Welcome to the Presentation on CNG : Indian Experience & Emerging Scenario

Welcome to the PresentationWelcome to the Presentation

on on

CNG : Indian Experience & Emerging ScenarioCNG : Indian Experience & Emerging Scenario

25th March 2003

Presented By

Mr. A.K. PurwahaMr. A.K. Purwaha

MD- Mahanagar Gas Ltd., Mumbai MD- Mahanagar Gas Ltd., Mumbai

3

Overview of MGL’s growth

• Evolution of MGL

• Physical and Financial growth

• Milestones Achieved

Details of CNG Program

• Need for CNG Program in India

• Judicial Intervention

• Nation-wide Developments

• Current Infrastructure in Delhi / Mumbai

• Benefits to the Environment/ End users

• Drivers of CNG Program

Difficulties in Implementation

Future Scenario

ContentsContents

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• Nation-wide Developments

• Current Infrastructure in Delhi/Mumbai



Difficulties in Implementation

Future Scenario

ContentsContents

5

Evolution of MGLEvolution of MGL

The Ministry of Petroleum & Natural Gas (MoPNG) conducted a study in late 1980’s on the imputed economic value of natural gas and found that City Gas Distribution provides one of the best values for utilization of natural gas.

Based on the study, 1.5 MMSCMD of Natural gas was allocated for City Gas Distribution Project in Greater Mumbai for the following segments

SectorSector Nos.Nos.

– Domestic 6,26,000

– CNG Vehicles 20,000

– Small commercial 4,500

– Small Industries 146

GAIL formed JVC (MGL) with BG and Govt. of Maharashtra in May’95 to implement the project

6

Customer Segments for a typical Gas Distribution Company :Customer Segments for a typical Gas Distribution Company :

Domestic Customers

Commercial Customers

Industrial Customers

CNG Customers

7

Typical Piped Natural Gas Distribution Network

8

MGL Growth ProfileMGL Growth Profile

0

200

400

600

800

1000

1200

1400

95-96 96-97 97-98 98-99 99-00 00-01 '01-02 Apr 02 - tilldate

Steel and PE Grid for the period 1995-96 till date(Kilometers)

PE Grid

Steel Grid

1400 Kms

125 Kms

Kms

Substantial progress made. Extensive network of steel and PE pipelines laid out...

22

37

94

153

226

1998-99

1999-00

2000-01

2001-02

2002-03 (YTD)

SALES VOLUME(MMSCM)

9

0

10000

20000

30000

40000

50000

60000

70000

95-96 96-97 97-98 98-99 99-00 00-01 '01-02 April-02 -till date

MGL Growth Profile

CNG GROWTH

Auto- 22,000

Taxi-44,500

Cumulative-66,546

Buses-46

100 3,000 5,000 10,114

30,070

50,045

165,125

103,516

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

1995 - 96 1996 - 97 1997 - 98 1998 - 99 1999 - 00 2000 - 01 2001 - 02 April 02 - tilldate

DOMESTIC GROWTH

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Milestones AchievedMilestones Achieved

MGL formed as a Joint Venture between GAIL, BG and GoM – May’95

First 100 houses connected in Postal Colony, Chembur -Oct’95

First Commercial Connection – Oct’96

First Industrial Connection – Jan’98

100,000 domestic connections crossed – Mar ‘02.

Accredited with ISO 9002 certification – Apr ‘02.

200,000 domestic registrations achieved – Nov ‘02

46 CNG stations (cum.) opened– Feb ’03

1,65,000 domestic connections achieved- Feb ‘03.

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• Nation-wide developments




Difficulties in implementation

Future Scenario

ContentsContents

12

Need for CNG Program in India

Rising urban pollution

Rising global concern for environment

Increasing vehicular pollution from conventional fuels

Rising public awareness & expectations

Exponential rise in pollution related diseases

Economics

Fuel security

13

Cost of Pollution

According to an estimate by the World Bank study, using 1992 data,

the annual health cost to India was up to about 1.15 Bn. USD, due

to ambient air pollution. Out of this, the health cost of air pollution

in Delhi alone was found to be about 0.21 Bn. USD.

