SPM, GANDHINAGAR
City Gas Distribution Submitted to: Prof. Pramod Paliwal Submitted By: Dimple Singh
2010
SCHOOL
O F P E TR O LE U M M A NA G EM EN T
Table of Contents Chapter Chapter 1: Natural Natural Gas Overview in India ................................................................................ .......................................................................................... .......... 3 Production Production & Imports Imports ................................................................... ..................................................................................................... ................................................. ............... 3 Domestic Domestic Gas fields in India .............................................. ................................................................................ ............................................................. ........................... 5 Recent Recent discoveries discoveries............................................................................. ............................................................................................................... ............................................ .......... 5 India’s Natural Gas Supply Options ............................................................... ................................................................................................ ................................. 5
Outlook Outlook for Regional LNG Supply ................................................. ................................................................................... .................................................. ................ 6 Chapter Chapter 2: CGD Overview of India.............................................................. ................................................................................................. ....................................... .... 9 Objectives Objectives of developing developing CGD Network Network ..................................................................... ....................................................................................... .................. 10 Compressed Compressed Natural Natural Gas ................................................................... ..................................................................................................... .......................................... ........ 11 Piped Natural Natural Gas .................................................. ................................................................................... ................................................................... ..................................... ... 12 Comparison Comparison of CNG with PNG................................................................... .................................................................................................... ................................... .. 13 Supply Scenario Scenario ............................................................... .................................................................................................. ............................................................ ......................... 13 Domestic Domestic Production Production .................................................................... ...................................................................................................... ............................................... ............. 14 APM and Non-APM Supply ....................................................................................... .......................................................................................................... ................... 14 Constraints Constraints .................................................................. .................................................................................................... ................................................................ .............................. 15 Chapter Chapter 3: CGD Infrastruc Infrastructure ture .............................................................. ................................................................................................. ........................................... ........ 16 City Gate Station Station .................................................... ..................................................................................... ................................................................... ..................................... ... 16 CGD Layout Layout.................................................................. .................................................................................................... ................................................................ .............................. 17 Pressure Pressure Regime......................................................... ........................................................................................... ................................................................. ............................... 18 Regulatory Regulatory Body Framework Framework ........................................ .......................................................................... ................................................................ .............................. 18 Regulatory Regulatory Aspects Aspects of Laying Pipeline ......................................................................... ...................................................................................... ............. 18 Chapter Chapter 4: CGD Network Network Safety Safety ............................................................ .............................................................................................. ........................................... ......... 20
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Chapter 1: Natural Gas Overview in India India’s association with natural gas dates back to 1886 when oil and gas were struck at
Digboi, Assam. But the gas g as market evolved rather slowly, due to inadequate production and supplies and until recently India accounted for just 0.5% of the world’ s total natural gas
reserves. Usage of gas was localized near the production point. The situation changed dramatically dramatically after the discovery of a massive oil and gas field off the western coast, Bombay High, which went into commercial production in 1976. This was soon followed by the South Bassein free gas field in 1978. Gas occupies about 9% of the total energy basket of the country. However, the scenario is fast changing in the country, largely because of the expected increase in the availability of natural gas in the country.
India and World’s Energy Basket (2006)
Source: Planning Commission of India, BP Statistics Presently, fertilizers and power sectors continue to be the major consumers of natural gas at 33% and 45% respectively. As per the GUP, fertilizers sector should get the highest priority in allocation of natural gas. It has also been directed that the power sector should be encouraged to rely more on natural gas for new capacities. At present, there is an acute shortage of natural gas in the country. As against the current estimated demand of about 180 MMSCMD, the availability is around 120 MMSCMD. Presently gas supply is being made from the domestic fields of ONGC, OIL, Private JV operators and from the import of LNG.
