FEASIBILITY REPORT ON CITY GAS DISTRIBUTION PROJECT FORFEASIBILITY REPORT ON CITY GAS DISTRIBUTION PROJECT FOR

HARIDWAR (GA)HARIDWAR (GA)

PREPARED BY

INDEX============================================

=========

Chapter Particulars Page No.============================================

=========1. Executive Summary

2. Support in FR

3. Introduction

4. Credible Plan for Sourcing of Natural Gas

5. Pipeline Connectivity

6. Market Survey & Demand Assessment

7. Various Alternatives

8. Map of Geographical Area

9. Basic Design and Peak Hour Demand

10. Project Implementation Schedule

11. Year wise Planned Capex & Opex

12. All Assumptions towards Financial of major Capex, Opex, tax

Rates, etc .

13. Project Financing, Cash Inflow & Cash Outflow etc.

14.Credible Plan for Independently undertaking and Executing CGD

project on a Standalone Basis

15.HSE & DMP

16.Risk Analysis of the project

LIST OF ABBREVIATIONS

Abbreviations

APM Administered Pricing MechanismANSI American National Standard InstituteAGA American Gas AssociationAPI American Petroleum InstituteAE Authorized EntityBOQ Bill of QuantityBCM Billion Cubic MeterBG British GasBOT Build Operate TransferBIS Bureau of Indian StandardsCP Cathodic ProtectionCIA Central Intelligence AgencyCCOE Chief Controller of ExplosivesCFO Chief Financial OfficerCGD City Gas DistributionCGS City Gate StationCIN no. Company's Identification NumberCNG Compressed Natural GasDOA Date of AuthorizationDSCR Debt Service Coverage RatioDSRA Debt Service Reserve AccountDPR Detailed Project ReportDIN Deutsche Institute for normsDGH Directorate General of HydrocarbonDRS District Regulating Station

EBITDAEarnings Before Interest, Tax, Depreciation and Amortization

EPC Engineering, Procurement and ConstructionFI Financial InstitutionsFY Financial YearFME Force Majeure EventFO Furnace OilGAIL Gas Authority of India Ltd.GTA Gas Transportation Agreement GA Geographical AreaGOI Government of IndiaGOMP Government of Madhya PradeshGCV Gross Calorific ValueGDP Gross Domestic Product

1. EXECUTIVE SUMMARY

Brief Description about HARIDWAR GA

Population 175,010 (2001)

Density 14,228 /km2 (36,850 /sq mi)

Sex ratio 1.18

Time zone IST (UTC+5:30)

Area 12.3 square kilometres (4.7 sq mi)

Elevation 314 metres (1,030 ft)

Haridwar is an important pilgrimage city and municipality in the Haridwar

district of Uttarakhand , India. The River Ganges, after flowing for

253 kilometres (157 mi) from its source at Gaumukh at the edge of the

Gangotri Glacier, enters the Indo-Gangetic Plains of North India for the

first time at Haridwar, which gave the city its ancient name, Gangadwára.

Haridwar is regarded as one of the seven holiest places to Hindus.

According to theSamudra Manthan Haridwar along with Ujjain, Nasik and

Allahabad is one of four sites where drops of Amrit, the elixir of

immortality, accidentally spilled over from the pitcher while being carried

by the celestial bird Garuda. This is manifested in the Kumbha Mela being

celebrated every 3 years in one of the 4 places, and thus every 12 years

in Haridwar. Amidst the Kumbha Mela, millions of pilgrims, devotees, and

tourists congregate in Haridwar to perform ritualistic bathing on the banks

of the river Ganges to wash away their sins to attain Moksha Brahma

Kund, the spot where the Amrit fell, is located at Har ki Pauri (literally,

"footsteps of the Lord") and is considered to be the most sacred ghat of

Haridwar.

Haridwar is the headquarters and the largest city of the district. Today,

the city is developing beyond its religious importance, with the fast

developing industrial estate of State Infrastructure and Industrial

Development Corporation (SIDCUL), and the close by township of Bharat

Heavy Electricals Limited in Ranipur, Uttarakhand as well as its affiliated

ancillaries.

DEMOGRAPHIC: As of 2001 India census, Haridwar district had a

population of 295,213. Males constitute 54% of the population and

females, 46%. Hardwar has an average literacy rate of 70%, higher than

the national average of 59.5%: male literacy is 75%, and female literacy is

64%. In Hardwar, 12% of the population is under six years of age.

ECONOMY:

Haridwar is rapidly developing as an important industrial township of

Uttaranchal since the state government agency, SIDCUL (State

Infrastructure & Industrial Development Corporation of Uttranchal Ltd.) set

up the Integrated Industrial Estate in a district attracting many important

industrial houses which are setting up manufacturing facilities in the area.

Haridwar has a thriving industrial area situated at the bypass road,

comprising mainly ancillary units to PSU, BHEL, which was established

here in 1964 and currently employs over 8000 people.

Agriculture is the mainstay of this well irrigated district. Industrialisation

had commenced with the establishment of Central Government owned

Public Sector plants (PSUs) of Hindustan Antibiotics Limited and Bharat

Heavy Electricals Limited, in pre-Uttarakhand 1960s period. The State

Infrastructure & Industrial Development Corporation Limited of

Uttarakhand Government (SIDCUL) has now established one new

‘industrial development zone’ in the district, near Haridwar, to encourage

industrialization; with industrial giants like Hindustan Lever, Dabur,

Mahendra & Mahendra and Havells having moved in, it is making the

desired progress. Not insignificant to the district’s economy is the

contribution of Hindu pilgrims who visit the holy places and attend the

religious fairs in large numbers.

Methodology of Study

Following steps have been adopted for DFR preparation:

1. Market Survey

2. Data analysis from secondary and primary data.

3. Year wise/ Segment wise/ CA wise Demand Projection for 25

years

4. Table top study for route selection

5. Network Design

6. Study of locations of CNG Stations, SV Stations and DRS

7. Capex and Opex calculation

Demand Assessment

The projected gas demand (SCMD), for every sector, for the project life of

25 years as follows:

Financi

al Year

Industri

al

Resident

ialCNG Total

1 17521 9643 30384 57547

5 21767 51174 44685 117626

10 29301 77181 72329 178811

15 40123 83146 117096 240365

20 55603 89572 189534 334709

25 78205 96494 306822 481522

Design Basis and System Description

A new CGS is envisaged to cater to the Natural Gas demand of the CGD

network in Rangareddy-Medak. The new CGS shall have flow rate of 0.481

MMSCMD.

Tap-off point for gas supply to the HARIDWAR CGD network for the new

CGS is considered 10 km away from main HARIDWAR city.

The HARIDWARCGD network at has been designed as per the following parameters,

Equipment /

Facility

Pressure up-

stream -

barg

Pressure

down-

stream -

barg

Peak hr per

day

City Gate Station 49 barg 49 (max) -

District Regulating

Station49 (max) 4 (max) -

Domestic 0.1 (max) 21mbarg 4

Commercial 1 (max) - 12

Industries (total) 49 (max) - 16

CNG 1200 SCMH

compressor49 200-250 18

City Gate Station (CGS)

Interface between High Pressure Network and Primary Network – includes

filtration and metering, odourization, safety devices, fire fighting system,

gas detector system, control room, battery back – up (UPS) and

associated piping.

Steel Network Length

Steel mains (primary network) comprising of 12”/8”/ 6”/4”OD pipeline of

1157.84 inch-Kms (Approx). Steel Pipe of API 5L Grade X52, Wall

thickness of 6.4 mm has been considered as specified by PNGRB.

CNG Compressors

17 electric driven compressors of 1200 SCMH capacity each have been

proposed to meet the CNG demand of HARIDWAR during the project life of

25 years.

District Regulating Stations (DRS)

Six nos of DRS of capacity 5000 SCMH are proposed to meet the PNG

demand for a period of 25 years. Secondary network is implemented

entirely in polyethylene (PE) piping, made of specified resins (PE 80 / 100),

wall thickness (SDR 11) and diameters (180, 125, 90, 63, 32 & 20 mm).

The gas from MDPE network to individual consumers will be fed by service

connections.

Implementation Strategy

Geographical Area (GA) of HARIDWAR has been divided in to 7 Charge

areas (CA). While CA 06 has the maximum industrial demand as well as

domestic and commercial demand. Mostly, the CNG stations are

envisaged along the NH/ SH in addition to the CNG demand of CA.

Network building would target CA-01, CA-02, C A-03 ,CA-04, CA-05, CA-06

and CA-07 to cater to maximum demand for domestic, commercial and

industrial sectors.

Operation and Maintenance Control Philosophy

Philosophy for O&M will essentially have the following features

Uninterrupted supply of natural gas for Customers

satisfaction

Technology development / absorption for safety, service

reliability and cost effectiveness

Outsourcing bulk of the activities

Most equipment maintenance through maintenance

contracts, preferably on Original Equipment Manufacturers

(OEMs)

Maximum leveraging of technology to minimize man-power

and maximize efficiency.

Compliance with regulatory stipulations, standards and

codes of practices

Liaison with external agencies

Development and implementation of sound procedures

on:

o Materials Management

o Contract Administration

o Communications

o Decision making

o Human resource development

o Revenue collection

Capex and Opex

Capex: Estimated Capital Expenditure (Capex) of the proposed CGD

project of HARIDWAR GA is based on the facilities considered such as

Feeder steel pipe from tap-off point to CGS, City Gate Station, Steel &

MDPE gridline, CNG stations, DRS and other allied equipment and facilities

works out to Rs. 349.97Crores .

There is no foreign exchange requirement envisaged for the proposed

project.

Opex: Estimated Operating Expenditure (Opex) of the proposed CGD

project of HARIDWARGA is Rs. 313.74 Crores it is based estimated

manpower deployment for undertaking O & M activities with requisite

salary and wages, cost of general administration, utilities, consumables,

repair & maintenance(R&M) etc. as per standard practice.

Above estimated costs are for complete economical life (i.e 25 yrs from

the date of Authorization (“Zero Date”)) as defined by PNGRB.

Disaster Management Plan

This Plan provides a guide for assuring safety for the public and

maintaining facilities in satisfactory condition, during emergency

conditions. The management or a responsible person of CGD project

should have procedures for emergency situation that must be employed

to protect the public safety or property from existing or potential hazard.

2.0 SUPPORT IN FR

Consultant Name

3. INTRODUCTION

A. General:

After recording a sustained growth of over 9 percent for the last 3 consecutive

years, the Indian economy is expected to continue to demonstrate robust

growth going forward, despite the economic slowdown due to which the growth

rate is estimated to be approximately 8.1 percent in 2010-11. Oil and gas

industry has been instrumental in fuelling this rapid growth of the Indian

economy. The petroleum and Natural Gas sector which includes transportation,

refining and marketing of petroleum products and gas constitutes over 15 per

cent of the GDP. Given India's targeted GDP growth, India's fuel needs are

likely to expand at a substantial rate. India's per-capita consumption of energy

and electricity is well below that of industrialized nations and the world

average, meaning that there is scope for rapid expansion. Today, Natural Gas

has emerged as the most preferred fuel due to its inherent environmentally

benign nature, greater efficiency and cost effectiveness. The demand of

Natural Gas has sharply increased in the last two decades at the global level. In

India too, the Natural Gas sector has gained importance, particularly over the

last decade, and is being termed as the Fuel of the 21st Century. The concept

of City Gas Distribution has grown at a rapid pace in India since the late 1990’s

on the strength of both a Supreme Court mandate for conversion of

commercial automotives in few cities from traditional liquid fuels to

compressed Natural Gas (CNG) and the favorable economics of such

conversion for end users. A clean and efficient fuel Natural Gas presents a

viable substitute for traditional fossil fuels, namely Oil & Coal because of

growing concern over the environmental impact due to their continued usage.

B. Natural Gas:

Natural Gas is a gas consisting primarily of methane. Natural Gas is a highly

combustible odourless and colourless hydrocarbon in gaseous form. It is

produced in pressurized deposits located deep in the earth's crust, commonly

located just above oil deposits. Natural Gas is created in roughly the same

manner as oil, by geologic processes that act upon organic matter over millions

of years. It is also found associated with fossil fuels, in coal beds, as methane

clathrates, and is created by methanogenic organisms in marshes, bogs, and

landfills. It is an important fuel source, a major feedstock for fertilizers, and a

potent greenhouse gas. High combustibility coupled with low emissions makes

Natural Gas a highly valued resource more economical than electricity and the

other fossil fuels like Coal, Furnace Oil, Diesel, Wood etc.

Before Natural Gas can be used as a fuel, it must undergo extensive processing

to remove almost all materials other than methane. The by-products of that

processing include ethane, propane, butanes, pentanes and higher molecular

weight hydrocarbons, elemental sulfur, and sometimes helium and nitrogen.

The image below is a schematic block flow diagram of a typical Natural Gas

processing plant. It shows the various unit processes used to convert raw

Natural Gas into sales gas pipelined to the end user markets.

Processing of Natural Gas:

The block flow diagram also shows how processing of the raw Natural Gas

yields byproduct sulfur, byproduct ethane, and Natural Gas liquids (NGL)

propane, butanes and Natural Gasoline.

Schematic flow diagram of a typical Natural Gas processing plant

C. Indian overview of Oil & Gas sector:

Oil & Gas Sector has long history in India, In 1867 Oil was 1st struck at Makum

near Margherita in Assam and first commercial discovery was in Digboi in

1889.In the year 1899 Assam Oil Company was formed for Systematic Erection

and Procurement. Oil India Limited (OIL) was the first Indian company to start

sale and distribution of gas in Assam in the sixties. Later, Oil & Natural Gas

Commission (ONGC) and Assam Gas Company also laid Natural Gas pipelines

for sale of gas to major industries and tea gardens in Assam. In Gujarat, ONGC

started selling its associated gas to the neighbouring industries in the

seventies and pipelines were laid / owned by either ONGC or customer itself.

India has significant Oil & Gas reserves, the major discoveries in past 5years

have been made in the offshore east coast basins of Krishna Godvari and

Mahanadi-NEC basins, western Offshore and on land in Rajasthan, Cambay and

Assam –Arakan basins. As per reports from Ministry of Petroleum & Natural

Gas, the estimated Natural Gas Reserves of India as of 1st April, 2008 is 1090

Billion Cubic Meters (BCM). The total production of Natural Gas in 2008-09 was

32.85 BCM against consumption of 31.77 BCM. Today the main producers of

Natural Gas are ONGC, OIL and JVs of Tapti, Panna-Mukta and Ravva, and by

RIL in the KG basin.

