Demand Assessment of Natural Gas in Selected Sectors in Faridabad

Demand Assessment of Natural Gas in Selected

Sectors in Faridabad

A PROJECT

Submitted in partial fulfillment of the requirements for

MBA (Retail Management)

by

Vikram Singh (Pgrm/03/33)

Under the guidance of

Mr. Bhasik Dholakiya (General Manager, Adani Gas Limited)

Ms. Charu Vermani (Sr. Manager, Adani Gas Limited)

JULY, 2010

ACKNOWLEDGEMENT

It is said that the road to success begins with just a step in the right direction. What are

required are the urge to excel and the ability to work hard consistently. Proper application of

knowledge and expert guidance are essential ingredients of success.

The project work titled “Demand Assessment of Natural gas in Selected Sectors in Faridabad”

being submitted will remain incomplete unless I thank all those who helped me directly and

indirectly for the successful completion of this project.

I would like to express my deep sense of gratitude towards my guides Mr. Bhasik Dholakiya

(General Manager, Adani Gas Limited), Ms. Charu Vermani (Sr. Manager, Adani Gas Limited),

Mr. Mani Ratan Singh (Asst. Manager, Adani Gas Limited) and Mr. Rakesh yadav (Asst.

Manager, Adani Gas Limited) who have been a constant source of inspiration and

encouragement in my endeavor. Their thoughts, ideas, concepts and above all their modest

efforts contributed in a big way in completing this project.

I am also indebted to members of the Management for the facilities provided and support

without which my project would not have turned into an actuality.

At last, I would like to thank all organizations of the four sectors sector 6, 24, 59 and NIT

Industrial Area of Faridabad city for devoting their precious time in filling up the questionnaire.

CONTENTS

Items Page No.

LIST OF TABLES i

LIST OF FIRGURES ii

EXECUTIVE SUMMERY iii-iv

Chapter 1: About Adani Gas 1

Chapter 2: Introduction 2-4

Chapter 3: Natural Gas Scenario in India 5-13

Chapter 4: Property, Use and Safety of Natural Gas 14-18

Chapter 5: What is City Gas? 19-37

Chapter 6: Economics of City Gas 38-44

Chapter 7: Demand Assessment of City gas in selected sectors in Faridabad

city

45-68

Chapter 8: Conclusion 69

Annexure I

References

i

LIST OF TABLES

Table No. Table Name Page No.

Table 2.1 Estimated Energy Reserves 4

Table 3.1 Domestic vs Global gas reserves (2008) 5

Table 3.2 Natural gas Supply Outlook (in MMSCMD) 8

Table 3.3 Sector wise natural gas demand outlook (in MMSCMD) 9

Table 3.4 Snapshot of Previous Rounds of NELP 13

Table 4.1 Components of Natural Gas 14

Table 5.1 Property Comparison of CNG with other Fuels 22

Table 5.2 Players in CGD 35

Table 5.3 New Trunk Pipelines Projects 36

Table 7.1 Small Scale Industries 47-55

Table 7.2 Medium Scale Industries 55-57

Table 7.3 Large Scale Industries 58

Table 7.4 Type and Number of industry in sector 6 59

Table 7.5 Types of Fuels used in industry 60

Table 7.6 Total Daily fuel consumption in Industries in sector 6 60

Table 7.7 Equivalent NG consumption with & without power requirement in sector 6 61







Table 7.14 Type and Number of industry in NIT Industrial Area 66

Table 7.15 Total Daily fuel consumption in Industries in NIT Industrial Area 66

Table 7.16 Equivalent NG consumption with & without power requirement in NIT

Industrial Area

67

Table 7.17 Total demand of PNG in these four sectors: 68

ii

LIST OF FIGURES

Figure No. Figure Name Page No.

Fig 2.1 Per capita Energy consumption world-wide (Kgoe) 2

Fig 2.2 Primary energy Mix of India & World 4

Fig 3.1 Productions and Consumption of Natural Gas in India during 2000-08 (in

BCM)

6

Fig 3.2 Natural Gas Consumption pattern in India (2009-10) 7

Fig 3.3 Estimates for NG Supplies from Domestic Fields 8

Fig 3.4 Exploration Status 12

Fig 4.1 Symptoms of CO Poisoning 17

Fig 5.1 Existing and Upcoming pipelines in India 37

Fig 6.1 Mother Station 41

Fig 6.2 Daughter Booster Station 42

Fig 6.3 Online Station 43

Fig. 7.1 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 6 61

Fig 7.2 Equivalent NG consumption with & without power requirement in sector 6 61

Fig 7.3 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 24 63


Fig 7.5 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 59 65


Fig 7.7 Share of Different fuels to be replaced by Natural Gas (SCMD) in NIT

Industrial Area

67

Fig 7.8 Equivalent NG consumption with & without power requirement in NIT

Industrial Area

67

iii

Executive Summary

Due to environmental concerns and price competitiveness, the Natural Gas has become fuel for

the future. It is called the fuel of the 21st

century. Gas consumption is increasing every year by

leaps and bounds all over the world. In India with recent discoveries of Gas fields, has been

spotted in the world map of gas producers. BP Statistical Review of World Energy, June 2009,

the R/P ratio of domestic gas reserve is 35.6 years. According to ICRA report, domestic natural

gas supplies to increase to around 230 MMSCMD by 2018-19, from around 145 MMSCMD in

2009-10. Besides RIL’s KG D6 field, the other sources which will contribute towards supply

increase include: KG basin satellite fields (owned by RIL consortium); NEC field (RIL consortium);

Deen Dayal block in KG basin (GSPC consortium); KG-DWN-98/2 (ONGC); and MN-DWN-98/3

(ONGC). The demand of natural gas will always surpass the supply. For meeting this demand

supply gap, several initiative are being taken such as importing LNG, trans-national pipelines,

NELP, CBM production etc.

The current natural gas consumption is primarily shared by the power and fertilizer sector to

the tune of 39 percent and 25 percent respectively. This is followed by the Petro Chemical,

Refinery & Internal Consumption 13% percent, city gas (CNG/PNG) 4 percent, Industrial

&Captive Power 14 percent and sponge iron/steel sector 5 percent.

The increase in gas supplies and gas transmission infrastructure is also likely to provide a fillip to

City Gas Distribution (CGD) players. As of now, CNG and PNG are available in 40 cities in India.

Natural gas being clean, energy efficient and cost efficient in comparison with other fuels it

competes, customers are attracted towards natural gas.

Adani Gas has already set up a Gas Distribution Network in Ahmedabad and Vadodara city of

Gujarat and Faridabad city of Haryana. In Faridabad city, presently only 4 CNG stations are

there and 44,314 Kg of CNG is being sold everyday. Faridabad is a hub of industry. Sector 6, 24,

59 and NIT Industrial Area were being surveyed for estimating the PNG demand potential in the

industrial sector. There are around 400 small, medium and large industries in those sectors.

iv

These industries are presently consuming LPG, Diesel Coal, Petcoke, FO as their fuels. PNG can

replace these conventional fuels in the existing plants. Based on their daily consumption of

different fuels, the demand for equivalent (energy equivalent) amount of piped natural gas

would be 0.06847367 MMSCMD for Sector 6, 0.0441559122 MMSCMD for Sector 24,

0.035599505 MMSCMD for Sector 59 and 0.04039581801 MMSCMD for NIT Industrial Area.

Therefore, total demand of PNG in these four industrial regions would be 0.188625 MMSCMD

or approximately 0.20 MMSCMD.

Demand Assessment of Natural Gas in Selected Sectors in Faridabad

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1

Chapter 1 ****************

About Adani Gas

Adani Gas is a wholly owned subsidiary of the Adani Enterprise Ltd (AEL) and was

incorporated for setting up distribution network in various cities to supply natural gas to

industrial, Commercial, Domestic and CNG Customers. The company has forayed into the

business of Gas Distribution Business with an objective of providing safe, convenient,

reliable and environment friendly fuel.

Adani Gas has already set up a Gas Distribution Network in

GUJARAT: Ahmedabad and Vadodara

HARYANA: Faridabad

Till date, in Ahmedabad city 418 industrial customers are being served with their total

PNG requirement is 2,27,898 SCMD, 669 commercial customers are being served with

PNG consumption 12,279 SCMD, 82,876 domestic customers are being served with total

gas consumption 45,582 SCMD and 1,90,054 kg of CNG sales per day.

In Vadodara, 71 industrial customers are being served with their total PNG requirement is

44.628 SCMD and 47,698 kg of CNG sales per day.

In Faridabad city, presently only 4 CNG stations are there and 44,314 Kg of CNG is being

sold everyday.

Adani Gas has received NOCs to develop City Gas Distribution networks to repeat the

similar success stories in

UTTAR PRADESH: Noida, Lucknow & Khurja, and

RAJASTHAN: Udaipur and Jaipur.

Adani Gas has already initiated the infrastructure development in these cities to meet the

fuel needs of industrial, domestic, commercial & Transport sectors.


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2

Chapter 2 ****************

Introduction

India has been experiencing unprecedented economic growth at the rate 7-9% per year for

the last few years and is aspiring to become a leading economic power in the world in the

next few decades. India has set itself an ambitious target of 9 % sustained growth rate

during the Eleventh Five Year Plan. Energy consumption is seen as one of the indicators of

economic development. Being the driver of any economy, energy has seen its demand rising

with economic growth.

India is currently the world's fourth largest economy in Purchasing Power Parity (PPP) terms

and the fifth largest energy consumer in the world. However, due to its high population of

approximately 1.1 billion, the per-capita consumption of most energy related products is

extremely low. The per capita energy consumption is estimated to be a very modest 530

kgoe while the world average is approximately 1820 kgoe.

With the targeted GDP growth rate of

8 to 9 percent, India’s energy

requirement is bound to increase in

the coming years. India will face

significant challenges to meet this

growing energy demand. India is well

endowed with coal which is expected

to continue to be the dominant

energy source. At the current level of

consumption, the proven reserves of

coal, can last for about 80 years. If all

the inferred reserves also materialize

then coal and lignite can last for over

Fig 2.1 Per capita Energy consumption world-wide (Kgoe)


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3

140 years at the current rate of extraction. Of course coal and lignite consumption will

increase in the future and the reserves would last for far fewer years. If domestic coal

production continues to grow at 5% per year, the total (including proven, indicated and

inferred) extractable coal reserves will run out in around 45 years as per Integrated Energy

Policy 2006. Therefore, India would have to actively pursue and develop non-coal energy

sources.

India’s oil assets are meager. In addition, some of the existing oil and gas fields were

experiencing a decline in their production since they had already been in production for

several years and were past their 3 plateau phase. As India is poorly endowed with oil

assets, it has to depend on crude imports to meet a major share of its needs, close to 78

percent with its oil import bill being close to USD 90 billion in 2008-09. According to the IEA,

we will be import dependent to the extent of 94 per cent by 2030. Beside this, the price of

crude oil has seen dramatic fluctuations in the last one year from a high of about $147 per

barrel to $35 per barrel & currently it hovers at roughly $78/barrel. Such wild fluctuations in

crude oil prices make growing economies such as ours vulnerable from an energy security

viewpoint. The price swing seen in the past 12 months further highlights how precariously

the demand and supply is balanced and how the growing demand from developing

countries can cause demand-supply imbalances. This has led governments across the world

to search for viable alternative sources of energy in order to increase their energy

self-reliance. Many countries have significant investments in renewable sources of energy

to help reduce carbon emissions.

India can not boast of its gas assets but recent discoveries hold promise for India’s gas

reserves and coal bed methane. India has vast reserves of the nuclear fuel thorium but the

technology is not yet developed for its commercial use. Renewable energy currently

contributes about 9% and it is expected to grow very rapidly especially in areas like wind

and solar power.


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4

Table 2.1 Estimated Energy Reserves

Resource Unit Reserve

Coal Mtoe 13,489

Oil Mtoe 786

Gas – including coal bed methane Mtoe 1,866

Uranium – metal Tonnes 61,000

Thorium– metal Tonnes 225,000

Hydel MW 150,000

Source: Planning Commission of India, 2006

India’s primary energy mix

India’s primary energy mix is dominated by coal (231.4 MTOE), followed by oil (135 MMT),

gas (37.2 MTOE), hydro (26.2 MTOE) and nuclear (3.5 MTOE). The proportion of natural gas

in India’s primary energy basket is approximately one-third that of the world average,

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.

Fig 2.2 Primary energy Mix of India & World

India's primary energy mix in 2008

Hydro 6%

Coal 53%

Gas 9%

Nuclear 1%

Oil 31%

World's primary energy mix in 2008

Coal 29%

Nuclear 6%

Oil 35%

Gas 24%

Hydro 6%


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5

Chapter 3 ****************

Natural Gas Scenario in India

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.

Natural gas is often termed as the cleanest fossil fuel, producing less carbon dioxide per

joule delivered than either coal or oil hence plays a crucial role in the primary energy basket

of India.

3.1 Natural gas reserves

As per BP Statistical review of world energy 2009, India had proved natural gas reserve of

1.09 TCM at the end of 2008. This reserve is approximately 0.6% of total world’s proved gas

reserves of 185.02 TCM. The bulk of India’s natural gas production comes from the western

offshore regions, especially the Mumbai High complex. The onshore fields in Assam, Andhra

Pradesh, and Gujarat states are also major producers of natural gas. India produced 30.6

BCM of natural gas. Presently, Reliance’s KG basin gas production has come as a boon.

