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FEASIBILITY REPORT ON CITY GAS DISTRIBUTION PROJECT FOR

HARIDWAR (GA)

PREPARED BY

INDEX
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Chapter Particulars Page
No.
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1. Executive Summary
2. Support in FR
3. Introduction
4. Credible Plan for Sourcing of Natural Gas
5. Pipeline Connectivity
6. Market Survey & Demand Assessment
7. Various Alternatives
8. Map of Geographical Area
9. Basic Design and Peak Hour Demand
10. Project Implementation Schedule
11. Year wise Planned Capex & Opex
12. All Assumptions towards Financial of major Capex, Opex, tax
Rates, etc .
13. Project Financing, Cash Inflow & Cash Outflow etc.

14.Credible Plan for Independently undertaking and Executing CGD


project on a Standalone Basis

15.HSE & DMP

16.Risk Analysis of the project

LIST OF ABBREVIATIONS
Abbreviation
s
APM Administered Pricing Mechanism
ANSI American National Standard Institute
AGA American Gas Association
API American Petroleum Institute
AE Authorized Entity
BOQ Bill of Quantity
BCM Billion Cubic Meter
BG British Gas
BOT Build Operate Transfer
BIS Bureau of Indian Standards
CP Cathodic Protection
CIA Central Intelligence Agency
CCOE Chief Controller of Explosives
CFO Chief Financial Officer
CGD City Gas Distribution
CGS City Gate Station
CIN no. Company's Identification Number
CNG Compressed Natural Gas
DOA Date of Authorization
DSCR Debt Service Coverage Ratio
DSRA Debt Service Reserve Account
DPR Detailed Project Report
DIN Deutsche Institute for norms
DGH Directorate General of Hydrocarbon
DRS District Regulating Station
Earnings Before Interest, Tax, Depreciation and
EBITDA Amortization
EPC Engineering, Procurement and Construction
FI Financial Institutions
FY Financial Year
FME Force Majeure Event
FO Furnace Oil
GAIL Gas Authority of India Ltd.
GTA Gas Transportation Agreement
GA Geographical Area
GOI Government of India
GOMP Government of Madhya Pradesh
GCV Gross Calorific Value
GDP Gross Domestic Product

1. EXECUTIVE SUMMARY
Brief Description about HARIDWAR GA
• Population 175,010 (2001)
• Density 14,228 /km2 (36,850 /sq mi)
• Sex ratio 1.18
• Time zone IST (UTC+5:30)
• Area 12.3 square kilometres (4.7 sq mi)
• Elevation 314 metres (1,030 ft)

Haridwar is an important pilgrimage city and municipality in the Haridwar


district of Uttarakhand , India. The River Ganges, after flowing for
253 kilometres (157 mi) from its source at Gaumukh at the edge of the
Gangotri Glacier, enters the Indo-Gangetic Plains of North India for the
first time at Haridwar, which gave the city its ancient name, Gangadwára.

Haridwar is regarded as one of the seven holiest places to Hindus.


According to theSamudra Manthan Haridwar along with Ujjain, Nasik and
Allahabad is one of four sites where drops of Amrit, the elixir of
immortality, accidentally spilled over from the pitcher while being carried
by the celestial bird Garuda. This is manifested in the Kumbha Mela being
celebrated every 3 years in one of the 4 places, and thus every 12 years
in Haridwar. Amidst the Kumbha Mela, millions of pilgrims, devotees, and
tourists congregate in Haridwar to perform ritualistic bathing on the banks
of the river Ganges to wash away their sins to attain Moksha Brahma
Kund, the spot where the Amrit fell, is located at Har ki Pauri (literally,
"footsteps of the Lord") and is considered to be the most sacred ghat of
Haridwar.

Haridwar is the headquarters and the largest city of the district. Today,
the city is developing beyond its religious importance, with the fast
developing industrial estate of State Infrastructure and Industrial
Development Corporation (SIDCUL), and the close by township of Bharat
Heavy Electricals Limited in Ranipur, Uttarakhand as well as its affiliated
ancillaries.

DEMOGRAPHIC: As of 2001 India census, Haridwar district had a


population of 295,213. Males constitute 54% of the population and
females, 46%. Hardwar has an average literacy rate of 70%, higher than
the national average of 59.5%: male literacy is 75%, and female literacy is
64%. In Hardwar, 12% of the population is under six years of age.