Gas Exploration

Government has offered blocks under New Exploration Licensing Policy (NELP)

to private and public sector companies with the right to market gas at market

determined prices. The NELP was formulated by the Government during 1997-

98 to provide a level playing field to both the Public and the Private sector,

through allocating acreages1 on the basis of open competitive bidding, opposed

to the nomination basis earlier. Seven rounds of NELP have been conducted so

far. The success of the rounds can be measured in the increased exploration

activities in the country. The proportion of unexplored acreages has witnessed

a significant drop, from 40 to 15 percent, according to the upstream regulator,

the Directorate General of Hydrocarbons (DGH). Similarly, there are now14

producing basins, as opposed to just three in 1990. Several new operators too

have entered the fray as opposed to just the Government owned ONGC and OIL

earlier.

1 Area of land measured in Acres.

Exploration Status 1998-1999 (3.14 million sq km) Exploration Status 2006-2007 (3.14 million sq km )

Source: DGH

Indian private sector and foreign players, with the private sector giant, RIL is

actively participating and have won the maximum number of blocks after the

state-owned ONGC. A number of foreign players such as Cairn, BHP Billiton etc

have also participated in the bidding rounds, forming consortiums with

domestic and other foreign players.

In November 2008, the Cabinet Committee on Economic Affairs awarded 44 oil

and gas exploration blocks under the seventh round of auction of the New

Exploration Licensing Policy (Nelp-VII). The overall number of blocks brought

under exploration now exceeds 200.The allocation is likely to bring in

investments worth US$ 1.5 billion

Economic Importance of Oil & Gas Industry

The oil and gas industry has been instrumental in fuelling the rapid growth of

the Indian economy. The Petroleum and Natural Gas sector which includes

transportation, refining and marketing of petroleum products and gas

constitutes over 15 per cent of the GDP.

Petroleum exports have also emerged as the single largest foreign exchange

earner, accounting for 17.24 per cent of the total exports in 2007-08. Growth

continued in 2008-09 with the export of petroleum products touching US$

24.63 billion during April- December 2008. (Source: Indian Brand Equity

Federation)

Demand for Oil & Gas

India's domestic demand for oil and gas is on the rise. As per the Ministry of

Petroleum, demand for oil and gas is likely to increase from 176.40 million

tonnes of oil equivalent (mmtoe) in 2007-08 to 233.58 mmtoe in 2011-12.

Gas demand in India is dominated by the power and fertilizer sectors which

account for 66 per cent of the current consumption. In 2006, the total gas

demand was around 152 MMSCMD. The gas demand is expected to increase to

320 MMSCMD, according to a report by Ernst & Young. Significantly, the share

of Natural Gas in the overall fuel mix is expected to increase from 8 per cent in

2006 to 20 per cent by 2025.

D. Natural Gas usage- India Vs World

The importance of oil in India can be gauged from the fact that it accounts for

36 percent of the Primary Energy Mix in India. Taken with Natural Gas, this

percentage rises to 45 percent. However, the proportion of Natural Gas is

approximately one-third that of the world average, once again indicating the

potential for rapid growth. It may be noted in this context, that a heavy

reliance on coal in India is not optimal, given that coal is a far more polluting

fossil fuel as compared to Natural Gas

Worldwide, the industrial and electric power sectors are the largest consumers

of Natural Gas. Industrial sector accounts for 44% and the electric power sector

31% of the world’s total Natural Gas consumption. With the above comparison

India’s Primary Energy mix in 2009 World Primary Energy mix in 2009

of energy mix it is imperative that the Natural Gas is the preferred fuel vis-à-vis

the fossil fuels.

E. Natural Gas Reserves & Consumption across the Globe.

Natural Gas Reserves:

The world's largest proven gas reserves are located in Russia, with

4.757 × 1013 m³ (1.6 × 1015 cu ft). Russia is also the world's largest Natural Gas

producer, through the Gazprom company. Major proven resources are in

Russia, Iran, Qatar, Saudi Arabia and United Arab Emirates

As per the Fact-book of Central Intelligence Agency (CIA) of USA the proved

reserves of the Natural Gas has revealed an increasing trend with new

discoveries happening. The total Natural Gas - proved reserves estimated as on

January 2008 was 175.4 trillion cu m

Year

Natural Gas - proved

reserves

2003 161,200,000,000,000

2004 161,200,000,000,000

2005 161,200,000,000,000

2006 174,600,000,000,000

2007 172,800,000,000,000

2008 175,400,000,000,000

The above table shows the stock of proved reserves of Natural Gas in cubic

meters (cu m). Proved reserves are those quantities of Natural Gas, which, by

analysis of geological and engineering data, can be estimated with a high

degree of confidence to be commercially recoverable from a given date

forward, from known reservoirs and under current economic conditions. Almost

three-quarters of the world’s Natural Gas reserves are located in the Middle

East and Eurasia, Russia, Iran, and Qatar together accounts for about 57

percent of the world’s Natural Gas reserves as of January 1, 2009. In terms of

reserves India is at 24th position.

Rank CountryNatural Gas – Reserves (cubic

meters)

1 Russia

47,570,000,000,0

00

2 Iran

26,370,000,000,0

00

3 Qatar

25,790,000,000,0

00

4 Saudi Arabia

6,568,000,000,00

0

5

United Arab

Emirates

5,823,000,000,00

0

6 United States

5,551,000,000,00

0

7 Nigeria

5,015,000,000,00

0

8 Algeria

4,359,000,000,00

0

9 Venezuela

4,112,000,000,00

0

10 Iraq

3,170,000,000,00

0

11 Turkmenistan

2,860,000,000,00

0

12 Indonesia

2,630,000,000,00

0

13 China

2,450,000,000,00

0

14 Norway 2,288,000,000,00

0

15 Malaysia

2,037,000,000,00

0

16 Uzbekistan

1,798,000,000,00

0

17 Kazakhstan

1,765,000,000,00

0

18 Netherlands

1,684,000,000,00

0

19 Egypt

1,589,000,000,00

0

20 Canada

1,537,000,000,00

0

21 Kuwait

1,521,000,000,00

0

22 Libya

1,430,000,000,00

0

23 Ukraine

1,075,000,000,00

0

24 India

1,056,000,000,00

0

Inspite, of having good reserves compared to other countries in the world the

network of Piped Natural Gas Distribution to domestic sector is lagging, as per

reports Pakistan and Bangladesh are way ahead in comparison to India in PNG

Network to Domestic segment.

Consumption of Natural Gas

The following table shows the worlds Natural Gas Consumption, which has

increased form 2.555 trillion cum in 2004 to 3.198 trillion cum in 2008. The

increase in consumption of natural gas is expected to grow further with

increasing production of Natural Gas.

Year

Natural Gas -

consumption (cubic

meters)

2004 2,555,000,000,000

2005 2,599,000,000,000

2006 2,675,000,000,000

2007 2,819,000,000,000

2008 3,198,000,000,000

2009 3,476,000,000,000

2010 3,628,000,000,000

Today India ranks at 20th position in the world in terms of Natural Gas

consumption.

F. Uses of Natural Gas:

1. Power generation

Natural Gas is a major source of electricity generation through the use of

gas turbines and steam turbines. Most grid peaking power plants and some

off-grid engine-generators use Natural Gas. Natural Gas burns more cleanly

than other fossil fuels, such as oil and coal, and produces less carbon

dioxide per unit energy released. For an equivalent amount of heat, burning

Natural Gas produces about 30% less carbon dioxide than burning

petroleum and about 45% less than burning coal. Combined cycle power

generation using Natural Gas is thus the cleanest source of power available

using fossil fuels, and this technology is widely used wherever gas can be

obtained at a reasonable cost. DG set using Natural Gas is now widely used

source of Power supply/back up for industries etc.

2. Domestic use

Natural Gas is supplied to homes, where it is used for such purposes as

cooking gas, geysers, and air-conditioning.

3. Transportation Fuel

Compressed Natural Gas (methane) is a cleaner alternative to other

automobile fuels such as gasoline (petrol) and diesel. As of December 2008,

the countries with the highest number of CNG vehicles, ranked numerically,

were Pakistan, Argentina, Brazil, Iran and India. The energy efficiency is

generally equal to that of gasoline engines, but lower compared with

modern diesel engines. Gasoline/petrol vehicles converted to run on Natural

Gas suffer because of the low compression ratio of their engines, resulting in

a cropping of delivered power while running on Natural Gas CNG-specific

engines;

4. Fertilizer Industry

Natural Gas is a major feedstock for the production of ammonia, via the

Haber process, for use in fertilizer production.

5. Hydrogen

Natural Gas can be used to produce hydrogen, with one common method

being the hydrogen reformer. Hydrogen has various applications: it is a

primary feedstock for the chemical industry, a hydrogenating agent, an

important commodity for oil refineries, and a fuel source in hydrogen

vehicles.

6. Industrial use

Natural Gas is also used in the manufacture of fabrics, glass, steel, plastics,

paint, and other products.

H. City Gas Distribution in India:

The City Gas Distribution in India Dates back to 1857 when Calcutta Gas

Company and Bombay Gas Company commenced operations in Calcutta and

Bombay respectively with coal gas as the primary input. Subsequently,

however the industry remained by and large dormant, until ONGC and Assam

Gas Limited entered the business in the mid-to late -1980’s. The real impetus

to the sector came form the establishment of Gujarat Gas Company limited

(GGCL), Mahanagar Gas limited (MGL) and Indraprastha Gas limited (IGL),which

began operations in the late 1980’s to mid 1990’s , While these companies

struggled in the initial years because of a host of reasons , regulatory

intervention in the form of Supreme Court order on conversion to gas and

states support for environmental pollution abatement came as shot in the arm

for the CGD business . The commercial success of these companies in the

ensuing period along with improving gas supplies has drawn a number of new

entrants to the CGD business in the recent past. Even while the industry was

gathering momentum, GOI has set up a regulator, the Petroleum and Natural

Gas Regulatory Board (PNGRB), which has, among other mandates in the

hydrocarbon sector, the mandate of regulating the CGD business. PNGRB has

already laid down laid guidelines for the CGD sector.

Because of the limited availability of Natural Gas in India and the relatively

small pipeline network, the CGD business has remained confined to only a few

cities, wherein consumption is estimated at 8 Million Metric Standard Cubic

Metres Per Day (MMSCMD) as of 2007-08, which is around 8% of the overall

Natural Gas consumption in India. In terms of volume handled, GGCL, MGL and

IGL have been the three major players accounting for around 75% of the total

CGD volumes in India. However, the untapped potential in these cities is much

higher, as corroborated by the low penetration level among various customers.

As Natural Gas is cheaper in comparison to other fuels rise in volume growth of

gas arising from the said factors has enabled the GGCL,MGL & IGL to scale up

operations and improve the profitability. Besides scale-up of volumes, the

financial performance of gas distributing companies was being benefited from

the allocation of Administered Pricing Mechanism (APM) gas, for their CGD

operations. Because of the sizeable price differential between the traditional

fuels (MS, HSD, Auto LPG, domestic LPG, Bulk LPG, and LSHS) and city gas, the

MGL, GGCL &IGL have had the scope to price city gas at affordable levels for

various classes of consumers and yet maintain robust margins. Since 2006,

APM gas allocation has been restricted only for sales to the CNG and domestic

PNG segments, with gas for PNG (industrial) and PNG (commercial) attracting

non-APM rates, which are almost double the APM rates. The APM gas price

revision and allocation of gas at non APM rates for industrial and commercial

customers margins for MGL and IGL have declined in the recent past, while still

remaining robust in absolute terms. GGCL on the contrary has traditionally

been dependent mainly on non-APM gas, given its larger focus on industrial

and commercial customers. Thus, its operating margins have been lower than

that of MGL and IGL; however it remains the largest player in India in terms of

the volume of gas distributed, given its focus on high volume customers.

CGD network in India

S.No.

Name of the CGD Network

Area CoveredEntity

Authorized

1Sonipat CGD Network

SonipatGail Gas Limited

2Meerut CGD Network

MeerutGail Gas Limited

3Kakinada CGD Network

KakinadaBhagyanagar Gas Limited

4Dewas CGD Network

DewasGail Gas Limited

5Kota CGD Network

KotaGail Gas Limited

6Mathura CGD Network

Mathura

JV of M/s DSM Infratech Pvt. Ltd. & M/s Saumya Mining Pvt. Ltd.

7Agra CGD Network

AgraGreen Gas Limited

8Hyderabad CGD Network

HyderabadBhagyanagar Gas Limited

9Indore CGD Network

Indore including UjjainAavantika Gas Limited

10

Ghandhinagar Mehsana Sabarkantha CGD Network

Ghandhinagar Mehsana SabarkanthaSabarmati Gas Limited

11

Pune City including Pimpri Chichwad CGD Network

Pune City including Pimpri Chiechwad and along with adjoining contiguous

areas of Hinjewadi, Chakan & Talegaon GA

Maharashtra Natural Gas Limited

12Kanpur CGD Network

Kanpur GACentral U.P. Gas Limited

13Bareilly CGD Network

Bareilly GACentral U.P. Gas Limited

14Delhi CGD Network

National Capital Territory of DelhiIndraprastha Gas Limited

15Mumbai CGD Network

Mumbai & Greater MumbaiMahanagar Gas Limited

16Vijaywada CGD Network

Vijaywada GABhagyanagar Gas Limited

17

Mumbai CGD Network(GA-2)

Thane City & adjoining contiguous areas including Mira Bhayender,Navi

Mumbai,Thane City,Ambernath,Bhiwandi,Kalyan,Do

mbivily,Badlapur,Ulhasnagar,Panvel,Kharghar & Taloja.

Mahanagar Gas Limited

The Petroleum and Natural Gas Regulatory Board (PNGRB) is aiming to cover as

many as about 230 towns and cities in the near future of city gas distribution.

The commercial success of the CGD project in India has drawn M/s. APNRL into the

said business.

4.0 CREDIBLE PLAN FOR SOURCING NATURAL GAS

Gas Sourcing Plan

The objective of this section is to detail the strategic plan for sourcing of gas to

meet the demand from the proposed City Gas Distribution Project

Outline

We have plans to source the Natural Gas from both domestic and LNG sources of

Gas and to enter both in long term and short term contracts for sourcing of

natural gas depending on market conditions.