Table 3.1 Domestic vs Global gas reserves (2008)

Place Reserves (TCM) Production (BCM) R/P

World 185.02 3065.3 60.4 years

India 1.09 30.6 35.6 years

Source: BP Statistical Review of World Energy, June 2009

3.2 Production and Consumption of Natural Gas in India

India is one of the largest Energy consumers in the world. Gas consumption is always at rise

since early 1980’s. The gas market in India is emerging, mainly because of shift of fertilizer

industries towards gas from Naphtha/fuel oil as their feed stock. Power sector is also a


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6

major reason for India to emerge as a major gas market in the world, because power sector

is using large quantity of gas for their power production. Another major driver for natural

gas consumption would be city gas. Many cities are taking up CNG program for their

transportation, which is going to surge in natural gas demand by huge margin. PNG is also a

part of city gas, which is also going to affect the demand for natural gas.

Fig 3.1 Productions and Consumption of Natural Gas in India during 2000-08 (in BCM)

Source: BP Statistical Review of World Energy, June 2009

Fig 2.1 indicates that the consumption of natural gas is increasing and the demand s bound

to increase in the coming years. As per EIA’s International Energy outlook 2009, Non-OECD

Asia, which accounted for 9 percent of the world’s total consumption of natural gas in 2006,

shows the most rapid growth in natural gas use in the reference case and accounts for 31

percent of the total increase in world natural gas consumption from 2006 to 2030. In both

China and India, natural gas currently is a minor fuel in the overall energy mix, representing

only 3 percent and 8 percent, respectively, of total primary energy consumption in 2006. In

the International Energy outlook 2009 reference case, natural gas consumption rises rapidly

in both countries, growing by 5.2 percent per year in China and 4.2 percent per year in

India, on average from 2006 to 2030.

26

.4

26

.4

27

.6

29

.5

29

.2

29

.6

29

.3

30

.1

30

.6

26

.4

26

.4

27

.6

29

.5

31

.9 35

.7

37

.3 40

.1

40

.4

0

5

10

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005 2006 2007 2008

Production Consumption


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3.3 Natural Gas Consumption Pattern in India

Gas demand in India continues to be

influenced by the cost economics vis-à-

vis alternative fuels pertaining to each of

the end use sectors, primarily power and

fertilizer, as also the dynamics of these

sectors. The current natural gas

consumption is primarily shared by the

power and fertilizer sector to the tune of

39 percent and 25 percent respectively.

This is followed by the Petro Chemical,

Refinery & Internal Consumption 13%

percent, city gas (CNG/PNG) 4 percent,

Industrial &Captive Power 14 percent and sponge iron/steel sector 5 percent.

3.4 Natural Gas Demand-Supply Outlook

The Indian natural gas market reported a significant increase in supply in 2009-10 with the

KG D6 field of RIL going into production. In fact, the actual supply could have been higher

but for the capacity constraints in the trunk pipelines. The large increase in supply has been

absorbed comfortably by the Indian market, reinforcing its significant growth potential.

The Indian natural gas market saw an unprecedented 65% increase in gas supplies in 2009-

2010 with RIL commencing production from its KG basin D6 block, in the process pushing up

supplies from domestic fields to around 145 MMSCMD, from 87 MMSCMD in 2008-09. With

KG D6 going on stream, RIL became the largest producer of natural gas in the country, a

position held till then by ONGC for over five decades. According to ICRA report, domestic

natural gas supplies to increase to around 230 MMSCMD by 2018-19, from around 145

MMSCMD in 2009-10. Besides RIL’s KG D6 field, the other sources which will contribute

towards supply increase include: KG basin satellite fields (owned by RIL consortium); NEC

Fig. 3.2 Natural Gas Consumption pattern in

India (2009-10)

Power: 39%

Sponge Iron/Steel: 5%Fertilizer: 25%

City gas: 4%

Pet Chem.+ Ref+

IC: 13%

Industrial+Cap

Power: 14%

Source: Industry Outlook-Indian Downstream Natural Gas, ICRA Report


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8

field (RIL consortium); Deen Dayal block in KG basin (GSPC consortium); KG-DWN-98/2

(ONGC); and MN-DWN-98/3 (ONGC). Further, ONGC is expected to begin gas production

from several small and marginal fields that have been given to it on nomination by GoI.

However, given that the output from the existing fields of ONGC has been falling by 7-8%

annually, there won’t be any significant net additions to production by ONGC from the

nominated fields.

Table 3.2 Natural gas Supply Outlook (in MMSCMD)

Source: Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012)

Fig 3.3 Estimates for NG Supplies from Domestic Fields

Source: ICRA Estimates

Sources 2007-08 2008-09 2009-10 2010-11 2011-12

ONGC+OIL (A)

57.28 58.42 55.69 54.67 51.08

Pvt./JVs(As per DGH) (B) 23.26 61.56 60.28 58.42 57.22

Additional Gas Anticipated (C) - - 74 84 94

Total Projected Supply Under Normal

Scenario (A+B)

80.54 119.98 115.97 113.09 108.30

Total Projected Supply Under

Optimistic Scenario (A+B+C)

80.54 119.98 189.97 197.09 202.30


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Table 3.3 Sector wise natural gas demand outlook (in MMSCMD)

Sectors 2007-08 2008-09 2009-10 2010-11 2011-12

Power 79.70 91.20 102.70 114.20 126.57

Fertilizer 41.02 42.89 55.90 76.26 76.26

City Gas 12.08 12.93 13.83 14.80 15.83

Industrial 15.00 16.05 17.17 18.38 19.66

Petrochemicals/Refineries/Internal

Consumption

25.37 27.15 29.05 31.08 33.25

Sponge Iron/Steel 6.00 6.42 6.87 7.35 7.86

Total 179.17 196.64 225.52 262.07 279.43

Source: Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012)

3.5 Meeting the Demand-Supply Gap

The overall demand projections and even the most optimistic scenario of expected

domestic supplies, it is very clear that there would be a supply shortfall. There is a large gap

between demand and supply of natural gas in the country. The Government of India has

adopted a multi-pronged strategy to augment supplies and to bridge the gap between

supply and demand for the domestic market through-

(a) To help meet this gap and growing demand, a number of import schemes including both

LNG and transnational pipeline projects have either been implemented or considered.

(b) Exploitation of unconventional gas, like Coal Bed Methane (CBM).

(c) Intensification of domestic Exploration & Production activities under New Exploration

Licensing Policy (NELP).

3.5.1 Liquefied Natural Gas (LNG):

Currently, India has two LNG import terminals, with several others that are planned or

proposed. India started receiving LNG shipments in January 2004 with the start-up of the

Dahej terminal with a nameplate capacity of 5 MMTPA in Gujarat state. Petronet LNG, a

consortium of state-owned Indian companies and international investors, owns and

operates the Dahej LNG facility. The capacity of the terminal has been expanded to 10


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10

MMTPA and the same has been commissioned in June, 2009. Petronet LNG is also building a

second LNG receiving terminal at Kochi, which is expected to have a capacity of 2.5 MMTPA,

when completed in 1st quarter of 2012.

India’s second LNG terminal started operations in April 2005 near Surat in Gujarat state. The

facility is owned by Hazira LNG, a joint venture of Shell and Total. The facility has an initial

throughput capacity of 2.5 MMTPA, with the option of expanding that to 5 MMTPA in the

future.

Meanwhile, some progress is also being made to bring the partially constructed terminal at

Dabhol into operation in which GAIL and National Thermal Power Corporation (NTPC) have

a majority stake. Besides the gas meant for the Ratnagiri (the erstwhile Dabhol) plant, it

appears that other parties may be allowed to use this terminal to re-gassify LNG obtained3

from various sources in return for a fee.

The confirmation of Mangalore LNG terminal could be a possibility and 1.25 MMTPA

imports could perhaps be expected at this terminal by 2011-12. Given this scenario, the LNG

supply is projected to reach a level of 23.75 MMTPA by the year 2011-12 (Potentially it can

add up 83.12 MMSCMD supplies at full capacity).

3.5.2 Trans-national Pipelines:

The Government has been exploring the possibility of importing gas from countries such as

Iran, Turkmenistan, Bangladesh and Myanmar through pipelines. Various initiatives are

under consideration, which include:

The Iran-Pakistan-India (IPI) Gas Pipeline Project:

The IPI Gas Pipeline Project has been conceived as a tripartite arrangement between Iran,

Pakistan and India, with the volumes being divided between the two importing countries of

India and Pakistan. The pipeline is estimated to cost around USD 7.5 billion and is expected

to be 2300 km in length.


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11

Although some progress was made, several outstanding issues remain. Issues around

pricing, delivery point transit fees to be paid to Pakistan, certification of reserves of the

fields meant to supply gas are yet to be resolved.

Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline project:

This Asian Development Bank (ADB) sponsored project is likely to connect sources of supply,

in Turkmenistan to sources of demand in Pakistan and India. The pipeline being considered

will have a length of approximately 1680 km (including 145 km in Turkmenistan, 735 km in

Afghanistan and 800 km in Pakistan up to the India border) and a capacity of 90-100

MMSCMD. Once again, while some headway has been made in discussions, issues regarding

gas pricing, transit price and security of the pipeline in Pakistan, transmission tariffs etc. are

to be decided.

Myanmar-India pipeline:

A 1,575 km long pipeline connecting the Shwe field in the A-1 block in Myanmar, in which

both ONGC Videsh and GAIL own a stake, was considered to bring gas to India, while

passing through Bangladesh. However, not much progress has happened on this front in

recent times.

3.5.3 Coal Bed Methane (CBM):

CBM is natural gas (methane) adsorbed in coal and lignite seams and is an eco-friendly non–

conventional source of energy. Coal is both the source and reservoir rock for CBM. A

saturated CBM reservoir could contain up to five times the amount of gas contained in a

conventional gas reservoir of comparative size, temperature and pressure. To harness this

new source, the Government of India approved a comprehensive CBM policy in July, 1997

for exploration and production of CBM gas.

Till date 4 rounds of CBM bidding have been conducted with 36 blocks were in offer. Up to

III round 23 blocks have been awarded. Three blocks had already been awarded on

nomination basis. Under IVth round of International bidding 10 CBM blocks were offered

and a total of 27 bids were received for 8 blocks.


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Commercial production of CBM has already commenced in Raniganj (South) CBM block in

West Bengal. Efforts are also being made in Sohagpur blocks in Madhya Pradesh and Jharia

block in Jharkhand for commencement of commercial production at the earliest. From a

current level of a total CBM production of 0.15 MMSCMD in the country, it is expected to go

up to 7.4 MMSCMD by the year 2013 - 14.

3.5.4 Indigenous E&P:

Exploration activity, prior to NELP, was dominated by public sector firms such as Oil and

Natural Gas Corporation Ltd. (ONGC) and Oil India Ltd. (OIL). The sector received a major

boost in 1974, when the massive Mumbai High fields were discovered off India's west coast.

Even after three decades, these fields continue to be the mainstay of India's indigenous

production. Realizing that these fields would gradually deplete over time and no major

discoveries were being brought into production, the Government introduced the NELP, with

an aim of encouraging private sector participation in the oil and gas sector.

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 DGH. Similarly, there are now 14 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.

Fig 3.4 Exploration Status

Source: The Oil & Gas Sector Overview in India 2009, KPMG Report


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A glance at the number of blocks and bids received during the previous rounds of NELP

indicates the increased interest that the bidding process has received in recent times from

both domestic and foreign players.

Table: 3.4 Snapshot of Previous Rounds of NELP

NELP I NELP II NELP III NELP IV NELP V NELP VI NELP VII

No. of blocks offered 48 25 27 24 20 55 57

No. of blocks bid for 28 23 24 21 20 52 45

Total No. of bids received 45 44 52 44 69 185 181

No. of blocks awarded 25 23 23 21 20 52 44

Source: The Oil & Gas Sector Overview in India 2009, KPMG Report

Recent rounds of NELP i.e. NELP VIII have proved attractive in gaining the interest of Indian

private sector and foreign players, with the private sector giant, RIL, winning 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. The NELP VIII Licensing Round attracted a total of 76

bids for 36 out of 70 blocks on offer.

Some of the major discoveries in the last decade have been that of Reliance in the KG Basin

and Mahanadi fields, ONGC and Gujarat State Petronet Corporation's (GSPC) claimed finds

also in the KG Basin and the discovery of oil in Barmer, Rajasthan, by Cairn in 2002-03. RIL is

expected to be able to produce over 80 mmscmd of gas by 2010-11, thus doubling domestic

availability and ameliorating the large-scale shortages currently prevalent in the country

(the company has recently commenced production of gas and the first 40 mmscmd of gas

volumes have been allocated by the Government to fertilizer, City Gas Distribution (CGD),

petrochemical and power units). Cairn, in turn, is likely to produce close to 175,000 barrels

of oil by 2010-11 from its Mangala, Bhagyam and Aishwarya fields, helping to address

energy security issues to some extent.


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14

Chapter 4 ****************

Property, Use and Safety of Natural Gas

4.1 Chemical composition of Natural Gas

The primary component of natural gas is methane (CH4), the shortest and lightest

hydrocarbon molecule. It also contains heavier gaseous hydrocarbons such as ethane

(C2H6), propane (C3H8) and butane (C4H10), as well as other sulphur containing gases, in

varying amounts. Natural gas also contains Nitrogen, helium, carbon dioxide and trace

amounts of hydrogen sulfide, water and odorants can also be present. Mercury is also

present in small amounts in natural gas extracted from some fields. The exact composition

of natural gas varies between gas fields.