Source : Order of Hon’ble Supreme Court of India Dtd. 5th April 2002

14

Major Contributor to Pollution in MetrosMajor Contributor to Pollution in Metros

INDUSTRY25%

TRANSPORT70%

OTHERS5%

SOURCE - CPCB, DELHI

15

76%

10%

49%

6%

12%

2%

44%

6%

20%

12%

1%

46%

45%

74%97

%

0%

20%

40%

60%

80%

100%

CO UHC SPM NOX SO2

TRANSPORT

INDUSTRY

OTHERS

Sector-wise Pollutants

SOURCE - CPCB, DELHI

16

Judicial Intervention

Hon’ble Supreme Court on 28th July 1998 directed 80 CNG stations to

be set up in Delhi

All public transport vehicles in Delhi were directed to be on single fuel

mode of CNG

In Mumbai, there is a recent High Court order for conversion of taxis ,

auto rikshaws and transport vehicles of prescribed age-limit to CNG/LPG

Hon’ble Supreme Court has identified nine other polluted cities in India

for CNG projects where the air quality is critical . These cities are :

Agra , Lucknow, Kanpur, Varanasi, Jharia, Patna, Faridabad, Jodhpur,

and Pune .

17

Nationwide Developments

Pilot project initiated in 1992 by GAIL in 3 cities of Delhi, Mumbai & Baroda

Currently, GAIL is involved in Two CNG distribution projects through Joint Ventures :

Mahanagar Gas Limited (MGL) in Mumbai, and

Indraprastha Gas Limited (IGL) in Delhi.

CNG infrastructure has also been developed by Gujarat Gas Co. in cities of Surat & Ankleshwar.

160 CNG stations and about 1,50,000 CNG vehicles in the country today

18

Nationwide Developments : GAIL’s ExpertiseNationwide Developments : GAIL’s Expertise

During last 10 years, GAIL has acquired good expertise in all aspects of

CNG Distribution, viz. design, installation & commissioning of equipments,

operation & maintenance of infrastructure etc.

This experience has been gained within GAIL and also through 2 JV

Companies, i.e. MGL and IGL

GAIL is currently involved in providing Consultancy to Petrobangla for CNG

Distribution projects in Bangladesh

GAIL is also looking forward to leverage this experience for Distribution

projects including CNG in West Asia & elsewhere.

19

Typical CNG station layout

20

Testing / approving authorities for CNG kits and cylindersTesting / approving authorities for CNG kits and cylinders

For CNG conversion kits.

• Automotive Research Association of India, Pune.

• Vehicle Research Development and Establishment, Ahmednagar

• Indian Institute of Petroleum, Dehradun.

For CNG cylinders.

• Chief Controller of Explosives, Nagpur.

• BIS, New Delhi.

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For 4 wheelers :

Transenergy, India.

Tartarini, Italy

Landi Renzo, Italy

Lovato, Italy

MTM s.r.l, Italy,

Bedini, Italy.

For 3 wheelers :

Vanaz, India

Sagas, India

MTM s.r.l, Italy.

Bedini, Italy

Approved CNG Kits and cylinders used in MumbaiApproved CNG Kits and cylinders used in Mumbai

Cont…

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Cylinders :

Everest Kanto, India.

Maruti Koatsu, India.

BPCL, India.

Faber, Italy

Worthington, USA.

Argentoil, Argentina.

Approved CNG Kits and cylinders used in India. (Contd…)Approved CNG Kits and cylinders used in India. (Contd…)

23

Current CNG Infrastructure in Delhi

106 CNG stations set up in Delhi by IGL till date with an installed

compression capacity of 11,77,000 kg/day

78,500 vehicles converted to CNG in Delhi including 8600 buses as on date

Definite improvement in air quality of Delhi due to the CNG program

Greater public awareness and satisfaction

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Current CNG Infrastructure in Delhi Current CNG Infrastructure in Delhi

CNG Stations : 106 as on date

Mother cum online Stations : 29

Daughter Stations : 12

DTC Stations : 17

Daughter booster Stations : 29

Online Stations : 19

25

Growth of CNG Stations in Delhi

9

30

68

99

106

115

0

20

40

60

80

100

120

140

Sep-99 Sep-00 Sep-01 Sep-02 Mar-03 Jun-03

Projected

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Growth Of CNG Vehicles In Delhi