Domestic Sources of Gas

The following table provides the plan to source the gas from domestic sources:

Table

4.1:

Potential

Gas

sources

LNG

Gas

Sourcing

A.1.1.1 SourceA.1.1.2 Description

A.1.1.3 Reliance

KG-D6

A.1.1.4 Huge Gas reserves discovery by RIL on

eastern coast of India. Various options are

available for transportation of this natural gas from

Kakinada up to the proposed GA. Gas from KG D-6

is presently evacuated using RGTIL EWPL pipeline

up to Dahej.

A.1.1.5 GSPC-

Deendayal

A.1.1.6 Yet to be developed field of GSPC may also

be a possible source of gas for proposed CGD

network. Based on Gas Allocation by Government

of India, it is expected that a significant amount of

gas may be available for CGD. This gas will be

transported through pipeline networks similar as in

case of RIL KG-D6.

A.1.1.7 Cairn ;

ONGC and other

Upstream

development in

KG Basin

A.1.1.8 Prospective discoveries by Cairn and ONGC

may also form a major source of Gas for the

northern market.

A.1.1.9 Mahanadi

Basin

A.1.1.10 Several developments plans in Mahanadi

region may potentially add natural gas for the

proposed CGD network

A.1.1.11 Bombay

High and Other

Finds of ONGC

A.1.1.12 Natural gas from Bombay High, PMT and

other fields of ONGC can be sourced for CGD

network

A.1.1.13 CBM and

Shale Gas

A.1.1.14 CBM and Shale Gas exploration in future can

also add volumes for the proposed CGD network

A.1.1.15 Other

Private

Exploration

A.1.1.16 Significant level of exploration is being done,

and some of these exploration may add to gas

volumes for future CGD networks.

We may also use the existing re-gasification capacity available with LNG terminals

in India esp. the one in Hazira and the planned LNG terminal in Mundra on tolling

basis. In addition to the above Regasifications facility being developed at Dabhol,

Petronet – Ennore, Petronet – Dahej Expansion may also act as source of gas for

the proposed CGD network.

International Pipeline

In addition to the above, future intercontinental pipelines like TAPI and IPI may

also provide necessary gas source for the proposed CGD

5.0 Pipeline Connectivity

Pipeline Connectivity:

A combination of pipeline from various operators will be utilized to deliver gas to

the CGD network. M/s. APNRL will explore all possibilities on cross country

natural gas pipelines for connecting the Gas source with CGS proposed for the

CGD network.

A possible configuration of cross country pipeline along with the possible source

CGS Location :

In order to have better economics and operational efficiency it is advisable to

have CGS located near the Tap-off provided by transporter.

Tap Off Point: currently Haridwar is not connected by any of existing NG

pipeline , in future it may be connected by Spur line of Dadri Bhavana

nagla Pipeline.

City Gate Station: CGS has been assumed to be established in the near vicinity

as per availability of suitable land.

Pressure: The downstream pressure at CGS has been taken as 49 Barg,

maximum Pressure Point in the Network.

6.0 MARKET SURVEY & NATURAL GAS DEMAND ASSESSMENT

6 City Background-Haridwar:

Population 175,010 (2001) Density 14,228 /km2 (36,850 /sq mi) Sex ratio 1.18 Time zone IST (UTC+5:30) Area 12.3 square kilometres (4.7 sq mi) Elevation 314 metres (1,030 ft)

Haridwar is an important pilgrimage city and municipality in the Haridwar district of Uttarakhand , India. The River Ganges, after flowing for 253 kilometres (157 mi) from its source at Gaumukh at the edge of the Gangotri Glacier, enters the Indo-Gangetic Plains of North India for the first time at Haridwar, which gave the city its ancient name, Gangadwára.

Haridwar is regarded as one of the seven holiest places to Hindus. According to theSamudra Manthan Haridwar along with Ujjain, Nasik and Allahabad is one of four sites where drops of Amrit, the elixir of immortality, accidentally spilled over from the pitcher while being carried by the celestial bird Garuda. This is manifested in the Kumbha Mela being celebrated every 3 years in one of the 4 places, and thus every 12 years in Haridwar. Amidst the Kumbha Mela, millions of pilgrims, devotees, and tourists congregate in Haridwar to perform ritualistic bathing on the banks of the river Ganges to wash away their sins to attain Moksha Brahma Kund, the spot where the Amrit fell, is located at Har ki Pauri (literally, "footsteps of the Lord") and is considered to be the most sacred ghat of Haridwar.

Haridwar is the headquarters and the largest city of the district. Today, the city is developing beyond its religious importance, with the fast developing industrial estate of State Infrastructure and Industrial Development Corporation (SIDCUL), and the close by township of Bharat Heavy Electricals Limited in Ranipur, Uttarakhand as well as its affiliated ancillaries.

DEMOGRAPHIC: As of 2001 India census, Haridwar district had a population of 295,213. Males constitute 54% of the population and females, 46%. Hardwar has an average literacy rate of 70%, higher than the national average of 59.5%: male literacy is 75%, and female literacy is 64%. In Hardwar, 12% of the population is under six years of age.

6.2 ECONOMY:

Haridwar is rapidly developing as an important industrial township of Uttaranchal since the state government agency, SIDCUL (State Infrastructure & Industrial Development Corporation of Uttranchal Ltd.) set up the Integrated Industrial Estate in a district attracting many important industrial houses which are setting up manufacturing facilities in the area. Haridwar has a thriving industrial area situated at the bypass road, comprising mainly ancillary units to PSU, BHEL, which was established here in 1964 and currently employs over 8000 people.

Agriculture is the mainstay of this well irrigated district. Industrialisation had commenced with the establishment of Central Government owned Public Sector plants (PSUs) of Hindustan Antibiotics Limited and Bharat Heavy Electricals Limited, in pre-Uttarakhand 1960s period. The State Infrastructure & Industrial Development Corporation Limited of Uttarakhand Government (SIDCUL) has now established one new ‘industrial development zone’ in the district, near Haridwar, to encourage industrialization; with industrial giants like Hindustan Lever, Dabur, Mahendra & Mahendra and Havells having moved in, it is making the desired progress. Not insignificant to the district’s economy is the contribution of Hindu pilgrims who visit the holy places and attend the religious fairs in large numbers.

Fig 1 Haridwar Map

6.3 Demand Estimation of Natural Gas in Haridwar City

6.3.1 Compressed Natural Gas (CNG:)

about Compressed Natural Gas (CNG)

CNG is a fossil fuel substitute for other auto fuels such as petrol, diesel, Auto LPG etc. For use in Automobiles as fuel, Natural Gas is compressed & dispensed to vehicles at high pressure of 200 bar to enhance the vehicle on board storage capacity.

In and around the Mumbai city, MGL has been supplying CNG to over two lakh vehicles, through its robust network of around 150 CNG stations with more than 700 dispensing points. Today, almost all the auto-rickshaws and taxies are plying on CNG. CNG is also being supplied to transport undertakings such as BEST, TMT, MSRTC & NMMT. Besides these, passenger cars, postal vans, school buses, courier vans, Light and Heavy commercial vehicles are also enjoying the benefits of CNG.

CNG is substantially economical and eco-friendly than the conventional liquid auto fuel. Moreover, it is easily available in and around the Mumbai city, making it the preferred auto fuel of Mumbai.

CNG Facts

Economical Easy on the pocket CNG delivers high performance at low cost, as it gives your vehicle a

better mileage CNG does not contaminate or dilute crank case oil, giving engine an

extended life

Eco Friendly

The use of CNG significantly reduces harmful vehicular exhaust gas emissions like carbon dioxide, carbon monoxide and other suspended particles

It protects the environment by reducing the effects of global warming Non –toxic, non corrosive, non-carcinogenic and hence improves public

health

Safety

CNG is lighter than air and hence disperses quickly without any dangerous accumulation CNG has a narrow flammability range making it much safer than other fuels

CNG has a higher ignition temperature than other fuels, reducing chances of accidental and spontaneous ignition

CNG Supplied Through:

In a CGD network the CNG can be supplied through the following ways:

Mother Station: Mother stations are connected to pipeline & have high compression capacity. These stations supply CNG to both vehicles & daughter stations (through mobile cascades). Typically they have facility of filling all types of vehicles & require heavy investment towards compressor, dispensers, cascades, pipelines, etc.

Online Station: CNG vehicle storage cylinders need to be filled at a pressure of 200 bars. “On line Stations” are equipped with a compressor of relatively small capacity, which compresses low pressure pipeline gas to a pressure of 250 bar for dispensing CNG to vehicle cylinder. In-vestment in an online station is midway between daughter station & mother station

Daughter Station: “Daughter Station” dispenses CNG using mobile cascade, which is replaced when pressure falls & is refilled at “Mother Station”. There is reduction in storage pressure at daughter stations with each successive filling. Once the storage pressure drops, the refueling time increases, while quantity of CNG dispensed to vehicle also decreases. Daughter-Booster Station: Installing a booster compressor can eliminate drawbacks of daughter stations. Mobile cascade can be connected to dispensing system through a booster. Daughter booster (compres-sor) is designed to take variable suction pressure & discharge at constant pressure of 200 bars to vehicle being filled with CNG. Investment in daughter booster station is slightly higher than that of daughter station.

CNG Demand Projection (Haridwar City):

Table 1 shows the No of vehicles that will be mandatorily converted into CNG vehicles like autos (1900), Vikram (1000), taxis (2000) and buses (20). Mileage and distance travelled per month is also given for each type of vehicles in second and third column respectively.

DATA NO Mileage(Km/lit) Distance travelled/month

Auto 1900 25-30 6000Vikram 1000 25 5250Taxis 2000 20 3500

Buses(intercity) 20 16 7500

Table 1

In table 2 the total diesel consumption is calculated for all type of vehicles. It’s come out that 1050375 litre of diesel is consumed per month. Therefore the yearly consumption of diesel is 12604500 litre or 12604.5 KL.

Vehicles No Mileage(KM/lit) Avg dist/day(KM) Dist/month(KM) Consumption/v

-m Cons/mnth Consumption/year3-

wheeler 2900 25 200 6000 240 696000 Taxes 2000 20 115 3450 172.5 345000 Buses 20 16 250 7500 468.75 9375

1050375 12604500

Table 2

Graph 1 shows the CNG demand projection for the next 25 years. The demand for 2011 is already calculated in above table2. The growth rate of automobile industry (3-wheeler and taxis) is 10.11%. For growth rate calculation refers annexure I.

Year wise total CNG demand:

year 2011 2012 2013 2014 2015Liter 12604500 13879261.93 15282947.5 16828595.46 18530563.23KL 12605 13879 15283 16829 18531NG(CM)*1000 11092 12214 13449 14810 16307NG(MMSCM) 11.09 12.21 13.45 14.81 16.31NG(mmscmd) 0.03 0.03 0.04 0.04 0.05

2016 2017 2018 2019 2020 2021 202220404660.31 22468295.06 24740636 27242792.16 29998004.53 33031866.58 36372559.7

20405 22468 24741 27243 29998 33032 3637317956 19772 21772 23974 26398 29068 3200817.96 19.77 21.77 23.97 26.4 29.07 32.01

0.05 0.05 0.06 0.07 0.07 0.08 0.09

2023 2024 2025 2026 2027 2028 2029 203040051115.3 44101703.3 48561949.5 53473284.7 58881330 64836320.6 71393571.8 78613993.7

40051 44102 48562 53473 58881 64836 71394 7861435245 38810 42735 47056 51815 57056 62827 6918035.25 38.81 42.74 47.06 51.82 57.06 62.83 69.18

0.1 0.11 0.12 0.13 0.14 0.16 0.17 0.19

2031 2032 2033 2034 2035 203686564656.2 95319412.8 104959586 115574722 127263425 140134270

86565 95319 104960 115575 127263 14013476177 83881 92365 101706 111991 12331876.18 83.88 92.37 101.71 111.99 123.32

0.21 0.23 0.26 0.28 0.31 0.34

The graph shows that the CNG demand curve is increasing exponentially. That means the future demand will be very high. The demand will increase from 11.09 MMSCM in 2011 to 123.32 MMSCM in 2036.

For calculation of CND demand projection and data collected refers Annexure I.

Graph 1 CNG Demand Projection

6.4 Piped Natural Gas (PNG)

Domestic PNG is used for various purposes like cooking and water heating. It is also widely used by Hospitals, Nursing Homes, Hotels, Flight kitchens, Restaurants, places of Worship etc. PNG satisfies most of the requirements for fuel across all segments, being efficient, non-polluting and relatively economical

Benefits of Piped Natural Gas

Fig 4 PNG Benefit

Piped Natural Gas is the preferred fuel. Here are some of the major benefits of using natural gas:

Convenience – Gas is continuously fed into the system so there are no hassles of refilling / changing the cylinder; it is piped and does not require any space to store, hence handling is easy, safe and secure.

Economical – Higher savings than any other conventional fuel.

Safe – Robust systems and processes as per international safety standards that match the best in the world, are practiced. PNG being lighter than air disperses easily and avoids spontaneous flammability.

Consistent, reliable supply – MGL has got a track record of almost 100% reliability in its gas supply. Even during the deluge of July 2005 in Mumbai, when most other utilities failed, PNG supply continued uninterrupted.

Eco-friendly – Use of PNG improves public health. It also reduces the transportation of bottled gas within the metro thereby reducing traffic congestion and safety on the roads.

PNG Composition

With only one carbon and four hydrogen atoms per molecule (Methane) Natural Gas is a composition of hydrocarbons (Almost 95% Methane & rest other Hydro Carbons).  Its calorific value generally ranges from 8000 kcal/m3 to 9000 kcal/m3, Natural Gas has the lowest carbon to hydrogen ratio, hence it burns completely, making it more environment friendly fuel.

Physical state Gas Colour Colourless

OdourOdourless (For easy detection through smell, Ethyl Mercaptan is added as Odourant)

Melting point -182oCBoiling point -161.5oCVapour density 0.6 to 0.7 (with respect to air)

Flammability ratio 5 to 15% by volume in air

Auto ignition temp540oC

PNG Demand Projection:

According to the census of India, Haridwar(urban) has a population of 1679519 lakh. No of household in Haridwar urban are 279344.

Assumption

1. Consumption of NG per family 0.7 SCMD.2. 1.5% increase in the growth of population.

Therefore the total consumption of domestic PNG in 2011 is 70.39 SCM. And it will increase to 102.19 SCM in 2036.

