e excess flo( "al"e on a single
line connection to reduce 2a>ards and safeguard 2o&es4 GIS can &aintain 2istory of lea)s on ser"ice
lines and "isually analyse t2is 2istorical data to 2elp &a)e decisions a-out excess "al"e installations4
!part fro& a-o"e3 t2ere are t(o &ost i&portant areas to -e assessed under distri-ution integrity4 :ne is
to supple&ent data for :ne $all ,ic)ets to do ris) analysis and pro"ide to exca"ators and anot2er is
corrosion &anage&ent to protect pipes4
One Call Analysis
?any countries 2a"e &andated a regulation on &a)ing a telep2one call to t2e Kcall -efore you digL
centre or one call centre3 -efore doing any )ind of exca"ation in order to a"oid da&ages to utility
net(or)s3 due to digging t2e ground4 0ased on t2e &aps pro"ided -y utilities in proposed digging area3
:ne call centre deter&ines if t2e exca"ator is digging in an unsafe area t2at can cause da&age to gas or
any ot2er utility electrical lines and pipes -uried under ground4 ,2e centre t2en notifies t2e gas or
concerned utility -y creating a one call tic)et4 It is no( t2e gas (utility) co&pany7s responsi-ility to
pro"ide full details on locations of t2eir pipes t2at &ay -e 2it if exca"ation is done3 and pro"ide any
ot2er suc2 instructions to carry out exca"ation (it2out any da&age -y exca"ators4 GIS plays a )ey role
City Gas Distribution
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For internal circulation only
in t2is acti"ity -y directly locating t2e exca"ation area on &ap and displaying t2e pipeline details
-uried in t2at region4 ! full5scale report on t2ese details can -e produced fro& GIS t2at t2e gas (utility)
co&pany can su-&it to t2e one call centre3 (2ic2 in turn instructs t2e exca"ators accordingly4
Corrosion Management
1or corrosion &anage&ent3 it is i&portant to identify pipe seg&ents t2at &ay need protection4 ,2e
underground pipes3 (2ic2 are &ade of steel and iron ot2er t2an plastic3 corrode due to t2e proxi&ity to
eart24 If a pipe seg&ent is steel3 it &ay re9uire to -e cat2odically protected4 GIS can -e of great use for
corrosion &anage&ent as it can "isually display t2e pipe seg&ents co"ered -y cat2odic protection on
t2e &ap and t2ose t2at are not co"ered4
+ntegrated G+S
%ue to t2e &any ad"antages of using a GIS3 =tilities are increasingly adopting GIS ena-led solutions
to &eet t2eir needs4 ! distinct trend to(ards deploying an Integrated GIS is -eing seen3 -y integrating
t2e traditional GIS (it2 ot2er -usiness applications suc2 as engineering &anage&ent tools3 &o-ile
(or)force &anage&ent syste&3 outage &anage&ent syste&3 S$!%!3 and analysis tools4
!n integrated GIS -uilds sea&less interopera-ility a&ong GIS and ot2er syste&s to s2are data and
ser"ices4 %ue to t2e gro(t2 in &iddle(are tec2nology3 GIS "endors 2a"e co&e up (it2 adaptors and
connectors to &iddle(are ser"ers4 ,2is ena-les GIS to connect (it2 &ulti5"endor supported enterprise
syste&s3 t2us &a)ing GIS3 a true enterprise application4
+ntegrated G+S for Gas Distri"ution System
If a ne( pipeline is to -e laid3 a design can -e prepared in GIS -y t2e engineering design depart&ent4 It
is also seen t2at t2ere is a need to pu-lis2 t2is design for re"ie( or appro"al or execution to different
depart&ents4 %uring actual gas net(or) layout3 field engineers plan regular on5site inspections4 ! field
engineer can "ie( t2e gas net(or) details in a GIS &ap on 2is personal digital assistant (P%!) and
e"en enter co&&ents3 suc2 as incorrect positioning of a fitting3 or c2anged o(ner na&e of a gas &eter4
,2is 2as led to acceptance of (e- pu-lis2ing tec2nology for s2aring data and pu-lis2ing field data and
t2e unre&itting ad"ance&ent of &o-ile platfor&s for field inspections4
!lso3 t2e gro(ing need for a co&&on (or)flo( across "arious depart&ents 2as led to integration of
GIS syste& (it2 in52ouse dedicated syste&s4 GIS s2ould integrate (it2 operational support and
ser"ice5deli"ery applications3 ena-ling t2ese syste&s to cooperate sea&lessly in &anaging planning3
design3 construction3 operations3 &aintenance3 integrity3 ris) and e&ergency response functions of gas
distri-ution and pipeline net(or)s4 GIS at enterprise le"el is re9uired to pro"ide geospatial data across
t2e enterprise (it2 full integration at all le"els of syste&s and applications (it2 full access to "ie( and
update data for a gas distri-ution syste&4
City Gas Distribution
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For internal circulation only
!dditionally3 t2ere is a gro(ing use of Internet GIS and industry standard platfor&s4 !not2er suc2
paradig& is co&ponent -ased progra&&ing3 (2ic2 pro"ides state5of5art de"elop&ent en"iron&ent for
-uilding custo& applications for easy syste& extenda-ility and custo&5&ade capa-ility of a &odern
GIS syste&4 ,2is increased t2e need for interopera-ility -et(een pre"alent syste&s4
Aence3 re9uire&ent for integrated GIS solutions for gas distri-ution is on t2e rise4 !n integrated GIS
e&po(ers gas utilities to s2are infor&ation a-out &ains3 ser"ices3 cat2odic sections or one5call tic)ets
of any si>e instantly and sea&lessly across t2e enterprise4 ,2is 2elps in planning for safety syste& suc2
as cat2odic protection for ne( pipelines or 2elps in locating all t2e assets for a one5call tic)et4 Aence3
an integrated GIS 2elps in fast decision5&a)ing3 &aintain 2ealt2 of t2e syste&3 i&pro"e custo&er
ser"ice and opti&i>e -usiness processes4
Callenges in +ntegrated G+S
! succinct life cycle of gas distri-ution net(or) consists of follo(ing p2ases5
1) Planning gas net(or) (it2 regulation stations3
&ains3 ser"ices3 "al"es3 etc4
2) $reating an engineering design for t2e net(or)3
-ased on
a) 0est cost &odel
b) !"aila-le &aterial t2roug2 enterprise resource planning (E/P) syste&
