M.S.Unnikrishnan, MD & C E O,Thermax Limited

DOWNSTREAM APPLICATIONSOf

NATURAL GAS

Gas Infrastructure in Kerala Dec 2010

DISCUSSION STRUCTURE

1. THE KERALA CHALLENGE

2. GAS BASED SOLUTIONS

Gas Infrastructure in Kerala Dec 2010

DISCUSSION STRUCTURE

1. THE KERALA CHALLENGE

Gas Infrastructure in Kerala Dec 2010

ECONOMY

Economic development improves the quality of life

Gas Infrastructure in Kerala Dec 2010

ENERGY

But increases energy demand

Gas Infrastructure in Kerala Dec 2010

ENVIRONMENT

Which leads to environmental damage

Gas Infrastructure in Kerala Dec 2010

Environment

EnergyEconomy

The solution lies in the confluence

Gas Infrastructure in Kerala Dec 2010

THE KERALA CHALLENGE - JOBS

34.06

43.20

36.78

27.60

23.5021.60

POPULAT ION

( Mn.)

2010 20402020

TOTAL

PRODUCTIVE

KERALA HAS TO GENERATE 200,000 JOBS YEAR OVER YEAR

Gas Infrastructure in Kerala Dec 2010

THE KERALA CHALLENGE - POWER

12300

9000

4200

2700

DEMAND

( MW.)

2010 20402020

KERALA HAS TO CREATE 150- 300MW CAPACITY YEAR OVER YEAR

2030

Gas Infrastructure in Kerala Dec 2010

THE KERALA CHALLENGE - WATER6500

6000

5500

5100DEMAND

( MLD)

2010 20402020

KERALA HAS A HUMANGOUS TASK TO PROVIDE WATER TO ITS INHABITANTS

2030

1800

PRODUCTION

UNMET GAP

Gas Infrastructure in Kerala Dec 2010

DISCUSSION STRUCTURE

2. GAS BASED SOLUTIONS

Gas Infrastructure in Kerala Dec 2010

Natural Gas

Gas Infrastructure in Kerala Dec 2010

Natural Gas

Hydrogen Sulphide

5%Nitrogen

5%

Carbon Dioxide

8%

Ethane, Propane, Butane

12%

Methane70%

Gas Infrastructure in Kerala Dec 2010

NATURAL

GAS

ENERGY

CHEMICALDERIVATIVES

GAS BASED SOLUTIONS

Gas Infrastructure in Kerala Dec 2010

DISCUSSION STRUCTURE

2. GAS BASED SOLUTIONS

( A ) ENERGY

Gas Infrastructure in Kerala Dec 2010

Temperature Manipulation

37%

Transportation20%

Electricity16%

Losses26%

GLOBAL ENERGY CONSUMPTION PATTERN

Source: Wikipedia

Gas Infrastructure in Kerala Dec 2010

Gas seen as the preferred energy source

0

5

10

15

20

Co

al

Na

tura

lG

as

Co

al G

as

He

avy O

il

LP

G

Pe

trole

um

A. Economical

(USD/mmbtu)

0

0.1

0.2

0.3

0.4

0.5

Lignite

Hard

Coal

HeavyO

il

Gas O

il

NaturalG

as

B. Lowest Carbon Footprint among fossil fuels

(kgCO2/Kwh fuel input)

