THE CONTRIBUTION OF NATURAL GAS

TOWARDS CLEANER AIR IN INDIA

GAIL (INDIA) LIMITED

POLLUTION FROM FOSSIL FUELS

It is well known that fossil fuels cause air

pollution by contributing harmful substances

such as Oxides of carbon and Nitrogen,

Sulphur compounds, methane and HCs,

SPMs etc.

Amongst the fossil fuels Natural Gas is

considered the least polluting.

NATURAL GAS Vs COAL

For a 100 MW power plant, percent

reduction in pollutants by use of Natural Gas

In place of Coal is given below:

Sulphur Dioxide : 100%

Nitrogen Oxides : 81%

Carbon Dioxide : 42%

SPM : 95%

This is over and above elimination of tens and

thousands tonnes of ash and slurry.

CNG IS THE LEAST POLLUTING

Source: US energy department ENVIRONMENT

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

(gm/100km)

LONG-TERM (CHRONIC) EFFECTS

Increased susceptibility to bacterial or viral respiratory infections

Asthma

Persistent cough

Lung cancer

Lack of coordination

Blood disorders

EFFECTS OF AIR POLLUTION

SHORT-TERM EFFECTS

Irritation of eyes, nose and throat

Dizziness (lightheadedness)

Nausea (feeling sick to stomach)

Wheezing

Headache

Weakness & numbness

Chest tightness

EFFECTS OF AIR POLLUTION

APPLICATIONS OF NATURAL GAS

Due to its limited availability in India, priorityhas been given for use of NG in Power andFertilizer plants.

Entirely due to environment concerns NGuse in sensitive areas such as for industriesin Agra and Firozabad and transport sectorin Delhi and Mumbai was enforced by SC.

NATURAL GAS USE IN INDIA

Natural Gas availability in 2002-03 was 30BCM. Internal Consumption and LPG production account for 5 BCM.11,700 MW power generation capacity isgas based (Total-110,000 MW).10 MMTPA fertilizer production capacity isgas based (Total-15MMTPA).These 2 sectors account for 75% of NG sold.

NATURAL GAS USE IN INDIA

Other uses of Natural Gas are:• Petrochemical production (1 MMTPA)• Steel production• Glass and Ceramic industry• Tea gardens• CNG and PNG

About 2.4 MMTPA LPG is produced from NG - about 30% of total LPG production in India.

NATURAL GAS IN AGRA

The Hon’ble Supreme Court directed that Natural

Gas must be supplied on a priority to the industries

In Agra and Firozabad areas to protect the world

famous historical monument – the Taj Mahal.

Accordingly GAIL took up steps to arrange gas

supply to the industrial consumers of what is

commonly known as the Taj Trapezium.

SUPPLY OF GAS IN TAJ TRAPEZIUM ZONE

GAS SUPPLY IN TAJ TRAPEZIUM ZONE

GAIL established gas supply network in the cities of Agra & Firozabad in the year 1997.

Natural Gas to replace fuels like coke, coal, diesel etc.

0.9 MMSCMD gas is supplied in TTZ thereby replacing over 3000 Tonnes of the polluting fuel i.e. Coke and coal.

Considering the sulphur content of 2 - 3% in coal used, 75 Tonnes of sulphur is prevented from being released in the environment every day.

GAS SUPPLY IN TAJ TRAPEZIUM ZONE

No. of Consumers:

No. of consumers in Agra – 110

No. of consumers in Firozabad – 133

Total no. of registered consumers – 297

R-LNG is being introduced for all industrial and

commercial establishments in TTZ- Demand

registered by 538 units for R-LNG.

CNG SUPPLY IN TAJ TRAPEZIUM ZONE

‘Project Blue Sky’ launched for establishment of CNG & city gas distribution network in five cities that includes Agra (IOC as JV partner).

Detailed engineering completed.

In phase – I, 7 CNG stations shall be established at an estimated cost of 49.28 Crores.

In phase-II, another 5 stations shall be established at an estimated cost of 52.63 Crores.