Table 4.1 Components of Natural Gas

Component wt. %

Methane (CH4) 70-90

Ethane (C2H6) 5-15

Propane (C3H8) and Butane (C4H10) < 5

CO2, N2, H2S, etc. balance

4.2 Energy content & statistics

Quantities of natural gas are measured in normal cubic meters (corresponding to 0° C at 1

atm) or in standard cubic feet (corresponding to 60° F and 30 in Hg). The gross heat of

combustion of one normal cubic meter of commercial quality natural gas is around 39 mega

joules (≈10.8 kWh), but this can vary by several percent. In US units, one standard cubic foot

of natural gas produces around 1000 British Thermal Units (BTUs). The calorific value ranges

from 9000-10,000 Kcal per standard cubic meter.

4.3 Natural Gas Use

Approximately 22 percent of the energy consumption of the U.S. comes from natural gas.

Over one-half of the homes in the U.S. use natural gas as their main heating fuel.


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Natural gas is also an essential raw material for many common products, such as: paints,

fertilizer, plastics, antifreeze, dyes, photographic film, medicines, and explosives. We also

get propane, a fuel we use in many of our backyard barbecue grills, when we process

natural gas.

Industry depends on it. Natural gas has thousands of uses. It's used to produce steel, glass,

paper, clothing, brick, electricity and much more!

Natural gas is used for heating buildings, heating water, cooking, drying clothes, lighting,

and industrial purposes. Some household appliances that use natural gas include:

• Furnaces

• Pool and Spa Heaters

• Clothes Dryers

• Outdoor Lights

• Barbecues

• Water Heaters

• Stoves/Ranges

• Fireplace Logs

• Patio Heaters and Fire Pits

4.4 Using Natural Gas Safely

4.4.1 How Natural Gas Burns

When natural gas burns, energy is released in the form of heat. Three things are required to

make this process happen properly in your home appliances: heat from a pilot light, the

right amount of fuel and the right amount of air.

In some newer appliances, the pilot light is an electrical spark that happens only when you

turn on the appliance. Or, the pilot light may be a small flame that burns continuously, using

a tiny amount of natural gas as its fuel.


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By the way, if you smell a slight odor of natural gas, it may mean that a pilot light has gone

out.

4.4.2 Kitchen Safety

What colour is Your Flame?

Ranges and other appliances are carefully adjusted to provide the correct gas-air mixture. A

normal flame (steady, blue, and cone-shaped) means the gas-to-air mixture is perfect.

While flecks of orange are okay, if the flame is yellow, large, and flickering the appliance

may need a safety adjustment. Ask an adult to have it checked by a qualified repairperson.

The exception is decorative gas appliances such as fire logs, which are designed to have a

yellow flame.

Use a heater to warm the house, not the oven.

Natural gas ovens are designed to cook food, not to heat rooms. Using your oven to heat

the kitchen could damage the oven

Don’t play with gas appliances or pipes

Make sure younger sisters or brothers don’t play with oven knobs—they could turn the

natural gas on without anyone knowing it. Also make sure they don’t play with the natural

gas pipes or flexible connectors that run between the gas range and the wall.

Make the flame fit the pot

Remind the cooks in your family to set the flame just high enough to cover the bottom of

the pot. Flames that are too high can make a fire hazard and waste energy. It’s also a good

idea to turn pot handles inward toward the back of the range to prevent them from getting

bumped.

4.4.3 Alert from CO

You’ve probably heard of carbon dioxide—our lungs produce it when we breathe, and trees

and plants use it to make oxygen. Carbon monoxide (CO) sounds the same, but it is very

different.


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CO is a dangerous gas that you can’t smell or see. It is produced when people use natural

gas or other fuels (such as gasoline, propane, fuel oil, and wood) without enough oxygen.

Common sources of CO include gasoline engines running in closed garages, fuel-burning

space heaters or water heaters with improper venting, and blocked chimneys or vent pipes.

Symptoms of CO Poisoning

The following figure 3.4 shows the symptoms of CO poisoning

Fig 4.1 Symptoms of CO Poisoning

If you breathe in CO, it enters your bloodstream and robs oxygen from blood cells. This is

called CO poisoning. The early effects of CO poisoning make you feel like you have the flu,

but without the fever. Severe cases of CO poisoning can be deadly.

If you or someone in your home has these symptoms, get out of the house right away. Call

your local fire department, or local emergency medical service.


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How to Prevent CO Poisoning?

Tell the adults in your household they can prevent CO poisoning by paying attention to

these four safety tips:

1. Routinely maintain and inspect all heating systems and any fuel-burning appliances

annually.

2. Periodically check vents, flue and chimneys for corrosion or blockages.

3. Never run your vehicle or fuel-burning equipment in an enclosed space.

4. Consider installing a carbon monoxide alarm and maintaining it properly. CO alarms

are similar to smoke detectors, but have a different purpose.

4.4.4 Heater Safety

Keep papers and toys away from furnace and water heater. Don’t store gasoline, paint

thinner, or aerosol cans near them either, as the vapors could be ignited by lights or

appliance flames.

Remind adults to have regular inspections. Remind the adults in your home to have your

furnace, vents, and chimney inspected every year or two by a qualified service person.

Blockages or cracks can make it hard for heating equipment to work properly or can lead to

dangerous CO buildup.

Use space heaters safely. If you use a vented gas space heater, make sure that it is properly

vented to the outside. If you use a vent-free heater, make sure it has a switch that shuts off

the heater if indoor oxygen levels get too low. Keep space heaters away from any

flammable objects like papers, draperies, etc.


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Chapter 5 ****************

What is City Gas?

Natural Gas has found its use in many areas. When natural gas use is more specified like

into the cities, the natural gas is termed as city gas. All the uses of natural gas as piped

natural gas to domestic households, CNG for the vehicles, commercial uses (hotels,

restaurant, corporate, school, trusts, clubs, temples, burring ghats), small industries

(industries with municipal limit or with the concession limit or industries consumes less than

or equal to 50,000 scmd at a pressure of 19 bars) are termed as city gas. So, mainly city gas

is CNG and PNG both. We will discuss the CNG & PNG in details along with other related

issues in city gas.

5.1 CNG

5.1.1 World Scenario

Compressed Natural Gas (CNG) is a substitute for gasoline (petrol) or diesel fuel. It is

considered to be an environmentally "clean" alternative to those fuels. It is made by

compressing methane (CH4) at 200 to 270 bar pressure extracted from natural gas. It is

stored and distributed in hard containers, usually cylinders.

Argentina and Brazil, in the Southern Cone of Latin America, are the two countries with the

largest fleets of CNG vehicles. In response to high fuel prices and environmental concerns,

compressed natural gas is starting to be used in light-duty passenger vehicles and pickup

trucks, medium-duty delivery trucks, and in transit and school buses.

CNG has grown into one of the major fuel sources used in car engines in Pakistan,

Bangladesh and India. The use of CNG is mandated for the public transport system of New

Delhi, India's capital city as well as mega city Ahmadabad in the state of Gujarat. The Delhi

Transport Corporation operates the world's largest fleet of CNG buses. Today, many

rickshaws as well as personal vehicles in India and Bangladesh are being converted to CNG


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powered technology, the cost of this is in range of $400-$450. In the mega city Dhaka, not a

single auto rickshaw is permitted without CNG from 2003. Pakistan is the largest user of

CNG in Asia, and third largest in the world as of 2005.

According to the International Association for Natural Gas Vehicles, Pakistan has the third-

largest number of natural gas vehicles. In the Middle East and Africa, Egypt is a top ten

country in the world with more than 63000 CNG vehicles and 95 fueling stations

nationwide. Egypt was also the first nation in Africa and the Middle East to open a public

CNG fuelling station in January 1996.

During the 1970s and 1980s, CNG was commonly used in New Zealand in the wake of the oil

crises, but fell into decline after petrol prices receded.

In Germany, CNG-generated vehicles are expected to increase to two billion units of motor-

transport by the year 2020. The cost for CNG fuels are 1/3 less than LNG fuels, in Europe.

CNG is often measured and sold in Gasoline Gallon Equivalent GGE to help American

consumers when comparing to gasoline.

5.1.2 Technology

CNG can be used in Otto-cycle (gasoline) and modified Diesel cycle engines. Lean-burn Otto-

cycle engines can achieve higher thermal efficiencies when compared with stoichiometric

Otto-cycle engines at the expense of higher NOx and hydrocarbon emissions. Electronically-

controlled stoichiometric engines offer the lowest emissions across the board and the

highest possible power output, especially when combined with EGR, turbo charging and

inter-cooling, and three way catalytic converters, but suffer in terms of heat rejection and

fuel consumption. A suitably designed natural gas engine may have a higher output

compared with a petrol engine because the octane number of natural gas is higher than

that of petrol. CNG may be refueled from low-pressure ("slow-fill") or high-pressure ("fast-

fill") systems. The difference lies in the cost of the station vs. the refueling time. There are

also some implementations to refuel out of a residential gas line during the night, but this is

forbidden in some countries.


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CNG cylinders can be made of steel, aluminium, or plastic. Lightweight composite (fibre-

wrapped plastic) cylinders are especially beneficial for vehicular use because they offer

significant weight reductions when compared with earlier generation steel and aluminium

cylinders, which leads to lower fuel consumption.

The equipment required for CNG to be delivered to an Otto-cycle engine includes a

pressure regulator (a device that converts the natural gas from storage pressure to

metering pressure) and a gas mixer or gas injectors (fuel metering devices). Earlier-

generation CNG conversion kits featured venturi-type gas mixers that metered fuel using

the Venturi effect. Often assisting the gas mixer was a metering valve actuated by a stepper

motor relying on feedback from an exhaust gas oxygen sensor. Newer CNG conversion kits

feature electronic multi-point gas injection, similar to petrol injection systems found in most

of today's cars.

CNG requires a much larger volume to store the same mass of natural gas and the use of

very high pressures (3000 to 4000 lbf/in², or 205 to 275 bar) compared to LNG.

5.1.3 CNG Benefits

The advantages of using CNG are varied and distinct. The first and most important benefit

of using CNG is that you are using a ‘green fuel’. Presented below is an outline of the

benefits that CNG offers –

Green fuel –Commonly referred to as the green fuel because of its lead and sulphur free

character, CNG reduces harmful emissions. Being non-corrosive, it enhances the longevity

of spark plugs. Due to the absence of any lead or benzene content in CNG, the lead fouling

of spark plugs, and lead or benzene pollution are eliminated.

Increased life of oils –Another practical advantage observed is the increased life of

lubricating oils, as CNG does not contaminate and dilute the crank case oil.

Mixes evenly in air –Being a gaseous fuel CNG mixes in the air easily and evenly.


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Safety –CNG is less likely to auto-ignite on hot surfaces, since it has a high auto-ignition

temperature (540 degrees centigrade) and a narrow range (5%-15%) of inflammability. It

means that if CNG concentration in the air is below 5% or above 15%, it will not burn. This

high ignition temperature and limited flammability range makes accidental ignition or

combustion very unlikely.

Table 5.1: Property Comparison of CNG with other Fuels

Property Unit Petrol Diesel LPG CNG

Relative density Water = 1 0.74 0.84 0.55 -

Relative density Air =1 - - 1.285 0.64

Auto Ignition

Temperature Degree C 360 280 374 540

Flammability Range % in Air 1-8 0.6-5.5 2.2-9.0 5-15

Flame Temperature Degree C 2,030 1,780 1,983 1,900

Octane Number - 87 - 93 127

Low operational cost-The operational cost of vehicles running on CNG, as compared to

those running on other fuels, is significantly low. At the prevailing price of fuel in Delhi,

operational cost of CNG vehicles is 68% lower than petrol and 36% lower than diesel.

5.1.4 Risks involved: The darker side

CNG technology is in a state of evolution and therefore changing all commercial vehicles to

single-fuel CNG might not be feasible. The entire investment in changing the vehicles to

CNG mode and acquiring new vehicles within a short span will lead to ageing of all the

vehicles at approximately the same time. A huge cost required to set-up the infrastructure

for CNG in a very short span is bound to reflect in budgetary deficit. Further, any mishap or

disruption in a 1200 km pipeline supplying CNG can bring the entire public transport in Delhi

to a standstill. A dedicated CNG vehicle can be stranded on the way for want of gas due to

limited number of CNG filling stations. Therefore, a dedicated CNG vehicle has to be close to

a refuelling facility, limiting its driving range. According to the Supreme Court order the

entire public transport is to be converted to only single-mode CNG and hence dual-fuel

technology cannot be operated in Delhi for public transport. (However later the Supreme


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Court has clarified that taxis and auto-rickshaws with 4-stroke engines could run on low

benzene petrol, but buses could only ply with CNG in Delhi). As, at present, CNG facilities

are not available outside Delhi, tourist and transit buses that ply outside Delhi do not have

access to CNG outside the city. Currently there are other problems: (a) it takes hours for

refuelling of CNG vehicles because of long queues due to inadequate number of filling

stations. (b) Most of the filling stations in Delhi are located in the southern half of the ring

road because of which the vehicles have to travel a long way for filling gas and (c) Paucity of

trained mechanics for CNG kits have made repairs expensive. Commitment is required on

the part of the government, to improve the infrastructure quickly to eliminate the long

queues.

5.1.5 Safety aspects

Safety of CNG vehicles is a very important aspect. Authentic cylinders are priced between Rs

10,000 and 15,000 depending on the capacity, while spurious versions are reportedly

available for Rs 5000 in Delhi and between Rs 1000 and 3000 in Mumbai. The spurious

cylinders are the main cause of explosion and accidents in CNG vehicles. The BIS is

preparing a status report on safety norms for CNG-run vehicles. The draft document of CNG

safety has design requirements for the components of CNG-run system. Norms evolved for

CNG vehicles by the International Organization of Standards (ISO) – the apex body under

the United Nations umbrella – are in the ‘final-draft’ stage. The BIS normally waits for

international guidelines before coming out with its own ones. While ISO guidelines would

be used as broad guidelines, the national standards would be more specific.

