20th June 2012

Natural Gas

A Greener Alternative

Bengaluru

Presentation Outline

• Objective of Public Transport

• Need for sustainability

• Natural Gas – A feasible option

• Why Natural Gas

• CGD Authorization

• JV Structure & Scope

• Project Execution

Objective of Public Transport

• Transport implies mobility and transport systems exist to providesocial and economic connections - to work, education, goods andservices, friends and family.

• People quickly take up the opportunities offered by increasedmobility.

• The public transport system provides economic mobility access tothe larger section of the society with a welfare cum-economicobjective.

• Studies also indicate that mass rapid transport systems impact theenvironment to a lesser extent than individual modes of transport.

The economic, social and environmental cost

But at the same time, advantages of increased mobility need to beweighed against the environmental, social and economic costs thattransport systems pose.

• Transport systems have significant impacts on the environment,accounting for between 20% and 25% of world energyconsumption , carbon dioxide emissions, local air pollution andsmog.

• The social costs of transport include health problems , high stresslevels, road crashes, air pollution, physical inactivity and timetaken away from the family while commuting.

• Traffic congestion and air pollution impose huge economic costsby wasting people's time, slowing the delivery of goods andservices and increased healthcare cost.

Need for sustainability

This is where sustainability comes in.

Sustainable transport or green transport refers to any means oftransport with low impact on the environment. It includes:

• Non-motorized transport, i.e. walking and cycling• Transit oriented development (TOD townships)• Green vehicles – CNG, hybrids, electric, hydrogen cell, solar.• Car Sharing• Building energy efficient urban mass rapid transport systems.

Sustainable transport systems make a positive contribution to theenvironmental, social and economic sustainability of thecommunities they serve by saving space and promoting healthylifestyles

Natural Gas : A feasible option• While non-motorized transport may apparently seem like a good

alternative, severe space constraint in urban locations in our country render this option unfeasible.

• The TOD model has been implemented successfully only in some Canadian and Scandinavian cities owing to a sparse population density.

• Development of alternative technologies like electric, solar, hybrid on a commercially feasible scale will take a longer time to fructify.

• Car pooling as an option is limited to moderately high income society.

• Mass rapid transport systems have been and are being successfully implemented by Governments including Karnataka.

Natural Gas : A feasible option• Natural gas is considered to be the most benign among all the fossil

fuels.

• Due to its limited availability in India, the priority sectors like Power and Fertilizer are supplied most of the indigenous natural gas

• However, domestic availability constraint has been adequately supplemented by LNG imports from global suppliers.

• Owing to environment concerns, use of Natural Gas for use in the transport sector in Delhi and Mumbai was first enforced by SC.

• Availability of supply infrastructure has prompted cities like Vadodara, Ankaleshwar, Surat, Agra, Kanpur, Lucknow, Pune, Indore,Agartala, Vijaywada and Hyderabad to implement natural gas usage in the transport sector.

Mixture of hydrocarbons (predominantly methane).

Specific gravity : 0.65 – 0.71 w.r.t air.

Gross Calorific value : 9500 – 10000 Kcal/SCM

Flammability Limit : 4 – 14 % by volume in air.

Auto ignition temperature : 540 degree Centigrade.

Flame temperature : 1790 degree Centigrade

Natural Gas

Composition

SL. NO. COMPONENTS COMPOSITION

1 C1 (Methane) 92.94

2 C2 (Ethane 1.51

3 C3 (propane) 2.13

4 IC4 (I – Butane) 0.07

5 NC4 (N – Butane) 0.06

6 IC5 (I – Pentane) 0.09

7 NC5 (N – Pentane) 0.28

8 C6 (Hexane) 0.17

9 CO2 2.65

10 N2 0.1

TOTAL 100

Compressed Natural Gas (CNG)

• Natural gas is • Received at a pressure of 16-19 Kg/cm2g • Compressed to 250 Kg/cm2g at Mother and On-Line

CNG Stations.

• CNG is dispensed to vehicles at maximum 200 Kg/cm2g pressure.

• Physical Properties of CNG:- Colourless- Odourless- Non-toxic- Lighter than air- Non - corrosive

CNG Station Layout

WHY CNG?