ECONOMY:

Haridwar is rapidly developing as an important industrial township of


Uttaranchal since the state government agency, SIDCUL (State
Infrastructure & Industrial Development Corporation of Uttranchal Ltd.) set
up the Integrated Industrial Estate in a district attracting many important
industrial houses which are setting up manufacturing facilities in the area.
Haridwar has a thriving industrial area situated at the bypass road,
comprising mainly ancillary units to PSU, BHEL, which was established
here in 1964 and currently employs over 8000 people.

Agriculture is the mainstay of this well irrigated district. Industrialisation


had commenced with the establishment of Central Government owned
Public Sector plants (PSUs) of Hindustan Antibiotics Limited and Bharat
Heavy Electricals Limited, in pre-Uttarakhand 1960s period. The State
Infrastructure & Industrial Development Corporation Limited of
Uttarakhand Government (SIDCUL) has now established one new
‘industrial development zone’ in the district, near Haridwar, to encourage
industrialization; with industrial giants like Hindustan Lever, Dabur,
Mahendra & Mahendra and Havells having moved in, it is making the
desired progress. Not insignificant to the district’s economy is the
contribution of Hindu pilgrims who visit the holy places and attend the
religious fairs in large numbers.
Methodology of Study
Following steps have been adopted for DFR preparation:
1. Market Survey
2. Data analysis from secondary and primary data.
3. Year wise/ Segment wise/ CA wise Demand Projection for 25
years
4. Table top study for route selection
5. Network Design
6. Study of locations of CNG Stations, SV Stations and DRS
7. Capex and Opex calculation

Demand Assessment
The projected gas demand (SCMD), for every sector, for the project life of
25 years as follows:

Financi Industri Resident


CNG Total
al Year al ial
1 17521 9643 30384 57547
5 21767 51174 44685 117626
10 29301 77181 72329 178811
15 40123 83146 117096 240365
20 55603 89572 189534 334709
25 78205 96494 306822 481522

Design Basis and System Description


A new CGS is envisaged to cater to the Natural Gas demand of the CGD
network in Rangareddy-Medak. The new CGS shall have flow rate of 0.481
MMSCMD.

Tap-off point for gas supply to the HARIDWAR CGD network for the new
CGS is considered 10 km away from main HARIDWAR city.
The HARIDWARCGD network at has been designed as per the following
parameters,

Pressure
Pressure up-
Equipment / down- Peak hr per
stream -
Facility stream - day
barg
barg
City Gate Station 49 barg 49 (max) -
District Regulating
49 (max) 4 (max) -
Station
Domestic 0.1 (max) 21mbarg 4
Commercial 1 (max) - 12
Industries (total) 49 (max) - 16
CNG 1200 SCMH
49 200-250 18
compressor

City Gate Station (CGS)

Interface between High Pressure Network and Primary Network – includes


filtration and metering, odourization, safety devices, fire fighting system,
gas detector system, control room, battery back – up (UPS) and
associated piping.

Steel Network Length

Steel mains (primary network) comprising of 12”/8”/ 6”/4”OD pipeline of


1157.84 inch-Kms (Approx). Steel Pipe of API 5L Grade X52, Wall
thickness of 6.4 mm has been considered as specified by PNGRB.

CNG Compressors

17 electric driven compressors of 1200 SCMH capacity each have been


proposed to meet the CNG demand of HARIDWAR during the project life of
25 years.

District Regulating Stations (DRS)


Six nos of DRS of capacity 5000 SCMH are proposed to meet the PNG
demand for a period of 25 years. Secondary network is implemented
entirely in polyethylene (PE) piping, made of specified resins (PE 80 / 100),
wall thickness (SDR 11) and diameters (180, 125, 90, 63, 32 & 20 mm).

The gas from MDPE network to individual consumers will be fed by service
connections.

Implementation Strategy

Geographical Area (GA) of HARIDWAR has been divided in to 7 Charge


areas (CA). While CA 06 has the maximum industrial demand as well as
domestic and commercial demand. Mostly, the CNG stations are
envisaged along the NH/ SH in addition to the CNG demand of CA.

Network building would target CA-01, CA-02, C A-03 ,CA-04, CA-05, CA-06
and CA-07 to cater to maximum demand for domestic, commercial and
industrial sectors.