5.1.6 CNG Conversion

As we know all types of vehicles can run on CNG by installing CNG kit. Kit is assembly of

many components required to run existing vehicle on CNG. There are few basic components

which are common in all type of kits, irrespective of the vehicles such as CNG storage

cylinder, high pressure tube, pressure regulator, pressure gauge, change over switch, high

pressure tube fittings, refueling receptacle and air fuel mixer.

Major components of CNG kit for carburetor fitted petrol vehicle are illustrated below:


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1. Pressure Regulator.

2. Petrol Solenoid Valve with manual override switch. (Stops petrol flow when operating on

CNG)

3. On-Off valve and refueling connector. (Opens or stops gas flow to the regulator and

includes a refueling device)

4. Control Module/Change-over Switch (Electronic control component with fuel selection

switch)

5. CNG level Indicator (LED Indicator).

6. Gas Air Mixer.

7. CNG cylinder with valve, vapour bag & bracket

8. Petrol hose

9. Low-pressure gas hose.

10. Ignition advance processor

11. High pressure gas tube

12. Wire harness.

13. NRV in petrol return line.

14. Pressure gauge

5.1.7 Maintenance of Vehicles

Following precautions are to be followed during servicing and repairing of CNG vehicles:

In case of leakage in fuel system, vehicles shall not be parked within 6 m of any source of

ignition or fire.

In case of vehicles undergoing repairs involving welding, or heat application to any part

(within 1.5 m) of the cylinder, the cylinder should be emptied first.

Do's and Don’ts!

1. Always refer to the supplier’s kit manual for the trouble-shooting guide and do not do it

yourself.

2. In case of vehicles undergoing repairs involving welding, or heat application to any part

(within 1.5 m) of the cylinder, the cylinder should be emptied first.


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3. Do not install a LPG, Propane or any other cylinder in place of a CNG cylinder. It is illegal

and unsafe.

4. For emergency handling of any CNG leak, users must be aware of the location and

operation of cylinder valve, master shut-off valve and burst disc in the CNG system. Study

the system and ask your mechanic to identify these parts for you.

5. Workshop doing the kit fitment should be able to demonstrate these operations to your

satisfaction. It is advisable to operate the vehicle occasionally on petrol to ensure that the

petrol system remains in good working conditions.

The CNG kit installed in the vehicle should be insured along with vehicle accessories. The

motorist should notify the insurance company to provide insurance on the CNG system, for

which additional premium may be charged by the insurance company. Motorists should

take the insurance cover for the additional CNG kit system.

As per present government regulation, the pollution checks and pollution certificate is

mandatory even after converting the vehicle on CNG.

A pressurized gas cylinder is probably the strongest component on the vehicle. Vehicles that

were totally destroyed in collisions show the only discernible component being the intact

gas cylinder. It is unlikely that cylinders will rupture due to collision impact.

Regarding the danger of fire from leaking cylinders, all we have is the experience to date

that indicates that such an event is unlikely to occur. The risk of fire from leaking cylinders

must be low since there are well over 03 million CNG vehicle installations worldwide that

have not experienced such problems.

It is worth pointing out that natural gas is lighter than air and in the unlikely event of a leak

from piping or container; the gas will dissipate upwards quite quickly. In the case of petrol

and LPG the vapour given off is heavier than air and will tend to pool near the ground.


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5.2 PNG

Knowing fully well that Piped Natural Gas is the obvious choice for you to make, wouldn't it

be just if we called PNG Positively Natural Gas!! PNG has several distinctions to its credit- of

being a pollution-free fuel, easily accessible minus storage troubles, and being available at

very competitive rates, are just a few of them. When you choose PNG, you are making a

wise decision. Why not enhance your comfort and improve your lifestyle for the years to

come? Experience the versatility and performance of this reliable energy source. With PNG

you don't need to make any choices, for its characteristics make it the best option for

domestic and commercial purposes.

5.2.1 PNG Benefits

Uninterrupted supply-

PNG offers the convenience of ensuring continuous and adequate supply of PNG at all

times, without any problems of storing gas in cylinders.

Unmatched convenience-

The domestic consumers have to take upon themselves the trying task of booking an LPG

cylinder refill, time and again. And then starts the wait for the deliveryman to deliver the

cylinder. Switching over to PNG renders this entire exercise unnecessary. PNG also

eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it

being underweight, at the time of delivery. Moreover, the user is spared the inconvenience

of connecting and disconnecting the LPG cylinder when out of gas. Precious space, occupied

by LPG cylinders is also saved.

Safety

The combustible mixture of natural gas and air does not ignite if the mixture is leaner than

5% and richer than 15% of the air-fuel ratio required for ignition. This narrow inflammability

range makes PNG one of the safest fuels in the world.

Natural gas is lighter than air. Therefore, in case of a leak, it just rises and disperses into thin

air given adequate ventilation. But LPG being heavier will settle at the bottom near the floor


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surface. A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer

since PNG installation inside your premises contains only a limited quantity of natural gas at

low pressure i.e. 21 milli bar (mbar). On leakage, LPG expands 250 times, which is not the

case with NG. Supply in PNG can be switched off through appliance valve (inside the

kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply.

Economy with PNG

PNG has been positioned to be cheaper than alternative fuels being used viz domestic LPG

in case of House Hold, commercial LPG in case of Small Commercial and LPG Bulk & LDO in

case of Large Commercial. This is besides the amount you save by avoiding underweight

cylinders delivered to you.

Billing-

The user is charged only for the amount of PNG used, and no pilferage is possible with PNG

as the billing is done according to the meter. A unique feature is that the user gets to pay

only after consumption of gas. The domestic consumer pays the PNG bill only once in two

months. Moreover, there are no minimum consumption charges i.e., if there hasn’t been

any consumption, there shall not be any bill. The user pays the gas consumption charges

based on the exact consumption reading provided by the meter installed at his premises.

The bill is delivered at the user’s doorstep.

Customer support

Round-the-clock customer support is assured through 24 hrs toll free number backed by

control rooms, which are manned by engineers and trained technicians. Thus complaints, if

any, are promptly redressed.

A versatile fuel

Natural gas is being used predominantly as a versatile fuel in many major cities catering to

domestic and commercial applications, as a cooking fuel, for water heating, space heating,

air conditioning, etc.


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Environment friendly

Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air,

especially when used in place of other more polluting energy sources. Its combustion results

in virtually no atmospheric emissions of sulphur-di-oxide (SO2), and far lower emissions of

carbon monoxide (CO), reactive hydrocarbons and carbon dioxide, than combustion of

other fossil fuels. In fact, when natural gas burns completely, it gives out carbon dioxide and

water vapour. These are the very components that we give out while breathing!

Additional Benefits of PNG that the commercial consumers can avail-

No storage problems and stock accounting PNG does not require any storage tank or

storage space since it is supplied to you through pipelines. Also, the manpower and time

that was earlier being used for ensuring minimum stock levels of LPG, HSD and LDO, can be

used elsewhere. The other functions that accompany storing these fuels – monitoring stock

levels, checking the quality and quantity of fuels received – have also been rendered

unnecessary.

Economy with PNG

PNG has been presently positioned to be cheaper than alternative fuels. For small

commercials the pricing is indexed to 19 Kg LPG cylinders after adjusting for heat values. For

Large Commercials, pricing is indexed to 90% LDO and 10% Bulk LPG again after adjusting

for heat values. These savings are in addition to the amount you save by avoiding spillage &

pilferage of alternative fuels.

No daily liasioning-

The consumer is spared the task of liasioning with oil companies and co-ordinating with

them for ensuring the daily supply of fuel, because PNG is supplied directly through pipes.

The daily bills, settlements and reconciliation are also avoided as the consumer is billed

once a month, and that too as per the meter reading.


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No spillage and pilferage

In case of spillage of fuels like HSD and LDO, there are liable to be immense product losses.

Also, there are considerable chances of pilferage of these fuels. In case of PNG, these losses

are invariably done away with, for PNG is supplied through pipes.

Lower maintenance cost

With PNG, soot or ash accumulation and greasy spillages are absent from your appliance.

Maintenance costs are, thus, driven down.

5.3 Policy for Development of Natural Gas Pipelines and City or Local Natural

Gas Distribution Networks

Regulatory reforms permit and encourage market forces to enhance competition and

produce a more competitive and efficient industry structure. While there is growing

recognition that competition can reduce the need for regulation, in many areas there exist

some areas of monopoly where the benefits of regulation potentially outweigh the cost.

Natural gas pipelines infrastructure and city or local natural gas distribution networks fall

under this category.

The natural gas sector is at the threshold of rapid growth in the country. With increased

exploration efforts under NELP, large scale discoveries of gas in the East Coast,

commissioning of the LNG import terminals in the West Coast, projected upcoming LNG

terminals and the Government’s initiatives in natural gas through transnational pipelines,

there is an imminent need to provide a policy framework for the future growth of the

pipeline infrastructure in the country with a view to facilitating the evolvement of a nation-

wide gas grid and the growth of city or local gas distribution networks.

The objective of the policy is to promote investment from public as well as private sector in

natural gas pipelines and city or local natural gas distribution networks, to facilitate open

access for all players to the pipeline network on a non-discriminatory basis, promote

competition among entities thereby avoiding any abuse of the dominant position by any


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entity, and secure the consumer interest in terms of gas availability and reasonable tariff for

natural gas pipelines and city or local natural gas distribution networks.

5.3.1 Grant of Authorization

No gas pipeline or the city or local gas distribution network will be laid, built, operated or

expanded without the authorization by the PNGRB (Board).

Provided that such an authorization for gas pipeline shall be granted to any entity only if the

design pipeline capacity is at least 33% more than the capacity requirements of the

concerned entity plus the firmed up contracted capacity (termed as total capacity) and this

extra capacity is available for use on common carrier basis by any third party on open access

and non-discriminatory basis at transportation rates laid down by the Board. The capacity

available under “open access” common carrier basis will be allocated in a transparent and

objective manner in line with the regulations to be drafted by the Board in this regard.

The entity authorized to lay, build, operate or expand a city or local natural gas distribution

network will need to follow the marketing service obligations as may be prescribed by the

Board in accordance with the provisions of the Act. The Board may decide on the period of

exclusivity to lay, build, operate or expand a city or local natural gas distribution network in

accordance with its regulations in a transparent manner while protecting the consumer

interest. The Board may through regulations, decide on the principles for determining the

number of years for which the city or local natural gas distribution network shall be

excluded from the purview of a common carrier or contract carrier being guided by various

objectives in the Act and by following the principles that should be transparently and

objectively stated by the Board in its regulations.

5.3.2 Bid Bond and Performance Bond

The entity proposing to lay, build, operate or expand a gas pipeline or city or local natural

gas distribution network will be required to furnish to the Board a bid bond for an amount

as may be decided by the Board with a view to ensuring that only serious bidders

participate in the bidding process. It will be en-cashed if a bidder wins a bid but then walks


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away from the bid. The successful bidder will have to furnish a performance bond for an

amount as may be decided by the Board for ensuring timely construction as per the design

/offer and for meeting performance undertakings during the operating phase. The Board

will review the progress of projects periodically with the authorized entities to satisfy itself

that the conditions of authorization and milestones given in the project report are being

fully complied with. If the project is delayed beyond the stipulated period or the milestones

and/or any other condition of authorization are not adhered to, the bond amount of the

authorized entity may be forfeited and the authorization cancelled. However, if the Board is

of the opinion that the reasons for delay are beyond the control of the entity implementing

the project, the Board may take an appropriate view in a fair and transparent manner, and

may also allow certain extension period, which it may deem fit for the commissioning of the

project. Once the authorization of the entity is cancelled, the Central Government may

withdraw the ROU from such an entity and make the same available to any other entity

authorized by the Board.

Once the project is commissioned, the performance bond would provide the guarantee for

the satisfactory compliance of the conditions stated in the authorization during the life of

the project.

5.3.3 Unbundling of Operations

Any entity desirous of applying for building, operating or expanding common or contract

carrier gas pipelines will have to give an undertaking that if such an entity has business

interests in related areas of gas marketing or city or local gas distribution network or has a

related entity (e.g., a parent company, group company, company under the same

management, JV company, subsidiary or affiliated in any way to create a pecuniary interest)

with business interests in such areas, it will ensure an arm’s length relationship between gas

pipeline activity and these activities or between itself and the related entity as the case may

be. Under such conditions, an Affiliate Code of Conduct between the authorized and related

entities or between the gas pipeline activity and other activities of the authorized entity, as

formulated by the Board under the regulations will have to be followed. Any existing entity


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engaged in gas pipeline activity, which has business interests in related areas of gas

marketing or city or local gas distribution network, will follow a similar Affiliate Code of

Conduct. The Board will have the right to enquire about the managerial

structure/ownership pattern and accounts of the authorized entity and its related entities

to determine that such a relationship is actually at arms length. For this purpose, the

Authorized entity shall produce relevant records/documents in respect of itself as well as

the related entities for examination by the Board, as and when called for.

In the long run and with the maturing of gas markets, it is envisaged that the authorized

entities will have transportation of natural gas as their sole business activity and will not

have any business interests in the gas marketing or city or local gas distribution networks.

Thus, the Board may intervene at an appropriate stage to ensure unbundling of

transportation activity from other activities of the entity.

The purpose of this policy is to ensure that pipeline ownership does not provide any

competitive advantage to any gas seller and abuse of market power while establishing an

efficient gas grid with open access for all the players on a non discriminatory basis.