3) Perfor&ing analysis on proposed and existing
net(or)s for opti&i>ation
4) !ppro"ing engineering designs
5) Procuring &aterial
6) 1ield inspections during net(or) construction
7) Energi>ing t2e as5-uilt net(or)
8) Ser"ice pro"isioning
) !sset &anage&ent
1!) Gas outage &anage&ent
11) :perations and &aintenance
12) Lea) analysis
13) $at2odic protection
Aistorically3 "arious depart&ents of a corporate enterprise using depart&ental -ased syste&s carried
out t2e a-o"e re9uire&ents indi"idually4 ! ne( trend of enterprise application integration pa"ed (ay
into t2is space integrating different syste&s eli&inating duplication of data and reducing co&plexity in
&aintenance of se"eral syste&s4 In t2is strea&lining3 gas distri-ution co&panies 2a"e concentrated on
City Gas Distribution
20
For internal circulation only
t2e need to include geospatial infor&ation4 E"en t2e recent propagation of online &aps3 Glo-al
Positioning Syste& (GPS) and Location 0ased Ser"ices (L0S)3 all lean to(ards integrated GIS4 ,2is
also led to gro(t2 of spatially ena-led data-ases4 ! ne( re"olution t2us de&ands gas distri-ution
co&panies to le"erage integrated GIS to &eet a-o"e re9uire&ents4
!n integrated GIS 2as interfaces to different enterprise syste&s to for& a single (or)flo(3 as can -e
seen -elo(4
$2allenges co&e in t2e follo(ing situationsD
*4 0uilding a co&&on data &odel across all products and applications
24 B2at co&&on standards to -e follo(ed
34 $oordination -et(een "arious depart&ents
.4 Lead ti&e for licenses can -e longer as it a&ounts to t2e last license deli"ered
54 Ne( installationsIupgrades for indi"idual syste&s is cu&ulati"e
In "ie( of t2e a-o"e3 trend no( is to pro"ide depart&ental5-ased syste&s fro& a single "endor for gas
distri-ution solution4
Single ,endor-"ased +ntegrated G+S is te future
City Gas Distribution
Industry "tandard
#ngineering Design
$oo%s
Gas Distribution
&na%ysis $oo%
GI" for Gas
Distribution "yste'
Custo'er
Infor'ation "yste'
(ie%d GI"
Internet
Databases #)* + &,,%ication
"er-ers
21
For internal circulation only
! single "endor &eans a co&&on data &odel and a co&&on de facto standard for all indi"idual
syste&s4 =pgrades and releases are done at t2e sa&e ti&e (it2 out5of5-ox co&pati-ility -uilt (it2in
syste&s4 Licenses can also -e recei"ed in a single5go3 t2us reducing ot2er(ise long (aiting ti&e for
"arious syste&s4 So&e GIS "endors 2a"e reali>ed t2e need for single "endor5-ased syste&s for
enterprises4 :ne suc2 "endor is GE Energy3 (2ic2 recently released a product portfolio called
S&all(orld :ffice Suite4 GE Energy7s office suite for gas utilities 2as products suc2 as3 S&all(orld
Gas %istri-ution :ffice3 S&all(orld Glo-al ,rans&ission office3 S&all(orld %esign ?anager for
engineering design3 S&all(orld Enterprise !pplication Integration (E!I) tool)it for integration (it2
legacy and ot2er syste&s suc2 as custo&er infor&ation syste&s and gas analysis syste&s4 It 2as
S&all(orld Internet !pplication Ser"er (SI!S) to pu-lis2 gas distri-ution net(or) infor&ation and
&aps on Internet and intranet4 It also consists of S&all(orld 1ield Infor&ation Syste& t2at ena-les a
field engineer to carry and update spatial infor&ation into t2e field4
=sage of a GIS for planning and operational purposes is increasing -y t2e day in gas industry4
Standards and specifications are continuing to e"ol"e to ac2ie"e s&oot2 interopera-ility -et(een
"arious GIS and non5GIS applications needed -y t2e gas utilities4 0ased on t2e experiences of early
adopters3 a clear trend is -eing seen in t2e for& of t2e gas utilities preferring an integrated GIS fro& a
single "endor4
'etroleu% ) Natural Gas 3egulatory 4oard 'NG34! on CGDNs
,2e PNG/0 esta-lis2ed on :cto-er *3 2++8 (appointed day) under t2e PNG/0 !ct3 2++ is t2e
do(nstrea& regulator3 (2ic2 a&ongst ot2er functions aut2ori>es entities for laying3 -uilding3 operating
and expansion of $G% Net(or)s4 In t2is respect3 t2e $G% Net(or)s (2ic2 (ere in existence prior to
t2e appointed day are considered as dee&ed aut2ori>ed4 PNG/0 2as notified follo(ing regulations
go"erning t2e acti"ities of $G% net(or)s5
*4 /egulations for aut2ori>ing entities to lay3 -uild3 operate or expand $G% Net(or)s
24 /egulations for aut2ori>ing net(or) tariff and online co&pression c2arge for $NG in respect $G%
net(or)s in existence as on t2e appointed day
34 !ccess code for $G% Net(or)s
.4 ,ec2nical Standards and Specifications including Safety Standards for $G% net(or)s
54 !ffiliate code
4 Exclusi"ity for $G% Net(or)s
,2ese regulations 2a"e &a;or i&pact on t2e (ay t2e $G% net(or)s (ould de"elop in future and can -e
studied in detail after do(nloading fro& t2e (e-site of t2e PNG/0 (2ttpDII(((4pngr-4go"4inI) under
t2e scroll (indo( :rdersI Notifications4 ,2e salient features of t2ese /egulations are discussed as
-elo(4
City Gas Distribution
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For internal circulation only
!ut2ori>ation /egulations classify t2e $G% net(or)s -efore and after t2e appointed day4 In respect of
t2e $G%Ns existing -efore t2e appointed day3 t2e aut2ori>ation (ould -e decided in ter&s of t2e
pro"ision of /egulation *# of t2e !ut2ori>ation regulations4 ,2erefore3 t2e entity (ould 2a"e to
de&onstrate already ac2ie"ed p2ysical progress of at least 256 and financial co&&it&ent of 5+6 in
ter&s of t2e appro"ed %1/I existing -usiness plan as on t2at day4 $G%Ns already aut2ori>ed -y
?oP&NG (li)e3 IGL3 ?GL3 etc4) -y "irtue of gas allocation (ould -e dee&ed aut2ori>ed as per
pro"isions of /egulation *84 1urt2er3 in respect of $G%Ns proposed after t2e appointed day3 as per
/egulation 53 suc2 cases (ould -e processed -ased on e"aluation of t(o5part -ids recei"ed in response