Operation and Maintenance Control Philosophy

Philosophy for O&M will essentially have the following features

• Uninterrupted supply of natural gas for Customers


satisfaction

• Technology development / absorption for safety, service


reliability and cost effectiveness

• Outsourcing bulk of the activities

• Most equipment maintenance through maintenance


contracts, preferably on Original Equipment Manufacturers
(OEMs)

• Maximum leveraging of technology to minimize man-power


and maximize efficiency.
• Compliance with regulatory stipulations, standards and
codes of practices

• Liaison with external agencies

• Development and implementation of sound procedures


on:

o Materials Management

o Contract Administration

o Communications

o Decision making

o Human resource development

o Revenue collection

Capex and Opex

Capex: Estimated Capital Expenditure (Capex) of the proposed CGD


project of HARIDWAR GA is based on the facilities considered such as
Feeder steel pipe from tap-off point to CGS, City Gate Station, Steel &
MDPE gridline, CNG stations, DRS and other allied equipment and facilities
works out to Rs. 349.97Crores .
There is no foreign exchange requirement envisaged for the proposed
project.

Opex: Estimated Operating Expenditure (Opex) of the proposed CGD


project of HARIDWARGA is Rs. 313.74 Crores it is based estimated
manpower deployment for undertaking O & M activities with requisite
salary and wages, cost of general administration, utilities, consumables,
repair & maintenance(R&M) etc. as per standard practice.

Above estimated costs are for complete economical life (i.e 25 yrs from
the date of Authorization (“Zero Date”)) as defined by PNGRB.
Disaster Management Plan
This Plan provides a guide for assuring safety for the public and
maintaining facilities in satisfactory condition, during emergency
conditions. The management or a responsible person of CGD project
should have procedures for emergency situation that must be employed
to protect the public safety or property from existing or potential hazard.
2.0 SUPPORT IN FR

Consultant Name
3. INTRODUCTION

A. General:

After recording a sustained growth of over 9 percent for the last 3 consecutive
years, the Indian economy is expected to continue to demonstrate robust
growth going forward, despite the economic slowdown due to which the growth
rate is estimated to be approximately 8.1 percent in 2010-11. Oil and gas
industry has been instrumental in fuelling this rapid growth of the Indian
economy. The petroleum and Natural Gas sector which includes transportation,
refining and marketing of petroleum products and gas constitutes over 15 per
cent of the GDP. Given India's targeted GDP growth, India's fuel needs are
likely to expand at a substantial rate. India's per-capita consumption of energy
and electricity is well below that of industrialized nations and the world
average, meaning that there is scope for rapid expansion. Today, 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. The concept
of City Gas Distribution has grown at a rapid pace in India since the late 1990’s
on the strength of both a Supreme Court mandate for conversion of
commercial automotives in few cities from traditional liquid fuels to
compressed Natural Gas (CNG) and the favorable economics of such
conversion for end users. A clean and efficient fuel Natural Gas presents a
viable substitute for traditional fossil fuels, namely Oil & Coal because of
growing concern over the environmental impact due to their continued usage.

B. Natural Gas:
Natural Gas is a gas consisting primarily of methane. Natural Gas is a highly
combustible odourless and colourless hydrocarbon in gaseous form. It is
produced in pressurized deposits located deep in the earth's crust, commonly
located just above oil deposits. Natural Gas is created in roughly the same
manner as oil, by geologic processes that act upon organic matter over millions
of years. It is also found associated with fossil fuels, in coal beds, as methane
clathrates, and is created by methanogenic organisms in marshes, bogs, and
landfills. It is an important fuel source, a major feedstock for fertilizers, and a
potent greenhouse gas. High combustibility coupled with low emissions makes
Natural Gas a highly valued resource more economical than electricity and the
other fossil fuels like Coal, Furnace Oil, Diesel, Wood etc.

Before Natural Gas can be used as a fuel, it must undergo extensive processing
to remove almost all materials other than methane. The by-products of that
processing include ethane, propane, butanes, pentanes and higher molecular
weight hydrocarbons, elemental sulfur, and sometimes helium and nitrogen.
The image below is a schematic block flow diagram of a typical Natural Gas
processing plant. It shows the various unit processes used to convert raw
Natural Gas into sales gas pipelined to the end user markets.