Production & Imports Natural gas accounted for about 9 percent of total energy consumption in India w hich stood at 404.4 million tons in 2007 as per BP Statistical Review of World Energy. The primary 3|P a g e
energy consumption grew by about 6.8 percent as compared to previous year. The demand for natural gas in India is more than the supply. Total proven reserves of natural gas in India were estimated at about 1,060 billion cubic meters (billion cubic meters) in 2007. In the last five years supply of gas has increased by approximately 35 percent.
Source: Heritage.org
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Domestic Gas fields in India
Source: Directorate General of India
Recent discoveries Year
Discovery Operator
2000 2001
Gas – Gulf of Cambay Cairn Oil & Gas Krishna Godavari Deep waters Cairn
2002 2003
Gas KG Basin Deep Wat er (world’s biggest discovery for the year) RIL
2004 2005 2005 2005 2005
Oil in Barmer Sanchor Basin (Rajasthan) Cairn Gas in Mahanandi Basin Shallow Water RIL Gas in KG Basin Shallow waters GSPC Oil in KG Basin in Shallow waters RIL Gas in KG Basin Shallow waters GSPC Oil in KG Basin in Shallow waters RIL
India’s Natural Gas Supply Options India has three options to meet the anticipated growth in natural gas consumption over the period to 2025 — increase domestic gas production; increase LNG imports; and introduce pipeline natural gas imports.
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India’s current gas producing fields are maturing and are expected to decline in the coming
years. India has significant reserves of natural gas, including recently discovered fields in the Krishna-Godavari Basin that have the potential to significantly expand domestic gas production. India will need to source additional gas supplies via imports. The requirement for additional gas is projected to reach around 4 billion cubic meters a year (3 million tonnes) in 2015, expanding to 32 billion cubic meters a year (23 million tonnes) in 2025. The additional gas requirements requirements will be even greater g reater in the high economic growth scenario.
India's Potential Natural Gas Supply Options
Source: http://www.energyindia.org/ Assuming India’s additional gas import requirements are all met by LNG, India’s total LNG
imports in the reference case could reach 10 million tonnes in 2015, 21 million tonnes in 2020, and 31 million tonnes in 2025.
Outlook for Regional LNG Supply The potential volume of additional gas required will provide a challenge for India in the coming years. There are currently a number of LNG supply projects in the Asia Pacific region, both under construction and planned, that would have capacity to meet India ’s long term gas requirements. However, many of these projects would require long term contracts with buyers to underpin their development. 6|P a g e
India is also likely to face competition in the next few years from established LNG buyers such as Japan and Korea who are willing to pay higher prices.
Source: http://www.energyindia http://www.energyindia.org/ .org/ Qatar will be a swing supplier, and arbitrage opportunities will favor large portfolio players with widespread sources of supply and captive shipping. Pipeline gas demand will mirror LNG demand growth, but is more constrained by cross-border pricing and ownership issues. Prospective pipeline projects to deliver gas from West and East Siberia, Sakhalin, Kazakhstan, and Turkmenistan into northeast Asia, and via the Trans-Asian system into southeast Asia, have been discussed for more than a decade, but are hampered by infrastructure costs, competition between importing countries, and (at least in the case of northeast Asia) an absence of viable commercial frameworks and pricing mechanisms.
Source: http://www.energyindia http://www.energyindia.org/ .org/ Middle East can be one of the largest sources for LNG in future due to the following factors, Large Gas reserves in Middle East 7|P a g e
Nearest Proximity Proximity to market that Gas through LNG Transportation Transportation advantage Better Price Long term commitments In the long term the extent to which higher LNG capacities can be absorbed would depend on the size of domestic finds. As such timing, volume and pricing of imported gas would be critical for sourcing LNG for the Indian market. However, the demand of gas in the country would remain buoyant and price afford ability would keep on improving with the overall economic growth of the country.