CNG TO IMPROVE AIR QUALITY IN URBAN INDIA

Supreme Court directive led to implementation of

CNG program in Delhi, which faced high pollution

levels, almost 70% from automobiles.

Delhi today boasts of the world’s largest CNG bus

fleet > 15,000 taking mini and RTVs together;

Delhi breathes cleaner air today.

Mumbai has also implemented a major drive to

convert taxis and auto rickshaws to use of CNG.

WHY CNG?

Benefits of CNG use are multifold.

• Environment friendly and hence better health• Economical• Safer

CNG IMPROVED AIR QUALITY IN DELHI

SOURCE: CPCB

AIR POLLUTANTS VS. VEHICLE GROWTH

0

100

200

300

400

500

600

1991 1995 1998 1999 2000 2001 2002 2003 up toOct.2004

YEAR

PO

LLU

TA

NT

S(µ

g/m

3 )

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

NO

. O

F V

EH

ICLE

(IN

MIL

LIO

N)

SO2 NO2SPM MOTOR VEHICLES

Standard Emission LevelSO2 : 80 µg/m3 NO2 : 80 µg/m3 SPM : 200 µg/m3

4633 6.4

76.1

543

396.2

1.81

4.39

0.008

0.0230.016

0.019

0.055

0.036

0.09

0.154

0.064

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

THREE WHEELER CAR BUS

CNG PETROL / DIESEL SAVINGS

COST COMPARISON WITH ALTERNATIVE FUELS

In U

SD

per

km

CNG : 0.37 USD/Kg PETROL :0.82 USD/Lt. DIESEL : 0.54 USD/Lt. 1 USD=45.03 INR

ECONOMICS

DELHI PRICES

SAFETY ASPECTS OF CNG

Lighter than air in event of leak it will rise and disperse in atmosphere.

Unlikely to ignite due to narrow combustible range (5% - 15% concentration in air).

High ignition temperature (5400C).

CNG Cylinders structurally most sound and have passed every severe test.

A survey on a size of 8,000 vehicles. conducted in USA, reported 34% less injury rates per Vehicular mile traveled.

SAFETY

IGL MGL

YEAR 1998 SEPT ’04 1998 SEPT ’04

NO. OF STATIONS 09 124 7 88

COMPRESSION CAPACITY (LAKH KG/DAY)

0.20 16.04 0.56 9.22

NO. OF VEHICLES 1406 95,000 6558 1,30,000

AVE. CNG SALES

(LAKH KG/DAY)0.05 8.50 0.35 5.10

CNG PROGRESS INDELHI & MUMBAI

CNG INFRASTRUCTURE IN DIFFERENT INDIAN CITIES

CITY STATION VEHICLE

DELHI 124 95,000

MUMBAI 88 1,30,000

VADODARA 02 450

SURAT 03 600

ANKALESHWAR 01 100

TOTAL (IN INDIA) 218 2,26,150

Delhi has the Largest CNG Bus Fleet in the World

AS OF NOW

CITY GAS DISTRIBUTION IN INDIA

CITY COMPANY NO. OF CONSUMERS

DOMESTIC COMML’.

DELHI IGL 15,400 108

MUMBAI MGL 1,68,000 450

VADODARA VMC 67,000 2,700

SURAT, BHARUCH & ANKLESHWAR

GGCL 1,45,000 1800

ASSAM

(8 CITIES)

AGCL 12,000 300

AGARTALA TNGCL 3,550 48

TOTAL 4,10,950 5,406

(UP TO JUNE 2004)

FUTURE PROSPECTS OF

NATURAL GAS INDUSTRY

PROJECTIONS ON GAS AVAILABILITY

There are differing opinions on how the NG scenario is going to emerge. Expected new sources are:

Indigenous: KG Basin, Western OffshoreLNG : Dahej, Hazira, Mangalore, Kochi

Ennore, DabholPipeline : Myanmar, Bangladesh, Iran

It is projected that demand potential will go up to 166MMSCMD by ‘07, 216 by ‘12 and 322 by ‘25.Availability may go up to 104 (64), 238 and 264 MMSCMDfor the corresponding periods.