to t2e E:I -y any entity for a geograp2ical area4 ,2e PNG/0 can also suo-motu call for -idding for
suc2 geograp2ical areas as it &ay dee& fit4 PNG/0 &ay decide to eit2er go a2ead or &odify or re;ect
t2e E:I considering a"aila-ility of natural gas and gas trans&ission pipeline for -rining natural gas to
t2e proposed city gate4 ! s9uatter ad"antage to any incu&-ent de"eloper of a $G% net(or) (it2out
source of gas and pipeline (ould not -e in t2e interest of co&petition and custo&ers4 ,2e geograp2ical
area proposed in t2e E:I is fir&ed5up t2roug2 pu-lic consultation process -ased on t2e principles of
geograp2ical contiguity and tec2no5econo&ic feasi-ility and could include &unicipal li&its3 city3 to(n3
district or a co&-ination t2ereof4 ,2e purpose of 2a"ing a fir&ed5up G! is to allo( -idding on
co&&on para&eters4
,2e tec2nical criteria en"isages re9uisite experience of laying3 -uilding3 operating or expansion
(including for :&?) of $G% Net(or)s or 2ydrocar-on pipelines or 2a"ing a credi-le plan (to -e
de&onstrated) t2roug2 tec2nical tie5upI re9uisite tec2nical &anpo(er3 &ini&u& net5(ort2 lin)ed to
t2e population in t2e geograp2ical area3 etc4 ,2us3 t2e regulations pro"ide only a -asic 2urdle to -e
crossed in order to -eco&e tec2nically eligi-le and no (eig2tage is assigned to t2is criterion4 ,2e
financial -idding 2as -een en"isaged (it2 (eig2ts against eac2 of t2e follo(ing criteria re9uiring
calculation of scores on a relati"e scale5
Criterion 6eightage 3ationale
* Lo(ness of PE of net(or)
tariff o"er econo&ic life of 25
years
.+6 Net(or) ,ariff is tariff attri-uted to
pipelines in $G% net(or) (including up
to Last ?ile $onnecti"ityD riser to -urner
tip of PNG do&estic 2ouse2old)
2 Lo(ness of PE of online
co&pression c2arge for $NG
o"er econo&ic life of 25 years
*+6 :nline co&pression c2arge attri-uted to
c2arge for co&pression of $NG &
reco"era-le in addition to net(or) tariff
fro& $NG consu&ers only
City Gas Distribution
23
For internal circulation only
3 Aig2ness of PE of inc25
)ilo&eter of steel pipelines in
$G% net(or) during period of
exclusi"ity
2+6 Inc25@ilo&eter i&plies sig&a of product
of outer dia&eter of steel pipelines o"er
t2eir respecti"e distances in $G%
net(or) & is re9uired upfront (-efore
end of exclusi"ity)
. Aig2ness of PE of PNG
do&estic connections to -e -id
during period of exclusi"ity
3+6 PNG do&estic connections -id eac2 year
of exclusi"ity period4 Post5exclusi"ity
PNG do&estic connections on de&and
NoteD
a) ,2e co&posite (eig2ted score s2all -e calculated for all tec2nically eligi-le -ids on a relati"e
(percentile) -asis4
b) ,2e discount rate for t2e Present Ealue (PE) s2all -e *.64
c) 0idder (it2 2ig2est co&posite score is t2e (inner4
,2us3 it &ay -e o-ser"ed t2at t2ere is an e9ual (eig2tage assigned to t2e financial and tec2nical
criteria and t2e underlying logic is to pro&ote 9uic) and upfront net(or) infrastructure3 incenti"i>e
-alanced and integrated de"elop&ent of net(or) to &eet future de&and fro& all consu&er seg&ents at
lo(est possi-le net(or) tariffs and co&pression c2arge for $NG4 Since t2e price of natural gas is not
regulated3 t2e entity is free to adopt suita-le strategies for product pricing4
,2e /egulations also pro"ide for "olu&e restrictions on supply of natural gas in t2e $G% net(or) to
an indi"idual custo&er5
a) not exceeding 5+3+++ S$?% to -e necessarily sourced fro& t2e $G% net(or)C
b) -et(een 5+3++* S$?% and *3++3+++ S$?% to -e sourced as per custo&er c2oice fro& t2e $G%
net(or) or any ot2er supplier not t2roug2 t2e $G% net(or)C and
c) !-o"e *++3++* S$?% to -e necessarily sourced fro& any supplier -ut not t2roug2 t2e $G%
net(or)4
,2e a-o"e "olu&e restrictions are intended to ensure "olu&e co&fort to t2e $G% net(or) (2ile also
protecting t2e $G% net(or) on t2e ot2er 2and against net(or) i&-alances due to pea)ing
re9uire&ents of a large "olu&e custo&er4
Entity aut2ori>ed for a $G% net(or) 2as a p2ysical exclusi"ity of 25 years i&plying t2at no ot2er
entity can lay3 -uild3 operate or expand in a $G% net(or)4 ,2is 2as t2e effect of i&posing ser"ice
o-ligation on t2e aut2ori>ed entity to ensure t2at future natural gas de&and re9uire&ents of all
consu&er seg&ents in a G! are &et t2roug2 net(or) expansion4 ! $G% net(or) (ould 2a"e
custo&ers (it2 different "olu&e re9uire&ents and afforda-le price of natural gas3 for exa&ple3 an
industrial custo&er &ay afford gas price at a &arginal discount to furnace oil3 (2ereas a do&estic
custo&er &ay not -e (illing to pay price for piped natural gas (for an annual "olu&e re9uire&ent of
not -e &ore t2an **+5*.+ S$?) &ore t2an t2e do&estic LPG price3 (2ic2 is su-sidi>ed4 ,2e
City Gas Distribution
24
For internal circulation only
econo&ics of connecting an industrial load far exceeds t2at of a do&estic PNG connection in ter&s of
t2e selling &argins and "olu&es4 ! co&&ercial load &ay 2a"e LPG non5do&estic as alternati"e fuel3
(2ic2 is not su-sidi>ed4 ! $NG custo&er tends to see t2e econo&ics -ased on t2e price of auto&oti"e
fuels3 cost of con"ersionI $NG )it3 $NG a"aila-ility3 re5fuelling co&fort3 &ileage3 etc4 In order to
pre"ent "arying econo&ics resulting in -cerry pic(ing. of custo&ers3 t2e PNG/0 2as ensured in t2e
design of t2e -idding para&eters t2at &axi&u& net(or) co"erage in a G! is assured t2roug2 upfront
in"est&ents and on t2e ot2er allo(ed a li&ited &ar)eting exclusi"ityL to t2e aut2ori>ed entity for fi"e
years4 %uring t2e pendency of suc2 period3 no ot2er entity can &ar)et its natural gas and after t2e end
of suc2 period3 t2e $G% net(or) is opened for use -y t2ird parties on co&&on carrier or contract
carrier on pay&ent of net(or) tariff and co&pression c2arge for $NG4
,2e li&ited &ar)eting exclusi"ity is en"isaged for ensuring an integrated de"elop&ent of net(or) and