S. No.
Project Location
Developer
LNG Suppliers
Project Completion Completion
6.5
Ras Laffan
Commercial Operations began in April 2004. Commercial Operations began in June 2005
1
Dahej (Gujarat)
2
Hazira (Gujarat)
Shell, BV & Total
2.5
Spot cargoes from mostly Shell operated LNG terminals
3
Dabhol ( Maharashtra)
GE, Bechtel, MSEB
5
Oman LNG & Abu Dhabi Liquefaction company
2010
Petronet LNG Ltd.
2.5
Ras Laffan
2011
GSPC, Adani
7.5
Talks in progress
2012
Spice Energy
2.5
Pertamina, Indonesia
2011
IOC
2.5
Talks in progress
Nothing concrete
4 5 6 7
Kochi ( Kerala) Mundra ( Gujarat) Haldia (West Bengal) Ennore ( Tamil Nadu)
Petronet LNG Ltd.
Capacity (MMTPA)
Source: Infraline
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Chapter 2: CGD Overview of India With the emphasis being laid on a cleaner environment and lower pollution levels in cities, CGD is expected to get a push in the coming years. Thus, apart from GAIL, a few players have drawn up ambitious plans to roll out city gas infrastructure infrastructure across a number of cities in the country. States which are likely to see further activity include Uttar Pradesh, Maharashtra, Andhra Pradesh, Rajasthan, Karnataka, Kerala, Madhya Pradesh and West Bengal. The main driver for the development of gas transmission and CGD shall be the availability of requisite volumes of gas. With the development of RIL's KG Basin and other fields, opportunities are available but the challenge is whether the CGD license-holders can obtain gas supplies and develop gas distribution infrastructure. The Indian CGD players are shown in the figure. Table: Showing the chronological movement in CGD market in India Year
City
Company
1880
Calcutta
Calcutta Gas company
1900
Mumbai
Bombay Gas Company
1972
Vadodara
Vadodara Municipal Corporation
1980
Delhi
Delhi Municipal Corporation
1982
ONGC colony – Mehsana, Sibsagar
ONGC
1985
Duliajan
Assam gas company
1986
Sibasagar
Assam gas company
1989
Surat, Ankleshwar, Bharauch
Gujarat Gas Company Ltd.
1994
Mumbai
Mahanagar Gas ltd.
1995
Delhi
Indraprastha Gas
2004
Vadodara, Ahmedabad
Adani
2005
Hyderabad
Bhagayanagar gas
2006
Kanpur, Lucknow
CUGL & GGL
2006
Gandhinagar, Kadi, Mehasana, Rajkot, Vapi, Morbi
GSPC/ SGL
Few years ago CGD was limited to only Mumbai and Delhi, but today we have 25 cities where the infrastructure for CGD has been developed. Some of the major cities are Delhi, Mumbai, Ankleshwar, Baruch and Surat, Vadodara, Agartala, Vijaywada, etc. For the year 2007-08 CGD contributed 7% of the total gas demand in India. The demand was 12.08 mmscmd. Gujarat as a state is the largest consumer of CGD with a consumption of 5.57 mmscmd which is about 55% of the total consumption of CGD. Delhi and Mumbai are the 9|P a g e
next two largest consumers with 2.3 mmscmd and 2 mmscmd respectively. The total consumption was consumed by 509000 vehicles through over 375 CNG station, about 645000 domestic consumers, 1300 industrial and 4000 commercial customer. The penetration of CGD has been limited as currently CNG is distributed through only 1% of the total 35000 retail outlets of other transport fuels. Figure: CGD's in India
Assam
Assam Gas Comapny
Baroda Baroda Municipa l Corporat ion
Surat, Bharuch, Ankleshwar
Mumbai
Delhi
Ahmedabad & Baroda
MGL
IGL
Adani Energy
GGCL
Morvi, Gandhinagar GSPC BPCL
SGL
Objectives of developing CGD Network Consumers to get assured supply of CNG and P NG at cheapest possible price Domestic PNG and CNG to be priority - both in terms of pricing & gas volumes Incentivize maximum possible coverage for domestic PNG and CNG Quickest geographical geographical spread (overall network coverage) cov erage) during exclusivity period Monitor progress against measurable (with penal provisions, including termination of authorization for failure to achieve commitments Post-exclusivity, CGD network available to multiple players for marketing of PNG, CNG and if required, laying and building network as well.