Processing of Natural Gas:


The block flow diagram also shows how processing of the raw Natural Gas
yields byproduct sulfur, byproduct ethane, and Natural Gas liquids (NGL)
propane, butanes and Natural Gasoline.

Schematic flow diagram of a typical Natural Gas processing plant


C. Indian overview of Oil & Gas sector:

Oil & Gas Sector has long history in India, In 1867 Oil was 1st struck at Makum
near Margherita in Assam and first commercial discovery was in Digboi in
1889.In the year 1899 Assam Oil Company was formed for Systematic Erection
and Procurement. Oil India Limited (OIL) was the first Indian company to start
sale and distribution of gas in Assam in the sixties. Later, Oil & Natural Gas
Commission (ONGC) and Assam Gas Company also laid Natural Gas pipelines
for sale of gas to major industries and tea gardens in Assam. In Gujarat, ONGC
started selling its associated gas to the neighbouring industries in the
seventies and pipelines were laid / owned by either ONGC or customer itself.

India has significant Oil & Gas reserves, the major discoveries in past 5years
have been made in the offshore east coast basins of Krishna Godvari and
Mahanadi-NEC basins, western Offshore and on land in Rajasthan, Cambay and
Assam –Arakan basins. As per reports from Ministry of Petroleum & Natural
Gas, the estimated Natural Gas Reserves of India as of 1st April, 2008 is 1090
Billion Cubic Meters (BCM). The total production of Natural Gas in 2008-09 was
32.85 BCM against consumption of 31.77 BCM. Today the main producers of
Natural Gas are ONGC, OIL and JVs of Tapti, Panna-Mukta and Ravva, and by
RIL in the KG basin.

Gas Exploration

Government has offered blocks under New Exploration Licensing Policy (NELP)
to private and public sector companies with the right to market gas at market
determined prices. The NELP was formulated by the Government during 1997-
98 to provide a level playing field to both the Public and the Private sector,
through allocating acreages1 on the basis of open competitive bidding, opposed
to the nomination basis earlier. 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 Directorate General of Hydrocarbons (DGH). Similarly, there are now14
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.

Exploration Status 1998-1999 (3.14 million sq km) Exploration Status 2006-2007 (3.14 million sq km
)

1
Area of land measured in Acres.
Source: DGH

Indian private sector and foreign players, with the private sector giant, RIL is
actively participating and have won 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.

In November 2008, the Cabinet Committee on Economic Affairs awarded 44 oil


and gas exploration blocks under the seventh round of auction of the New
Exploration Licensing Policy (Nelp-VII). The overall number of blocks brought
under exploration now exceeds 200.The allocation is likely to bring in
investments worth US$ 1.5 billion

Economic Importance of Oil & Gas Industry

The oil and gas industry has been instrumental in fuelling the rapid growth of
the Indian economy. The Petroleum and Natural Gas sector which includes
transportation, refining and marketing of petroleum products and gas
constitutes over 15 per cent of the GDP.

Petroleum exports have also emerged as the single largest foreign exchange
earner, accounting for 17.24 per cent of the total exports in 2007-08. Growth
continued in 2008-09 with the export of petroleum products touching US$
24.63 billion during April- December 2008. (Source: Indian Brand Equity
Federation)

Demand for Oil & Gas

India's domestic demand for oil and gas is on the rise. As per the Ministry of
Petroleum, demand for oil and gas is likely to increase from 176.40 million
tonnes of oil equivalent (mmtoe) in 2007-08 to 233.58 mmtoe in 2011-12.

Gas demand in India is dominated by the power and fertilizer sectors which
account for 66 per cent of the current consumption. In 2006, the total gas
demand was around 152 MMSCMD. The gas demand is expected to increase to
320 MMSCMD, according to a report by Ernst & Young. Significantly, the share
of Natural Gas in the overall fuel mix is expected to increase from 8 per cent in
2006 to 20 per cent by 2025.

D. Natural Gas usage- India Vs World

The importance of oil in India can be gauged from the fact that it accounts for
36 percent of the Primary Energy Mix in India. Taken with Natural Gas, this
percentage rises to 45 percent. However, the proportion of Natural Gas is
approximately one-third that of the world average, once again 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

India’s Primary Energy mix in 2009 World Primary Energy mix in 2009

Worldwide, the industrial and electric power sectors are the largest consumers
of Natural Gas. Industrial sector accounts for 44% and the electric power sector
31% of the world’s total Natural Gas consumption. With the above comparison
of energy mix it is imperative that the Natural Gas is the preferred fuel vis-à-vis
the fossil fuels.