pro"ides t2e aut2ori>ed entity upfront incenti"e to 9uic)ly reac2 t2e industrial and co&&ercial
seg&ents as (ell as $NG &ar)et to ensure ade9uate re"enue generation to ser"ice 2ea"y de-t -urden
during initial years4 ,2e PNG/0 !ct3 2++ 2as also pro"ided for segregation of gas trans&ission and
&ar)eting acti"ities3 (2ic2 i&plies t2at t2e entity &ay -e re9uired to un-undle its regulated acti"ities
of net(or) operation fro& t2e unregulated acti"ities of gas &ar)eting4 Suc2 un-undling of ser"ices
&ay assu&e t2e for& of accounting3 legal3 o(ners2ip or &anage&ent control segregations (it2 an
underlying position t2at t2e entity o(ning and controlling &onopoly assets (of gas net(or)) s2ould
not3 in t2e long5ter&3 -e in a position to exercise significant &ar)et do&ination and gas &ar)eting
opportunities are a"aila-le to ot2er s2ippers using t2e sa&e net(or) on principles of co&&on carrier or
contract carrier so as to allo( de"elop&ent of co&petiti"e gas &ar)ets4 In t2e s2ort and &ediu& ter&3
t2e PNG/0 2as pro"ided t2at t2e entity (ould &aintain separate -oo)s of accounts and not engage in
transfer pricing -et(een regulated and non5regulated acti"ities4
B2ile t2e ser"ice o-ligations and stiff -idding conditions ensures t2e net(or) of pipelines co"ers all
c2arge areas (su-5sets (it2in a G!) and into t2e non5lucrati"e do&estic consu&er seg&ents4 PNG/0
2as also stipulated 9uality of ser"ice standards for protecting indi"idual do&estic consu&er interests4
1or exa&ple3 re9uire&ent for display of net(or) tariff and online co&pression c2arge for $NG3
consu&er freedo& to c2oose natural gas supplier post5&ar)eting exclusi"ity3 refunda-le security
deposit for PNG do&estic connection not to exceed /s453+++3 connecti"ity on de&and after t2e end of
&ar)eting exclusi"ity3 unifor& net(or) tariffs fro& all consu&er seg&ents irrespecti"e of "olu&es3
etc4 2a"e -een en"isaged to protect do&estic consu&er7s interests4 ,2e tec2nical standards are ai&ed at
2a"ing co&pliance (it2 t2e ASE issues -ot2 during and post co&&issioning p2ases4 ,2e pro"isions of
-id -ond and perfor&ance -ond ((it2 256 encas2&ent on first default3 5+6 on t2e next and top5up
(it2in *5 days of eac2 default) coupled (it2 strict pro"iso for cancellation of aut2ori>ation are ai&ed
at ensuring t2at entity re&ains co&&itted to t2e de"elop&ent of $G% net(or) as (ell as t2e interests
of consu&er and t2ird party s2ippers are protected4
City Gas Distribution
25
For internal circulation only
Co%%ercial issues in develop%ent and operations of a CGD Net"or#
! $G% net(or) is designed for &eeting de&and o"er its econo&ic life of 25 years and significant
in"est&ents are t2erefore re9uired o"er t2e pro;ect7s life cycle4 P2asing of capex to &eet de&and is
i&portant to ensure opti&u& asset utili>ation and generation of tariff re"enues4 ,2e a-ility to reac2 all
consu&er seg&ents t2roug2 per"asi"e and all5inclusi"e net(or) de"elop&ent and creation of de&and
for gas3 sourcing of gas on &ost co&petiti"e ter&s3 outsourcing of non5critical operations3 li)e
in"oicing and pay&ent collection3 alternati"e re"enue &odels (li)e3 utili>ation of S$%! net(or) for
%,A3 telep2ony3 internet3 $/?3 etc4) and 9uality of ser"ice (ould 2elp t2e entity to retain its &ar)et
s2are post5&ar)eting exclusi"ity4
Issues li)e policy on taxation of fuels3 prices of alternati"e fuels3 &andated con"ersion to $NG3 re5
siting of polluting industries or con"ersion to natural gas3 expansion of city li&its3 de"elop&ent of
industrial >ones3 single (indo( clearing &ec2anis& for all statutoryI local go"ern&ental clearances
i&pact t2e econo&ics of a $G% net(or)4 ,2e entity also 2as an opportunity to &ar)et natural gas in
contiguous $G% net(or)s after t2e end of &ar)eting exclusi"ity in suc2 areas and (it2 an aggressi"e
&ar)eting and pricing policies can target cornering gas &ar)ets4
:pti&i>ation in a $G% net(or) in ter&s of using existing retail pu&p outlets of oil &ar)eting
co&panies and -us depots for setting5up online co&pressors3 daug2ter5-ooster stations and dispensers
i&pro"es t2e econo&ics of $NG4 It is i&portant to note t2at an expanded gas &ar)et -enefits all4
Efforts s2ould -e &ade to (or) (it2 :E? to facilitate 9uic)er and econo&ical con"ersion to natural
gas -ot2 in t2e auto&oti"e and industrial seg&ents4 ,2e entity also need to (or) (it2 ser"ice pro"iders
in creating of a sea&less operational and &aintenance en"iron&ent for "e2icle engines3 $NG )its and
-oilers including periodic &andatory safety c2ec)s4 Suc2 initiati"es go a long (ay in creating
consu&er a(areness and con"enience3 (2ic2 in turn -oosts de&and for natural gas4
?a;or t2reat to $NG is expected fro& Euro E fuels3 (2ic2 are expected to -e cleaner and are expected
to -eco&e t2e &andated fuels in a fe( years ti&e and &ost of t2e Indian refineries are eit2er already
Euro E co&pliant or are in"esting 2ea"ily to -eco&e so4 1urt2er3 t2e increasing traffic congestions and
(asteful energy consu&ption are dri"ing &etro cities to de"elop &ass rapid transport syste&s3 (2ic2
&ay also i&pact t2e gro(t2 of auto fuel consu&ption in t2e years to co&e4 ,2erefore3 unli)e t2e
experience of Indraprast2a Gas Li&ited3 $NG &ay no longer -e a )ey dri"er for -oosting t2e
econo&ics of a $G% net(or)4 ! $G% net(or) of future (ould t2erefore need to focus on de&and
creation fro& do&estic custo&ers particularly fro& large and up5scale real estate co&&unity
de"elop&ent pro;ects3 s2opping &alls3 &ultiplexes and offices t2roug2 inno"ati"e3 econo&ic and
relia-le energy solutions3 li)e po(er generation on distri-uted -asis (it2 air5conditioning on co&-ined
cycle4
City Gas Distribution
26
For internal circulation only
Chapter $* Co%pressed Natural Gas CNG!