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The table below shows the consumption pattern of CNG in different sectors for different cities.
CNG mmscmd Vehicles Domestic Industrial Commercial 2.3 134608 107487 400 0.021 3222 0.075 75000 70 0.45 43500 20000 220 200
Location Company Delhi IGL Vadodara GAIL Vadodara GAEL Ahmedabad GAEL Surat, Ankleshwar GGCL 4 Gujarat GSPC Gas 1.025 Mumbai MGL 2 Lucknow CUGL 0.056 Kanpur CUGL 0.01 Agra GGL 0.0249 Agartala TNGCL 0.0001 Vijayawada BGL 0.012 Hyderabad BGL 0.0076 Total 9.9816 Source: India Infrastructure Report
50000
200000
800
2500
179720
20813 297163
230 40
55 882
8290 -
-
-
7400 4048 41 -
400 -
-
2000 -
-
-
1700 509529 645863
-
1360
4037
Compressed Natural Gas Compressed Natural Gas (CNG) has been widely used in vehicles since the 1930s, in countries that include Argentina, Russia and Italy. There are more than 1,050,000 vehicles around the world, which are powered by CNG fuel. It is gaining increasing acceptance, particularly for city transport vehicles such as taxis, buses and delivery trucks due to its relative superiority over other conventional fuels. CNG is a relatively clean fuel with lower emission levels of SOx, NOx and SPM. It is, therefore, being promoted by the Government of India as a fuel for the transport sector vide sales tax exemption and a lower custom duty of 5 per cent on imported CNG kits as against a peak rate of 25 per cent. CNG as an automobile fuel improves engine efficiency. The running cost of CNG is lower compared to diesel and gasoline. The maintenance cost is also low due to better fuel quality. The energy content per kg of CNG is very similar to that of petroleum based fuels, but it has a lower energy content per unit of volume. The excellent knock resisting property of CNG allows for use of a higher compression ratio resulting in an increased power output and greater fuel economy when compared to petrol. 11 | P a g e
CNG can be used in engines with a compression ratio as high as 12:1 compared to normal gasoline (7.5:1 to 10:1). At this high compression ratio, natural gas-fuelled engines have higher thermal efficiencies than those fuelled by gasoline. The fuel efficiency of CNG driven engines is about 10-20% better than diesel engines. CNG is the least polluting:
(gm/100 km) Fuel/Emissions Fuel/Emissions
CO2
UHC
CO CO
NOx SOx PM
Petrol Diesel
22,000 21,000
85 21
634 106
78 108
8.3 21
1.1 13
LPG
18,200
18
168
37
0.4
0.3
CNG
16,275
5.6
22
26
0.2
0.3
Piped Natural Gas Presently allocation of gas to MGL for domestic PNG and CNG is 1.4 MMSCMD and demand for these categories of customers is more than 1.4 MMSCMD. The quantity of gas supplied to domestic, commercial and industrial customers of MGL is 0.065 MMSCMD, 0.065 MMSCMD and 0.035 MMSCMD respectively. The present allocation of 2 MMSCMD to IGL is sufficient to meet the daily demand of CNG/PNG in the National Capital Territory of Delhi. The demand for natural gas in the country is more than the availability. In order to bridge the gap between demand and supply of natural gas, Government has adopted a multi pronged strategy. These cover:i.
Intensification Intensification of domestic E&P activities
ii.
Exploitation Exploitation of unconventional sources like Coal Bed Methane (GBM)
iii.
Underground coal gasification
iv.