5.3.4 Transportation Tariff

The transportation tariffs of the common or contract carrier transmission pipelines or city

or local natural gas distribution network as also the manner of determining such tariffs will

be laid down by the Board as per the provisions under the Act and the regulations.

5.3.5 Role of State Governments

The State Governments have a paramount role in facilitating speedy and timely completion

and operation of gas pipeline and city or local natural gas distribution network projects by

ensuring various statutory and other clearances on a fast track basis. The Central

Government shall take up the matter with the State Governments accordingly.

The State Governments shall prepare their plans for developing the city or local gas

distribution networks wherein they shall prioritize the cities or local areas to be taken up for


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33

setting up gas distribution networks. While prioritizing such cities or local areas, they may

be guided by environmental concerns, domestic & industrial fuel requirements, etc.

5.3.6 Foreign Direct Investment Policy

The need for attracting the FDI in the infrastructure sector has been recognized as one of

the important drivers of the economic growth of our country. The Central Government has

been making all efforts to invite and facilitate FDI to complement and supplement the

domestic investment. FDI up to 100% is permitted in the laying of natural gas pipelines

under the automatic approval route.

5.3.7 Long Term Plan

With a view to facilitating the creation of a National Gas Grid and growth in the

development of the city or local natural gas distribution networks, the Central Government

may prepare a long-term perspective plan for creating gas pipeline network in consultation

with the Board, State Governments, oil & gas industry, gas consuming industries and other

stakeholders. The perspective plan will take into account the projected availability of

gas/LNG from different sources, the demand centers and the need for Central Government

intervention, if any, in making gas available to the consumers in different locations in the

country. The long-term Plan will be kept in view by the Board, while authorizing/approving

new gas pipelines or city or local natural gas distribution networks. The Central Government

may review the perspective plan from time to time and modify the same appropriately.

5.4 Present Scenario of City Gas Distribution in India

The increase in gas supplies and gas transmission infrastructure is also likely to provide a

fillip to City Gas Distribution (CGD) players. So far, only a handful of major players were

present in the market: these are Indraprastha Gas, Mahanagar Gas, Gujarat Gas and GSPC

Gas which distributes Piped Natural Gas and Compressed Natural Gas to cities in Delhi,

Mumbai and Gujarat respectively. Recent years have seen some activity, with a number of

players registering their presence. In particular, GAIL has formed Joint Ventures with other

PSU firms to distribute gas in a number of cities.


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34

Prospects for CGD business appear good for the medium to long term; recent regulatory

uncertainty could however slow down momentum in the near term. As of now, CNG is

available in 40 cities in India, where considerable conversion has happened from the

traditional auto fuels such as MS and HSD. The conversion has been driven primarily by the

heavy users such as buses, taxis and auto rickshaws, who have found the savings potential

of CNG use attractive. Moreover, courts/states mandated conversions have also

materialized in few cities. The prices of conversion kits have also declined by 20-25% during

the last few years, making the switch to natural gas more economical; the savings potential

is encouraging private vehicles to convert as well. Importantly, even with CNG being sold at

market determined rates (Rs. 25-45/kg in most cities), demand has held its ground,

underscoring the improving economics of conversion. Sale of PNG (domestic, commercial

and industrial) has also gained traction because of the discounted-price strategy of the CGD

players, wherein they sell PNG at a discount to the prices of alternative fuels to attract

consumers.

The regulations governing the CGD sector, formulated by PNGRB, are also attractive for the

existing CGD players in that they propose a normative return of 21% (pre-tax) RoCE,

network exclusivity for 25 years, and marketing exclusivity for five/three years for new

players/incumbents, respectively. Under the new regulations, PNGRB had invited bids in

2009 for 13 cities in two rounds, against which licenses have been awarded for six cities

(Kota (Rajasthan), Dewas (Madhya Pradesh), Sonepat (Haryana), Meerut (Uttar Pradesh),

Mathura (Uttar Pradesh) and Kakinada (Andhra Pradesh)) in the first round; licenses are

awaited for the balance seven (Ghaziabad (Uttar Pradesh), Allahabad (Uttar Pradesh),

Jhansi (Uttar Pradesh), Rajahmundry (Andhra Pradesh), Yanam (Pondicherry), Shahdol

(Madhya Pradesh), and Chandigarh (Punjab). With the gas transmission pipeline capacity

poised for growth in future, the regulator has also laid a roadmap for increasing the

penetration of city gas to 335 cities, the bids for which are expected to be announced in the

near to medium term.


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35

Table 5.2 Players in CGD

Cities Company

Surat , Bharuch & Akleshwar Gujarat Gas Company Ltd. (GGCL)

Delhi Indraprastha Gas Ltd. (IGL)

Mumbai Mahanagar Gas Ltd. (MGL)

Agra & Lucknow Green Gas Ltd. (GGL)

Kanpur Bareily Central UP Gas Ltd. (CUGL)

Ahmedabad, Faridabad Adani Energy Ltd. (AEL)

Gandhinagar Sabarmati Gas Ltd. (SGL)

Indore, Ujjain & Gwalior Aavantika Gas Ltd (AGL) A JV of GAIL (India)

Limited and HPCL

Meerut, Sonepat, Dewas and Kota GAIL Gas Ltd. (GGL)

Gurgaon Haryana City Gas Distribution Ltd. (HCGDL)

Pune Maharashtra Natural Gas Limited (MNGL), A

JV of GAIL (India) Limited and BPCL.

Hyderabad & Vijaywada Bhagyanagar Gas Limited (BGL)

Duliajan, Digboi, Dibrugarh, Moran, Naharkatiya, Sivasagar,

Nazira, Simaluguri, Tinsukia

Assam Gas Ltd

Moradabad Siti Energy

Asansol, Durgapur Great Eastern Energy Corporation Ltd.

(GEECL)

Anand Anand Cooperative

Existing & Proposed Pipeline Infrastructures

India’s current gas transmission pipeline length is estimated at 10,500 km (GAIL: 7200 km;

GSPL: 1,420 km; RGTIL: 1,386 km; Oil India/AGCL: 500 km), and it has a capacity of around

270 MMSCMD. Although the capacity per se appears high in relation to the current gas

availability in India, there are several bottlenecks in the existing infrastructure that prevent

some potential end-users from being able to consume gas. Such bottlenecks include almost

full capacity utilization of a few arterial pipelines and lack of balanced development of the

pipeline infrastructure across India. As for capacity utilization, HVJ and DVPL of GAIL have

been operating at almost full capacity during the last one year, thereby preventing any

further transmission for end-users in the northern part of India. At the same time, GAIL has


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36

a few regional pipelines in States/areas like Gujarat, Rajasthan, Mumbai, the Cauvery basin

and Assam, which operate at less than optimum capacity utilization for want of gas. Also,

the pipeline network in India currently covers mainly the western, central and northern

parts, with the network being limited in southern and eastern India. Even within western,

central and northern India, there are several cities that are yet to be connected. As a result,

the market has developed only in areas that are in proximity to the existing pipeline

network. This scenario is expected to change.

Table 5.3 New Trunk Pipelines Projects

Company Km

GAIL

Dadri- Bawana-Nangal 621

Chainsa-Jhajjar-Hissar 443

Dahej-Vijaipur-GREP upgrade 1108

Dabhol-Bangalore 1389

Kochi-Mangalore-Bangalore 1114

Jagdishpur-Haldia 2050

RGTIL

Kakinada-Basudevpur-Howrah 1100

Kakinada-Chennai 600

Chennai-Tuticorin 670

Chennai-Bangalore-Mangalore 660

GSPL

Gujarat expansion 780

IOC (Dadri-Panipat) 133

OIL/AGCL 300

Under PNGRB bid/EOI submitted

Mehsana-Bhatindia 1670

Bhatinda-Jammu-Srinagar 740

Surat-Paradip 1680

Mallavaram-Vijiapur-Bhilwara 1585

Durgapur-Kolkata 160

Total 16803

Source: Public announcement of the companies concerned and PNGRB


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Fig 5.1 Existing and Upcoming pipelines in India


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38

Chapter 6 ****************

Economics of City Gas

We have already studied about what city gas is. Now we should see what kind of economics

is related to city gas. For that we need to know all the component parts involved in the city

gas and the cost involved in these components.

Before discussing the economics of city gas let us see Faridabad customers’ city gas

connection layout. From where do they get city gas? What does it take to reach them? All

these are discussed in this chapter. The following figure 5.1 shows that HVJ pipeline is used

to supply gas in NCR region. 24” diameter pipe is used in original HVJ pipeline. The gas

found in Bombay High by ONGC is supplied through GAIL run HBJ pipeline. Initially the gas is

pumped into HVJ pipeline at 90 bar. There are many users throughout the distance of the

HVJ pipeline. Due to the tapping and long distance movement of gas, the pressure drops. To

maintain the pressure five booster stations are installed throughout the pipeline. These

booster stations are as follows-

1. Hazira

2. Vagodia

3. Jhabua

4. Vijaypur

5. Auraiya

Initially 18 MMSCMD of gas was supplied through HVJ pipeline. An alternate route was

found with evolution of “Gas Rehabilitation & Expansion Project” (GREP). The route

bypasses many stations after Vijaypur. 36” diameter pipe is used for this route. This route

requires no boosting in between, after boosting is done at Vijaypur. This has been possible

due to reduction in length of pipeline and increment in the diameter of the pipe from 24” to

36”. After this expansion the volume of gas transmitted through HVJ increased from 18

MMSCMD to 33 MMSCMD.


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39

After supplying gas to all the consumers throughout the pipeline, gas ultimately reaches

CHANSA (City Gate Station) terminal for supplying gas to NCR region.

6.1 City Gate Station (CGS)

City Gate Station is a terminal where scrubbing, filtering, pressure reduction and metering

and then maneuvering of gas is done. Faridabad city has one CGS i.e. at Chansa.

6.1.1 Process Involved

Without going into in depth of the technicality of the process involved we will just look into

the overview of the process. Processes involved are:

Scrubbing: Gas enters a chamber, where gas passes through a cyclonic process and particle

size above 40 micron gets settled and rest escapes along with gas to filter separator.

Filter Separator: In this process dust and liquid are separated. Particle size more than 5

micron gets separated.

Pressure Reduction Station: DESU Terminal receives gas at 30-35 Kg/cm2 pressure. This

pressure is reduced to 25 Kg/cm2.

Filter Separator: Again filtration is done and particle sizes above 3 micron are separated.

Metering: Metering is measuring the volume of gas

6.1.2 Cost Involved

Cost involved in CGS is numerous. Including material and execution the total cost involved is

around Rs 1.2 crore.

6.2 Steel Grid

Next stage of city gas distribution is the steel grid laying. This means all the pipelines used

for transmitting gas from CGS to DRS, CNG station and other customers are of carbon steel.

This steel pipes are used for transmitting gas of higher pressure (19 to 26 bar). Carbon steel

pipe can withstand higher pressure.


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40

6.2.1 Cost Involved

4” CS Pipe- Rs 35, 00,000/Km

6” CS Pipe- Rs 55, 00,000/Km

8” CS Pipe- Rs 75, 00,000/Km

12” CS Pipe- Rs 1, 00, 00,000/Km

(It includes material, execution & statutory charges. Statutory charges are paid to MCD,

NDMC, and PWD)

6.3 DRS

DRS is a station where gas is collected from CGS through steel grid. In this station filtering,

gauging, and metering are done. First gas enters to filter machine and filtration is done.

Then pressure is measured by pressure gauge which is around 20 bar. Then gas is passed

through turbine meter to measure the amount of gas passed. The pressure of the gas is

reduced to 4 bar. Then gas goes for PNG distribution. DRS is used for PNG distribution.

Another form of DRS is FRS. Only difference between DRS and FRS is FRS is having higher

capacity. For example DRS uses 500 SCMH and FRS uses 10000 SCMH for processing.

6.3.1 Cost Involved

DRS or FRS costs around 30-40 lakhs. It includes material and execution costs too.

6.4 Mother Station

Mother CNG station is the station where all kinds of vehicles are filled with CNG. Here LCV’s

are also filled with CNG, which carry cascaded of CNG to daughter stations. In contrast to

PNG, CNG is a high pressure gas required for fuelling vehicles. So gas after traveling through

steel grid comes to compressor station. In mother station high capacity compressor is used.

First, gas is metered to know the amount of gas flow. Then through suction pipe gas enters

into compressor and compressed into three stages.

First Stage- Gas compressed from 19 to 50 bars.

Second Stage- Gas compressed from 50 to 120 bars.

Third Stage- Gas compressed from 120 to 250 bars.


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41

The compressed gas is send to dispensers and vehicles are filled by gas at 200 bars. Pressure

can be adjusted in dispensers also. Now cascades loaded LCV’s are also filled according to

the requirement. The LCVs are used for providing gas to Daughter stations. Mother station

is also having its own cascades which are kept for emergency. Buses are given highest

priority for filling gas in CNG station, as it is public transporter.

6.4.1 Cost Involved

Cascades of 2400 to 3000 liter cost around 10 to 12 lakhs/each.

Dispensers costs around 16 to 18 lakhs.

Compressors are available in different capacities like 250, 400, 600, 1200 SCMH. They costs

around 0.75 to 1.5 crore.

Mother Station’s overall cost is around 4.5 crore.

(Mother station includes building, compressor, dispensers, cascade, electrical connections,

Air compressor, DG set, tubing, fitting)

Fig 6.1 Mother Station

19 bar


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42

6.5 Daughter Station or Daughter Booster Station

Areas which are far from main gas line are served by gas through cascades. These cascades

are brought to the daughter station by LCVs which are filled in mother station. Cascades are

filled by gas at 250 bar pressure but pressure drops below 200 bars due to non usage of gas

for time being. So, pressure has to be boosted up to 200 bars for filling the vehicle. So, gas is

coming from cascade are boosted by a booster to 200 bar and gas is sent to the dispensers.