+his Chapter discusses on the concept of CNG as auto%otive fuel( co%parison of CNG "ith other
conventional fuels in ter% of operational efficiency( econo%ics( e%issions and operating
conditions( de%and of CNG and its drivers( ho" gas is co%pressed into CNG( operations in a
CNG station( dispensing ) transportation of CNG by cascades-
,2is c2apter discusses t2e operating c2aracteristics of auto&oti"e fuel product $o&pressed Natural
Gas ($NG)3 2o( natural gas is co&pressed into $NG3 $NG7s co&parati"e operating efficiency &
econo&ics in relation to ot2er auto&oti"e fuels5 ?S & AS%3 de&and for $NG and its dri"ers3 2o(
$NG is dispensed3 &ain facilities in a $NG station operates and 2o( $NG is transported in cascades4
/at is C*G0 $NG stands for $o&pressed Natural Gas4 It is a gaseous fuel and is a &ixture of
2ydrocar-ons3 &ainly &et2ane (si&plest 2ydrocar-on) in t2e range of '563 it is &uc2 cleaner and
efficient fuel4 %ue to its lo( density3 it is co&pressed to a pressure of 2++ -ar to en2ance t2e "e2icle
on5-oard storage capacity4 It is safe o(ing to its in2erent property of -eing lig2ter t2an air3 and
t2erefore in case of lea)age it disperses into t2e at&osp2ere rapidly4 Its 2ig2 auto5ignition te&perature
of 5.+ degrees centigrade as against petrol7s 3+ degrees centigrade &a)es it e"en &ore safe fuel4
$NG also 2as a narro( infla&&a-ility range of 56 to *563 &a)ing it &uc2 safer t2an ot2er fuels4
$NG e&issions -eing non5toxic3 non5corrosi"e and non5carcinogenic3 its usage i&pro"es pu-lic 2ealt23
as 2ar&ful ex2aust gas e&issions li)e car-on &onoxide3 nitrogen dioxide and sulp2ur dioxide (2ic2
causes 2ar&ful diseases li)e cancer3 ast2a&a etc4 are significantly reduced4 $NG also 2elps in reducing
t2e effects of glo-al (ar&ing4 $NG does not conta&inate or dilute cran) case oil3 gi"ing engine an
extended life -esides increased life of lu-ricating oils4 %ue to t2e a-sence of any lead or -en>ene
content in $NG3 t2e lead fouling of spar) plugs is eli&inated4
1or exa&ple3 an engine running on petrol for *++ )& e&its 223+++ gra&s of $:23 (2ile co"ering t2e
sa&e distance on $NG e&its only *3285 gra&s of $:24 O$NG is essentially &et2ane3 i4e4 $A. (it2 a
calorific "alue of '++ @;I &ol4 ,2is -urns (it2 :xygen to produce * &ol of $:2 and 2 &ol of A2:4
0y co&parison3 petrol can -e regarded as essentially 0en>ene or si&ilar3 $A (it2 a calorific "alue
of a-out 333++ @;I&ol and (2ic2 -urns to produce &ol of $:2 and 3 &ol of A2:4 1ro& t2is it can
-e seen t2at per &ol of $:2 produced3 $NG releases o"er *4 ti&es as &uc2 energy as t2at released
fro& petrol (or for t2e sa&e a&ount of energy3 $NG produces nearly .+6 less $:2)4 ,2e a-ility of
$NG to reduce green2ouse gas e&issions o"er t2e entire fuel lifecycle (ill depend on t2e source of t2e
natural gas and t2e fuel it is replacing4
!ll spar)5ignited engines can -e con"erted to $NG3 for (2ic2 a specially designed con"ersion )it is
re9uired for t2e con"ersion process4 ,2e )it consists of a cylinder to -e fixed in t2e -oot spaceI under
carriage of t2e "e2icle and ot2er e9uip&ents to allo( gas flo( into t2e engine4 Petrol5-ased engines3 on
City Gas Distribution
27
For internal circulation only
con"ersion 2a"e added ad"antage of duel5fuel flexi-ility4 ,2e cost of con"erting a "e2icle to $NG
depends on t2e type of t2e "e2icle and $NG )it and t2e cost of con"ersion ranges -et(een /s 253+++
to /s .+3+++ for a t2ree5(2eeler to a four5(2eeler s&all "e2icle4 $NG cylinders are &anufactured
fro& a special steel alloy and are sea&less in construction4 ,2eir co&pact si>e allo(s t2e& to easily fit
into a s&all car4 !n e&pty $NG cylinder (it2 a 5+ litre5(ater5carrying capacity (eig2s .# )g
(approxi&ately)3 and 2as a lengt2 of #35 && and a dia&eter of 3* &&4 ,2e 5+ litre capacity cylinder
is t2e one &ost regularly used in $NG )its -ut cylinders (it2 .5 litre3 55 litre3 + litre and 5 litre
capacity are used as (ell4 ! cylinder (it2 a 5+ litre (ater5carrying capacity is capa-le of carrying
approxi&ately ' )g of $NG4 ,2is is e9ui"alent to *245 litres of petrol and (ill allo( a run of a-out
*5+5*+ )& for a &ediu& si>ed *3++ $$ car4 !n electronic fuel gauge fitted on t2e das2-oard (2ic2 is
part of t2e con"ersion )it indicates t2e 9uantity of $NG left in t2e cylinder4 :n an a"erage3 "e2icle
o(ners lose a-out one t2ird of t2eir -oot space (2en a car is con"erted to $NG4 ,2e -oot space also
depends upon t2e si>e of "e2icle and cylinder &a)e4 $NG cylinders are designed and -uilt in suc2 a
(ay so as to (it2stand 2ig2 pressure4 ,2e &axi&u& pressure in a $NG cylinder is up to 2++ -ar4 $NG
cylinders are safe as t2ey are &anufactured as per specific re9uire&ents and tested -efore use3 in
accordance (it2 international specifications and standards3 and are duly appro"ed -y t2e $2ief
$ontroller of Explosi"es4 ?oreo"er3 t2ey are pro"ided (it2 a pressure relief de"ice (P/%) t2at consists
of a fusi-le plug and a -urst disc t2at ruptures in case of extre&ely 2ig2 pressure and te&perature4
$NG )it is safe and si&ple and is designed to gi"e years of trou-le free operation (it2out fre9uent
ser"icing4 !s per Gas $ylinder /ules3 *'#*3 t2e cylinder s2ould undergo 2ydro5stretc2 testing e"ery 5
years to c2ec) pressure tolerance4 $ylinders used for storing gas are designed (it2 "ery 2ig2 safety
factor in accordance (it2 glo-al standards4 ,2ese cylinders are tested and certified for usage -y
statutory aut2orities and eac2 cylinder is defined (it2 an expiry date of usage after (2ic2 t2ey are to -e
tested again for safe use and can also -e retrofitted into anot2er "e2icle4 ,2ese cylinders 2a"e -een
designed to ta)e i&pact of collision in case of accidents4
Price of $NG is lesser t2an ot2er fuels and also it en2ances t2e &ileage3 &a)ing it t2e &ore econo&ical
fuel4 Ao(e"er3 $NG prices are of late -eco&ing 2ig2ly sensiti"e to natural gas prices (do&estic natural
gas prices are increasingly getting i&pacted to 2ig2 LNG prices)3 taxation3 cost of laying pipeline
net(or) and expensi"e $NG co&pressors and dispensing facilities3 $NG )it costs3 etc4
Econo%ics of CNG 4us in 7erala!

Option
1
Option
2 Option $
3/,NG Do%estic
'ooled 7ochi 7G/1
1:0 Price TI ??0tu 11-1. &-2.
0oil5off Gas Q 34++6 +435
:cean 1reig2t Q +4#3
$I1 Price Q *248# .42+
City Gas Distribution
28
For internal circulation only
$usto&s %uty Q 54*56 +4.
/e5gasification c2arges Q *4#3
Ex5,er&inal PriceI Land5fall
point price Q 12-18 10-20 &-2.
?ar)eting ?argin Q +4*' +4*' +4*.
E!, *2456 for /5LNGI $S,
R26 Q *245+6 +42. *4'* +4+#
*24* *8435 .4.2
Pipeline ,ariff (Inclusi"e of
ser"ice c2arges) Q *+43+6 248 *4.3 245.
Delivered 'rice at City Gate Q 10-$9 18-98 1-:0
N$E to G$E Q 1-21
Say (!, * =S%U/s4.5)
/s4I
??0,= 1:1-&0 8&0-1& 281-8$
Say /s4I S$? 2&-8: $.-&$ 1.-10
!ddD Net(or) ,ariff (&) Q 34++ 34++ 34++
Price of Gas inclusi"e of
Net(or) ,ariff (&) Q 284#' 334.3 *34*5
/s4I @g 324#5 .+4*8 *34.+
!ddD
:nline $o&pression $2arge
($$) Q .4++ .4++ .4++
Price of Gas inclusi"e of :nline
$$ Q 34#5 ..4*8 *84.+
!ddD Excise %uty Q *.4.26 543* 438 245*
$NG Price inclusi"e of Excise
%uty Q .24* 5+45. *'4'*
!ddD ?ar)eting ?argin Q *842'6 54# 4'5 2432
CNG 'rice inclusive of
;ar#eting ;argin .84#. 584.' 22423
E!, on $NG net of E!, on /5
LNG *2456 54+3 .4.* 24.*
3S' of CNG 524#8 *4'+ 2.4.