86002777

7034

49000

29649

42851

16000

3061

5649

13486

15231

5000

1276

3698

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

1999 2000 2001 2002 2003

Buses Three Wheelers Cars / Taxis Rural Transport Vehicles

September Month for 1999 to 2002 and March Month for 2003

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Current CNG Infrastructure in Mumbai Current CNG Infrastructure in Mumbai

CNG Stations : 46 as on date

Mother cum online Stations : 03

Online Stations: 29

Daughter booster stations : 14

28

CNG – Present Status in MumbaiCNG – Present Status in Mumbai

No. of CNG vehicles : 66,546 ( 44,500 taxies, 22,000 Autos &

46 BEST buses)

No. of CNG outlets : 46 (20 in city and 26 in suburbs )

Installed Compression Capacity : 3,92,000 Kgs / day

(based on 20 hrs operation)

Average daily sale : 2,50,000 Kgs

No. of dispensing points : 188

Average running of compressors : 18 to 20 Hrs

Waiting time during Peak hrs : 30 to 45 mins.

Turn out of vehicles : More than 100%

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CNG infrastructure growth CNG infrastructure growth

Sr.no Description As on 31st March 02

As on date % Increase

1 No. of CNG outlets

In City

In Suburbs

25

11

14

46

20

26

80

82

85

2 Installed Compression Capacity (In Kgs per days on 20 Hrs operation)

1,52,000 3,92,000 157

3 No. of Dispensing points 78 188 141

4 Average Daily Sale in Kgs per day 1,19,000 2,50,000 110

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Vehicle population in MumbaiVehicle population in Mumbai

Sr no. Category Number of vehicles as on 31st March ‘2002

1 Cars 338728

2 Taxies 64487

3 Autos 108093

4 Stage Carriers (BEST, MSRTC) 5550

5 Contract Carriers (PVT.) 6900

6 School Buses 727

7 Pvt. Service Vehicles 1816

8 Trucks & Lorries 18550

9 Tankers 2028

10 4 Wheel Delivery vans 18863

11 3 Wheel Delivery vans 18656

Source : Transport commissioner’s office

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Affected vehicles as per Hon’ble High Court Orders Affected vehicles as per Hon’ble High Court Orders

Sr.no

Category of vehicles HC deadlines No. of vehicles as on 17Th Oct 2001

Vehicles already converted to CNG

Likely no. of additional conversions by respective dates.

a 137 D taxies (Diesel) 31St Dec 2002 (31St Jan 2003)**

12717 11000 NIL

b Autos > 10 Years 31St Aug 2002 22527 * 12000 6000*

c Taxies > 8 years 1St Jan 2003 5206 5200 NIL

d Autos > 8 years 1St Jan 2003 (31St Mar 2003)**

15012 6000 2000

e Transport vehicles > 15 years

1St Jan 2003 (31St Mar 2003)**

19054 --- ***

f Transport vehicles > 8 years

1St Jan 2004 16153 --- ***

Total 8,000

*About 10000 autos have been either phased out or registration cancelled. It is assumed that about 6000 autos out of the 10000 autos will go in for OE fitted CNG auto or buy new petrol auto with CNG retrofittment.

** Revised dead line

*** Depends upon availability of CNG kits and conversion capabilities.

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CNG plans up to March 2004CNG plans up to March 2004

Sr.no Description As on date By March’04

1 CNG Stations 46 80

2 CNG dispensing points 188 370

3 Compression capacity in Kgs per day (based on 20 Hrs basis)

3,92,000 10,00,000

Cumulative figures

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Benefits of CNG to the Environment/ End users :

Cleaner Environment due to improvement in Ambient Air Quality

Reduced Health Cost

Better Utilisation of Natural Gas Resources

Alternative Choice for the customers

Economical Fuel for the customers

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Fuel Vs Emissions (gm/100km)

FUEL/ EMISSIONS CO2 UHC CO NOx SOx PM PETROL 22,000 85 634 78 8.3 1.1 DIESEL 21,000 21 106 108 21 12.5 LPG 18,200 18 168 37 0.38 0.29 CNG 16,275 5.6 22.2 25.8 0.15 0.29

SOURCE: US ENERGY DEPARTMENT

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Improved Air Quality in Delhi