From dispensers gas is filled in the vehicles. Now-a-days no daughter station is used without

booster. In this station auto rickshaw, taxi, vans are filled with gas.

6.5.1 Cost involved

A booster cost around 40-50 lakhs. The overall cost of the daughter station is around 1.5

crores.

Fig 6.2 Daughter Booster Station

Cascades Booster Dispenser Vehicle

6.6 Online station

Online CNG station is the station which uses online gases from the main gas line (HVJ

pipeline) to fill the vehicle. Only difference between online station and the mother station

is, online station uses smaller compressor and it does not have any LCVs. In this station auto

rickshaw, van, RTVs are filled with gases.


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6.6.1 Cost involved

Overall cost of the online station is around 2.3 crores including materials and execution

cost.

Fig 6.3 Online Station

In Faridabad city, Adani Gas has four CNG stations. All these stations are online stations.

6.7 MDPE network

MDPE pipeline is used for PNG distribution. Gas is transported at 4 bar pressure in these

lines. After gas is processed and metered in DRS, gas is distributed to domestic house hold

through MDPE line. MDPE pipes are strictly used for underground laying, because of its non

corrosive properties. MDPE pipes are goes straight up to the domestic building foundation

and for riser GI pipes are used. MDPE pipes of different diameters are used, like 180mm,

125mm, 63mm, 32mm and 20mm.

6.7.1 Cost involved

Costs of the MDPE pipes are as follows:

180 mm- Rs. 800/mt

125 mm – Rs. 400/mt

19 bar


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44

63 mm – Rs 100/mt

32 mm – Rs. 40/mt

20 mm – Rs. 25/mt

10-20 % of the costs are taken for fitting.

Execution cost for 20 to 180 mm pipe is Rs.180 to Rs 320/mt. If a pipe has to be passed

through road or some kind small physical structure then trenching or boring has to be done

instead of digging. For these cost involve is Rs. 1100 to Rs 1800/mt.

Other cost involved with MDPE pipeline are cost of domestic regulator and domestic meter

which costs Rs 2300 and Rs 1000 respectively.

6.8 GI piping and Copper piping

GI pipes are used for risers in the building and providing connection to the kitchen. Even GI

pipes are used in the kitchen pipe fittings. The gas is transmitted by GI pipe at 21 milli bar

pressure. Pressure is regulated by pressure regulator at the joint of MDPE and GI pipe.

These kinds of pipes are used for low pressure gas.

Copper pipes are used exclusively for kitchen fittings. Copper pipes are used because of its

aesthetic view. Copper pipe and GI pipe are almost equal in price.

6.8.1 Cost involved

For GI piping, it costs around Rs 250/mt. It includes materials and execution cost also.


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45

Chapter 7 ****************

Demand Assessment of City gas in selected sectors of Faridabad city

7.1 About Faridabad City

Faridabad was founded in A.D. 1607 by Shaikh Farid, treasurer of Jahangir, with the object

of protecting the highway which passed through the town. Shaikh Farid built a fort, a tank

and a mosque which are in runins. Later, it becomes the head quarter of a pargana which

was held in jagir by the Ballabgarh ruler. Faridabad became 12th District of Haryana State

on 15th August, 1979. Faridabad is about 25 Kilometers from Delhi in 28o 25' 16" North

Latitude and 77o 18' 28" East Longitude. It is bounded by Union Territory of Delhi (National

Capital) on its north, Gurgaon District on the west, Palwal District on the south and State of

Utter Pradesh on its east. Delhi-Mathura National Highway No.2 (Shershah Suri Marg)

passes thru middle of District.

Faridabad is famous for Heena Production on agriculture sector while tractors, motorcycles,

switch gears, refrigerators, shoes and tyres are other famous industrial products of the city.

Inititally there were about 4-5 industries and over a period of time this area has grown

phenomenally beyond the expectations of original planners. There are now about 15,000

small, medium and large industries in this complex providing direct and indirect

employment to nearly half a million people and ranks 9th largest industrial estate in

Asia.The combined turnover is estimated to be about Rs. 1500 billion. Many international/

multinational companies like Whirlpool, Goodyear, Larsen & Toubro, Asia Brown Boveri,

GKN Invel, Woodward Governer, Castrol besides Escorts, Eicher, Cutler Hammer, Hyderabad

Asbestos, Nuchem are operating in this belt.

A variety of engineering products from Forgings to Tractors, Clutch Assembly to leaf springs

are being manufactured by the industries in this belt. The total land are occupied by the

industries is about 6948 hectares.


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46

Industrial Associations of Faridabad

1) Faridabad Industries Association

2) Faridabad Small Industries Association

3) Laghu Udhyog Bharti

4) Faridabad Manufactures Association

5) Faridabad Chamber of Commerce & Industries

The Faridabad Industries Association popularly known as the FIA was started way back in

1952 initially by a group of enterprising industrialists. In the year 1965-66 the erstwhile

Punjab manufacturing organization was merged with the Faridabad Industries Association

to form a larger organization to represent the small medium and large scale industries in

this area. Over the efflux of time, the Faridabad Industries Association has become one of

the most outspoken and effective Associations in the Northern Region. Its views are listened

to with respect by one and all authorities and it is entirely because of the continuous

support which it gets from its members.

The FIA members are contributing nearly 80% of the total turnover and employment in this

industrial complex.

The FIA is largely a service oriented organization and it its presence in all facets of Industrial

activities is being actually felt by its members. The FIA is not only serving the industries but

also extends its activities to other areas like Environment, Sports, Cultural, Rural Education

etc. It is the main reason for its credibility and increased membership over a period of years.

The industries including the Faridabad Industries Association are:

• Small Scale Industries

• Medium Scale Industries

• Large Scale Industries


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47

Table 7.1 Small Scale Industries

Name of the Industry Manufacturers of

Advance Forgings P. Ltd. Raw Steel Forgings.

AGI Switches P. Ltd. Switch Fuse units, Starters & Switches for electrical

appliances.

Agro Engineering Works Sheet Metal Pressed Fabricated Components for

Automobiles.

Ajay Enterprises Fan Parts.

Alchem International P. Ltd. Extraction of Herbs.

Alcon India Automobile Sheet Metal Parts.

Alloy Cast P. Ltd. Die Casting.

Alpine Appearls Driving gloves, Goggles.

Ambika Forge P. Ltd. Brass Forgings & Turnes Components.

Amforge Industries Ltd. Tractor & Wheel Rims.

Anil Rubber Mills P. Ltd. Rubber Conveyor Transmission & Train Light Beltings.

Anu Products Ltd. Pesticides.

Archem Industries Chemicals.

Aristocraft Int'l P. Ltd. Light Engg. Goods.

Ashoka Insulations Fibre Glass Sleeving Varnished, Fibre Glass Cable.

Associated Engg. Industries Auto Parts.

Associated Strips P. Ltd. Steel tubular poles, pipes & tubes.

Auratrax P. Ltd. Wooven labels for garments.

Auto Lamps Ltd. Automobile & Incadescent Electrical Lamps.

Bee Ell Industries Ceramic Products.

Belmount Rubber Industries Rubber Automotive Parts.

Belmaks Pvt. Ltd. Engineering Industry.

Bhartiya Udyog Ltd. Bull Gas Generators.

Bhupendra Steels Ltd.

Steel & Stainless Steel SG Iron Rounds squares flats of

alloy steel, Casting, Hot rolles alloy steel bars in various

grads.

Bhartiya Electricals P. Ltd. Wiring harness & Auto Parts.

Birla VXL Ltd. Ready made garments.

B. KAY Engineering Works Tractor Parts.

BL Containers P. Ltd. Corrugated shipping containers & 'E' Flutes Mono

Cartons.

Blue Stampings & Forgings Ltd. Forgings.


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48


Bolton Pvt. Ltd. Loud Speakers.

Bony Rubber Co. P. Ltd. Rubber Moulded Parts & O ring bounded metal bushes &

Engine Mountings, House Pipes etc.

BPR Tex Prints P. Ltd. Dying & Printing of Fabrics.

Bright Oxygen & Actylene Co. Industrial Oxygen Gas.

Brawn Laboratories Ltd. Pharmaceuticals.

Well Rope Intl. Ltd. PP Rope & Yarn.

Capital Flour Mills Maida, Suji Atta & All Types of Wheat Products.

Centrifugal Casting Co. Tractor & Oil Engine Components.

Century NF Casting Aluminium & Zinc Alloys.

Chanda Enterprises Ltd. Electroplating Rims.

Charu Electrical P. Ltd. Electrical Home Appliances.

Classic Furniture Mfg. Co. P. Ltd. Wooden Furniture & Other Products.

Colts Auto P. Ltd. Motor Vehicle Parts.

Concord Controls P. Ltd. Low Tension Control Gear Accessories.

Consolidated Plastics P. Ltd. Blowing & Injection Moulding.

Creative Dying & Printing Mill Dying & Printing.

Crystic Resins India P. Ltd Unsaturated Polyster Resins.

Curewell India Ltd. Human Gamma Globulin Serum.

Dalmia Electronic Corp. Electronic Consumer durable Audio Video Products.

D & D Organics P. Ltd. MS Castings, CI Graded Castings, SG Iron Castings.

Delhi Forgings Ltd. Rough Forging.

Delton Cables Ltd. Thermoplastic insulated cables & wire for

telecommunication.

Diana Organics P. Ltd. S.O. Dyes.

D.S. Diesel P. Ltd Tractor & Car Parts.

Dujodwala Industries Resing Allied Resins Synthetic Resins, Tarpene Oil.

Eastern Engg. Corpn. Sheet Metal Pressed Components.

Elkay Strips Ltd. Cable Armouring Flat & Round Wire.

Elkay International P. Ltd. LDPE/LLDPE/HDPE Sheathing Compound.

Elkay Telelinks Ltd. Telecommunication/ Power & Control/ Instrumentation

Cable Under Progress.

Elemec Tools & Devices P. Ltd. Metal Components & Sub-assembly.

Elofic Industries Ltd. Automotive, Agricultural, Earthmoving Industrial & marin

filters.


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49


EM EL Duggal & Sons P. Ltd. Automobile Sheet Metal.

Encon Chemicals Ltd. Formaldehyde.

Encon Thermal Engineers P. Ltd. Industrial Furnace.

EP Electro Pressings P. Ltd. Sheet Metal Components.

Equipment Conductors & Cables Ltd. AASR & ACC Components.

Everest Steel Fabrications Bolts, Nuts & Rail Screws.

Faridabad Fabrications P. Ltd. Sheet Metal Works & Fabrication of Tractor Components.

Fas Pack Industries P. Ltd. Corrugated Card Board Boxes Sheets etc.

FER Auto India Auto Electrical Parts.

Fibretex Industries India FIBRECRETE Multipurpose Insulation Boards, Control

Heat Humidity and Fungus in all Kinds of Buildings.

Finesse Exports P. Ltd. Readymade garments.

Forgewell P. Ltd. Steel Rough Forgings.

Gallium Equipment P. Ltd. Tube Mill Accessories & Equipments.

Gem International Watch Analysers, Stop Watches, Timers, Hygrometers,

Thermometers, Snooker, Billiards Tables.

GD Industrial Engineers Steel Flats, Rounds etc.

Globe Hi-Fabs Aircraft Refueler, Dairy Equipment, Reaction Vessels &

Storage Tanks.

Golden Peacock Overseas Ltd. Assemble of lamp holders & brass parts.

Goyal Steels Bright Steel Bars, Forging Sheet Metal Components

Gopal Sons Auto P. Ltd. Bright Steel Bars/ Turned & Ground Bar/ CHQ Wires.

Gurdayal Shyamlal P. Ltd. Inter Lining.

Greiner Engg. Products Automotive Parts, Wheel Cylinder, Assemblies, Air Brake

Couplings, Adaptors, Break Fittings & Sheet.

GS Kochar & Co. Tractor Parts.

Goyal Industrial Corpn. Flush Doors, Panel Doors, Placrol Doors, Decorative

Doors, Stain Glass Doors, Black Boards & Plywood.

Gulati Industrial Fabrication Steel Fabrication.

Guru Nanak Industries Regd. Precision Printing & Converting Machines.

Hammer Forge Close Die Forgings.

Haryana General Industry Pressure Die Castins.

Haryana Radiators Ltd. Radiators for Tractors & Automobiles.

Haryana United Tools India P. Ltd. Sheet Metal Components Die Tools, Jigs & Fixtures.

Hemla Embroidery Mills P. Ltd. Embroidery Works.


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50


HPL Industries P. Ltd. Rubber & Plastic Chemicals

H.S. Easwer & Co. Xerographic Plates & Drum Torch Reflectors.

Husaka Refractories Steel Melting Shops & General Engg. Industries

Imperial Auto Industries Fuel & Oil Hoses, Fuel Injection Pipes.

Ilpea Paramount P. Ltd. PVC Extrusions.

Inco Wax Limited Paper Coating, Adhesives, Prinitng Inks & Wax Blends.

Indapco P. Ltd. PVC Rigid Semi Rigid & Soft Profiles.

Indication Instruments Ltd. Dash Board Instruments.

Indo Industrial Engineers Sheet Metal Fabrication.

Indus Precision Castings Stainless Steel & Super Alloy Castings.

India Fashion Exporter of Readymade Garments.