Year 2011 2012 2013 2014 2015No of Houshold 279344 283534 287787 292104 296486Gas demand/scmd(100% penetration) 195541 198474 201451 204473 207540

MMSCMD 0.196 0.198 0.201 0.204 0.208MMSCM 70.56 71.28 72.36 73.44 74.88Penetration( 5%, then increases by 5% till 35%, then remain constant 0.0098 0.0198 0.03015 0.0408 0.052

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025300933 305447 310029 314679 319399 324190 329053 333989 338999 344084210653 213813 217020 220275 223579 226933 230337 233792 237299 240859

0.211 0.214 0.217 0.22 0.224 0.227 0.23 0.234 0.237 0.24175.96 77.04 78.12 79.2 80.64 81.72 82.8 84.24 85.32 86.76

0.0633 0.0749 0.07595 0.077 0.0784 0.07945 0.0805 0.0819 0.08295 0.08435

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036349245 354484 359801 365198 370676 376236 381880 387608 393422 399323 405313244472 248139 251861 255639 259473 263365 267316 271326 275395 279526 283719

0.244 0.248 0.252 0.256 0.259 0.263 0.267 0.271 0.275 0.28 0.28487.84 89.28 90.72 92.16 93.24 94.68 96.12 97.56 99 100.8 102.24

0.0854 0.0868 0.0882 0.0896 0.09065 0.09205 0.09345 0.09485 0.09625 0.098 0.0994

Graph2 shows the domestic demand projection. Here we can see that the demand will increase linearly with slope less than 45 degree.

Graph 2 Domestic PNG Demand projection(assume 100% penetration)

For Calculation refers Annexure II.

6.5 INDUSTRIAL:

Fig5 shows the different application of industrial and commercial sector.

Fig 5 I and C Application of NG

The following table shows the conversion units

1 lit to 1kg 0.921 m3 NG 1 kg diesel 1 lit diesel

0.809 0.88

Table3 Conversion

This survey contains small, medium and large industries

Year 2011 2012 2013 2014 2015 2016Diesel(lit/year) 1036440 1115624 1200858 1292604 1391359 1497659NG(CM/year) 912067 981749 1056755 1137492 1224396 1317940NG(MMSCM/year) 0.91 0.98 1.06 1.14 1.22 1.32Sub-Total(Actual of 100 cos) 1.279 1.349 1.429 1.509 1.589 1.689Total(MMSCM/year) 500 companies 6.395 6.745 7.145 7.545 7.945 8.445

2017 2018 2019 2020 2021 2022 2023 2024 20251612080 1735243 1867816 2010517 2164120 2329459 2507430 2698998 29052011418630 1527014 1643678 1769255 1904426 2049924 2206538 2375118 2556577

1.42 1.53 1.64 1.77 1.9 2.05 2.21 2.38 2.561.789 1.899 2.009 2.139 2.269 2.419 2.579 2.749 2.9298.945 9.495 10.045 10.695 11.345 12.095 12.895 13.745 14.645

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

3127158 3366073 3623241 3900057 4198021 4518750 4863983 5235591 5635590 6066149 6529603

2751899 2962144 3188452 3432050 3694258 3976500 4280305 4607320 4959319 5338211 5746051

2.75 2.96 3.19 3.43 3.69 3.98 4.28 4.61 4.96 5.34 5.75

3.119 3.329 3.559 3.799 4.059 4.349 4.649 4.979 5.329 5.709 6.119

15.595 16.645 17.795 18.995 20.295 21.745 23.245 24.895 26.645 28.545 30.595

The Graph shows the NG demand projection for industrial sector. The demand for 2011 is 6.39 MMSCM. The growth rate for industrial manufacturing sector is taken as 7.64% (Refer Annexure III). So the demand in 2036 will be 30.59 MMSCM. The graph shows an exponential increase in demand of NG for industrial sector.

Graph 5 NG Demand Projections for Industrial

6.6 Demand Projection of Natural Gas in Commercial Sector

Commercial Development in Haridwar

The use of NG in commercial establishments like Hotels, Hospitals, Restaurants,

Malls, and Canteens etc. comes under commercial sector. Mainly, the usage of NG

is from cooking and water heating. Captive power generation by gas based

gensets and space heating / cooling by VAM (Vapour absorption refrigeration)

machines are emerging as the high potential consumption area in commercial

usage of NG.

Usage of Natural Gas in Commercial Sector

Natural gas has a multitude of commercial uses as in cooking, cooling, steam

generation and heating. Natural gas absorption systems are also being used

extensively in the developed countries to heat and cool water in an efficient,

economical and environmental friendly manner.

The commercial sector includes public and private enterprises, like office

buildings, schools, churches, hotels, restaurants, hospitals, nursing homes,

hostels, canteens, guest houses, sweet shops, and bakeries. The usage of natural

gas in space and water heating for commercial buildings is very similar to that of

residential complexes. Natural gas is an efficient and economical fuel for heating

in all types of commercial buildings. Cooling and cooking represent two major

growth areas for the use of natural gas in commercial settings. Another area of

use in the commercial natural gas is in the food service industry. Natural gas is an

excellent choice for commercial cooking requirements, as it is a flexible energy

source being able to supply the food service industry with appliances that can

cook food in many different ways. Natural gas is also an economical, efficient

choice for large commercial food preparation establishments. New developments

such as non-traditional restaurant systems, which provide compact,

multifunctional natural gas appliances for smaller sized food outlets such as those

found in shopping malls and airports, are expanding the commercial use of natural

gas. These types of systems can integrate a gas-fired fryer, oven, hot and cold

storage areas, and multiple venting options in a relatively small space - providing

the ease and efficiency of natural gas cooking while being compact enough to

serve small kiosk type establishments.

Due to wide variation in the energy consumption pattern between major and

minor commercial units, almost all the major units in commercial sector have

been surveyed. Table 6.4 shows the segment and size wise sample plan of

primary data survey.

Here for commercial I have calculated only the no of restaurant, hotel, hospital

and school.

Commercial Establishment

Type

Restaurent

HotelsHospital

sSchool

H - M- C-O

Size Large 5Medium 3Small 8

Total 42 50 6 16

Table 6.4: Segment wise sample plan

6.3.1 Survey of Commercial Units

The primary data was collected through a field-structured questionnaire

administered to representative sample. The information sought in the

questionnaire includes:

(i) Number of beds in hospitals and nursing homes.

(ii) Average number of persons served in hotels, restaurants, guest houses and canteens.

(iii) Average number of inmates in hostels and official establishments.

(iv) Monthly fuel consumption pattern of the establishment indicating different varieties of fuels used and monthly expenditure on fuels.

(v) Willingness to switch over to piped gas if it is available at cost equal to present fuel cost and alternately if available at higher/ lower cost than the present expenses on fuel.

(vi) Usage of PNG for AC application and Space heating.

The secondary data was collected to present an alternative independent source of

demand estimation so as to validate in macro terms the data obtained from the

primary data collection exercise.

The universe of the commercial establishments is established from the business /

yellow pages directory and town plan for the city.

The PNG commercial market is primarily a replacement market. The approach

adopted to gain insight into these aspects includes,

A primary survey to get the market feels on the current usage and the fu-ture requirements.

Secondary data collection to validate the primary survey findings. Demand estimation based upon the primary and the secondary data.

Survey Feedback

From the survey feedback it has been found that the energy used by commercial

sector is generally in the form of LPG, coal / coke and wood for cooking purpose.

Electricity is predominantly used for lighting, space / water heating. Kerosene is

used as fuel for DG sets for generation of power.

Based on the survey conducted across selected commercial establishments,

average daily NG consumption (SCMD) was calculated (analzsed) on the basis of

their various fuel (energy sources) consumptions. The table below shows the

average NG consumption by a large, medium and small unit across commercial

segments.

Commercial Establishment

Type

Restaurent

HotelsHospital

sSchool

H - M- C-O

Size Large 20.42 17.02 19.5 25.85 18.77Medium 11.24 11.16 11.21 17.87 8.42Small 4.84 6.67 5.09 4.32 5.87

Table 6.6: Average NG consumption Pattern across various categorie

Equivalent Demand for PNG Commercial distribution

This is based on the current consumption levels as observed from the survey. The sample size was used to extrapolate to the

universe. The calculation of total fuel consumed of different types and their NG equivalent has been made Commercial type

wise and size wise taking into account the universe has been presented in the table below:

Commercial Establishment

Type

Restaurent

HotelsHospital

sSchool

H - M- C-O

Size Large 530.92 357.42 156 542.85 957.27Medium 1079.04 636.12 325.09 964.98 1161.96Small 2154 2494.58 936.56 725.76 1725.78

Total 3763.763488.1

2 1417.652233.5

9 3845.01

Table 6.7: Equivalent NG Consumption

Switchover pattern and commercial growth rate

It is assumed that the commercial growth will be 2 times of residential growth in each CA. The switchover pattern and

commercial growth rate is assumed to be in tandem with domestic sector.

Year 2011 2012 2013 2014 2015

Commercial

Establishment

10% 35% 55% 75% 80%

Table 6.8: Switchover pattern

Percentage conversions to Natural gas for various fuels used in commercial establishments are assumed as follows:

Size Fuel Type LPGDiesel/

FOCoal Wood

Rice Husk

Commercial Establishment

100% 50%/50% 50% 0% 0%

Table 6.9: Conversion to PNG Connections from other Fuel

7. EXAMINATION OF VARIOUS ALTERNATIVES

Three alternatives have been considered. All 3- types i,e garland, Tree Type

branches and Circular ring type Network has been considered In all the alternative

main distribution loop to City Gate Station has been kept 12” Dia .

Straight line flow philosophy is not recommended because in this case we get the

pipe line size higher which amount to increase in capex and flow regime with

respect to pressure and volume is acceptable. Pressure drop is more is more in

this case.

Hydraulic study to show ring structure concept correspondense to above staright

line philossphy keeping all the profile same i.e pipe line size and flow.It has been

noticed that by conceptualizing the city gas network on ring base we can save

more capex and gain pressure profile as the volume is distributed on both the

directions where as in staright line philosphy it has to be transported in one

direction and distributing the gas demand enroute the pipe line route.

Further, In loop methodology also we had studied by selecting various diameter

pipes.

Option:1

Pipeline : In this option we have to lay the pipeline as follows:

i. 12” Dia Steel Pipeline from CGS to periphery of main HARIDWARcity along main

road /State Highway. This may be treated as Feeder /Sub Transmission Pipeline.

This includes one major road crossing.

ii. 8” Dia Steel Pipeline along National Highways as primary network. This pipeline

section has been selected keeping in view of present /future demand, as said

above ROW comes under premises of National Highway Authority of India (NHAI)

which may helpful in smooth execution of Laying & construction activities.

iii. 8” Steel Pipeline, along Main Roads/State Highway creating a loop around Main

City, covering maximum no of Charged Areas ( CAs).

iv. 8” Pipeline as spur line for covering demand located at periphery of GA

Boundaries.

v. 6”/4” Steel Pipeline, these has to be used mainly for Tapping/branching purpose

in case of installation of various DRS and CNG Stations.

Option:2

System Description:

Pipeline: In this option we have to lay the pipeline as follows:

i. 12” Dia Steel Pipeline from CGS to periphery of main HARIDWARcity along main

road /State Highway. This may be treated as Feeder /Sub Transmission Pipeline.

This include one major road crossing.

ii. 12” Dia Steel Pipeline along National Highways as primary network. This pipeline

section has been selected keeping in view of present /future demand, as said

above ROW comes under premises of National Highway Authority of India (NHAI)

which may helpful in smooth execution of Laying & construction activities.

iii. 18”/12” Steel Pipeline, along Main Roads/State Highway creating a loop around

Main City, covering maximum no of Charged Areas ( CAs).

iv. 8” Pipeline as spur line for covering demand located at periphery of GA

Boundaries.

v. 6”/4” Steel Pipeline, these has to be used mainly for Tapping/branching purpose

in case of installation of various DRS and CNG Stations.

To have more flexibility in operation and maintenance and to cater the

future demand to supply gas in expansion projects option-i ie 12”and

8” Dia pipeline for Tap Off Line and Internal Ring has been

finalized .Total inch -km ,as calculated, is found to be approx 1157.84 inch

km.

Further,please refer annexure i & ii for detail of pipeline route map and

length details.

8.0 GA MAP SHOWING PROPOSED PIPELINE ROUTE

Figure 8.1: Proposed Pipeline Route

Figure 8.2: Proposed Detail of Pipeline Length and Diameter

9. BASIC DESIGN OF CGD NET WORK – PEAK DEMAND FLOW

For HARIDWAR GA, natural gas is considered to be tapped-off from Spur line of

Dadri-Bhavana Nagal Pipeline near Haridwar . A steel pipe of 12 inch Dia shall be

laid from the City Gate Station (CGS) to main HARIDWAR city. The pressure at

inlet to CGS has been considered at 49kg/cm2g with a gas flow rate of 0.48

MMSCMD, which is the peak demand flow on realistic scenario in 25th year.

9.1 DESIGN CAPACITY

The design is based on a daily peak demand requiring gas for various sectors. The

city gas distribution system has been designed considering demand load, supply

pressure and future requirements for all the consuming sectors and the available

pressure at tap-off points. The details are as follows:

Gas Analysis

Density of gas : 0.719

Design Temperature :

- Buried : 45oC

- Above ground : 65oC

City Gate Station

Inlet pressure : 49.5 kg/cm2g

Outlet pressure : 49.0 kg/cm2g

Capacity :

X30.48 MMSCMD

Main Grid Line

Joint factor : 1

Temperature factor : 1

Population density factor : Class-IV

Pipeline specification

Size Material

For 12" size P/L

For 8" size P/L

:

:

API 5L Gr.52.

API 5L Gr.52.

For 6” size P/L : API 5L Gr.52.

For 4" size P/L : API 5L Gr.52.

Industrial Sector

In HARIDWAR GA, industries are mainly located at Sidqul Industrial Area. Gas shall

be transported from DRS through MDPE grid. Supply pressure at consumer end

shall generally be kept as 4-2 kg/cm2g. However it shall be as per consumer

requirement.

City Gas Distribution Network

The considered pressure which shall be followed for the system design has been

shown in Table-9.1.