E. Natural Gas Reserves & Consumption across the Globe.

Natural Gas Reserves:

The world's largest proven gas reserves are located in Russia, with
4.757 × 1013 m³ (1.6 × 1015 cu ft). Russia is also the world's largest Natural Gas
producer, through the Gazprom company. Major proven resources are in
Russia, Iran, Qatar, Saudi Arabia and United Arab Emirates

As per the Fact-book of Central Intelligence Agency (CIA) of USA the proved
reserves of the Natural Gas has revealed an increasing trend with new
discoveries happening. The total Natural Gas - proved reserves estimated as on
January 2008 was 175.4 trillion cu m

Natural Gas - proved


Year reserves
2003 161,200,000,000,000
2004 161,200,000,000,000
2005 161,200,000,000,000
2006 174,600,000,000,000
2007 172,800,000,000,000
2008 175,400,000,000,000

The above table shows the stock of proved reserves of Natural Gas in cubic
meters (cu m). Proved reserves are those quantities of Natural Gas, which, by
analysis of geological and engineering data, can be estimated with a high
degree of confidence to be commercially recoverable from a given date
forward, from known reservoirs and under current economic conditions. Almost
three-quarters of the world’s Natural Gas reserves are located in the Middle
East and Eurasia, Russia, Iran, and Qatar together accounts for about 57
percent of the world’s Natural Gas reserves as of January 1, 2009. In terms of
reserves India is at 24th position.
Natural Gas – Reserves (cubic
Rank Country
meters)
47,570,000,000,0
1 Russia 00
26,370,000,000,0
2 Iran 00
25,790,000,000,0
3 Qatar 00
6,568,000,000,00
4 Saudi Arabia 0
United Arab 5,823,000,000,00
5 Emirates 0
5,551,000,000,00
6 United States 0
5,015,000,000,00
7 Nigeria 0
4,359,000,000,00
8 Algeria 0
4,112,000,000,00
9 Venezuela 0
3,170,000,000,00
10 Iraq 0
2,860,000,000,00
11 Turkmenistan 0
2,630,000,000,00
12 Indonesia 0
2,450,000,000,00
13 China 0
2,288,000,000,00
14 Norway 0
2,037,000,000,00
15 Malaysia 0
1,798,000,000,00
16 Uzbekistan 0
1,765,000,000,00
17 Kazakhstan 0
1,684,000,000,00
18 Netherlands 0
1,589,000,000,00
19 Egypt 0
1,537,000,000,00
20 Canada 0
1,521,000,000,00
21 Kuwait 0
1,430,000,000,00
22 Libya 0
1,075,000,000,00
23 Ukraine 0
1,056,000,000,00
24 India 0

Inspite, of having good reserves compared to other countries in the world the
network of Piped Natural Gas Distribution to domestic sector is lagging, as per
reports Pakistan and Bangladesh are way ahead in comparison to India in PNG
Network to Domestic segment.

Consumption of Natural Gas

The following table shows the worlds Natural Gas Consumption, which has
increased form 2.555 trillion cum in 2004 to 3.198 trillion cum in 2008. The
increase in consumption of natural gas is expected to grow further with
increasing production of Natural Gas.

Natural Gas -
Year consumption (cubic
meters)
2004 2,555,000,000,000
2005 2,599,000,000,000
2006 2,675,000,000,000
2007 2,819,000,000,000
2008 3,198,000,000,000
2009 3,476,000,000,000
2010 3,628,000,000,000
Today India ranks at 20th position in the world in terms of Natural Gas
consumption.

F. Uses of Natural Gas:

1. Power generation
Natural Gas is a major source of electricity generation through the use of
gas turbines and steam turbines. Most grid peaking power plants and some
off-grid engine-generators use Natural Gas. Natural Gas burns more cleanly
than other fossil fuels, such as oil and coal, and produces less carbon
dioxide per unit energy released. For an equivalent amount of heat, burning
Natural Gas produces about 30% less carbon dioxide than burning
petroleum and about 45% less than burning coal. Combined cycle power
generation using Natural Gas is thus the cleanest source of power available
using fossil fuels, and this technology is widely used wherever gas can be
obtained at a reasonable cost. DG set using Natural Gas is now widely used
source of Power supply/back up for industries etc.