NATURAL GAS USE – FOCUS AREAS

• Gas based power generation will be the primary application driving future developments. NTPC, MSEB, KPC, REL, TPC, TPGL and manyother IPPs have drawn up detailed plans to create gas based generating capacity.

• Fertilizer industry will be the other main application with demand for gas going up to 43 MMSCMD from current 23 MMSCMD.

• CNG and PNG in urban areas will be another major focus area due to rising pollution in cities.

NATURAL GAS INDUSTRY GROWTH

Strong growth in Industry with increase in gasavailability.There will be more suppliers, sellers and service providers – many more players.

NATURAL GAS INDUSTRY GROWTH

LNG terminal at Dahej is being augmented.Hazira terminal is about to start.Dabhol revival is on the cards.New terminals at Kochi, Mangalore andEnnore are at advanced stages of planning and approvals.

Cross border pipeline projects from Iran and Bangladesh may have some uncertaintiesbut Myanmar offshore gas is more likely to find India as destination.

NATURAL GAS INDUSTRY GROWTH

The major need is creation of a pipeline infrastructure to reach gas from the various sources to the markets.GAIL has proposed a National Gas Grid toachieve this objective.Regional networks have to be developed. GSPL has already made significant progresson this. It is expected that infrastructure creation will progress as new sources become ready to supply.

NATURAL GAS INDUSTRY REGULATION

The Government of India intends to table thePetroleum Regulatory Board Bill in Parliament soon. Apart from other roles, the Board will regulate gas sector.Gas pricing, transmission tariff and protection of consumer rights by ensuring fair business Practices will be some functions of the Board.Gas pipeline policy is also under formulation for award of ROU for laying new pipelines.

THANK YOU

SELLING PRICE TOTRANSPORT SECTOR

PRODUCTPRICE

(INR)

PRICE

(USD)

GASOLINE 36.81 / LTR. 0.82 / LTR.

GAS OIL / DIESEL

24.16 / LTR. 0.54 / LTR.

LPG 20.04 / LTR. 0.45 / LTR.

CNG 16.88 / KG. 0.37 / KG.

Retail price in Delhi as on 20 Nov. 2004

1 USD = 45.03 INR ECONOMICS

MILEAGE COMPARISON

FUEL CAR THREE WHEELER

BUS

GASOLINE 15 KM/ LTR 35 KM/LTR -

DIESEL - - 3.5 KM/ LTR

LPG 14 KM/LTR - -

CNG 20 KM/ KG 47 KM/ KG 4.1 KM/ KG

ECONOMICS

BEGINNING OF CNG IN INDIA

GAIL launched pilot project in 1992-93 in Delhi, Mumbai and Vadodara.

Started conversion of vehicles.

Identify and resolve technical, institutional, regulatory and economic issues.

Did a pilot project for conversion of state owned diesel buses.

GAIL formed Mahanagar Gas Ltd. With BG and Indraprastha Gas Ltd. With BPCL in Mumbai and Delhi respectively.

ISSUES IDENTIFIED AND RESOLVED

Regulatory body for approvals

Design and standards

Infrastructure development

Market development

Development of equipment suppliers

Development of workshops

Initial kit supply and conversion

Training to entrepreneurs, regulatory bodies etc.

Type approvals for kits & converted vehicles for commercial use

CONTD….

FUTURE PLANS

AGRA

MATHURA

BAREILLY

ALLAHABAD

LUCKNOW

KANPUR

JHANSI

VARANASI

NOIDA

GWALIOR

INDORE

UJJAIN

NAVI MUMBAI

PUNE

SHOLAPUR

FUTURE PLANS

HYDERABAD

RAJAMUNDRY

VIJAYAWADA

AHMEDABAD

RAJKOT

SURINDERNAGAR

FARIDABAD

GURGAON

KOTA

JAIPUR

BANGALORE

CHENNAI

KOLKATA