Natural Gas A Greener Alternative

Bengaluru

20th June 2012

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

Objective of Public Transport

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

The economic, social and environmental cost

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

Need for sustainability

This is where sustainability comes in. Sustainable transport or green transport refers to any means of transport with low impact on the environment. It includes: Non-motorized transport, i.e. walking and cycling Transit oriented development (TOD townships) Green vehicles CNG, hybrids, electric, hydrogen cell, solar. Car Sharing Building energy efficient urban mass rapid transport systems.

Sustainable transport systems make a positive contribution to the environmental, social and economic sustainability of the communities they serve by saving space and promoting healthy lifestyles

Natural Gas : A feasible option

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

Natural Gas : A feasible option

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

Natural Gas
Mixture of hydrocarbons (predominantly methane). Specific gravity : 0.65 0.71 w.r.t air. Gross Calorific value : 9500 10000 Kcal/SCM Flammability Limit : 4 14 % by volume in air. Auto ignition temperature : 540 degree Centigrade. Flame temperature : 1790 degree Centigrade

Composition
SL. NO. 1 2 3 4 5 6 7 8 9 10 COMPONENTS C1 (Methane) C2 (Ethane C3 (propane) IC4 (I Butane) NC4 (N Butane) IC5 (I Pentane) NC5 (N Pentane) C6 (Hexane) CO2 N2 TOTAL COMPOSITION 92.94 1.51 2.13 0.07 0.06 0.09 0.28 0.17 2.65 0.1 100

Compressed Natural Gas (CNG)

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

CNG is dispensed to vehicles at maximum 200 Kg/cm2g pressure. Physical Properties of CNG: - Colourless
- Odourless - Non-toxic - Lighter than air - Non - corrosive

CNG Station Layout

WHY CNG?

Benefits Of CNG
Today, the benefits of CNG are manifold.

Environmental friendly hence better health.

Economical.

Safer fuel.

CLEAN AND BETTER FUEL

CNG Is The Least Polluting

(gm/100km)

FUEL/ EMISSIONS PETROL DIESEL

CO2 22,000 21,000

UHC 85 21

CO 634 106

NOx 78 108

SOx 8.3 21

PM 1.1 12.5

CNG

16,275

5.6

22.2

25.8

0.15

0.29

Source: US energy department

ENVIRONMENT

CNG Implementation In Delhi Change in Environment

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

Carbon-Monoxide
ug/m3
47%

Sulphur-di-oxide
20 15 10 5 0 18
72%

ug/m3

5000 0

4686 2463

Yr. 2000

Yr. 2007

Yr. 2000

Yr. 2007

Year 2000 Year 2007

SPM
410 400 390 380 370 360 405

ug/m3

ug/m3
Yr. 2000

6%
379

Yr. 2007

Growth in number of vehicles over 2000 to 2007 has been around 50%
Source: NAAQS 2008, CPCB

Prominent Sources of PM10

Sources of PM10
Vehicular exhaust 80 60 40 20 0 Kanpur Mumbai Delhi Bangalore Pune Chennai Area Source Industrial Road(Paved & Unpaved)

ECONOMICS

CNG is Cheapest For Automobile

PRODUCT PRICE (INR) 79.61 / LTR.

PETROL (Non Branded)

DIESEL ( Non Branded)

39.52 / LTR.

AUTO LPG

55.68/LTR.

* CNG Retail price in Bangalore as on date

35 -37 / KG.

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

CNG Improves Mileage

FUEL CAR THREE WHEELER (PETROL) 25 BUS

PETROL (KM/ LTR DIESEL (KM/ LTR CNG (KM/KG

15

20

3.5

24

35

4.1

ECONOMICS

SAFETY

Comparison Of Properties Of Fuels

PROPERTIES CALORIFIC VALUE RELATIVE DENSITY AUTOIGNITION TEMPERATURE FLAMMABILITY LIMIT FLAME TEMPERATURE UNIT KCAL/KG AIR=1
0C

PETROL 11200 3.4 232-282 1-8 1977

DIESEL 10850 3.9 225 0.6-5.5 2054

CNG 14615 0.65 540 5-15 1790

% IN AIR
0C

OCTANE NO. CETANE NO.

7/4/2012

GAIL (India) Limited

87 -

45

127 10
22

Safety Aspects Of CNG

Lighter than air in event of leak it will rise and disperse in atmosphere. Unlikely to ignite due to narrow combustible range (4% - 14% concentration in air). High auto ignition temperature (5400C). CNG Cylinders are seamless and structurally most sound.

SAFETY

Apprehensions About CNG

APPREHENSION FACT

VEHICLE BECOMES UNSAFE TO RIDE

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

HIGH MAINTENANCE COST AS COMPARED TO PETROL / DIESEL

LESSER MILEAGE

CARCINOGENIC

CGD authorization process

Petroleum and Natural Gas Regulatory Board(PNGRB) notifies the city/Geographical area(GA) for CGD implementation. PNGRB invites expression of interest(EOI) from interested parties for creating CGD in the GA. Interested bidders shortlisted on Technical & Financial Criteria. Parameters used for finalizing the award of CGD authorization: a)Domestic connection reach b)Steel pipe volume c)Tariff. Authorized entity can sell CNG to vehicles, piped gas to households and natural gas to industries/commercial establishments located within the GA, having requirement below 50000 SCMD.