Table-9-1

Considered Pressure for City Gas Distribution Network

Distribution Network Considered

Pressure

Service Pipe

Main Grid Line 49 kg/cm2g

(High Pressure

System)

Steel

Distribution/Service connection 4-2 kg/cm2g

(Medium Pressure

System)

MDPE

Distribution Network Considered

Pressure

Service Pipe

Industrial/Large Commercial

connection

4-2 kg/cm2g MDPE

Small Commercial connection 300 m bar MDPE

Domestic connection 21 m b

21 m bar

GI

Supply pressure to industrial/commercial consumers shall be need based.

CNG Station

The design parameters of CNG Stations are as follows:

Inlet pressure : 19- 49

kg/cm2g

For

Mother

/Online

StationsOutlet pressure : 255

kg/cm2g

Cascade capacity

- Mother station : 3000 liters of

water/cascade

- Daughter station : 3000 liters of

water/cascade

- LCV Mounted (Mobile) : 3000 liters of

water/cascade

- Average Filling capacity

o Bus : 80-100 kg

o Car/LCV : 8-10 kg

o Auto : 3.5-5 kg

9.1.2 PEAK HOUR DEMAND

Domestic

Peak hours per day : 4

Commercial

Peak hours per day : 12

Industrial

Peak hours per day : 16

Automobile (CNG)

Compressor Capacity : 1200 SCMH each

Peak hours per day : 18

BASIS OF PEAK DEMAND

RANGAREDDY-MEDAK

Sl.N

o. Particulars     Peak

       

Deman

d

       

1.0 Automobile Sector      

  Projected daily average 25th year (SCMD)  

30682

2  

  Duration i.e. hrs of working in a day   18  

 

Peak Hourly demand in automobile

sector

SCM

H   17046

       

2.0 Industrial Sector      

  Projected daily average 25th year (SCMD)   78205  

  Duration i.e. hrs of working in a day   16  

  Peak Hourly demand in Industrial sector

SCM

H  

4887.8

4

       

3.0 Commercial Sector      

  Projected daily average 25th year (SCMD)  

Not

taken  

  Duration i.e. hrs of working in a day   12  

 

Peak Hourly demand in Commercial

sector

SCM

H   0

       

4.0 Domestic Sector      

  Projected daily average 25th year (SCMD)   96949  

  Duration i.e. hrs of working in a day   4  

  Peak Hourly demand in Domestic sector SCM   24124

H

       

 

Total Peak Hourly Demand (1.0 to

4.0)

SCM

H   46057

 

9.1.3PIPELINE NETWORK

From CGS, the pipeline network for HARIDWARGA has been designed in two parts.

Steel Grid

MDPE Network

9.1.3.1 STEEL GRID

Natural gas from CGS has been considered at a minimum pressure of 49 kg/cm2g

and temperature 350C. The steel grid has been designed covering the entire

geographical area to maintain required pressure at all points in the grid so that

sizes can be optimized. Steel grid of 12", 8”,6" & 4" has been considered to cater

the demand of CNG stations and to supply gas to DRS for domestic, commercial

and industrial sectors. The design is based on 25th year demand projected under

realistic scenario.

9.1.3.2 MDPE NETWORK

For supplying gas to domestic, commercial and industrial sectors, the pressure of

piped gas shall be reduced to distribution pressure in the District Regulating

Station (DRS), which shall feed gas to MDPE distribution network. The domestic

consumers shall be fed from the MDPE distribution network through service lines

up to the domestic premises where regulating and metering facilities shall be

provided. Industrial and commercial consumers shall also be supplied gas from

distribution network through service lines up to the industrial and commercial

consumer’s premises from where regulating and metering facilities shall be

arranged.

In the present study, the routing of pipeline of different diameter i.e. 180mm, 125

mm, 90mm, 63 mm, 32 mm of MDPE and 20mm of MDPE & GI have been

considered.

The MDPE Network has been made to cater to the need of gas at 4 kg/cm2g and

lower pressure after DRS.

9.1.4DESIGN OPTIMIZATION

The entire network has been designed and optimized with the help of SynerGEE

4.4 module software. The software is the latest version new generation software

used to calculate the pressure drop, velocity, flow etc. of gas. etc

To obtain the desired optimum size of the pipes the input like scaled map of the

pipeline routing, required pressures, temperature, flow and length of the pipes

have been used.

Pipeline Sizing

The optimum sizing of steel grid and MDPE pipes have also been carried out with

the help of SynerGEE 4.4 software.

9.1.5 CNG NETWORK

The CNG station design is based on the following:

The actual sizing and numbers of the compressors for the CNG stations is a

function of the following:

The actual gas filling time for the vehicle.

The dwell time between vehicle or turn-around time for the vehicle.

The storage capacity provided in the cascades for the system.

The actual gas filling time is primarily dependent on the following:

The cylinder capacity provided for the various types of vehicles that are to

be serviced at the CNG station e.g. auto-rickshaws (autos), Rural Transport

Vehicles (RTV), cars, taxis and buses.

The cylinder capacities vary for the vehicles depending upon whether the

vehicles have been retrofitted with gas cylinders for operation on CNG or

are factory installed. Especially the total cylinder capacities for the buses

vary widely between 80 to 100 kg affecting the actual filling time required

for the vehicles.

The gas pressure in the cylinder at the time of gas filling. This has been

observed to vary between 10 and 50 bar (g).

The turnaround time of the vehicles considered is furnished as below:

Table-9.2

Vehicles Turn-around Time

Vehicle Fuel cylinder

capacity

Actual gas

filling time

(minutes)

Turnaround

time

(minutes)

Buses 80 - 100 kg 4-5 minutes 10

Car 8-10 kg 3-4 minutes 5

Taxi 10 kg 3-4 minutes 5

Auto-

rickshaw

3.5 - 5 kg1.5-2 minutes 3

The turnaround time indicated above accounts for the time required for the

vehicle to be positioned, the filling nozzles to be connected, the gas filling and

finally the payment transaction before the vehicle makes way for the next vehicle.

The gas compressor operates continuously and the compression achieved during

the difference between the dwell time and the actual filling time between vehicle

fillings is diverted to the cascades.

Filling cut-off pressure for the cylinder is 250 bar (g). The actual gas filled

therefore shall vary between about 90% and 95% of the available cylinder

capacity. Considering the actual average filling requirements for the vehicles to be

about 90 % of the cylinder capacities. i.e. the corresponding average gas

dispensing rates would be about 15.5 kg/min for buses, 2.3 kg/min cars and taxis

and about 2 kg/min for autos.

Dispensers provided are of the following types:

Single hose fast fill free standing type for bus filling.

Double hose fast fill free standing type for auto / car filling.

The filling rate of the vehicle is limited by the maximum velocity of the CNG

flowing through the piping connections and the dispenser nozzles. The maximum

velocity that may be achieved through the dispenser nozzles will be sonic velocity

due to the large pressure difference between the full cascades and the empty

vehicle cylinders. At the beginning of the filling cycle this pressure differential may

be as high as 240 - 230 bar (g).

The actual filling time of the vehicle is a part of the total time that the vehicle

occupies at the dispenser during the filling cycle as indicated above.

Cascades shall be installed for capacities of 3000 litre water capacity. The holding

capacity of the 3000 litre water capacity cascades at a pressure of 250 bar (g) is

about 550 kg. As per established practices the cascades are provided with low-

medium-high banks to maximize the utilization of the storage capacity of the

cascades. The maximum capacity utilization of the cascades may be as high as

40% of the storage capacity of the cascades giving a storage capacity of about

220 kg.

Compressors are available for capacities varying from 110 SCMH to 1200 SCMH

for suction and discharge pressures of 12 bar (g) to 255 bar (g). It is noted that

the largest compressor frames supplied by the major manufacturers have a

maximum capacity of 1200 SCMH (15.3 kg/min).

The CNG system is ideally designed to have the compressor operating for the

duration of daily operation with the cascades providing the peak flow

requirements as and when they occur during vehicle filling.

CNG Station Sizing

It has been observed that the average filling time for a bus is about 10 mins.

Based on the peak load and turnaround time, the capacities of compressors and

the corresponding cascade required for each CNG station has been finalized.

The peak consumption load of CNG at the end of 25th year (based on 18 hours

working with 83% efficiency) has been taken as the basis for sizing of CNG

stations.

The Mother Stations are installed on the steel grid. The daughter booster stations

shall be placed away from the grid line within the premises of existing

petrol/diesel outlet of oil companies covering the entire geographical area where

surplus land is available for installation of booster compressor, cascade, dispenser

etc.

The gas in the daughter Booster Station shall be supplied through mobile

cascades filled from the mother station.

Mother / Online Station

The mother / online station shall be equipped with 1200 SCMH capacity mother

compressors to compress the NG from a pressure of 49 kg/cm2g to 255 kg/cm2g.

All categories of vehicles are refueled i.e. Bus, Car, LMV, LCV, and auto. Apart

from above, LCV mounted mobile cascades for feeding CNG mother station to

other Daughter Booster Stations will also be refueled from this station but

cascades filling facilities will not be available in online station.

Daughter Booster Station

The daughter booster stations for refueling of Cars/LMV and Autos are provided by

unloading CNG brought in mobile cascades from mother station. The pressure

drop in CNG while dispensing is boosted by installing a booster compressor of

1200 SCMH. Once the pressure in the LCV mounted cascade drops below 30

kg/cm2g, the same cascade is sent back to the mother station for reloading. A

loaded mobile cascade is always parked at daughter booster station for unloading.

9.1.6 CRITERIA FOR ROUTING OF GAS PIPELINES

The gas pipeline route shall be selected considering the following criteria:

Shortest length of grid pipeline

Minimize rail, major road, drain and river / major canal crossings

Availability of space

Least stretch through slushy, rocky and cultivable terrain.

Avoiding HT transmission lines.

Minimum number of turning points.

Easy access to the route during construction phase.

Availability of any existing pipeline corridor.

Close proximity to unstable structures or where construction could

lead to damage to pipeline.

Areas of known or suspected aggressive soil conditions.

Pipeline crossings of major obstructions like waterways, railways and highways

are envisaged using Horizontal Directional Drilling (HDD). However, the crossings

of minor obstructions wherever necessary shall be done by "boring" methods.

9.2 CODES & STANDARDS

The principal international standards proposed for distribution network is

ANSI/ASME B 31.8, ‘Gas Transmission and Distribution Piping System’. Since ASME

B31.8 does not adequately cover plastic pipes, for this ISO : 4431 ‘Buried

Polyethylene (PE) pipes for the supply of gaseous fuels- Metric Services

specifications’ shall be followed.

Steel Pipes

ANSI / ASME B31.8

ANSI B31.3

API 5L

OISD: 226

MDPE Pipelines for U/G Gas Services

ANSI / ASME B31.8

IS: 14885

OISD: 220

CNG System

OISD: 110, 132, 137 & 179

NZS – 5425

NFPA – 37, 52, 70

ANSI B 31.3 & B 31.8

IS – 2148

API - 11P, API - 618

Indian Electricity Rules

Indian Explosives Act

ASTM, NEMA, NGV, NEC

CCOE & Guidelines

10.0 PROJECT IMPLEMENTATION SCHEDULE

10.1 The project will be implemented by utilizing its own resources as equity. The

project will be implemented by appointing a reputed Project Management

Consultant (PMC) and through contractors appointed to carry out the pipeline

laying and construction / installation of other facilities.

10.2 The project has been divided into broad areas like –

Construction of Feeder Pipeline, City Gate station, Main Steel Grid Pipeline

Construction of CNG Station

Construction of MDPE Pipeline Network for Industrial, Commercial and

Domestic Customers.

Arrangement of Mobile cascades for transportation of gas from CNG mother

stations to daughter booster stations.

We may appoint an Engineering and project Management Consultant to

undertake complete basic and detail Engineering, Procurement ,and to provide

Construction supervision .The PMC Consultant shall be responsible for managing

the complete project based on basic Engineering parameter developed in Detailed

Feasibility Report .This philosophy has inherent advantages of single point

responsibility by the owner .The construction shall be carried out by employing

suitable contractor as per requirement .A Typical work break down structure for a

conventional Implementation strategy includes the following phases ;-

Pre project activities

Basic Engineering and long feed procurement

Detailed Design

Contracting

Construction and commissioning

It is estimated that, in the 1st year itself city gas distribution operation shall start

after installation of feeder pipe line from gas tap-off point to CGS, CGS to nearest

DRS, Mother /Online station with one compressor, Daughter stations, part steel

grid and part MDPE grid, gas connection to domestic, commercial & industrial

sectors as per estimated realistic demand of gas in CGD. The remaining CNG

mother/Online stations, daughter stations, DRSs and steel / MDPE grid ,gas

connections has been proposed to be installed in 2nd & 3rd year & thereafter as

per realistic demand scenario and hence will be effected progressively up to 25

year .

10.3 IMPLEMENTATION MODE

10.3.1 CGS, FEEDER PIPE LINE FROM TAP-OFF TO CGS, MAIN GRID

LINE AND DRS

The pipeline laying shall conform to the provisions as specified in ASME B-31.8 or

equivalent as approved by statutory authorities. In addition, safety provisions

under OISD GDN 192 (Safety Practices during Construction) shall be complied. The

construction of CGS & feeder/main grid line shall include followings:

i) Allotment/Acquisition of land for CGS & arrangement of land on rent for DRS

ii) Finalization of R.O.W/R.O.U/land restoration charge for pipe line laying

iii) Obtaining statutory clearances/approvals

iv) Basic & detailed engineering

v) Award of works contract for CGS , steel pipe line & main grid line

vi) Construction of feeder pipe line from tap-off to CGS

vii) Construction of CGS

viii) Construction of main grid line

ix) Construction of DRS

x) Commissioning of CGS, feeder/main Grid line and DRS

Within 8th month duration in 1st year, feeder pipe line from gas tap-off point to

CGS DRS, part steel grid shall be commissioned. All excavation and laying

activities shall be carried out as per OISD STD -226

The execution of work of remaining main steel grid line and DRSs shall be carried

out mainly during 2nd & 3rd year .Thereafter in a progressive manner based on

requirement to satisfy the demand. The quantum of work is need based. All safety

precautions during construction shall be followed as specified in OISD-STD-147.