2. Domestic use
Natural Gas is supplied to homes, where it is used for such purposes as
cooking gas, geysers, and air-conditioning.

3. Transportation Fuel
Compressed Natural Gas (methane) is a cleaner alternative to other
automobile fuels such as gasoline (petrol) and diesel. As of December 2008,
the countries with the highest number of CNG vehicles, ranked numerically,
were Pakistan, Argentina, Brazil, Iran and India. The energy efficiency is
generally equal to that of gasoline engines, but lower compared with
modern diesel engines. Gasoline/petrol vehicles converted to run on Natural
Gas suffer because of the low compression ratio of their engines, resulting in
a cropping of delivered power while running on Natural Gas CNG-specific
engines;
4. Fertilizer Industry
Natural Gas is a major feedstock for the production of ammonia, via the
Haber process, for use in fertilizer production.

5. Hydrogen
Natural Gas can be used to produce hydrogen, with one common method
being the hydrogen reformer. Hydrogen has various applications: it is a
primary feedstock for the chemical industry, a hydrogenating agent, an
important commodity for oil refineries, and a fuel source in hydrogen
vehicles.

6. Industrial use
Natural Gas is also used in the manufacture of fabrics, glass, steel, plastics,
paint, and other products.

H. City Gas Distribution in India:

The City Gas Distribution in India Dates back to 1857 when Calcutta Gas
Company and Bombay Gas Company commenced operations in Calcutta and
Bombay respectively with coal gas as the primary input. Subsequently,
however the industry remained by and large dormant, until ONGC and Assam
Gas Limited entered the business in the mid-to late -1980’s. The real impetus
to the sector came form the establishment of Gujarat Gas Company limited
(GGCL), Mahanagar Gas limited (MGL) and Indraprastha Gas limited (IGL),which
began operations in the late 1980’s to mid 1990’s , While these companies
struggled in the initial years because of a host of reasons , regulatory
intervention in the form of Supreme Court order on conversion to gas and
states support for environmental pollution abatement came as shot in the arm
for the CGD business . The commercial success of these companies in the
ensuing period along with improving gas supplies has drawn a number of new
entrants to the CGD business in the recent past. Even while the industry was
gathering momentum, GOI has set up a regulator, the Petroleum and Natural
Gas Regulatory Board (PNGRB), which has, among other mandates in the
hydrocarbon sector, the mandate of regulating the CGD business. PNGRB has
already laid down laid guidelines for the CGD sector.

Because of the limited availability of Natural Gas in India and the relatively
small pipeline network, the CGD business has remained confined to only a few
cities, wherein consumption is estimated at 8 Million Metric Standard Cubic
Metres Per Day (MMSCMD) as of 2007-08, which is around 8% of the overall
Natural Gas consumption in India. In terms of volume handled, GGCL, MGL and
IGL have been the three major players accounting for around 75% of the total
CGD volumes in India. However, the untapped potential in these cities is much
higher, as corroborated by the low penetration level among various customers.

As Natural Gas is cheaper in comparison to other fuels rise in volume growth of


gas arising from the said factors has enabled the GGCL,MGL & IGL to scale up
operations and improve the profitability. Besides scale-up of volumes, the
financial performance of gas distributing companies was being benefited from
the allocation of Administered Pricing Mechanism (APM) gas, for their CGD
operations. Because of the sizeable price differential between the traditional
fuels (MS, HSD, Auto LPG, domestic LPG, Bulk LPG, and LSHS) and city gas, the
MGL, GGCL &IGL have had the scope to price city gas at affordable levels for
various classes of consumers and yet maintain robust margins. Since 2006,
APM gas allocation has been restricted only for sales to the CNG and domestic
PNG segments, with gas for PNG (industrial) and PNG (commercial) attracting
non-APM rates, which are almost double the APM rates. The APM gas price
revision and allocation of gas at non APM rates for industrial and commercial
customers margins for MGL and IGL have declined in the recent past, while still
remaining robust in absolute terms. GGCL on the contrary has traditionally
been dependent mainly on non-APM gas, given its larger focus on industrial
and commercial customers. Thus, its operating margins have been lower than
that of MGL and IGL; however it remains the largest player in India in terms of
the volume of gas distributed, given its focus on high volume customers.