?ileage per @g of $NG @&s .42+ .42+ .42+
$NG $ost per @& /s4I @& *245' *.48. 54#8
2!
CNG <uel ) ;aintenance
Cost per 7% Q +45+6 12-10 1&-81 0-:.

/etail Selling Price of AS% /s4I Ltr 3#4'8 3#4'8 3#4'8
?ileage per Litre of AS% @&s 345+ 345+ 345+
1uel $ost per @& /s4I @& **4*3 **4*3 **4*3
4!
=SD <uel ) ;aintenance Cost
per 7% 3s-> 7% +45+6 11-1: 11-1: 11-1:

4!/
2!
Savings in <uel )
;aintenance cost per 7% 3s-> 7%
1-&1
!
$-12
! 0-2:
/unning o"er useful life (H) @&s

.8532++
.8532+
+ .8532++
Sa"ings o"er useful life /s4I La)2
(4'.
)
(*842
+) 254*.
$ost of Ne( $NG 0us /s4I La)2 .+ .+ .+
LessD $apital su-sidy under <NN=/? 5+6 2+ 2+ 2+
LessD /esidual "alue after # years *+6 . . .
Net In"est&ent * * *
City Gas Distribution
29
For internal circulation only
Invest%ent 'aybac# for
7S3+C /&$? /1.8? 109?
2ssu%ptions
*
$2anges in price of natural gas3 E!,I Excise duty and price of AS% is a pass5t2oug2 in $NG
price4
2 Passenger tariffs co"er t2e cost of $NG fuel3 &aintenance and fixed cost of $NG -us4
(&) !s a result of co&petiti"e -idding
(H) *#+ @&sI day for 33+ days for # yrs
(HH) !ssu&ption of 5+6 upfront su-sidy
P2ysical co&parisons -et(een $NG and ot2er li9uid auto fuels are s2o(n -elo(D5
'roperties @nit 'etrol Diesel ,'G CNG
/elati"e density Bater U * +48. +4#. +455 5
/elati"e density !ir U* 5 5 *42#5 +4.
2uto/ignition
,e&perature %egree $ 3+ 2#+ 38. 5.+
1la&&a-ility /ange 6 in !ir *5# +45545 2425'4+ 55*5
1la&e ,e&perature %egree $ 23+3+ *38#+ *3'#3 *3'++
:ctane Nu&-er 5 #8 5 '3 *28
,oxic to s)in & lungs ?oderate ?oderate No No
<actors that influence de%and for CNG
a) Legislati"e ena-le&ent for use of cleaner fuel to reduce pollution
b) Long5ter& price differential and econo&ics -et(een $NG and ?SI AS%I !uto LPG price3
particularly (it2 reference to taxation on $NG
c) $ost of con"ersionI retrofitting
d) Ease of $NG a"aila-ility
e) Effecti"e c2ec) on alleged di"ersion of do&estic LPG cylinders for co&&ercial and transport
usage
f) Effect of $NG con"ersion on perfor&ance of a "e2icle3 i4e43 increase in t2e (eig2t -ecause of t2e
increased (eig2t t2us reducing pic) up
g) !ssurance of supply and price
.) =sage of retrofit $NG )it "is5V5"is :E? )it
City Gas Distribution
30
For internal circulation only
i) Initiati"es -y "e2icle &anufacturers to launc2 $NG "ariants as :E?s
Co%pression of Natural Gas
Co%pressor types
a) Moter Compressor #1233 SCM%$
Generally t2ese are reciprocating type co&pressors3 eac2 of capacity *++ S$?A at suction
pressure of *' -ar and disc2arge pressure of 255 -ar installed at &ot2er station4 $o&pressor are
dri"en -y gas engine of capacity a-out 2+2 @( 2a"ing gas consu&ption of 55 S$?A4 ,2e
co&pressor are configured to start auto&atically in case cascade pressure fails less t2an 2*+ -ar
and (ill unload at pressure 255 -ar4
?ain SpecificationI 1eatures
,2e &odern co&pressors are of 35Stage reciprocating type (it2 console type air cooling
and safety relief "al"e at eac2 stage3 after cooler at final disc2arge along (it2 all ser"ices
lines3 tu-ing3 "al"es3 instru&ent and auxiliaries4
?ot2er co&pressors 2a"e &ass flo( &eters -ot2 at suction and disc2arge to a"oid
separate &etering s)ids for t2e stations and t2ere-y econo&i>ing on cost and space4
Gas engine 2as air and coolantI (ater -ased cooling syste&C gas flo( &eter (it2
electronic "olu&e corrector3 totali>er and associated e9uip&ent4
$ontrol syste& ensures unattended safe operation in auto&atic &ode4 Priority fill syste&
ensures &axi&u& flo( rate -y filling of "e2icle3 storage cascade and &o-ile cascade in
assigned order4
Entire co&pressor e9uip&ent is &ounted on one s)id and pac)aged in an acoustically
insulated 2ousing
,2e engine and co&pressor are 2oused in t2e sa&e pac)age unit (it2 a partition (all4 ,2e
2ousing is fla&e & fire proof and pro"ided (it2 forced "entilation3 fla&e arrestor3 infra5red
fla&e detection & alar& Syste&3 auto&atic s2utoff3 auto&atic $:2 flooding and ot2er fire
retardant features4
,2e co&pressor is pro"ided (it2 t2e re9uired control syste& using PL$3 air co&pressor
for start up & pneu&atic controlC instru&entation and controlsC e&ergency s2ut do(n de"ice
and electric supply syste&4
Entire co&pressor syste& is eart2ed4
b) On-line Compressor #1433 SCM%$
City Gas Distribution
31
For internal circulation only
:nline co&pressors are reciprocating type co&pressors3 eac2 of capacity *2++ S$?A at suction
pressure *' -ar and disc2arge pressure 255 -ar (it2 sa&e features as of &ot2er co&pressor4
c) Daugter 5ooster Compressor #463 SCM%$
,o increase t2e dispensing speed & reduce (aiting ti&e for filling at daug2ter station and -etter
utili>ation of cascade capacity3 2ydraulicI reciprocating type &otor dri"en co&pressor of capacity
25+ S$?A at suction pressure of 3+ -ar is pro"ided at daug2ter station4 ,2is -ooster co&pressor
operates at &o-ile cascade pressureI suction pressure fro& 3+ to 2++ -ar (it2 disc2arge pressure
of a-out 255 -ar4
CNG Stations( Dispensing of CNG ) CNG +ransportation in Cascades
,2e $NG station configuration and e9uip&ent configuration are as under5
;other Station On/line Station Daughter 4ooster Station
a) ?ain E9uip&ent
?ot2er $o&pressors
along (it2 auxiliaries