Jainco Steel Fasteners P. Ltd. High Tensile Fasteners.

Jagson Pal Pharmaceuticals Ltd. Pharmaceuticals.

Jain Die Casters Pressure Die Casting of Aluminium & Zinc Components.

Jain Plastic Industries Bottons, Melamine Crockery, Industrial Moulding

Components.

Jai Enterprises Pvt. Ltd. Home Appliances

Jindal Gas Appliances P. Ltd. LPG Gas Stove, Parts, Components.

Kapoor Lamps Shade Co. Decorative Light

Karam Engg. Works Tractor Parts

Karnita Tex Prints P. Ltd. Dyeing & Prinitng.

Karma Processors P. Ltd. Dyeing & Prinitng.

Kay Gees Knitting Mills Knitted Fabrics.

Keselec India P. Ltd. Street, Industrial, Commercial & Decorative Lighting

Fixtures.

Khanna Industries Sheet Pressed Components.

Khaitan Electricals Ltd. Electric Fans & Motors.

Khemka Ispat Ltd. Cold Rolled Sheet Strips Tempered Steel & Galvanised

Steel Tapes.

Kismet Industries Trailers, Trollies & other Steel Structural Fabrication.

K.K. Plastics Plastic Injection Moulding Parts.

Kobe Suspension Co. P. Ltd. Leaf Spring.

Khanna Fabrications Ltd. Sheet Metal Components.

KSF Products Dyestuff.

Kubera Alcot Anodising & Mfg. of Almunium Nameplates.


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51


Kunal Automotive Components Ltd. Tractor & Crane Parts.

Lakhani Rubber Works Automobile Rubber Components.

Laldee Pvt. Ltd. Chaff Cutter Knives & Agricultural Implemts.

Lauls Ltd. Steel Rounds, Squares/ Flats, Angles & Channels.

Lemount Garments P. Ltd. Readymade Garments.

Luthra Textiles Ltd. Textiles Dyeing & Printing.

Maharishi Ayurveda Corpn. Ltd. Ayurvedic Medicines.

Mahavir Enterprises Moulded Rubber Plastic PVC, FRP, Components.

Maharaj Prints P. Ltd. Printing of Silk Fabrics.

Mahavir Powders UF Powder/ MF Powder.

Mandap International P. Ltd. Wheel Rims for Motor Cycle.

Mangla Udyog P. Ltd. Sheet Metal Components, Muffler Assy. Fasteners, Oil

Pipes, Hydo Pipes, Brake & Fuel Pipes.

Manish Vinyles Coated Cotton Fabrics.

Mega Forge P. Ltd. Mfg. of Iron & Steel Forgings.

Meenasha Casting Graded grey Iron Casting Components.

Melco India P. Ltd. Ash Handling Plant Equipment & Spares for power

houses, Fertiliser Plants etc.

Melco Precisions P. Ltd. Alloy Steel Castings, Super Allloys & Wires etc.

Menon & Patel LPG Cylinders Filling Plant Equipment.

M.G. Shahani & Co. P. Ltd. Swan Office Paste Adhesives & Industrial Adhesives.

Micro Precision Products Instrumentation Accessories.

Minstel Insulations P. Ltd. Steel & Foundry Fluxes and Chemicals.

Mitasso Appliances Ltd. Home Appliances.

Mitasso Appliances P. Ltd. Automotive Parts.

M.K. Petro Products P. Ltd. Bitumen Water Proofing Felt & Components.

Mode Prints P. Ltd. Dyeing & Printing.

Modern Engineering Co. Paper Corrugated Board & Box Making Machines.

M.R. Steel Forgings P. Ltd. Auto Parts Forgings.

Munchure Industries P. Ltd. Agricultural Machinery & Tractor Parts.

Nagina Metals & Engineers. Railway Coach Works.

Nagpal Flooring. Venetian Blinds & its parts.

Nap Sales P. Ltd. Industrial Gases.

Nestor Pharmaceuticals P. Ltd. Allopathic Medicines.


………………………………………………………………………………..

52


New India Conduits P. Ltd. ERW Steel, Conduit Steel, Steel Tubes & Oxygen Lacing

Pipe.

Niki Tasha India P. Ltd. Fabrication of Automobile Parts.

Nipha Exporters P. Ltd. Cotton Ginning & Textile Machinery.

Northern Tools & Gauges P. Ltd. HSS Cutting Tools, Precision Components & Assembly for

Agro Space.

Northern India Leather PVC Leather Cloth

NSP Engineers & Fabricators P. Ltd. Railway Components, Fish Plates, Clamps.

NSP Forgings P. Ltd. Die Forgings & Railway Parts.

Nufarm Chemicals Thermosetting resins & Moulding Powder.

Omega Bright Steels P. Ltd. Bright Bar & Shafting.

Orient Packaging P. Ltd. Corrugated Boxes.

PPL Feedback P. Ltd. Flexible Packing Material.

Paramount Rubber Industries Rubber Moulding.

Pahwa Chemical P. Ltd. Thermoplastic Adhesives Textile Auxillary.

Pee Cee Castings P. Ltd. Aluminium Sand & Gravity Die Casting.

Pee Empro Exports P. Ltd. Export of Readymade Garments.

Perfect Pac Ltd. Corrugated Boxes, Thermocole Products

Pioneer Refractories Co.

Polycast Delhi P. Ltd. Steel Castings.

Plastipack Industries Plastic Moulded Goods.

Pooja Metal Processors P. Ltd. Slitting of CARNGO/CRCA Co.

P.R. Packaging P. Ltd. EPS Packaging & Printed Dulex Carton.

Pratibha Ceramics P. Ltd. Refractories & Kilns.

Precision Casting Copper Base Alloy Castings.

Print Craft Press Printed Articles.

Press Cast Industries Die Casting for Auto Parts.

Preswel Industries All Type of Hydraulic Pressed & Machine Tools.

Progressive Packaging Industry Corrugated Cardboard Boxes.

Progressive Thermal Controls P. Ltd. Water Meter.

Punjab Industries Steel Rounds, Squares & Flats.

Rachitech Engineering P. Ltd. Fabricated Equipment for Lavasa Cane Handling

Arrangement.

Rachna Sabun Udyog

Ranivas Collection P. Ltd. Job Work of Pure Silk Saree Printing.


………………………………………………………………………………..

53


Rare Edition Prints P. Ltd. Textile Prinitng.

Rare Prints P. Ltd. Printing of Silk Sarees.

Refrigeration Accessories Ltd. Brass Fittings & Refrigerator Valves.

Reunion Engg. Co. Ltd. Rewinding/ Repairing of Electrical Motors/ Generators.

RPG Transmission Ltd. Tools for Vehicle Service Center.

R.R. Automotive Components P. Ltd. Tractor & Automotive Components used by OEM.

Ruchika Engg. P. Ltd. Pressure Die Castinf in Aluminium & Zinc

RV Industries Sheet Metal Components.

Sadhu Auto P. Ltd. Copper Wire

Sadhu Steel Forging Industries P. Ltd. All Types of Closed Die Steel Forgings & Open Forgings.

Sai Security Printers P. Ltd. Printing of Lottery Tickets, MICR Cheques, Share

Debentures & other Security Prinitng.

Samanta P. Ltd. Job Work of Dying & Printing of Export Fabrics.

Sandvik Auto P. Ltd. Auto Electrical Equipments.

Sebros Enterprises Brake Pipes, Brake Hoses.

SGS Associates Automobile Printing Cardboard Boxes.

Sheel Packaging P. Ltd. Printed, un-printed Card Board Boxes.

Shree Industries Fan Blades.

Shyam Alloys Manufacturing of Tractor Parts.

Shyam Metals Forgings.

Shyam Steels Rerolling of Carbon & Alloy Steels.

Shivani Locks P. Ltd. Automotive Door Latch Locking System.

Sidwal Refrigeration Industries P. Ltd. Air Conditioners & Water Coolers.

Sirocco Pressings P. Ltd. Clutch Systems.

Sita Singh Engineers & Sons. Auto Parts & Body Building

SJ Knitting & Finishing Mills P. Ltd. Processing of Cotton & Art Silk Fabrics.

Skytone Electricals India Electrical Wires & Cables.

Skylab Industries Plastic Injection Moulded Plastics.

S&P Threads Ltd. Sewing Thread Processing.

S.S.P. P. Ltd. Dairy Plant Food Processing & Chemical Plant Industrial

Dryer, Evaporator, Miling M/c

Steel & Steel Fabrications Steel Fabrication & Machining.

Studds Limited Safety Helmets

Studds Accessories P. Ltd. Helmets.


………………………………………………………………………………..

54


Sudtrack Linkage P. Ltd. Forgings, Castings.

Sud & Waren P. Ltd. Computer Forms mfg. Plant & Paper Conversion

Machine.

Sumati Engineering P. Ltd. Mfg. of Tractor Parts.

Sunder Service Center Petroleum Products

Sunflam Enterprises P. Ltd. LPG Appliances & OTG.

Super Alloy Cast Pressure Die Casting Components.

Super Auto Electricals P. Ltd. Automobile Pressure Die Casting Parts.

Super Auto India P. Ltd. Automobile Parts.

Super Electrical & Engg. Co. Aluminium Die Castings

Super Electro Capacitors P. Ltd. Capacitors.

Superfine Packaging Corrugated Rolls, Sheets, Automobile Parts

Super Fibre Ltd. Jute Twine

Super Parts Ltd. LPG & Electrical Home Appliances.

Super Screws P. Ltd. Industrial Fasteners.

Supreme Plastic industries Plastic Industries.

Taj Forgings P. Ltd. Forgings.

Talbros P. Ltd. Rubberised Cork Sheets, Articles of Cork.

Tarachand Saluja & Sons Petroleum Products

TechnoFab Engg. P. Ltd. Heat Exchangers, Pressure Valves, Air Cannons,LP Piping

Structure Conveyor Belt Cleaning System.

Technospring Industries Industrial Springs

The Chemicals of India. Chemicals, Paints & Varnish

Thermosteel Enterprises Hand tools & Tool Kits.

Toshi Auto Industries Ltd. Plastic Automobile Parts.

P.P. Engineering Works Rolling Mill Equipments.

Tractor Tirfore India Limited Hoists, Cranes & Chains.

Texico Tools P. Ltd. Steel Beams & Automobile.

Unimax Laboratories Pharmaceutical Equipments.

Unisystem P. Ltd. Corrugated Boxes.

United Oil Mill Machinery & Spares P. Ltd. Vegetable Oil Mill Machinery & Spares.

Venus Industrial Corp. Ltd. Sheet Metal Corp.

Venus Fabrics Suitings, Shirtings & Sarees.

Victoria Tool Engineers Sheet Metal Componentd, SM Auto Electrical Parts.


………………………………………………………………………………..

55


Vijay Mallable Pvt. Ltd. C.I. Castings.

Vikas Forgings P. Ltd. Steel Forgings of all types.

Vipul Plastics Plastic Components.

V & R Auto Gauges P. Ltd. Speedometers

Windorz India Limited Aluminium Doors, Window, Curtain Wall, Structural

Glazing.

Table 7.2 Medium Scale Industries


AAC Factory (C/o Ballarpur Industries Ltd.) Autoclaved Aerated Concrete Blocks & Slabs

Amforge Industries Ltd. Tractor & Wheel Rim

Asea Brown Boveri Ltd. LT Motors

Auto Ignitions P. Ltd. Ignition Coil, Oil Pressure Switch and Horn Relays

Auto Pins India Ltd. Leaf Spring & Various Types of Pin

Avery India Ltd. Weighting Counting & Testing Machine

Batra Associates Ltd. Auto Head Lights, Tail Lights, Blinkers, Hyd. Jack Clips, LP

Valves, Ind. Valves & Home Appliances

Beco Engineering(A Division of Mukand Ltd.) Machine Tools- Lathes, Planners, Plano, Millers, Special

Purpose Machines

Belliss India Ltd. Steam Turbines & Parts, Pressure Reducing Valve & DE

Super Heating STN

Bhai Sunder Dass & Sons Co. P. Ltd. ---

Birla Kent Taylor India Ltd. Process Control Instruments & Control Panels

Castrol India Ltd. Filling of Lubricating Oil in Small Packs

Clutch Auto Ltd. Automotive Clutches, Covers Assemblies & parts thereof

CMI Limited Undergroung telephone cables, Optical fibre cable, Cat-5

computer cables

Continental Devices India Ltd. Semiconductor devices

Delton Cables Ltd. Thermoplastic insulated cables & wire for

telecommunications

Escorts Employees Ancillaries Carburators & Fuel cocks

Escorts Communications Ltd Electronic private automatic exchange & allied equipment

Escorts Ltd. (Crankshaft & hydraulic division) Crankshaft

Escorts Ltd. (Railway equipment division) Railway equipments

Frick India Ltd. Refrigeration & Air conditioning equipments

GE Motors India P. Ltd. Special purpose electric motors, Lamination pump etc.


………………………………………………………………………………..

56


General Engineering Works Ltd. ACSR, PC Wires, UR Wires, Spring fine, Clutch

Gurera Gas Cylinders P. Ltd LPG Cylinder & Sheet metal components

Haryana Coated Papers Ltd. Art & Cromo Paper

Havells India Ltd. Motor Control Gear & Switch Gear

Hindustan Leathers Ltd. Job work of finished leather

Hindustan Syrings & Medical Devices P. Ltd. Hypodemic Glass & surgical blades, disposable syrings &

needles, scalp venis etc.