Today, the benefits of CNG are manifold.

Environmental friendly hence better health.

Economical.

Safer fuel.

Benefits Of CNG

CLEAN AND BETTER FUEL

CNG Is The Least Polluting

Source: US energy department ENVIRONMENT

FUEL/ EMISSIONS CO2 UHC CO NOx SOx PM

PETROL 22,000 85 634 78 8.3 1.1

DIESEL 21,000 21 106 108 21 12.5

CNG 16,275 5.6 22.2 25.8 0.15 0.29

(gm/100km)

CNG Implementation In Delhi – Change in Environment

Growth in number of vehicles over 2000 to 2007 has been around 50%

Year 2000

Year 2007

ug/m

3

18

5

05

101520

Yr. 2000 Yr. 2007

Sulphur-di-oxide

ug/m

3

ug/m

3SPM

405

379

360370380390400410

Yr. 2000 Yr. 2007

46862463

0

5000

Yr. 2000 Yr. 2007

Carbon-Monoxide

ug/m

36%

72%47%

Use of CNG resulted in significant benefits to the environment by bringing down levelof various pollutants in the ambient air. In 2003, Delhi won the “Clean CitiesInternational Award” from the US Department of Energy

Source: NAAQS 2008, CPCB

Prominent Sources of PM10

Sources of PM10

0

20

40

60

80

Kanpur Mumbai Delhi Bangalore Pune Chennai

Vehicular exhaust Area Source Industrial Road(Paved & Unpaved)

ECONOMICS

CNG is Cheapest For Automobile

PRODUCTPRICE (INR)

PETROL (Non Branded) 79.61 / LTR.

DIESEL ( Non Branded) 39.52 / LTR.

AUTO LPG 55.68/LTR.

* CNG 35 -37 / KG.

Retail price in Bangalore as on dateECONOMICS* Tentative CNG price as no CNG is available in Bangalore as on date

CNG Improves Mileage

FUEL CAR THREE

WHEELER

(PETROL)

BUS

PETROL

(KM/ LTR

15 25 -

DIESEL

(KM/ LTR

20 - 3.5

CNG

(KM/KG

24 35 4.1

ECONOMICS

SAFETY

7/4/2012 GAIL (India) Limited 22

PROPERTIES UNIT PETROL DIESEL CNG

CALORIFIC VALUE KCAL/KG 11200 10850 14615

RELATIVE DENSITY AIR=1 3.4 3.9 0.65

AUTOIGNITION TEMPERATURE 0C 232-282 225 540

FLAMMABILITY LIMIT % IN AIR 1-8 0.6-5.5 5-15

FLAME TEMPERATURE 0C 1977 2054 1790

OCTANE NO. - 87 - 127

CETANE NO. - - 45 10

Comparison Of Properties Of Fuels

Safety Aspects Of CNG

Lighter than air in event of leak it will rise and disperse in

atmosphere.

Unlikely to ignite due to narrow combustible range (4% - 14%

concentration in air).

High auto ignition temperature (5400C).

CNG Cylinders are seamless and structurally most sound.

SAFETY

Apprehensions About CNG

APPREHENSION FACT

VEHICLE BECOMES UNSAFE TO RIDE NG IS LIGHTER THAN AIR, IN CASE OF LEAK IT EASILY DISPERSES.

HIGHER AUTO IGNITION TEMPERATURE

NARROW COMBUSTIBLE LIMIT.

HIGH MAINTENANCE COST AS COMPARED TO PETROL / DIESEL

NOT TRUE, MAINTENANCE COST IS COMPARABLE WITH PETROL/DIESEL.

NO CONTAMINATION OR DILUTING OF CRANKCASE OIL.

NO SPARK PLUG FOULING.

NO DISTURBANCE OF LUBRICATING OIL IN THE ENGINE.

LESSER MILEAGE NOT TRUE, CNG VEHICLE HAS MORE MILEAGE PER KG COMPARED PER LITER OF PETROL / DIESEL

CARCINOGENIC CNG PRODUCES MUCH FEWER ULTRAFINE PARTICLES THAN HSD

CGD authorization process

• Petroleum and Natural Gas Regulatory Board(PNGRB) notifies the city/Geographical area(GA) for CGD implementation.

