City Gas Distribution – An Overview

Introduction• In recent years CGD has emerged as an area of rapid

growth in the oil and gas industry.• CGD is commonly described as the final component

of the natural gas value chain.• CGD reaches to final consumer in terms of following uses: Industrial Sector Transportation Commercial Sector Domestic Purposes

Historical development of CGDYear Place Company Ownership

1880’s Calcutta Calcutta Gas Company Limited Private

1990’s Mumbai Bombay Gas Corporation Limited Private

1972 Vadodara Vadodara Municipal Corporation Local government

1980 Delhi Municipal Corporation of Delhi Local Government

~1982 ONGC colony at mehsana ONGC Government of India

1986 Kadi, Hazira ONGC Government of India

1985 Dulaijan Assam Gas Company Limited (AGCL) Government of Assam

1986 Sibsagar AGCL Government of Assam

1989 Bharuch Gujarat Gas Company Limited (GGCL) British Gas

1991 Surat GGCL British Gas

1994 Mumbai Mahangar Gas Limited (MGL) GAIL, British Gas,Maharashtra govt.

1995 Delhi Indraprasthta Gas Limited (IGL) GAIL,BPCL,Delhi govt

2004 Ahmedabad, Baroda Gujarat Adani Energy Limited (GAEL) Private

2006 Gandhinagar GSPC Gas Limited GSPC

2006 Gandhinagar, Mehsana & Himmatnagar

Sabarmati Gas Limited GSPC,BPCL

Natural Gas Consumption in mmscmd

120

27

Domestic Production

Imports

Allocation of first 40 mmscmd from KG D6

Sector Allocations

Existing Gas based fertiliser sector 15

Existing Gas based Power sector 18

City Gas Distribution 5

Existing Gas based LPG plants 3

Allocation of the next 50 mmscmd of gas

Sector Firm allotments Fallback allotments

Power 12.29 + (0.875) 12.00

Non urea subsidized fertilizers

0.178

Steel ( for feedstock) 0.44

Petrochemicals 1.918

Refineries 5.0 6.00

CGD projects - 2.00

Captive - 10.00

Total 19.826 + (0.875) 30.00

Organizations in Harms WayEntities Gas promised in mmscmd

NTPC 1.14

Essar Oil’s vadinary refinery 0.6

ONGC’s LPG units 0.406

Rithala power plant (Delhi) 0.4

Bawana power plant (Delhi) 0.93

PNGRB Act

An Act to provide for the establishment of Petroleum and Natural Gas Regulatory Board to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products and natural gas excluding production of crude oil and natural gas……………………………………….

Section 16 (Authorization)No entity shall-

(a) lay, build, operate or expand any pipeline as a common carrier or contract carrier,(b) lay, build, operate or expand any city or local natural gas distribution network, without obtaining authorisation under this Act : Provided that an entity :-(i) laying, building, operating or expanding any pipeline as common carrier or contractcarrier; or(ii) laying, building, operating or expanding any city or local natural gas distributionnetwork, immediately before the appointed day shall be deemed to have suchauthorisation subject to the provisions of this Chapter, but any change in thepurpose or usage shall require separate authorisation granted by the Board

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