JV Company Structure & Scope

STRUCTURE Authorized share capital Rs.100 Crores. KSIIDC and GAIL combined equity stake 50 % Balance 50 % - Strategic Partners/FIs/Non-Govt. Companies

SCOPE Development of Natural Gas infrastructure in industrial estates/areas/clusters. City Gas Networks in Karnataka. Setting up Distributed Power Generation project in Ind.Areas. Develop/promote Natural Gas application in steel /mining sector.

Advantages of this JV in CGD Implementation

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

Support from Government in the states of Delhi Maharashtra

Cases for successful CGD implementation

Support from Delhi State Government

100 land plots allotted to IGL for CNG stations , 6 allotted in 2010. No VAT on Natural Gas supplied to IGL for CNG purposes in Delhi. State Government has been facilitating IGL in obtaining requisite permissions for laying Pipeline and CNG station related infrastructure. As per the Master Plan for Delhi (MPD 2021), plot size for Petrol Pumps/CNG refuelling stations is 36 x 30 sq mts and 45 X 33 sq mts. However, IGLs request for plots of size 75 X 40 sq mts have also been allotted for Mega CNG stations

Support from Government of Maharashtra

CNG Plots : GOM allotted plots to GAIL in Mumbai at concessional rates since the start of the business. Recent allotments of 300 m2 each plots for CNG Filling Stations at Tardeo, Nariman Point and Wadala, at annual rent of Rs.1.60 Lacs per annum. 8 captive CNG filling stations operational in B.E.S.T. depots, 9 more in the pipeline. Land at City Gate Station : 15000 m2 of land allotted to GAIL by GOM at a concessional rates. Sales Tax Deferment : MGL granted Sales Tax Deferment for 13 years, w.e.f. 1.04.2001. Permissions : GOM extended full support for providing statutory permissions As on date, over 1100 Kms of pipeline have been laid on the government land.

Way forward for this JV

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

CNG CORRIDORS
Ludhiana - Saharanpur 200 km Delhi Delhi-Jaipur Delhi250 km Delhi Agra 200 km Agra Vadodara Ahmedabad Mumbai 460 km Indore Agra Jaipur 220 km Agra Indore 590 km Pune Mumbai Pune 150 km DabholDabhol -Blore Pondicherry Kochi-Blore KochiBlore- Mlore 550 & 350 km Kochi Pondicherry-Karikal Pondicherry120 km Blore Vijayawada Vijayawada Kakinada 230 km Haldia-Jagdishpur Haldia900 km Delhi - Saharanpur 160 km Kanpur Lucknow 85 km Agra - Allahabad 463 km

Indore Vadodara 300 km

Kanpur

Mumbai

Prospective cities for City Gas Distribution(CGD)

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

Salient Features of Dabhol Bangalore Pipeline

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

Capacity P/L passing through 3 States and 14 Districts.

DABHOL

Dabhol Bengaluru Pipeline

SANGLI RATNAGIRI

Phase I : 2011-12 Capacity : 14.31 MMSCMD Trunk line : 30 x 730 kms Spurlines : 18 x 242 C.APEX : 4058 Crs. Phase II : 2012- 13 Capacity : 1.69 MMSCMD Spurlines : 8/10 /18 x 417 kms CAPEX : Rs. 486 Crs LEGEND
KOPPAL

KOLHAPUR

CHIKODI

GOKAK TOP
BELGAUM

PHASE-I PIPELINE PHASE-II PIPELINE CUSTOMER LOCATION

BELLARY

GOA

DHARWAD

PROPOSED POWER PLANTS

HARIHAR
DEVANGERE

TUMKUR

BENGALURU
CH 665 CH 730

MANGALORE

Phase I Sept- 2012 Phase II Mar-2013

BIDADI

BANGALORE CITY LINE

RT,Singsandra

BDA

36

Kochi Koottanad- Bengaluru-MangalorePipeline

MANGALORE KASARGOD

BENGALURU KRISHNAGIRI

HOSUR

KANNUR SALEM KOZHIKODE KOOTTANAD TIRUPPUR ERODE COIMBATORE

ALWAYE

States: 03 Districts:16

KOCHI

Kochi-Koottanad- Bengaluru- Mangalore Main line- 916.40KM Spur line 200 KM Project Cost Rs. 3032 Crore

LEGEND CUSTOMER LOCATION KKBMPL PHASE I KKBMPL PHASE - II

Phase I June-2012

Phase II Sep-2013

WORK IN PROGRESS

Project Look Ahead based on Current Status

Year 2009 2010 2011 2012

Sl.

WBS / Quarter --->

OctDec

JanMar

AprJun

JulySep

OctDec

JanMar

AprJun

JulySep

OctDec

JanMar

AprJun

July -Sep

1.

Statutory Approvals

2.

Basic / Detail Engg.

3.

Tendering / Ordering

Time Now

4.

Manufacturing / Inspection / Delivery

5.

Construction / Commissioning

THANK YOU