CGD network in India

Name of
S.N Entity
the CGD Area Covered
o. Authorized
Network

Sonipat CGD Gail Gas


1 Sonipat
Network Limited

Meerut CGD Gail Gas


2 Meerut
Network Limited

Kakinada
Bhagyanagar
3 CGD Kakinada
Gas Limited
Network

Dewas CGD Gail Gas


4 Dewas
Network Limited

Kota CGD Gail Gas


5 Kota
Network Limited
JV of M/s DSM
Infratech Pvt.
Mathura
Ltd. & M/s
6 CGD Mathura
Saumya
Network
Mining Pvt.
Ltd.
Agra CGD Green Gas
7 Agra
Network Limited
Hyderabad
Bhagyanagar
8 CGD Hyderabad
Gas Limited
Network

Indore CGD Aavantika Gas


9 Indore including Ujjain
Network Limited

Ghandhinag
ar Mehsana
Sabarmati Gas
10 Sabarkantha Ghandhinagar Mehsana Sabarkantha
Limited
CGD
Network

Pune City
including Pune City including Pimpri Chiechwad
Maharashtra
Pimpri and along with adjoining contiguous
11 Natural Gas
Chichwad areas of Hinjewadi, Chakan &
Limited
CGD Talegaon GA
Network

Kanpur CGD Central U.P.


12 Kanpur GA
Network Gas Limited

Bareilly CGD Central U.P.


13 Bareilly GA
Network Gas Limited

Delhi CGD Indraprastha


14 National Capital Territory of Delhi
Network Gas Limited
Mumbai
Mahanagar
15 CGD Mumbai & Greater Mumbai
Gas Limited
Network
Vijaywada
Bhagyanagar
16 CGD Vijaywada GA
Gas Limited
Network
Thane City & adjoining contiguous
Mumbai areas including Mira Bhayender,Navi
CGD Mumbai,Thane Mahanagar
17
Network(GA- City,Ambernath,Bhiwandi,Kalyan,Do Gas Limited
2) mbivily,Badlapur,Ulhasnagar,Panvel,K
harghar & Taloja.
The Petroleum and Natural Gas Regulatory Board (PNGRB) is aiming to cover as
many as about 230 towns and cities in the near future of city gas distribution.

The commercial success of the CGD project in India has drawn M/s. APNRL into the
said business.
4.0 CREDIBLE PLAN FOR SOURCING NATURAL GAS

Gas Sourcing Plan

The objective of this section is to detail the strategic plan for sourcing of gas to
meet the demand from the proposed City Gas Distribution Project

Outline

We have plans to source the Natural Gas from both domestic and LNG sources of
Gas and to enter both in long term and short term contracts for sourcing of
natural gas depending on market conditions.

Domestic Sources of Gas

The following table provides the plan to source the gas from domestic sources:
A.1.1.1Source A.1.1.2Description
A.1.1.3 Reliance KG-D6
A.1.1.4 Huge Gas reserves discovery by RIL on eastern
coast of India. Various options are available for
transportation of this natural gas from Kakinada up
to the proposed GA. Gas from KG D-6 is presently
evacuated using RGTIL EWPL pipeline up to Dahej.
A.1.1.5 GSPC-Deendayal
A.1.1.6 Yet to be developed field of GSPC may also be a
possible source of gas for proposed CGD network.
Based on Gas Allocation by Government of India, it
is expected that a significant amount of gas may
be available for CGD. This gas will be transported
through pipeline networks similar as in case of RIL
KG-D6.
A.1.1.7 Cairn ; ONGC
A.1.1.8
and Prospective discoveries by Cairn and ONGC may
other Upstream also form a major source of Gas for the northern
development in market.
KG Basin
A.1.1.9 Mahanadi Basin
A.1.1.10 Several developments plans in Mahanadi
region may potentially add natural gas for the
proposed CGD network
A.1.1.11 Bombay
A.1.1.12 Natural gas from Bombay High, PMT and
High and Other other fields of ONGC can be sourced for CGD
Finds of ONGC network
A.1.1.13 CBM A.1.1.14
and CBM and Shale Gas exploration in future can
Shale Gas also add volumes for the proposed CGD network
A.1.1.15 Other A.1.1.16 Significant level of exploration is being done,
Private and some of these exploration may add to gas
Exploration volumes for future CGD networks.