10.3.2 CNG STATIONS

THE CONSTRUCTION OF CNG STATIONS SHALL INCLUDE FOLLOWING

ACTIVITIES:

i) Land Survey.

ii) Obtaining statutory clearances/ approvals & arrangement of land on rent

iii) Basic & detailed engineering

iv ) Procurement of compressors & other associated items

v) Execution of Civil Work, Mechanical, Electrical works & Instrumentations jobs

vi) Erection and Commissioning of Dispenser, Compressor, cascades etc

The execution of work of CNG stations with one compressor shall be carried out in

a staggered manner. However, installation of additional compressors in the

existing CNG station shall be continued up to 23rd year as per realistic demand of

automobile sector. The execution of work of CNG (daughter/booster) stations with

one compressor shall also be carried out in a staggered manner starting from 1st

year of construction/operation as per realistic demand of automobile sector. The

quantum of work is need based.

10.3.3 CITY GAS DISTRIBUTION (MDPE GRID & GAS CONNECTION)

THE CONSTRUCTION OF CITY GAS MDPE DISTRIBUTION NETWORK SHALL

INCLUDE FOLLOWING ACTIVITIES:

i) Survey & Pipe line laying permission

Ii) Finalization of R.O.W/land restoration charge

iii) Obtaining statutory clearance and approvals

iv) Basic & detailed engineering

v) Execution /Laying of pipeline & allied facility

vi) Gas connection to domestic, commercial and industrial sectors

vii) Testing & commissioning of the system

The execution of work under city gas distribution (MDPE grid) shall be carried out

in a staggered manner over a period of 25 years starting from 1st year. The

quantum of work is need base. From 1st to 25th year, gas connections to different

consumers as per realistic demand scenario have been considered.

10.4 PROJECT 'ZERO' DATE

Finalization and appointment of a Project Management Consultant (PMC) shall be

considered as the 'ZERO' date of the proposed CGD project. PMC shall carry out all

the activities as per project implementation schedule with the approval of Owner

for timely implementation and completion of the project.

10.5 IMPLEMENTATION METHODOLOGY

PMC shall provide necessary technical services in the areas of basic design,

detailed engineering, procurement of major equipment and materials, selection of

suitable vendors and contractors, construction supervision, commissioning

assistance and project management.

Feeder/Main grid line construction along with erection of free issue items, erection

of CGS, DRS, CNG stations and City Gas Distribution system shall be given to

competent contractors, preferably an EPC agency, which shall complete the works

as per project schedule. All major/ critical equipment and machinery will be

procured by Owner, as this shall ensure the quality of equipments / material as

well as their availability in time. All statutory approvals, fire protection and

detection facilities shall be in place before commissioning as per approved

procedure after due checks and certification by the authorized personnel.

10.6 SUMMARY OF IMPLEMENTATION OF CGD NETWORK

The proposed City gas distribution network shall be carried out in a staggered

manner over a period of 25 years starting from 1st year.

Further, please refer annexure iii & iv for detail of implementation schedule and

Bar Chart.

11.0 YEARWISE PLANNED CAPEX & OPEX

11.1 CAPEX

Estimated Capital Expenditure (Capex) of the proposed CGD project of

HARIDWARGA is based on the facilities considered such as Feeder steel pipe from

tap-off point to CGS, City Gate Station, Steel & MDPE gridline, on line CNG

stations, DRS and other allied equipment and facilities works out to Rs. 349.97

Cr. There is no foreign exchange requirement envisaged for the proposed project.

Year-wise project capital cost is given in Table -11.1.

Table – 11.1

Estimated Project Capital Expenditure

Sl. No. Year Estimated Expenditure

(Rs. Lakhs)

1 1st Year 25758.37

2 2nd Year 773.49

3 3rd Year 777.56

4 4th Year 777.07

5 5th Year 291.95

6 6th Year 291.34

7 7th Year 296.08

8 8th Year 294.11

9 9th Year 298.63

10 10th Year 303.58

11 11th Year 307.32

12 12th Year 312.08

13 13th Year 316.90

14 14th Year 321.79

15 15th Year 326.76

16 16th Year 331.80

17 17th Year 337.00

18 18th Year 342.21

19 19th Year 347.54

20 20th Year 352.97

21 21st Year 356.68

22 22nd Year 362.14

23 23rd Year 367.63

24 24th Year 373.24

25 25th Year 378.94

Total 34997.18

11.1.1 MAJOR FACILITIES

The major facilities envisaged for the project have been presented in Table-11.2.

Table–11.2

Major Facilities

Sl.

No.

Particulars Details

1.0 City Gate Station 1 no.

Sl.

No.

Particulars Details

2.0 Grid Line

2.1 Steel Grid (Km)

2.1.1 12" (Rating Sch 40 precoated steel

pipe line) 10

2.1.2 8" (Rating Sch 40 precoated steel

pipe line) 117.730

2.1.3 6" (Rating Sch 40 precoated steel

pipe line) 8

2.1.4 4" (Rating Sch 40 precoated steel

pipe line) 12

2.2 MDPE Grid (Mtr)

2.2.1 180mm MDPE 376726

2.2.3 125mm MDPE 48894

2.2.4 90mm MDPE 240463

2.2.5 63mm MDPE 280541

2.2.6 32mm MDPE 1688053

2.2.7 20mm MDPE 801545

3 GI pipe(Mtr) 4408496

4 DRS 6 nos.

4.1 DRS (5000 SCMH) 4 nos.

5.0 CNG Stations 8

5.1 3600 SCMH 1nos.

5.2 2400 SCMH 7 nos.

11.2 OPEX

Estimated Operating Expenditure (Opex) of the proposed CGD project of

HARIDWARGA is based estimated manpower deployment for undertaking O & M

activities with requisite salary and wages, cost of general administration, utilities,

consumables, repair & maintenance(R&M) etc. as per standard practice. Year-wise

operating cost is given in Table-11.3.

Table – 11.3

Estimated Operating Expenditure

Sl. No. Year Estimated Expenditure

(Rs. Lakhs)

1 1st Year 325.69

2 2nd Year 366.50

3 3rd Year 401.27

4 4th Year 439.33

5 5th Year 481.24

6 6th Year 527.25

7 7th Year 577.66

8 8th Year 633.26

9 9th Year 694.33

10 10th Year 761.69

11 11th Year 835.61

12 12th Year 916.89

13 13th Year 1006.36

14 14th Year 1104.56

15 15th Year 1212.84

16 16th Year 1331.75

17 17th Year 1462.63

18 18th Year 1606.57

19 19th Year 1764.93

20 20th Year 1939.06

21 21st Year 2130.84

22 22nd Year 2341.64

23 23rd Year 2573.88

24 24th Year 2829.19

25 25th Year 3109.99

Total 31374.97

12.0 FINANCIAL ASSUMPTION

12.1 MAJOR ASSUMPTIONS

The following assumptions towards financials of major capex, opex, tax rates,

depreciation methodology and all other items having a significant impact on cash

inflows/outflows of the project have been made while developing financial

projections:

The costs of equipment and supplies have been estimated based on the cost data

available with consultant for similar purposes supported with budgetary cost of

major equipment & supplies from reputed vendor.

i) Only regulated cost has been considered for estimation of capital cost.

Following taxes & duties have been considered:

- Excise Duty @ 10%

- Sales Tax @ 2%

- Service Tax @ 10%

- Education Cess @ 3%

ii) Inland freight & handling and insurance have been considered as 1% and 1%

respectively of cost of supplies.

iii) The Capex have been made on present market conditions without considering

any escalation .

iv) Project cost has been considered to be funded with equity only.

v) A provision has been made towards start up and commissioning expenses and

Owner’s project management charges @ 1.0% of landed cost.

vi) The life of equipment & machineries has been considered are as follows:

Compressor : 25 years

Pipeline & associated equipment : 30 years

vii) Land Cost except CGS has not been considered, it has been assumed that all

land is on rental basis.

13.0 PROJECT FINANCING, CASH INFLOW/ OUT FLOW ETC.

13.1 General

Project Financing-Year wise Cash inflows from Network Tariff and Compression

charges only, year wise cash outflows towards capex ,opex & other heads,

Financial Analysis taking in account the funding scheme, debt servicing has been

estimated based on the projected gas flow in realistic scenario, facilities

considered, manpower & utility and consumable requirement etc.

13.2 Network Tariff and Compression Charges

Network Tariff and Compression Charges for the proposed City Gas Distribution

project in HARIDWAR GA have been calculated in accordance with the Petroleum

and Natural Gas Regulatory Board (Determination of Network Tariff for City or

Local Natural Gas Distribution Networks and Compression Charge for CNG)

Regulations, 2008. The Network Tariff has been considered equal throughout the

economic life of the CGD project i.e. 25 years where as Compression Charges has

been considered equal for 1st 10 years thereafter it has been increased

progressively till the end economic life of the CGD project. Details are as per

annexure v.

13.3 Profit & Loss (P&L) Statement

Profit & loss statement has been worked out considering cash inflows/revenue

generation from network tariff & compression charge only based on volume of

natural gas transported in all sectors and volume of natural gas transported by

pipeline to on line compressors for compression in to CNG and cash outflows as

expenditure on utilities like power, consumables, salaries, general administrative

expenses, insurance etc. Profit before Depreciation and Tax (PBDT) is the Net of

inflows/outflows from the project.

For Further detail please refer annexure vi.

13.3.1 Project Internal Rate of Return (PIRR)

The IRR is a discount rate at which the present worth of benefits and costs are

equal. The IRR calculation has been done for the proposed project based on the

expanded 25 years installation regulatory cost of different segment of city gas

distribution system plus normative working capital which is equal to twenty

days of operating cost excluding depreciation (cash out flow). The cash inflow

is the revenue from net work tariff & compression charge only. On the above

basis, Pre-tax IRR (project) of the proposed project is estimated as 6.0%.

Please refer annexure Vii.

14.0 CREDIBLE PLAN FOR INDEPENDENTLY UNDERTAKING & EXECUTING THE PROJECT

14.1 GENERAL

The organizational structure and manpower requirement as detailed in the

following sections defines the credible plan for independently undertaking

and executing proposed CGD project on a standalone basis including

development of in-house Operation & Maintenance (O&M) team for

smooth running of the CGD equipment/machinery/facilities and

distribution of Piped Natural Gas (PNG) to domestic/commercial/industrial

sectors & Compressed Natural Gas (CNG) to automotive sector.

14.2 ORGANISATION AND FUNCTIONS

It is expected that organizational improvements, accompanied by new

perceptions of the functions to be carried out with the growth of the

organization and the gas distribution system. Structural changes may be

required as the organization gains experience and particular challenges of

the local operating environment are addressed.

Initially, the organization will focus on proper planning for construction

and installation of feeder pipeline from tap-off point to CGS & main grid

line, installation of CNG network, DRS, Gas Distribution system, Domestic

connection and other associated construction/erection works .Gradually,

as the infrastructure grows and customer appliances are converted, there

shall be a need for operation & maintenance of systems and associated

facilities. Also, additional resources shall be required in the areas of meter

reading, billing and general customer services.

The proposed structure caters for the work change requirement

anticipated as the organization grows.

14.3 MANPOWER REQUIREMENT

14.3.1 PROJECT IMPLEMENTATION

Services of a reputed and experienced Project Management Consultant

(PMC) are of utmost necessity for timely and successful implementation of

the proposed CGD project.

The organizational structure for project Implementation shall be headed

by a Project Manager (Projects/O&M) who shall be assisted by

Construction Manager, QA/HSE executive, Project engineer and Assistants

account/finance/administration etc. They will look after activities of

following Areas:

License & Approvals

Contract & Procurement

Safety

CGS & DRS Installation

Steel Grid Installation

CNG & Daughter Stations Installation

Gas Distribution Network Installation

Connection to consumers

Stores Management

Finance & Administration Management

Proper Planning & Co-ordination of all CGD related activities

14.3.2 OPERATION AND MAINTENANCE

The main grid line, CGS/DRS, CNG/Daughter stations and city gas

distribution shall all have a unified control mechanism headed by a Chief

Manager (O & M) supported by Additional Manager, Deputy Managers ,

QA/HSE executive, Project engineer, Technicians ,Assistants

account/finance/administration and Billing staff etc. who will look after

distinct departments, namely,

City gate station

City gas distribution network

CNG /Daughter station operations

Maintenance

Safety Aspects

Stores

Finance & Administration

Co-ordination

It is proposed that the services will be out-sourced where ever possible,

i.e. services be contracted as required rather than employed as

permanent staff, particularly in the field of O&M, meter reading and

account remittance, etc. However, there shall be a requirement for a small

permanent core group with expertise to carry out work, supervise and

ensure quality control on work performed by the personnel on contract.

Such an arrangement shall provide flexibility to the organization to

contract appropriately skilled personnel, as the skill requirement changes

with the organizational expansion and customer’s growth.

Key management staff shall be required to manage the different

Departments. This shall range from Managers to Supervisors and

Supporting staff.

14.4 TRAINING

Regular training to permanent core group managers is required to get

them acquainted with the latest improvement of CGD industry and

development of managerial skills. In addition to this, appropriate training,

both classroom and on-the-job, shall be required for operation and

maintenance staff to ensure that they shall be able to perform the

required work effectively and safely.

Instructors experienced in specific areas of the gas industry shall be hired

to train the personnel deputed for the proposed project.

Further,please refer annexure iii & iv for detail of implementation

schedule and Organogram.

15.0 HEALTH SAFETY ENVIRONMENT & DISASTER MANAGEMENT PLAN

The Health, Safety and Environment (HSE) are technical reference

documents with general and industry specific requirement. The HSE

contain the performance levels and measures that are generally

considered to be achievable in new facilities at reasonable costs. The

applicability of the HSE should be tailored to the hazards and risks

established for each project on the basis of the results of an

environmental assessment in which site-specific variables, assimilative

capacity of the environment and other project factors are taken into

account. This section provides a summary of HSE issues associated with

gas distribution systems that occur during the construction and operations

phases, along with recommendations for the management.

15.1 OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety (OHS) issues in the construction phase

include potential exposures to dust, noise, physical strain, and trenching

excavation & equipment/machinery erection hazards. Occupational

health and safety hazards associated with the construction and operation

of gas distribution systems may also include:

Occupational exposure to gas leaks and explosions

Confined spaces

15.1.1 OCCUPATIONAL EXPOSURE TO GAS LEAKS AND

EXPLOSIONS

Excavation, construction, and repair of gas distribution systems may

result in accidental pipeline rupture or leakage and consequent exposure

of workers to harmful gases and an explosive gas atmosphere. In addition,

excavation by non-gas utility personnel may result in accidental ruptures

and exposure of untrained workers to explosion hazards. Recommended

techniques to prevent and control exposure to gases and explosive

atmospheres caused by accidental gas line ruptures and / or leaks

include:

Training of employees and contractor personnel in safety

procedures, together with provision of appropriate tools and

tackles.