• PNGRB invites expression of interest(EOI) from interested parties for creating CGD in the GA.

• Interested bidders shortlisted on Technical & Financial Criteria.

• Parameters used for finalizing the award of CGD authorization:a)Domestic connection reachb)Steel pipe volume c)Tariff.

• Authorized entity can sell CNG to vehicles, piped gas to households and natural gas to industries/commercial establishments located within the GA, having requirement below 50000 SCMD.

JV Company Structure & Scope

STRUCTURE

• Authorized share capital – Rs.100 Crores.

• KSIIDC and GAIL combined equity stake – 50 %

• Balance 50 % - Strategic Partners/FI’s/Non-Govt. Companies

SCOPE

• Development of Natural Gas infrastructure in industrial estates/areas/clusters.

• City Gas Networks in Karnataka.

• Setting up Distributed Power Generation project in Ind.Areas.

• Develop/promote Natural Gas application in steel /mining sector.

Advantages of this JV in CGD Implementation

• KSIIDC has the in-depth knowledge of the industrial sector in thestate, experience in promoting and nurturing business ventures andthe mandate to pursue the stated objectives of state government.

• GAIL brings along technical and project execution expertise, know-how, skilled manpower and its gas sourcing capabilities to thisventure, .

• Faster clearances for laying of P/L infrastructure and availability ofland for CNG filling stations, SV stations , RT/DT, DRS installationsetc., with State Government assistance

Support from Government in the states of

Delhi

Maharashtra

Cases for successful CGD implementation

Support from Delhi State Government

• 100 land plots allotted to IGL for CNG stations , 6 allotted in 2010.

• No VAT on Natural Gas supplied to IGL for CNG purposes in Delhi.

• State Government has been facilitating IGL in obtaining requisite permissions for laying Pipeline and CNG station related infrastructure.

• As per the Master Plan for Delhi (MPD 2021), plot size for Petrol Pumps/CNG refuelling stations is 36 x 30 sq mts and 45 X 33 sq mts. However, IGL’s request for plots of size 75 X 40 sq mts have also been allotted for Mega CNG stations

Support from Government of Maharashtra

• CNG Plots : GOM allotted plots to GAIL in Mumbai at concessional rates since the start of the business.

• Recent allotments of 300 m2 each plots for CNG Filling Stations at Tardeo, Nariman Point and Wadala, at annual rent of Rs.1.60 Lacs per annum.

• 8 captive CNG filling stations operational in B.E.S.T. depots, 9 more in the pipeline.

• Land at City Gate Station : 15000 m2 of land allotted to GAIL by GOM at a concessional rates.

• Sales Tax Deferment : MGL granted Sales Tax Deferment for 13 years, w.e.f. 1.04.2001.

• Permissions : GOM extended full support for providing statutory permissions As on date, over 1100 Kms of pipeline have been laid on the government land.

• Steering Committee has already been formed.

• Formulation of Business Plan for the whole state and DFR preparation initially for a few cities are in process.

• DFR to synchronize with PNGRB EOI for Geographical Areas.

• Incorporation of the company.

Way forward for this JV

Ludhiana Ludhiana -- SaharanpurSaharanpur200 km200 km

Mumbai Mumbai –– PunePune150 km150 km

Agra Agra –– IndoreIndore590 km590 km

Kanpur Kanpur –– LucknowLucknow85 km85 km

Delhi Delhi –– AgraAgra200 km 200 km

Indore Indore ––VadodaraVadodara300 km300 km

Vijayawada Vijayawada –– KakinadaKakinada230 km230 km

Ahmedabad Ahmedabad –– MumbaiMumbai460 km460 km

DelhiDelhi--JaipurJaipur250 km250 km Agra Agra -- AllahabadAllahabad

463 km463 km

PondicherryPondicherry--KarikalKarikal120 km120 km

Delhi

Mumbai

KanpurAgra

Vadodara

Vijayawada

Indore

Pondicherry

Pune

Agra Agra –– JaipurJaipur220 km220 km

Delhi Delhi -- SaharanpurSaharanpur160 km160 km

B’lore

Kochi

DabholDabhol--B’loreB’lore

KochiKochi--B’loreB’lore-- M’loreM’lore550 & 350 km550 & 350 km

HaldiaHaldia--JagdishpurJagdishpur900 km900 km

CNG CORRIDORS

Prospective cities for City Gas Distribution(CGD)