Source : Central Pollution Control Board

0

100

200

300

400

500

600

700

800

900

1000

Jan-02 Feb-02 Mar-02 Apr-02 May-02 Jun-02 Jul-02 Aug-02 Sep-02

MIC

RO

GR

AM

PE

R C

UB

IC M

ET

RE

( First and second day of the month)

Standard Emission Level

SO2 : 80NO2 : 80RSPM : 100

RSPM

NO2

SO2

36

Improved Air Quality in MumbaiImproved Air Quality in Mumbai

Ambient Air Quality Profile - Worli (Residential Area in Mumbai)

23 26

161

318

17 15

130

215

9 16

62

222

0

50

100

150

200

250

300

350

SO2 NOx RSPM SPM

Annual Average of Pollutants

Lev

els

(in

ug

/m3)

1997

1998

2002

Source : NEERI, Mumbai

37

Ambient Air Quality Profile - Parel (Industrial Area in Mumbai)

38 31

144

247

22 26

131

244

10 16

68

214

0

50

100

150

200

250

300

SO2 NOx RSPM SPM


Lev

els

(in

ug

/m3

1997

1998

2002



38

Ambient Air Quality Profile - Kalbadevi (Commercial Area in Mumbai)

1736

179

313

17 28

160

270

9 13

59

213

0

50

100

150

200

250

300

350

SO2 NOx RSPM SPM


Lev

els

(in

ug

/m3

1997

1998

2002



39

Conversion Economics for CNG Vehicles in MumbaiConversion Economics for CNG Vehicles in Mumbai

PAY-BACK PERIOD @ CNG Price Rs. 19.71/Kg

4

7

12

0

2

4

6

8

10

12

14

Auto Taxi

Type of Vehicle

MonthsPetrol

Diesel

Operational Savings p.a. @ CNG Price Rs. 19.71/Kg

9500

97000

38000 41500

15500

0

20000

40000

60000

80000

100000

120000

Auto Taxi

Type of Vehicle

Rs.PetrolDieselAuto-LPG

40

Drivers of CNG Program

Strong support of Environmentalists, Judiciary, NGO’s and

Government

Economics of CNG as a fuel vis-a-vis other conventional fuels

Readily available Natural Gas pipeline

Strong public awareness

41













Future Scenario

ContentsContents

42

Difficulties in implementation of Mumbai CNG Distribution ProjectDifficulties in implementation of Mumbai CNG Distribution Project

Capital intensive

Long gestation period

Constraints in building a network in the crowded metropolis of Mumbai :

• Limited corridor for utilities

• Concretized Roads

• Multiple clearances required

• Crowded and congested city

• Only 6-7 months available for laying pipelines in a year

43













Future Scenario

ContentsContents

44

VAGHODIA

LAKWAJAGDISHPUR

AURAIYA

VIJAIPUR

DELHI

DAHEJ

HBJ Expansion

JAISALMER

JAIPUR

TRIPURA

VIJAIPUR

DAHEJ

HYDERABAD

VIJAYAWADA

ENNORECHENNAI

KAKINADAVIZAG

GOPALPUR

BHUBANESHWAR

HALDIA

KOLKATTAROURKELA

BANGALOREMANGALORE

COIMBATORE

RANCHI

BOKARO

J’PUR

DABHOL

MUMBAI

GREEN QUADRILATERAL

LNG TERMINALS

MAJOR CENTERSON PROPOSEDGREEN QUADRILATERAL

FUTURE P/L FROM BANGLADESH

KOCHIN

NATIONAL GREEN QUADRILATERAL “CLEAN ENERGY

CORRIDOR”

Source : GAIL (I) Ltd.

45

Future Scenario

A nation-wide Gas Pipeline Grid being laid to bring more cities on

Natural Gas Map

Heavy capital investment expected in the coming years

CNG distribution infrastructure to be provided in other cities :

Nine non-Metro cities as per the Supreme Court Order,

Adjoining areas of Metro cities ,viz. Thane and Vashi near Mumbai;

Faridabad, Gurgaon and NOIDA near Delhi

Other Metro/ Mega cities in a phased manner

These plans will lead to a clean, green and healthy environment in Urban India

46

THANK YOU

Documents

Welcome to the Presentation on CNG : Indian Experience & Emerging Scenario