Identification and location of existing gas and other buried

utility infrastructure prior to excavation for installation or repair

of gas pipelines. Installation of visual marking of gas lines as

part of installation, and updating as necessary on regular basis;

Removal of sources of ignition prior to gas venting for

maintenance and repair activities. Purging of gas from pipeline

or pipe components prior to any hot job.

Installation of gas lines and components using sufficient

separation distance and appropriate pipe protection layering to

minimize potential interference with other underground

infrastructures. Separation of plastic pipes from sources of heat;

Odorization of gas to facilitate detection of gas leakage;

Training of gas utility workers in procedures for emergency

preparedness and response involving appropriate public

authorities, in addition to emergency shutdown and pressure

reduction in the pipeline system.

15.1.2 CONFINED SPACES

Accumulation of natural gas in a confined space is a potentially fatal

condition. Entry by workers into confined spaces and the associated

potential for accidents may vary among gas distribution project phases

and facilities. Specific and unique areas for confined space entry may

include excavation trenches during construction and regulating & CNG

stations which contain equipments that may cause fugitive emissions of

gas and create a potential for oxygen deficient and explosive

atmospheres. Gas distribution companies should develop and implement

confined space entry procedures which include the following:

Requiring work permits for all confined space entries;

Installation of appropriate access controls for unauthorized

personnel including signage to alert workers to the hazards of

confined spaces;

Use of ventilation and oxygen / explosive level detection and

alarm equipment prior to access.

15.1.3 ELECTROCUTION

Excavation, construction, and repair of Gas Distribution Systems may

result in workers’ exposure to existing above ground or underground

utilities, including aerial or buried electric transmission lines. Identification

and location of all relevant existing underground utilities should be

undertaken prior to any construction and excavation activities.

15.2 COMMUNITY HEALTH AND SAFETY

Community health and safety hazards associated with the construction

and operation of gas distribution systems include public exposure to gas

leaks and explosions.

15.2.1 PUBLIC EXPOSURE TO GAS LEAKS AND EXPLOSIONS

The presence of gas distribution systems within populated areas may

expose the public to hazards from gas leaks and explosions. Gas leakage

may result from accidental rupture of pipelines during installation and

repair or from contact during excavation unrelated to the gas distribution

system. Gas utility operators should inform and advise affected

communities, schools, businesses / commercial facilities, and residents

about the potential hazards presented by gas infrastructure. Gas

distribution system operators should establish an emergency

preparedness and response plan and communicate this plan to the public

as necessary.

As part of the plan, gas system operators should implement a

telephone notification system to respond to reports of leaks or questions

of general safety from the affected community and other interested

parties. Operators should also provide a pipe location service to assist

outside contractors and the general public to determine the location of

gas infrastructure prior to construction works proximate to gas pipelines.

Improper operation of natural gas fuelled appliances and equipment may

expose the user and the public to gas leakage and explosion hazards. Gas

distribution system operators should make information available to

customers regarding the safe operation of gas fueled appliances and

equipment. This information should address issues of proper and safe use

of gas-fired appliances, which in the case of residential use, may include

the following issues:

Proper location, installation, and maintenance of appliances and

equipment such as natural gas fired heating units. For example,

installation in areas with adequate ventilation to ensure

dispersion of residual carbon monoxide. Poor combustion in a

natural gas fired appliance or piece of equipment may expose

the user and the public to carbon monoxide exposure,

especially in confined spaces;

Recognition of potential hazards or operating problems. For

example, recognition of the hazards of poor ventilation or

identification of gas surges requiring action by the gas utility

operators (identifiable when flame color in natural gas burning

appliances is orange or yellow rather than blue), and how to

respond to possible accumulation of gas vapors when odor is

detected and instructions on proper response procedures. These

procedures may include avoiding sources of ignition (e.g.

electrical switches, lighters), ventilating area of gas

accumulation, and calling the emergency contact number of the

local gas utility from a safe location.

15.3 ENVIRONMENT

Distribution pipeline construction impacts greatly depend on the location

of proposed pipeline installation. In already developed urban areas,

environmental impacts are considerably different than in suburban or

mixed use areas. Common impacts may include noise and vibration

caused by the operation of earth moving and excavation equipment, and

materials transport and delivery; dust emissions generated by a

combination of on-site excavation and movement of earth materials,

contact of construction machinery with bare soil, and exposure of bare

soil and soil piles to wind; mobile emissions from exhaust of diesel

engines for earth moving equipment; and hazardous materials and waste

handling and fueling activities. In newly developed areas, impacts may

also include soil erosion resulting from excavated areas prior to the re-

establishment of vegetation. In urban areas, impacts may include noise,

traffic interruption, disposal of contaminated soil, and presence of

archeological artifacts.

Environmental issues that may occur during gas distribution projects

include the following:

Habitat Alteration

Air Emissions

15.3.1 HABITAT ALTERATION

Habitat alteration is only considered a relevant potential impact

during construction of gas distribution pipeline systems in newly

developed rural or urban areas. These impacts may be associated with

excavation, trenching, pipe laying, backfilling, and establishment of

infrastructure such as regulating stations. This may create temporary or

permanent terrestrial habitat alteration depending on the characteristics

of existing vegetation and topographic features along the proposed right

of way. Depending on the level of existing urbanization in the proposed

project area, habitat alteration from these activities for example, may

include landscape fragmentation; loss of wildlife habitat, including trees

for nesting; and establishment of non-native invasive plant species. In

addition, construction of distribution pipelines crossing aquatic habitats

may disrupt water courses and wetlands, and require the removal of

riparian vegetation. Sediment and erosion from construction activities and

storm water runoff may increase turbidity of surface water courses. To

prevent and control impacts to terrestrial habitats, distribution pipeline

rights-of-way and regulating stations should be sited to avoid critical

habitat through use of existing utility and transport corridors, whenever

possible. Use of guided / directional drilling for distribution pipeline

installation should be considered where feasible to reduce impacts to both

terrestrial and aquatic habitats.

15.3.2 AIR EMISSIONS

Gas distribution systems may generate gas leaks as a result of normal

operations, equipment venting for maintenance, and aging. Gas leakage,

principally consisting of methane (CH4), a greenhouse gas, may result

from corrosion & degradation of pipelines and related components over

time and fugitive emissions from pipelines and regulating stations.

Recommended measures to prevent and control air emissions due to

leaks include:

Gas pipelines and pipeline components, in addition to general

installation and pipe joining techniques such as welding, should

meet international standards for structural integrity and

operational performance;

Corrosion prevention of buried ferrous metal pipelines should be

undertaken using coating or cathodic protection techniques.

Testing of pipelines and pipeline components for pressure

specifications and presence of leaks should be undertaken prior

to commissioning. The system should be gas tight when tested

at a higher pressure than the normal maximum operation gas

pressure;

Leak and corrosion detection programs should be undertaken,

including use of appropriate leak detection assessment

techniques and equipment. Maintenance programs to repair and

replace infrastructure should be undertaken as indicated by

detection results. Areas of gas infrastructure subject to forces

from heavy load traffic or physical land shifts should also be

periodically monitored for leaks and ruptures;

Comparisons of purchased and delivered gas amounts should

be periodically examined for discrepancies and unaccounted

gas .This may give an indication of quantum of system leakage;

Regulating and CNG stations contain equipment (e.g. safety

valves, filters) that may emit fugitive emissions of gas.

Pipelines, valves, and other component infrastructure should be

regularly maintained, and ventilation and gas detection / alarm

equipment should be installed in station buildings.

15.4 PERFORMANCE INDICATORS AND MONITORING

15.4.1 OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety performance should be evaluated against

internationally published exposure guidelines, of which examples include

the Threshold Limit Value (TLV), occupational exposure guidelines and

Biological Exposure Indices (BEIs) published by American Conference of

Governmental Industrial Hygienists (ACGIH), the Pocket Guide to Chemical

Hazards published by the United States National Institute for Occupational

Health and Safety (NIOHS), Permissible Exposure Limits (PELs) published

by the Occupational Safety and Health Administration of the United States

(OSHA), Indicative Occupational Exposure Limit Values published by

European Union member states, or other similar sources.

15.4.2 ACCIDENT AND FATALITY RATES

Projects should try to reduce the number of accidents among project

workers to a rate of zero, especially accidents that could result in

lost work time, different levels of disability, or even fatalities. Fatality

rates may be benchmarked against the performance of facilities in this

sector in developed countries through consultation with published

sources.

15.4.3 OCCUPATIONAL HEALTH AND SAFETY MONITORING

The working environment should be monitored for occupational hazards

relevant to the specific project. Monitoring should be designed and

implemented by accredited professionals as part of an occupational health

and safety monitoring program. Facilities should also maintain a record of

occupational accidents and diseases and dangerous occurrences and

accidents.

15.5 ENVIRONMENT

15.5.1 EMISSIONS AND EFFLUENT

Although there are no significant point source emissions or effluents for

gas distribution sector, fugitive emissions (from city gate and CNG

stations, underground piping, and third party damage) from gas

distribution systems constitute a significant portion of the overall

atmospheric losses from the natural gas transmission and distribution

industry. Gas distribution system operators should conduct volume

reconciliation programs as an indicator of leakages by comparing

delivered gas amounts against sales to customers. Operators should also

implement inspection and maintenance programs to maintain and

upgrade infrastructure and minimize fugitive gas emissions.

15.5.2 ENVIRONMENTAL MONITORING

Environmental monitoring programs for this sector should be

implemented to address all activities that have been identified to have

potentially significant impacts on the environment, during normal

operations and upset conditions. Environmental monitoring activities

should be based on direct or indirect indicators of emissions, effluents,

and resource use applicable to the particular project.

Monitoring frequency should be sufficient to provide

representative data for the parameter being monitored. Monitoring should

be conducted by trained individuals following monitoring and record-

keeping procedures and using properly calibrated and maintained

equipment. Monitoring data should be analyzed and reviewed at regular

intervals and compared with the operating standards so that any

necessary corrective actions can be taken.

15.6 DISASTER MANAGEMENT PLAN

This Plan provides a guide for assuring safety for the public and

maintaining facilities in satisfactory condition, during emergency

conditions. The management or a responsible person of CGD project

should have procedures for emergency situation that must be employed

to protect the public safety or property from existing or potential hazard.

These hazards will include, but are not limited to, the following:

Under pressure in the gas system

Overpressure in the gas system

Uncontrolled escaping of gas

Fire or explosion near or directly involving a pipeline or CNG

facility

Any leak considered hazardous

Danger to major segment(s) of the system

The hazards also include:

Natural disasters (floods, tornadoes, hurricanes, earthquakes,

etc.)

Civil disturbances (riots, etc.)

Load reduction conditions (result in voluntary or mandatory

reduction of gas usage).

15.6.1 EMERGENCY PROCEDURES

15.6.1.1 INCIDENT NOTIFICATION

Every event that fits the definition of a natural gas distribution system

incident as identified above shall be reported to the Physical Plant Work

Control Center.

15.6.1.2 INCIDENT PRIORITIES AND CRITERIA FOR ACTION

Priorities

1. The first priority of action for all incidents involving natural

gas will be directed towards life safety first followed by

property. Immediate care shall be given to any injured

person(s).

2. The surrounding area will be evacuated to reduce risk of

additional casualties.

Level - 1 Incidents

Definition:

A leak that represents an existing or probable hazard to persons or

property requires immediate repair, or continuous action, until the

conditions are no longer hazardous.

Action Criteria:

Prompt action to protect life and property, and continuous action until the

conditions are no longer hazardous. The prompt action in some instances

may require one or more of the following:

Implementation of Emergency Plan

Evacuating premises

Blocking off an area

Rerouting traffic

Eliminating sources of ignition

Venting the area

Stopping the flow of gas by closing valves or other means

Notifying police and fire departments

Examples:

i) Any leak, which in the judgment of operating personnel at the scene,

is regarded as an immediate hazard.

ii) Escaping gas that has ignited.

iii) Any indication of gas that has migrated into or under a building or

into a tunnel.

iv) Any reading at the outside wall of a building or where gas would likely

migrate to an outside wall of a building.

v) Any reading of high gas concentration in a confined space.

vi) Any leak that can be seen, heard or felt, and which is in a location that

may endanger the general public or property.

Level-2 Incidents

Definition:

A leak that is recognized as being non-hazardous at the time of detection,

but justifies scheduled repair based on probable future hazard.

Action Criteria:

Leaks should be repaired or cleared within one calendar year, but no later

than 15 months from the date the leak was reported. In determining the

repair priority, criteria such as the following should be considered:

Amount and migration of gas

Proximity of gas to buildings and sub-surface structures

Extent of pavement

Soil type and soil conditions (such as frost cap, moisture &

natural venting)

Level 2 leaks should be re-evaluated at least once every six months until

cleared. The frequency of re-evaluation should be determined by the

location and magnitude of the leakage condition.

Level 2 leaks may vary greatly in degree of potential hazard. Some Level

2 leaks, when evaluated by the above criteria, may justify scheduled

repair within the next 5 working days. Others will justify repair within 30

days. During the working day on which the leak is discovered, these

situations should be brought to the attention of the individual responsible

for scheduling leak repair.

On the other hand, many Level-2 leaks, because of their location

and magnitude, can be scheduled for repair on a normal routine basis with

periodic re-inspection as necessary.

Examples:

1. Leaks requiring action ahead of adverse changes in venting

conditions

2. Leaks requiring action within six months

Any reading of lower concentration under a sidewalk in a

paved area that does not qualify as a Level-1 leak.

Any reading under a street area that has significant gas

migration and does not qualify as a Level-1 leak.

Any reading of low concentration in a confined space.

Any reading on a pipeline or CNG station, which does not

qualify as a Level-1 leak.

Any leak, which in the judgment of Operating Personnel at the

scene, is of sufficient magnitude to justify scheduled repair.

Level -3 Incidents

Definition:

A leak that is non-hazardous at the time of detection and can be

reasonably expected to remain non-hazardous.

Action Criteria:

These leaks should be re-evaluated during the next scheduled

survey, or within 15 months of the date reported, whichever occurs first,

until the leak is repaired or no longer results in a reading.