Implementation of Natural (Tas Hydrate Programme (NGHP) for evaluation of hydrate resources and their possible commercial exploitation
v.
LNG imports & Gas sourcing through transnational gas pipelines.
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Comparison of CNG with PNG GAIL, along with other vital CGD players, is implementing the CGD projects taking into consideration consideration the benefits of both the economical ec onomical and technical benefits of PNG and CNG.
S. No.
CNG
PNG
1
Economical
Safe and assured supply of gas to domestic, commercial commercial and industrial sectors
a.
Cheaper than conventional fuel
Convenient to use
b.
Pay back period is short
2
Technical
a.
Very high antiknock power (more than 120 ON) allows greater performance compared to petrol one
Continuous supply
b.
Does not require refining plant or additive adding and can be used immediately after its extraction
No wastage, no under weight cylinders, no hassle for replacement replacement of cylinder, no need for cylinder booking
c.
It has no evaporation leaks and spills of fuel, both during refueling and feeding of the car
No advance payment for consumption of gas, billing will done in once in two months based on consumption
d.
Its combustion produces a very low quantity of carbon deposits (permits a longer life of lubricant oil)
Economically more viable compared to other fuels in same sector No traffic disruption as supplied through pipelines
Benefits of Usage of CNG vs. other Liquid Fuels (all (a ll India Basis) % Vehicles converted to CNG From Petrol/Diesel 20 50 75
Qty of Petrol & Diesel Replaced (TMT) 17019 42548 63822
Forex Savings (Cr) 25,886 64,715 97,072
Source: Infraline.com
Supply Scenario Supply of gas has always been a constraint for the development of CGD business. This sector has always been neglected as the distribution of gas has been prioritized. At the end of 2007 the total proven reserves of natural gas was about 1645 billion cubic meters (bcm) which is about 0.6% of the total reserve worldwide. According to an estimation with the current 13 | P a g e
production level, India’s reserve are likely to last for around 30 years, but at the same time the world reserve would last for 67 years. ONGC accounts for 60% of these reserves with 990 bcm gas, while Oil India Limited (OIL) accounts for another 10% with 170 bcm and other private players and joint ventures accounts for 30% with about 48 3 bcm. Of the total supply su pply of gas, offshore fields contribute 72% and onshore fields contribute 28%. In the last five years the supply of gas has risen by 35% that is form 84 mmscmd per day during 2003-04 to 114 mmscmd during 2007-08.
Domestic Production In India there was a boom during the period between 1980 to 1996, during this period the gas production grew to ten times that is from 2.36 bcm to 22.64 bcm and this was because of the flaring of gas during that period was reduced to 68.5% at one go. During the period of 1997- 2007 the overall annual growth rate remained stagnant because the flaring was almost constant. The utilization rate has increased from 93.7% in 1995-96 to about 97.2% in 2005-06.
APM and Non-APM Supply Of the total supply of gas in the country, 60% comes from Administered Pricing Mechanism (APM), 20% from private players and joint ventures and the rest 10% from LNG. APM gas is the gas produced by ONGC and OIL from the blocks that were given on a nomination basis, and is sold at government determined rates. Non-APM gas is being produced by private players and joint ventures from the blocks wan through bids, which are under production sharing contracts with the government. This gas is sold at market-determined price. price. Because of this kind of distribution there are two groups who are affected. They are the APM gas producers and the buyers of the Non APM gas. APM gas prices are determined by government so the prices are lower than the prevailing market price thus the buyers of APM gas are benefited but at the same time the APM companies have to forgo the marginal profit. The APM gas companies did not pay any bidding of license fees for the gas fields the own. Assessing the initial demand of gas for the City Gas projects, APM gas has been allocated as follows:-
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Sl. No.