CITY P/L SYSTEM Distance From P/L

Demand Potential (MMSCMD)

Belgaum DBPL On P/L 0.46

Hubli + Dharwad

DBPL On spur P/L 0.8

Koppal DBPL 45 km 0.1

Davangere DBPL 50 km 0.37

Chitradurga DBPL On P/L 0.13

Tumkur DBPL 20 km 0.25

Bangalore DBPL On P/L 1.8

Mangalore KKBMPL On P/L 0.42

Salient Features of Dabhol Bangalore Pipeline

Board approval Date 22nd June 2009

Sch. Completion Date Ph-I: September 2012 , Ph-II: March 2013

Approved Cost Rs 4994 Crore

Ph-I: Rs 4508 Crore , Ph-II: Rs 486 Crore

Length & Diameter 1414 Km (36”, 30”,24”,18”,10”,8”)Ph-I: 994 Km 36”x 247 Km; ; 30”x 498 Km; 24”x 175 Km; 18”x 74 KmPh-II: 417 km8”x299 Km; 10”x118 Km

Capacity 16 MMSCMD

P/L passing through 3 States and 14 Districts.

Maharashtra(03): Ratnagiri, Sindhudurg & Kolhapur Goa (02) : North & South Goa

Karnataka(09) : Belgaum, Dharwad, Gadag, Bellary Davangere, Chitradurga, Tumkur Bengaluru and Ramnagara.

GOA

BENGALURU

DABHOL

MANGALORE

DEVANGERE

TUMKUR

BIDADI

HARIHAR

BELGAUM

DHARWAD

RATNAGIRI

SANGLI

KOLHAPUR Phase –II : 2012- 13 Capacity : 1.69 MMSCMD

Spurlines : 8”/10” /18” x 417 kmsCAPEX : Rs. 486 CrsGOKAK TOP

CH 665

CH 730

CHIKODI

LEGEND

PHASE-I PIPELINE

PHASE-II PIPELINE

CUSTOMER LOCATION

PROPOSED POWER PLANTS

Phase –I : 2011-12 Capacity : 14.31 MMSCMD

Trunk line : 30” x 730 kmsSpurlines : 18” x 242C.APEX : 4058 Crs.

Dabh

ol –

Beng

alur

u Pi

pelin

e

Phase ISept- 2012

Phase IIMar-2013

KOPPAL

BELLARY

36

BANGALORE CITY LINE

RT,Singsandra BDA

BENGALURUMANGALORE

KOOTTANAD

KOCHI

COIMBATORE

SALEM

KRISHNAGIRI

ALWAYE

KOZHIKODE

KANNUR

KASARGOD

ERODETIRUPPUR

Kochi-Koottanad- Bengaluru- MangaloreMain line- 916.40KM

Spur line 200 KM Project Cost Rs. 3032 Crore

LEGEND

CUSTOMER LOCATIONKKBMPL PHASE – IKKBMPL PHASE - II

States: 03Districts:16

Koch

i –Ko

otta

nad-

Beng

alur

u-M

anga

lore

-Pi

pelin

e

Phase IJune-2012

Phase IISep-2013

HOSUR

WORK IN PROGRESS

Project Look Ahead based on Current Status

Year 2009 2010 2011 2012

Sl. WBS / Quarter ---> Oct-Dec

Jan-Mar

Apr-Jun

July-Sep

Oct-Dec

Jan-Mar

Apr-Jun

July-Sep

Oct-Dec

Jan-Mar

Apr-Jun

July-Sep

1. Statutory Approvals

2. Basic / Detail Engg.

3. Tendering / Ordering

4.Manufacturing / Inspection / Delivery

5.Construction / Commissioning

Time Now

THANK YOU