Examples:

Leaks requiring re-evaluation at periodic intervals -

Any reading of low concentration in small gas-associated

substructures.

Any reading under a street in areas where it is unlikely that the

gas could migrate to the outside wall of a building.

Any reading of very low concentration in a confined space.

15.6.1.3 INCIDENT RESPONSIBILITIES

1. The 1st Responder, i.e. Environmental Health & Safety

Department of CGD project, shall establish a command post

near the scene, when necessary or required, to coordinate the

incident.

2. On-scene emergency personnel from Environmental Health &

Safety Department shall provide immediate first aid to injured

persons when it is safe to do so.

3. Environmental Health & Safety Department, Police, and Fire

Department shall conduct evacuations in the event of fire,

explosion, natural disaster or other incidents, when necessary,

as directed by the Incident Commander.

4. Local Police/security personnel, in conjunction with other

supporting agencies, shall establish, maintain, and man all

necessary incident perimeters and barricades as directed by

the Incident Commander.

5. Plant Mechanical Maintenance and/or Utilities personnel shall

isolate the incident area by shutting off the flow of any gas

from feed lines into the impacted area.

6. The Fire Department shall manage any fire suppression needs

as well as provide advanced emergency medical care and

transportation of patients.

7. Environmental Health & Safety Department shall monitor the

atmospheric conditions around the site and shall have the

appropriate equipment ready to be utilized in penetrating

affected areas upwind of the incident for monitoring and rescue

purposes if needed.

8. All the responsible departments shall work jointly upon

direction by the Incident Commander.

15.6.1.4 RESPONSE PROCEDURES

In case of fire located near or directly involving a CGD facility, explosion

occurring near or directly involving a CGD facility, natural disaster, or

other emergency incident, the following response procedures will be

followed:

Notification will proceed as mentioned.

The first responder(s) from Environmental Health and Safety Department

of CGD project shall designate an incident commander and activate the

incident command system (ICS). When necessary, an on-scene incident

command post shall also be established.

The on-scene incident command post shall be located upwind and

as close as practical to the incident site so that continual visual

observations may be maintained of the incident area, and immediate

response to changing conditions may be possible. The on-scene command

post shall stay in communication with all responding agencies.

Responding agencies shall provide designated responsibilities as listed

under the direction of the incident commander.

First Aid and medical care will be provided by Environmental Health

and Safety Department to injured persons as soon as possible.

Firefighting and fire suppression operations will be initiated and

conducted.

Gas valve shut off will be conducted as quickly as possible by

operating/maintenance personnel of CGD project.

Perimeter Zone(s) around the affected area shall be established as

directed by the incident commander in accordance with standard

emergency scene practices.

Hazard Zone

The Hazard Zone is the area in which personnel are potentially in

immediate danger from the hazardous situation. This zone shall be

established by the incident commander. Access to this area will be rigidly

controlled and only authorized personnel with proper protective

equipment and an assigned activity approved by the on-site incident

command post shall be allowed to enter the incident area. Police/Security

personnel will be assigned to monitor entry and exit of all personnel from

the Hazard Zone.

Evacuation Zone

The Evacuation Zone is the larger area surrounding the Hazard

Zone, in which a lesser degree of risk to emergency personnel exists, but

from which all civilians will be removed. The limits of this zone will be

enforced by the Police and other agencies based upon distances and

directions established by the incident commander. The area to be

evacuated depends upon the nature and extent of the fire, explosion,

natural disaster or other emergency. All evacuations shall be ordered by

the incident commander and shall be conducted in an orderly, expedient

fashion by Environmental Health & Safety Department, Police/security

personnel and Fire Department.

Incident-specific circumstances will dictate other procedures that

will be used to bring the emergency under control in accordance with the

priorities of life safety first, followed by the protection and salvage of

property.

15.6.1.5 POST-INCIDENT MANAGEMENT

1.Upon declaration of the Incident Commander that the incident is under

control and the incident area is safe, Environmental Health & Safety

Department and Police/Security personnel shall sweep the incident area

searching for any additional casualties. Upon completion of the sweep,

responsible personnel shall begin the cause and origin procedures. Upon

completion of the investigation, repairs may be initiated.

2.Barriers shall remain intact and any area vacated due to the incident

shall remain vacated until repairs and tests are completed before

restoring all systems back to normal operating conditions.

3. Repairs shall be initiated immediately and shall be expedited to restore

normal service and to place gas distribution system into a normal and

safe mode of operation.

4. Normal procedures shall apply to the emergency repairs:

Only qualified personnel shall perform the repairs.

Only approved material shall be utilized.

Safety procedures and guidelines shall be followed.

5Upon completion of repairs, and after the gas distribution system has

been successfully tested and restored to operation, the incident area may

be released for normal operation.

A final inspection of the area shall be conducted by the

Incident commander.

As directed the by the Incident Commander:

1. Barriers shall be removed

2. Personnel shall be allowed to return to the area

Emergency personnel shall be released upon direction by

the Incident Commander

15.6.1.6 POST-INCIDENT REPORTING

1. The Manager of Environmental Health & Safety shall, within 72 hours of

the closure of the incident, schedule a debriefing with all agencies

concerned. This debriefing shall include, but not be limited to:

Nature of the incident

Problem areas identified

Revisions to the emergency plan, if needed

Factors that caused the incident

2.Upon completion of the debriefing, open discussion for questions and

answers.

The Manager of Environmental Health & Safety issues the final report.

15.7 RESPONDING TO GAS LEAK REPORTS

It is the responsibility of all employees of CGD project to become familiar

with policy and procedure concerned with gas leak calls and reports

1. The Plant employee receiving a report of a gas leak should get as much

of the information as possible to fill out a leak report.

2. All reports of gas leaks in the area get assigned a high priority. Leaks

inside a facility or building receive a Priority One.

3. Upon receiving pertinent information, and determining that a hazardous

leak exists inside a building, the caller should be advised on the following:

Do not operate (do not turn on or off) any electrical appliance

or device.

Extinguish all open flames. Do not light any matches,

cigarettes, etc.

Ventilate the building.

Turn off the gas supply (only if the caller knows how to do so).

Evacuate the building to a safe distance. Be close enough to

relay information to arriving emergency personnel.

4. Dispatch necessary Physical Plant personnel to the location. The Dept.

employee should take any corrective action necessary to ensure

protection of life, then property. It is the responsibility of the person in

charge to:

Set up communication

Coordinate the operation

Make all decisions concerning closing emergency valves and

isolating areas, as well as to coordinate the emergency

personnel and equipment.

15.8 MINIMUM OPERATOR RESPONSE ACTIONS

15.8.1 LEAKS OUTSIDE OF CGD PREMISES

1. Assess danger to passersby, surrounding premises and their occupants

and other properties.

2. Extinguish all open flames.

1. If necessary, notify the Fire Department and CGD project’s

main controlling office.

2. Block the street(s)

3. Notify Supervisor or other responsible persons.

4. Check neighboring buildings for gas vapors, fumes, etc.

5. Implement Check List for major emergency.

6. Repair leak

7. Upon completion of repairs, check the area using a

Combustible Gas indicator; if determined safe, allow occupants

to return to surrounding premises.

15.8.2 LEAKS INSIDE A PREMISE:

i. Immediately evaluate and determine concentration of gas and

source of the leak in the premise.

ii. Do not operate any electrical switches or electrical appliances.

iii. Do not use the telephone; turn off pagers and cell phones

iv. Shut off the gas meter valve

v. Ventilate the premise

vi. Bar hole the area, especially around the foundation. Check

water meter and other ground openings.

vii. If ground is gas-free, and if the premise is gas-free, turn on the

meter valve. Check all gas piping and appliance for leaks.

viii. Implement Check List for major emergency.

ix. Repair leak

x. If leak cannot be repaired, notify Supervisor. Turn off the meter,

lock it and tag it out.

15.8.3 GAS BURNING INSIDE A PREMISE

1. Call Fire Department

2. Call CGD project Control Office

3. If fire is at appliance, shut off the gas appliance valve, if

possible.

4. If not possible, shut the gas off at the meter or appropriate

valve.

5. Implement Check List for major emergency.

Interruption in the Gas supply

An interruption in gas supply could be due to break in the line,

sabotage, or gas cut-off.

1. Call gas supplier

2. Locate the leak; inform Gas supplier of the location of the leak.

3. Close appropriate valve in the system to isolate the break.

4. Implement Check List for major emergency.

15.9 MAJOR EMERGENCY CHECK LIST

1. Has the Fire Department been notified?

2. Have the occupants been evacuated and the area secured?

3. Has the Police Department been notified?

4. Has a repair crew been notified?

5. Has communication been established?

6. Has outside help been requested?

7. Have Emergency Medical Services been notified?

8. Has the leak been shut off or brought under control?

9. Has the fire services been notified?

10. Have emergency valves or proper valves to shut down or

reroute the gas been identified and located?

11. If an area has been cut off from a supply of gas, has the

individual building been cut off?

12. Is the situation under control and has the possibility of

recurrence been eliminated?

13. Has the surrounding area, including adjacent buildings and

cross streets, been probed for the possibility of further

leakage?

14. Has proper tag been placed on the meter?

15. Has telephonic report been made to the State /City

authorities?

16. Has telephonic report been made to DOT?

15.10 REPORTING REQUIREMENTS

A telephone call MUST be made to the city authorities for any leak

where:

The Telephone Report to DOT and OCC should contain:

Address of the Operator/Reporting person

Name and phone number of individual reporting the incident.

The location of the leak (address).

The time of the leak (hour and date).

The number of fatalities and personal injuries, if any.

Type and extent of property damage.

Description of the incident.

A telephonic Report should be made at the earliest practicable

time following discovery (within 2 hours).

15.11 RESTORATION OF GAS SERVICE DUE TO OUTAGE

When the supply of gas has been cut off to an area, the gas should not be

restored to the affected area until the individual gas services in the area

have been turned off.

In restoring service to an affected area, all gas piping and meters must be

purged and appliances re-lighted. Never turn gas on at a meter unless you

have access to ALL appliances or equipment on the piping.

The person in charge is to coordinate this operation and be

responsible for same.

A complete record of the incident, with drawings, etc., must be

kept on file.

15.12 EDUCATION AND/OR TRAINING

Employee Training

CGD project operational/maintenance Personnel and Environmental

Health & Safety personnel must be trained annually in emergency

procedures that include but are not limited to:

1. Update of the emergency plan

2. Review of employee responsibilities in an emergency

3. Review of location and use of emergency equipment.

4. Review the properties of natural gas.

5. Review the locations of:

Systems map

Main records

Service records

Valve records

Regulator station schematics

6. Take a hypothetical emergency situation and conduct a step-

by-step review with employees on the action to be taken,

including contact with public officials, Fire Department,

Police/security personnel etc.

7. Record keeping

8. Telephone reports

9. Records shall be kept on file of attendance and items

discussed.

10. Liaison with appropriate fire, police and other public officials.

15.13 PUBLIC EDUCATION

CGD management or a responsible personnel should, enable the general

public and appropriate governmental organizations, to recognize a gas

emergency. CGD management, through Environmental Health & Safety

departments shall report the incidence of gas odors, leaks and other

emergencies to Gas supplier, Police/fire fighting.

The program material should include, but not be limited to:

Information about gas properties

Recognition of gas odors

What to do and not do when there is a strong gas odor

Notification of the gas company prior to making excavation-

related activities.

Telephone numbers for persons in CGD project to report gas

leaks or odors or other information during both business and

non-business hours.

This information may be conveyed by a number of means:

Radio and television

Newspaper

Meetings

Bill stuffers

Mailings

Hand-outs

Posted on bulletin boards

Employee newsletters etc.

15.14 LIAISON WITH PUBLIC OFFICIALS & LOCAL GAS

UTILITIES

CGD management through Environmental Health & Safety Department

will establish liaison with fire, police, civil defense and medical officials

with respect to these emergency procedures. These officials include

representatives of Police and Fire Departments, Medical Center / Hospitals

etc.

Liaison will consist of annual meetings to discuss what each

agency can do for the other to control an emergency situation. This

meeting will be performed with face-to-face communication, at which time

a copy of this Emergency Plan will be provided to each official.

Documentation must be kept of all meetings, training sessions, and other

related activities, such as:

Date of meeting, attendance and titles of participants

Training sessions on proper procedures to follow during a gas

emergency

Meetings to learn capabilities, responsibilities, and procedures

respecting gas emergencies of each group.

15.15 INFORMATION TO THE MEDIA

During an emergency, refer all requests for information to CGD project

Administrative/Public Relation Office. The PRO will plan for public

announcements which include:

Calm the situation

Do not make unwarranted comments

Tell precisely what the public can do to help

Tell specifically what CGD management is doing about the

incident.

Give facts to prevent baseless rumors.

Repeat most encouraging view of situation that facts will

permit.

Do not speculate regarding the situation in absence of facts.

15.16 ACCIDENT INVESTIGATION

CGD management will proceed in analyzing accidents and failures, and at

the minimum:

Evaluate the situation

Protect life and property

Keep the area safe

Conduct a leak survey

Conduct pressure test of piping

Perform meter and regulator checks

Question persons on the scene

Examine burn and debris patterns

Request for test odorization level

Record weather conditions

Select samples of the failed facility or equipment for laboratory

examination for the purpose of determining the causes of the

failure and minimizing the possibility of recurrence.

Notify the appropriate Risk Management Office.

16.0 RISK ANALYSIS OF THE PROJECT

16.1 RISKS

The major risks involved with the proposed project are as follows:

Operating Risk

Land availability and lease of land

Time & Cost Overrun

Project Funding

Gas Supply & Transportation

Environmental & Other Approvals

Gas Off take

Payment

Technology related Issues

Interest Rate & Inflation

Force Majeure

16.2 RISKS MITIGATION

The mitigation of above risks involved with the proposed project has been

duly considered in making the FR as follows:

Managing the operation of the project by experienced staff of

project owner.

By entering in to timely and proper Sale/Lease deed of land.

Fixed cost & time contract with EPC contractor.

By firm equity & debt tie up (if required).

Agreement with gas supplier well in advance with option ready

for alternate source/availability of gas supply.

Obtaining requisite approvals at the start of the project.

Creating awareness for gas conversion in different sectors and

enter in to suitable agreement.

Expediting and constant monitoring.

By appointing reputed and experienced Project Management

Consultant & EPC contractor.

By Hedging

By suitable Insurances, back to back clauses of Agreements.