%ispenser for -uses
%ispensers for cars
and t2ree5(2eelers
(autos)
Loading 1acility for
?o-ile $ascades
Stationary $ascades
%G Set3 =PS &
0attery 0an)3 !E/3
Electrical $ontrol Panel
Instru&ent !ir and
Bater 1acilities
1ire 1ig2ting
e9uip&ent and safety
sign
Stainless steel tu-e
connecting co&pressor3
dispenser & cascades
laid in
=IG trenc2es
a) ?ain E9uip&ent
:n5line $o&pressor
along (it2 auxiliaries
%ispensers for -uses
(only in case of *2++
S$?A co&pressor)
%ispensers for cars and
t2ree5(2eelers (autos)
Stationary $ascades
%G Set3 =PS & 0attery
0an)3 !E/3 Electrical
$ontrol Panel
Instru&ent !ir and
Bater 1acilities
1ire 1ig2ting
e9uip&ent and safety
sign
a) ?ain E9uip&ent
0ooster $o&pressor
along (it2 auxiliaries
%ispensers for cars and
t2ree (2eelers (autos)
Stationary $ascades
%G Set3 =PS & 0attery
0an)3 !E/3 Electrical
$ontrol Panel
Instru&ent !ir and
Bater 1acilities
1ire 1ig2ting e9uip&ent
and safety sign
=nloading facility fro&
&o-ile cascades
b) :t2er 1acilities
:ffice5cu&5
$ontrol /oo&
/$$ forecourt3
canopy o"er dispenser
island and signages
Stainless steel
tu-e connecting
b) :t2er 1acilities
:ffice5cu&5$ontrol
/oo&
/$$ forecourt3 canopy
o"er dispenser island
and signages
=IG drainage and
se(erage net(or)
b) :t2er 1acilities
:ffice5cu&5$ontrol
/oo&
/$$ forecourt3
canopy o"er dispenser
island and signages
Stainless steel tu-e
connecting co&pressor3
City Gas Distribution
32
For internal circulation only
co&pressor3 dispenser &
cascades laid in
=IG trenc2es
=IG drainage and
se(erage net(or)
!pproac2I exit
road3 -oundary (all etc4
!pproac2I exit road3
-oundary (all etc4
dispenser & cascades laid
in
=IG trenc2es
=IG drainage and
se(erage net(or)4
!pproac2I exit road3
-oundary (all etc4
Dispensers
$o&pressed Natural Gas fro& co&pressorI cascade is dispensed to NGEs (Natural Gas "e2icles) suc2
as cars3 t2ree (2eelers3 -uses3 etc3 t2roug2 dispensers of follo(ing types5
a) 0us %ispenser
0us dispenser is a single ar& dispenser of #+ )gI &in dispensing capacity to &eet t2e re9uire&ent
of -us filling at &ot2er stations4 ,2e syste& is designed in suc2 a (ay t2at3 (2en co&pressors are
in operation3 t2e -us dispenser (ill ta)e a-out 5 )gI &in gas fro& cascade and a-out *5 )gI &in
gas fro& co&pressor4
b) $ar %ispenser
,o &eet t2e re9uire&ent of car and t2ree (2eeler filling at &ot2er station3 online station and
daug2ter stations3 dou-le ar& type carI auto dispensers3 eac2 (it2 a capacity of *5 )gI&in are
pro"ided4
Main Specification7 Features
(i) ,2e car dispenser 2as t(o ar&s and -us dispenser s2all 2a"e one ar& for dispensing t2e gas4
(ii) M$oriolisM true &ass flo( &etering syste& or e9ui"alent (it2 necessary sensor & electronics
2as pro"isions of li9uid crystal -ac)lit display for nig2t "ie(ing to s2o( unit price of $NG in
/s4I)g3 9uantity of gas sold in )g & total sale in /upees4
(iii) ,e&per proof totali>er is also pro"ided
(i-) PL$ -ased se9uencing soft(are and controller including 2ard(are along (it2 -all "al"es
associated (it2 pneu&atic actuation for dispensing of gas4
(-) ,(o $NG flexi-le electrically conducti"e t(ins fill and "ent 2oses (it2 t(o NGE5* ,ype523
$lass 5 ! fill no>>le (it2 capti"e "ent including 35Bay "ent4
(-i) !ll dispensers are eart2ed4
c) Stationary Cascade
$ascades are used to store t2e $NG at 2ig2 pressure3 to a-sor- t2e surge of reciprocating
co&pressor and pre"ent fre9uent start and stop of co&pressor and to supply additional gas (2en
dispensing rate is &ore t2an co&pressor capacity4 $o&pressor starts if pressure in cascade falls
City Gas Distribution
33
For internal circulation only
-elo( 2*+ -ar and stop at pressure 255 -ar4 1or a pressure range of 22+ -ar to 255 -ar3 in cascades
of .5++ liter3 a-out 85+ @g of $NG can -e stored4 ,2e cascade can supply gas to -us as (ell as
carI auto dispensers4
Main Specification7 Features
(i) $ascade is &ade of group of cylinders fixed (it2 structural steel fra&e 2a"ing facility of
lifting and place&ent4
(ii) ,2e cylinder and t2eir nec) t2reading is designed as per ISD 82#55*'## & ISD 322.5*'8'3
respecti"ely3 and appro"ed -y $2ief $ontroller of Explosi"es ($$:E)3 Go"ern&ent of India4
(iii) ,2e cylinder s2utoff "al"e is of fusi-le disc confir&ing to re9uire&ents of ISD 322. or $$:E
appro"ed4
(i-) !ll end connections for 9uic) release couplings3 PG3 "al"es and fittings of cascade are (it2in
ta&per proof enclosure3 (2ic2 are on one side of cascade for ease of operation4
d) Mo"ile cascade
?o-ile cascade is a 33+++ liter (ater capacity fitted in a lig2t co&&ercial "e2icle and is filled at
?ot2er Station up to 255 -ar pressure and is ferried to daug2ter station for gas dispensing up to a
pressure of 3+ -ar4 E&pty &o-ile cascade at pressure lo(er t2an 3+ -ar returns to &ot2er station
for re5filling4 ! &o-ile cascade can transport a-out .++ )g of $NG4
DG Set8 9!S : 5attery 5ac(-up : A,R- ,o &eet t2e re9uire&ent of e&ergency po(er in case of
grid po(er failure3 eac2 station 2as pro"ided (it2 a %G set of capacity 845 @(4 ,2e %G set is
configured to start auto&atically in case of grid po(er failure and e&ergency loads are connected
to %G set4 !dditionally =PS and -attery -ac)5up syste& are also pro"ided at eac2 station4 !