Name of the City
Qty (mmscmd)
1
Mumbai
1.4
2
Navi Mumbai & Thane
0.5
3
Delhi
2
4
Noida, Faridabad & Gurgaon
0.7
5
Hyderabad
0.1
6
Kanpur
0.1
7
Lucknow
0.1
8
Bareilly
0.05
9
Pune
0.4
10
Agartala
0.13
11
Vadodara
0.1
Source: Infraline
Constraints The biggest constraint is that the limited allocation of gas for CGD. It has to compete with bulk consumers like power and fertilizers as well as petrochemicals. Moreover lack of adequate transmission and distribution infrastructure connecting the demand and supply regions within the country is a major constraint.
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Chapter 3: CGD Infrastructure City Gate Station The natural gas that is received at the City Gate Stations is mostly passed through a cleaner to remove liquids and dust. The primary function of the city gate station is to measure the amount (volume) of incoming gas. It is generally measured through orifice meters. Another function is to reduce the pressure of the gas to be sent for distribution, as the distribution system requires much lesser pressure than that in long distance transmission. Mechanical devices called pressure regulators lower the gas pressure and helps to control the flow rate to maintain desired pressure level throughout the distribution system. With the reduction in pressure, the natural gas also becomes cooler, so sometimes it has to be heated up in regions where the temperature is below zero degree. Last but not the least, at the City Gate station, the odorization of the natural gas tales place. Different types of odorants are used, so that the “smell” makes the presence of the escaping, un -burnt gas recognizable at very
low concentrations. This serves as a warning well before the gas accumulates to hazardous levels; a mixture of air and natural gas are explosive over the range of 5% to 15% natural gas. To ensure safety, odorized natural gas is detectable at concentration of just 1%. The piping system also forms a major part in City Gas Distribution. Mainly there are 4 types of piping systems other than supply mains:a) Feeder mains transport gas from the pressure regulator or supply main to the distribution mains. Feeder mains might also have some lines connected to large industrial users. b) Distribution mains supply gas primarily to residential, commercial, and smaller industrial consumers. c) Service lines deliver gas from the distribution main in the street to the consumer’s meter.
Service lines are usually the property and responsibility of the utility. However, some utilities own only the portion of the service lines in the public domain. d) Fuel lines are customer piping beyond the meter to various appliances. These lines are the property and responsibility of the building owner.
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CGD Layout
As seen in the above figure CGD network consist of steel pipeline and PE (polyethylene) pipes. City Gas Station are the tap- off’s at the main pipeline. These are the termination station for a city where the various processes like pressure reduction, filtration, and odorisation is done. The gas from the main pipeline is brought down to a pressure of 19-22 bars and then transferred through steel pipeline to DRS. District Regulation Station are installed where the distribution is to be done like in the industrial area and domestic/commercial segment. Gas to the various consumers is transferred after being maintained at a pressure of about 4-5 bar. Then the gas is transmitted to Single Stream Regulator (SR) through 4 bar medium pressure PE p ipelines. SR further reduces the pressure from 4bar to 100 mbar. From SR the gas is supplied through a 100 mbar low pressure PE pipeline to a G.I. Riser Isolation wall. From this valve the gas is carried through a G.I. (Galvanized Iron) 100 mbar pipelines to end user. The control valve is placed at the height of 5 ft which controls the flow and then a regulator are installed which
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brings down the pressure to 21 mbar for basic home users. A meter is installed which tells the amount of gas being used depending on which they are charged.
Pressure Regime Depicting the Pressure Regime in CGD
Steel Transmission Mains
City Gate Station (90-100 bars) Steel Distribution Mains Industrial, CNG Distribution (26 bars) Polyethylene Pipe Distribution Mains Small Industrial, Industrial, Commercial (4 bars)
Meter Regulator (100 millibars)
Residential Burner (21 millibars)
Through this diagram, I have tried to consolidate the learnings about the pressure regime described in the CGD layout.