Hindustan Vaccum Glass Ltd. Vaccum glass & Glassware items

Indian Gas Cylinders LPG gas cylinders

Injecto Limited Fuel injection pipes, fuel & oil pipes, metallic flexible tubes,

aluminium & zinc pressure die cast

Jagatjit Engg. Works P. Ltd Sheet metal for tractor components

JBM Tools Ltd. M Tools, Dyes, Jigs Fixture, Sheet metal Componets,Welded

assembly & sub assembly, SP

Jhalani Tools India P. Ltd. Assorted Hand Tools

JMA Industries Ltd. Automobile Ancillaries

JV Electronics Ltd. Dipped mica capacitors & silvered mica plates, EMI filers,

lamps, light dimmers and connectors

Kaushico Machine Tools P. Ltd Power press, Shearing machine

KG Khosla Compressors Ltd. Air & gas compressors, Chilling plants, Aluminium & Grey

Iron castings

Khemka Containers Ltd. Corrugated card box boxes

KK Kohli & Bros (P) Ltd. Suiting & Shirtings

Knorr Bremse India P. Ltd. Air brake equipment for Indian Railways

Larsen & Toubro Ltd. Switch boards

Lumax Industries Ltd. Automotive parts

Mik Fujiyama India Ltd. Auto electronic ignition systems

New Allenberry Works Gears, Shafts & axle for tractor & automobiles

North West Switchgear Ltd. Low tension switchgears

Orient Fans Electric fans

Orient Steel & Industries Ltd. Hot & Cold rolled steel strips

Oswal Electricals Pressure die castings, motors & pumps

Plasser India Ltd. Railway track maintenance machine

Polar Industries Ltd. Electrical stampings & laminations

Polymer Papers Ltd. Filter mant & testing machinery, Filter paper, Filer


………………………………………………………………………………..

57


Pooja Forge Ltd. Industrial Fasteners

Porritts & Spencer Asia Ltd. Industrial paper making

Precision Stampings Electrical stampings & lamination for fans, motors,dies

Schenk Avery Ltd.

Dynamic balancing machines, dynamometers, garage

equipment, vibration measuring monitoring & control

equipment

Samtel India Ltd. 14" SVGA monitor, video monitor, 14" B/W TV ,14" TV kits

Sanden Vikas India Ltd. Automobile air conditioning systems & parts thereof

Sikands Ltd. High tensile cold forged precision bolts & nuts

SJ Knittings & Finishing Processing of cotton & art silk fabrics

SPL Industries Ltd. Dying & printing fabrics

Sterling Tools (P) Ltd. High tensile steel fasteners

Super Seals India Ltd. Oil seals & flexible hoses

Suzler Flovel Hydro Ltd. Hydro turbine

Talbros Automotive Components Ltd. Automotive gaskets of all types

Talbros Engineering Works Automotive gaskets

The Printer House Ltd. Automotive Printing Machine

The Star Wire India Ltd. Special steel, valve steel, tool & die steel

Thomson Press of India Ltd. Printing books

United Metal & Plastic Pvt. Ltd. Auto & tractor parts

Usha India Ltd. Polyster capacitors

UT Limited Hydraulic pumps & valves

VXL Engineers Ltd. Defence stores, relays, control panels

Woodward Governer India P. Ltd. Power control equipment

Xpro India Coextured plastic sheet & cast plastic films


………………………………………………………………………………..

58

Table 7.3 Large Scale Industries


Bata India Ltd Hawai & canvas shoes

Bhartia Cutler Hammer Electrical/Electronics control devices & systems

Eicher Tractor Ltd. Automotive agriculture tractor

Escorts JCB Ltd. Excavators Loaders

Escorts Ltd. Tractors & bi wheelers

Escorts Yamaha Motors India Ltd. Motor cycle

GKN Invel Transmission Ltd. Front wheel drive shaft (CV Joint)

Goodyear India Ltd. Automobile tyres

Hindustan Wires Ltd. Steel Wire, LPG cylinder, valves & regulators

Hyderabad Industries Ltd. Filbre & cement sheet jointing & pre fabricated prinitng

panel

Jindal Strips Ltd. HR plates, slabs, blooms strips of all grades oxygen gas

& argon gas

Lakhani India Ltd. Canvas vulcanised shoes

Nuchem Limited UF/MF resins & moulding powders, hexamine,

formaldehyde, medium density fibre board

Tecumseh India P. Ltd. Compressors

Whirlpool India Ltd. Refrigerator


………………………………………………………………………………..

59

7.2 Demand Assessment

We have seen that Faridabad is an industrial hub. The demand potential of piped natural

gas in different industrial units in sector 6, 24, 59 and NIT industrial area were assessed.

Sector wise demand of natural is given below:

7.2.1 Sector 6

There are around 103 industries in sector 6 of Faridabad City. The details of types of

industries are given in the table below:

Table 7.4 Type and Number of industry in sector 6

Type of Industry No. of industries

Textiles 5

Forging 6

Printing/Packaging 1

Plastic Products 1

Leather 2

Die Casting 9

Sheet Metal/Fabrication 6

Rubber Products 2

Export 2

Casting 2

Coating 2

Heat Treatment 3

Automobile Parts 3

Manufacturing Unit 18

Others 41

Total Industries 103

PNG shall replace a conventional fuel in the existing plants. The presently used fuels can be

classified into four categories as solid fuel, liquid fuel, gaseous fuel and electricity. These are

detailed below:


………………………………………………………………………………..

60

7.5 Types of Fuels used in industry

Solid Fuel Liquid Fuel Gaseous Fuel Electricity

Coal FO Coal Gas Electricity

Petcoke LDO LPG

HSD

SKO

The industries in this sector are divided into categories by virtue of fuel used as detailed

below:

Solid fuel using units: units that consume solid fuel, like coal for the production

process.

Liquid fuel using units: units that consume various liquid fuels such as FO, HSD, etc for

the main production process.

Gaseous fuel using units: No units in this city consume gas as primary fuel. However,

there are units that use LPG and propane for various uses.

Electricity using units: Units that use electricity for the main production process. All

industrial units use electricity connection from HSEB.

The presently used fuels in different industry in this sector are LPG, Petcoke, Diesel and FO.

The total daily fuel consumption is given in the table below:

Table 7.6 Total Daily fuel consumption in Industries in sector 6

Type of fuel Total daily consumption UNIT Equivalent NG (SCMD) MMSCMD

LPG 2043 kg 2594.61 0.00259461

Petcoke 11650 kg 6524.00 0.006524

Diesel 10964 Litr. 13376.08 0.01337608

Furnace Oil 47299.99. Litr 52502.98 0.05250298

Demand of equivalent amount natural gas 0.06847367


………………………………………………………………………………..

61

Table 7.7 Equivalent NG consumption with & without power requirement in sector 6

Equivalent NG consumption SCMD (With power

requirement)

Equivalent NG consumption SCMD (Without power

requirement)

78182.74764 51405.61072

Fig 7.2 Equivalent NG consumption with & without power requirement in sector 6

2594.616524

13376.08

52502.98

Fig 7.1 Share of Different fuels to be replaced by Natural Gas (SCMD) in

sector 6

LPG Petcoke Diesel Furnace Oil

0

10000

20000

30000

40000

50000

60000

70000

80000

With power requirement Without power requirement

78

18

2.7

47

64

51

40

5.6

10

72


………………………………………………………………………………..

62

7.2.2 Sector 24



Table 7.8 Type and Number of industry in sector 24 Type of industry No. of industries

Sheet Metal Component 7

Forging 7

Fabrication 13

Die Casting 5

Casting 4

Steel 3

Heat Treatment 2

Rubber 4

Auto Components 4

Export 2

Coating 1

Textile 1

Manufacturing 12

Others 54

Total Industries 120

PNG shall replace a conventional fuel in the existing plants. The presently used fuels in

different industry in this sector are LPG, Coal, Diesel and FO. The total daily fuel

consumption is given in the table below:



LPG 59.163 kg 78.68679 0.000078679

Coal 40000 kg 18000 0.018

Diesel 10609.03 Litr. 12943.7486 0.012943748

Furnace Oil 11833.2 Litr 13134.852 0.0131334852



………………………………………………………………………………..

63



requirement)


requirement)

26157.32765

18265.96505


78.68679

18000

12943.7486

13134.852

Fig 7.3 Share of Different fuels to be replaced by Natural Gas (SCMD) in

sector 24

LPG Coal Diesel Furnace Oil

0

5000

10000

15000

20000

25000

30000


26

15

7.3

27

65

18

26

5.9

65

05


………………………………………………………………………………..

64

7.2.3 Sector 59



Table 7.11 Type and Number of industry in sector 59

Type of industry No. of industries


Forging 2

Fabrication 2

Die Casting 1

Auto Components 4

Coating 1

Manufacturing 5

Others 64

Total Industries 82


different industry in this sector are LPG, Diesel and FO. The total daily fuel consumption is

given in the table below:



LPG 232.54966 kg 309.2910478 0.000309291

Diesel 24619.86 Litr. 30036.2292 0.030036229

Furnace Oil 4733.32 Litr 5253.9852 0.005253985



………………………………………………………………………………..

65



requirement)


requirement)

35599.50545 8003.276248


309.2910478

30036.2292

5253.9852

Fig 7.5 Share of Different fuels to be replaced by Natural Gas (SCMD) in sector 59

LPG Diesel Furnace Oil

0

5000

10000

15000

20000

25000

30000

35000

40000


35

59

9.5

05

45

80

03

.27

62

48


………………………………………………………………………………..

66

7.2.4 NIT Industrial Area

There are around 88 industries in Nit Industrial Area of Faridabad City. The details of types

of industries are given in the table below:

Table 7.14 Type and Number of industry in NIT Industrial Area

Type of industry No. of industries


Die Casting 3

zzAuto Components 9

Rubber Industries 3

Manufacturing 8

Casting 1

Others 66

Total Industries 88


different industry in this sector are LPG, Diesel and FO. The total daily fuel consumption is

given in the table below:

Table 7.15 Total Daily fuel consumption in Industries in NIT Industrial Area


LPG 934.043 kg 1242.27719 0.00124227719

Diesel 23601.266 Litr. 28793.54452 0.02879354452

Furnace Oil 9333.33 Litr 10359.9963 0.0103599963



………………………………………………………………………………..

67

Table 7.16 Equivalent NG consumption with & without power requirement in NIT Industrial Area


requirement)


requirement)

14164.56929

17807.98649

Fig 7.8 Equivalent NG consumption with & without power requirement in NIT Industrial Area

1242.27719

28793.54452

10359.9963

Fig 7.7 Share of Different fuels to be replaced by Natural Gas (SCMD) in NIT Industrial

Area

LPG Diesel Furnace Oil

0

2000

4000

6000

8000

10000

12000

14000

16000

18000


14

16

4.5

69

29

17

80

7.9

86

4


………………………………………………………………………………..

68

Table 7.17 Total demand of PNG in these four sectors

Sector Daily PNG Demand (MMSCMD)

Sector 6 0.06847367

Sector 24 0.0441559122

Sector 59 0.035599505

NIT Industrial Area 0.04039581801

Total Demand 0.188625~ 0.20 (approx.)


………………………………………………………………………………..

69

Chapter 8 ****************

Conclusion

Natural Gas is the fuel of the future. Gas is not only cost efficient and also energy efficient.

So, using gas is not only saving customers’ money but also saving energy for the country. All

the commercial setups and Industries are focusing on gas for their fuel supply. Even if gas is

priced by market driven forces, it will be of competitive advantage for the customers.

Faridabad is the hub of industries. Sector 6, 24, 59 and NIT Industrial Area have around 400

small, medium and large industries. These industries are presently consuming LPG, Diesel

Coal, Petcoke, FO as their fuels. PNG can replace these conventional fuels in the existing

plants. Based on their daily consumption of different fuels, the demand for equivalent

(energy equivalent) amount of piped natural gas would be 0.06847367 MMSCMD for Sector

6, 0.0441559122 MMSCMD for Sector 24, 0.035599505 MMSCMD for Sector 59 and

0.04039581801 MMSCMD for NIT Industrial Area. Therefore, total demand of PNG in these

four industrial regions would be 0.188625 MMSCMD or approximately 0.20 MMSCMD.

Annexure I

Abbreviation

BCM Billion Cubic Meter

CGD City Gas Distribution

CGS City Gate Station

CNG Compressed Natural Gas

DGH Directorate General of Hydrocarbons

DRS District Regulatory System

EIA Energy Information Administration FDI Foreign Direct Investment

FO Fuel Oil

FRS Field Regulatory System

GI Pipe Galvanized Iron Pipe

GDP Gross Domestic Product

IEA International Energy Agency

Kgoe kg of oil equivalent LPG Liquefied Petroleum Gas

LCV Light Commercial Vehicle

LNG Liquefied Natural Gas

MDPE Medium Density Polyethylene

MTOE Million Ton of Oil Equivalent

MW Mega watt

MMT Million Metric Ton MMSCMD Million Standard Cubic Meter per Day

NELP New Exploration Licensing Policy

NG Natural Gas

PNGRB Petroleum & Natural gas Regulatory Board

PNG Piped Natural Gas

RoU Right of User

SCMD Standard Cubic Meter per Day

TCM Trillion Cubic Meter

References

petroleum.nic.in

www.pngrb.gov.in

IEA, Key World Statistics, 2009

Integrated Energy Policy 2006, Planning Commission of India

BP Statistical Review of World Energy, June 2009

Industry Outlook-Indian Downstream Natural Gas, ICRA Report

Report of the working Group on Petroleum & Natural Gas for the XI plan (2007-2012)

The Oil & Gas Sector Overview in India 2009, KPMG Report

faridabad.nic.in

Documents

Demand Assessment of Natural Gas in Selected Sectors in Faridabad