Gas Infrastructure in Kerala Dec 2010

NATURALGAS

NATURALGAS

Cooling

Heating

Power

CHPC

Transportation

Natural Gas, the energy source

WaterWater

Gas Infrastructure in Kerala Dec 2010

DISCUSSION STRUCTURE

2. GAS BASED SOLUTIONS

( B ) CHEMICAL DERIVATIVES

Gas Infrastructure in Kerala Dec 2010

Natural Gas : The Chemical Route

POLYMERS

CHEMICALS

FERTILISER

Gas Infrastructure in Kerala Dec 2010

Natural Gas : The Chemical Route

POLYMERS

Fabric

Gas Infrastructure in Kerala Dec 2010

1. POLICY FRAMEWORK TO MOTIVATE INDUSTRY TO GENERATE THEIR ENERGRY NEEDS

2. STATE PROMOTED PETROCHEMICAL COMPLEX SIMILAR TO SABIC IN PPP FORMAT

3. DOWNSTREAM CLUSTERS PROMOTED BY KSIDC FOR MSME FOR (i) CHEMICAL, (ii) PLASTICS

TOWARDS PROLIFERATION OF NG

Gas Infrastructure in Kerala Dec 2010

Thank You

Gas Infrastructure in Kerala Dec 2010

Gas to drive the industrial growth in Kerala as it has done for …

Gujarat• Most developed gas market: 27% of country’s

gas based power generation, 30% of petrochem business, over 50% of sponge iron manufacturing capacity

• Combined heating , cooling & power majority used option by commercial establishments

Maharashtra• Second highest gas based power generation

capacity• MIDC following Gujarat model in developing

transmission network

Tamil Nadu• Fifth highest gas based plant capacity• 31 industries connected to the NG supply

infrastructure

Andhra Pradesh• Emerging as a second gas hub• Focus on industrial and domestic consumers

Gas Infrastructure in Kerala Dec 2010

Route Map Of Gas Distribution Network

Design Capacity: 16 MMSCMD including 4 MMSCMD as common carrier

Phase I : • 94 km pipeline from Kochi to Alwaye (Tap-off) with spur lines / feeder lines to

• Alwaye (SEZ Vyapin Kochi, GTN Textiles) • Udyogmandal (Premier Tyre Kalamassery,

REL, FACT-I, Sudchemic & Travancore Cochin)

• Binanipuram (Cochin Minerals & Binani Zinc), Ambalamedu (Kerala Chemicals & Protein Ltd. Kakkanad, FACT-II, BPCL Refinery, Hindustan Organic Ltd., Philips Carbon & MILMA)

Phase II •1018 km pipeline from Alway (Tap-off) to Kanjirrkkod, Kanjirrkkod to Mangalore and Kanjirkkod to Palghat / Palakkad with spurlines / feeder lines to

• Thrissur (Apollo Tyres), • Kottakal (Aryavaidsala), • Kozhikode (KESEB Power Plant), • Kannur (Western Plywood, Power Projects), • Mangalore (MCF) Palakkad (Indosil, Precoat &

steel industries).

Gas Infrastructure in Kerala Dec 2010

Gas Consumption Trend - Sector-wiseIndustry 2008-09 (BCM) % of Total

Energy Purposes

Power Generation 12.60 29.3%

Industrial Fuel 5.91 13.8%

Tea Plantation 0.15 0.4 %

Domestic Fuel 0.1 0.2%

Gas industry(Process) 5.71 13.3%

Others 1.54 3.6%

Total Energy Use 26.01 60.54%

Non-energy Purposes

Fertilizers 9.10 21.1%

Petrochemicals 1.11 2.6%

Others 6.76 15.7%

Total Non-energy Use 16.95 39.5%

Grand Total 42.96 100%*Source: Ministry of Petroleum & Natural Gas ** 2008-09 data Is provisional

Gas Infrastructure in Kerala Dec 2010

Significant economic gains across sectors

Power Generation

Industrial Process Heating

Transport

Household

Source: IIFL Research

• 200 MW power generation from 1 mmscmd of gas can save 35%

energy cost• Decentralized power source using

gas engine & gas turbine offer higher cycle efficiency fulfilling both Heating, Cooling & Power needs

• Substitutes expensive fuel-oil• Opex down by 20% at current fuel –oil

prices

• 1 mmscmd can runs 0.15 m vehicles

• Save emission of 25% CO2

• 1 mmscmd can support 0.9 m HH for cooking

• Lower LPG subsidy by Rs. 6.3 bn

Cooling

• Chillers using Natural gas and waste heat

• Gas driven heat pumps