suita-le auto&atic "oltage regulator -ased on local supply pro"ides sta-ili>ation to electric flo(s4
&lectrical System- ,2e electrical syste& co&prises of conduit (or) including ;unction -oxes3
(iring for lig2ting and po(erC fittings & accessoriesC ca-les3 &ains and su-5&ainsC L, panel3 &ain
& su-5distri-ution panels3 capacitor panelsC ca-le trays3 GI conduitsC eart2ing syste&C area
lig2ting3 canopy lig2tingC signage lig2ting & control roo& illu&ination3 etc4
SS Tu"ing- SS tu-ing runs in underground concreteI &asonry trenc2es for con"eying of
co&pressed gas fro& co&pressor to priority panel to dispenser and priority panel to stationary
cascade to dispenser4 Generally t2ese are in *I2Q3 3I.Q or *Q si>e tu-es of SS 3* grade 2a"ing
Ss(age loc)7 type fittings4
/ater Supply : 9nderground Ser)ices5 ,o &eet t2e (ater re9uire&ent at &ot2er stations3 (ater
supply net(or) consisting of -ore (ell3 "ertical pu&ps3 su-&ersi-le pu&ps and interconnecting
City Gas Distribution
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For internal circulation only
piping are pro"ided to recei"e (ater fro& &unicipality and -ore (ell4 Bater fro& t2ese tan)s is
pu&ped to o"er2ead tan)s5 placed at -uilding roof4 =nderground drainage3 se(erage net(or)
co&prising of drain pits3 drainage pipe3 septic tan) and soa) pit are installed apart fro& &unicipal
connections4
Control Room : Oter Facilities- ! /$$ fra&ed structure of suita-le si>e is re9uired to 2ouse
office3 control roo&3 electrical roo&3 cas2 -ox and toilet4 ,2e station is enclosed (it2 24* & 2ig2
-oundary (all (it2 t2e front side 2a"ing a gla>ed partition for "ie(ing dispensing operation and
t2e forecourt is &ade of 2ig2 riding 9uality /$$ pa"e&ent (it2 (earing resistant surface4
Properly designed dispenser island (it2 safety guards are pro"ided (it2 structural steel canopy
o"er t2e dispensing area for pro"iding sun and rain protection4 ,2e canopy 2as pro"ision of roof
drainage3 illu&ination and signage7s4 ,2e station is designed (it2 suita-le approac2 roads3 entry
and exit (ays3 par)ing -ay3 operation area fence3 safety -ar-s3 road signs3 station drainage syste&3
safety & fire fig2ting e9uip&ent3 Eart2ing pits and safety instructions4
City Gas Distribution
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For internal circulation only
Chapter &* 'iped Natural Gas 'NG! for Do%estic( Co%%ercial ) Industrial Consu%ers
,astly( this Chapter discusses the possible uses of piped natural gas in a CGD net"or#-
Bit2 only one car-on and four 2ydrogen ato&s per &olecule (?et2ane) Natural Gas is a co&position
of 2ydrocar-ons (!l&ost '56 ?et2ane & rest ot2er Aydro $ar-ons)4 Its calorific "alue generally
ranges fro& #+++ )calI&3 to '+++ )calI&33 Natural Gas 2as t2e lo(est car-on to 2ydrogen ratio3 and
2ence it -urns co&pletely3 &a)ing it &ore en"iron&ent friendly fuel4
$olour $olourless
:dour :dourless (1or easy detection t2roug2 s&ell3 Et2yl ?ercaptan is
added as :dourant)
?elting point 5*#2
o
$
0oiling point 5**45
o
$
Eapor density +4 to +48 ((it2 respect to air)
1la&&a-ility ratio 5 to *56 -y "olu&e in air
!uto ignition te&p 5.+
o
$
2pplications of 'NG in a CGD Net"or#
Do%estic seg%ent
a) $oo)ing fuel
b) Bater 2eating
c) Space 2eating
=otels
a) /estaurants
b) 0ig 2otels
c) $aterers
d) 0a)eries
Industries
a) ?etal (?elting3 2eat treat&ent3 pre52eating of ingots3 po(der coating3 &ouldingI casting3
fa-rication3 gas cutting3 s&elting3 (elding3 pyro processing3 forging)
b) P2ar&aceutical (stea& generation & spray drying)
c) Printing and %yeing (drying of in)s3 pre5printingI post5printing)
d) :il ?ills (stea& generation3 distillation & refining)
e) 1ood and 0e"erages (stea& generation3 -a)ing & processing)
f) 1?$G products &anufacturers (stea& generation & (aste 2eat treat&ent)
g) Paint s2ops
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For internal circulation only
.) Glass industry
i) 1urnace & 0oilers
/) Industrial o"en
0) Po(der coating o"ens
%) !ir conditioning ("apor a-sorption &ac2ine3 centrali>ed cooling)
=ospitals
a) S&all $linics
b) 0ig Aospitals

Charitable +rusts
a) ,e&ples3 $2urc23 Gurud(ara
b) Go"t4 Aospitals
c) $re&atoriu&s
d) :rp2anage
e) Sc2ools & $olleges
'o"er
a) ?icro gas tur-ines
b) Gas Gensets
c) $o&-ined 2eat & po(er generation
So&e of t2e &a;or -enefits of using PNGD
a) @ninterrupted supply
,2e source of PNG supply in a $G% Net(or) is t2roug2 online (fro& &ain trans&ission pipeline
into t2e city gate and on(ards into t2e grid of pipelines4 ,2e production of natural gas in oilfields
is uninterrupted as (ell as in case of LNG3 t2e supply is secured t2roug2 long5ter& ta)e5or5pay
contracts3 t2is along (it2 line5fill at eac2 le"el ensures continuous supply4 !s co&pared to LPG3
PNG does not re9uire any -ottling in cylinders and su-se9uent re5fills3 (aiting ti&e3 deli"eries3
connectingI dis5connecting incon"enience3 lea)age3 under5(eig2t3 left5o"er and -esides sa"es on
space4
b) Safety
,2e co&-usti-le &ixture of natural gas and air does not ignite if t2e &ixture is leaner t2an 56 and
ric2er t2an *56 of t2e air5fuel ratio re9uired for ignition4 ,2is narro( infla&&a-ility range &a)es
PNG one of t2e safest fuels in t2e (orld4 Natural gas is lig2ter t2an air4 ,2erefore3 in case of a
lea)age3 it ;ust rises and disperses into t2in air gi"en ade9uate "entilation4 $o&parati"ely LPG
City Gas Distribution
37
For internal circulation only
-eing 2ea"ier (ill settle at t2e -otto& near t2e floor surface4 ! large 9uantity of LPG is stored in
li9uefied for& in a cylinder4 Bit2 PNG3 it is safer since PNG installation in t2e do&estic pre&ises
contains only a li&ited 9uantity of natural gas at lo( pressure i4e4 2* &illi-ar (&-ar)4 :n lea)age3
LPG expands 25+ ti&es3 (2ic2 is not t2e case (it2 PNG4 Supply in PNG can -e s(itc2ed off
t2roug2 appliance "al"e (inside t2e )itc2en) and isolation "al"e (outside )itc2en pre&ises)3 (2ic2
fully cuts off t2e gas supply4
c) 4illing
=ser c2arge is -ased on PNG consu&ed as reflected in t2e &eter and no pilferage is possi-le (it2
PNG as t2e -illing is done according to t2e &eter readings4
d) ,o"er %aintenance cost
?aintenance costs are dri"en do(n since (it2 PNG3 soot or as2 accu&ulation and greasy spillages
are a-sent fro& t2e appliance4
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