Regulatory Body Framework The Ministry of Petroleum & Natural Gas was the policy maker and regulator in the initial stages of implementation of City Gas Distribution. As time passed by, the increased activity with respect to this distribution system instigated the need of a special regulatory body, which would ensure the well being of this industry. The Petroleum and Natural Gas Regulatory Board (PNGRB) act was passed in October, 2007 and most of the operations were transferred to this authority. Regulatory Aspects of Laying Pipeline
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 18 | P a g e
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 . If any issue arises relating to the gas pipeline access, capacity booking or the transportation transportation tariff, the entities may approach the Board who may pass such orders as deemed appropriate and fair on the facts of the case based on the provisions of the Act and the regulations. 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 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 transparently and objectively stated by the Board in its regulations.
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Chapter 4: CGD Network Safety One of the primary concerns with respect to gas distribution is the safety and security of the pipeline network. The mesh of pipelines being used to distribute the gas needs to be maintained at the highest operating level, because any leak can lead to catastrophic accidents. The safety regulations are given the highest priority while issuing new licenses. The safety guidelines are coined by the Oil Industry Safety Directorate (OISD), a technical body under the Ministry of Petroleum and Natural Gas (MoPNG). The functions of the OISD are elaborated below:a. To oversee the implementation of all the decisions of the Safety Council, b. To keep abreast of the latest design and operating practices in the area of safety and fire fighting in the hydrocarbon processing industry in the developed countries, so as to develop standards and codes that would be suitable for the conditions in India; c. To liaise with the statutory organizations on current views and developments and help evolve a concerted effort for the industry; d. To carry out periodic safety audits, review, suggest procedures for improvements and report on the implementation of the suggestions to Safety Council; e. To collect the relevant information and exchange it with the members of the Oil Industry including information regarding accidents and disasters occurring in the oil industry, and also organize industry meetings for exchange of experience; f. To carry out enquiries into accidents, whenever required, and provide support to Enquiry Committees set up by the Government; g. To ensure implementation of all approved codes of practices for industrial hygiene; h. To review practices in the storage and handling of dangerous chemicals and ensure compliance with latest standards; i. To review disaster control procedures and company preparedness; j. To review in plant training programmes with regard to safety;
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k. To Specify critical drawings / layouts that need to be vetted by Safety Specialists at the design stage and carryout spot checks of design standards based on site audit findings to serve as feed-back for establishing new standards at the design stage, and l. To review zoning regulations around installations. Thus we see that this body is entrusted by the government of India to look after the technical standards and specifications that the companies must comply with, to do business in the city gas distribution distribution industry. The network and specific systems are implemented with the assent of the Urban Local Body (ULB) present in the city. The company interested in developing the infrastructure for the distribution of gas, needs to formulate the plan and involve the ULB in the loop. The ULB ensures that the company has an effective master plan and implements adequate safety measures. Few of the measures are:a) Leak Detection Equipment (LDE), and also follows industry regulations like adding the right amount of Mercaptor in the gas for easy detection in case of leakage. b) Safety Education Programmes (SEP) are also initiated through different channels public broadcasting broadcasting channels and locations for example awareness campaigns in schools, colleges. c) Lastly but not the least, Emergency Preparedness (EP) and disaster management plans are reviewed by the ULB as in this high risk business, the probability of occurrence of accidents cannot be ruled out. The companies which are in the process of establishing CGD have to collate with all these organizations and get appropriate clearances from them. The companies also do follow certain procedures as explained in the diagram follow to ensure the Health, Safety & Environment factor is maintained at the highest levels
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Fig. Depicting the Model used for Safety Purposes (Source: Gujarat Adani Energy Limited) This is one of the models in place and followed by the company, which shows the implementation of policies and procedures with respect to the industry standards. The prevalence of mock drills obviously obv iously confirms the concerns that organizations have regarding the safe use of network. Effective feedback collection, analyzing and modifying procedures and certification of the procedures helps the company to maintain operational performance as well as ensure Health, Safety and Environment factors.
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