Table 4.1: Potential Gas sources

LNG Gas Sourcing


We may also use the existing re-gasification capacity available with LNG terminals
in India esp. the one in Hazira and the planned LNG terminal in Mundra on tolling
basis. In addition to the above Regasifications facility being developed at Dabhol,
Petronet – Ennore, Petronet – Dahej Expansion may also act as source of gas for
the proposed CGD network.

International Pipeline

In addition to the above, future intercontinental pipelines like TAPI and IPI may
also provide necessary gas source for the proposed CGD

5.0 Pipeline Connectivity

Pipeline Connectivity:

A combination of pipeline from various operators will be utilized to deliver gas to


the CGD network. M/s. APNRL will explore all possibilities on cross country
natural gas pipelines for connecting the Gas source with CGS proposed for the
CGD network.

A possible configuration of cross country pipeline along with the possible source
CGS Location :
In order to have better economics and operational efficiency it is advisable to
have CGS located near the Tap-off provided by transporter.

Tap Off Point: currently Haridwar is not connected by any of existing NG


pipeline , in future it may be connected by Spur line of Dadri Bhavana
nagla Pipeline.

City Gate Station: CGS has been assumed to be established in the near vicinity
as per availability of suitable land.
Pressure: The downstream pressure at CGS has been taken as 49 Barg,
maximum Pressure Point in the Network.
6.0 MARKET SURVEY & NATURAL GAS DEMAND ASSESSMENT

6 City Background-Haridwar:

• Population 175,010 (2001)


• Density 14,228 /km2 (36,850 /sq mi)
• Sex ratio 1.18
• Time zone IST (UTC+5:30)
• Area 12.3 square kilometres (4.7 sq mi)
• Elevation 314 metres (1,030 ft)

Haridwar is an important pilgrimage city and municipality in the Haridwar district of Uttarakhand ,
India. The River Ganges, after flowing for 253 kilometres (157 mi) from its source at Gaumukh at the
edge of the Gangotri Glacier, enters the Indo-Gangetic Plains of North India for the first time at
Haridwar, which gave the city its ancient name, Gangadwára.

Haridwar is regarded as one of the seven holiest places to Hindus. According to theSamudra Manthan
Haridwar along with Ujjain, Nasik and Allahabad is one of four sites where drops of Amrit, the elixir of
immortality, accidentally spilled over from the pitcher while being carried by the celestial bird Garuda.
This is manifested in the Kumbha Mela being celebrated every 3 years in one of the 4 places, and thus
every 12 years in Haridwar. Amidst the Kumbha Mela, millions of pilgrims, devotees, and tourists
congregate in Haridwar to perform ritualistic bathing on the banks of the river Ganges to wash away
their sins to attain Moksha Brahma Kund, the spot where the Amrit fell, is located at Har ki Pauri
(literally, "footsteps of the Lord") and is considered to be the most sacred ghat of Haridwar.

Haridwar is the headquarters and the largest city of the district. Today, the city is developing beyond its
religious importance, with the fast developing industrial estate of State Infrastructure and Industrial
Development Corporation (SIDCUL), and the close by township of Bharat Heavy Electricals Limited in
Ranipur, Uttarakhand as well as its affiliated ancillaries.

DEMOGRAPHIC: As of 2001 India census, Haridwar district had a population of 295,213. Males
constitute 54% of the population and females, 46%. Hardwar has an average literacy rate of 70%,
higher than the national average of 59.5%: male literacy is 75%, and female literacy is 64%. In
Hardwar, 12% of the population is under six years of age.

6.2 ECONOMY:
Haridwar is rapidly developing as an important industrial township of Uttaranchal since the state
government agency, SIDCUL (State Infrastructure & Industrial Development Corporation of Uttranchal
Ltd.) set up the Integrated Industrial Estate in a district attracting many important industrial houses
which are setting up manufacturing facilities in the area. Haridwar has a thriving industrial area situated
at the bypass road, comprising mainly ancillary units to PSU, BHEL, which was established here in
1964 and currently employs over 8000 people.

Agriculture is the mainstay of this well irrigated district. Industrialisation had commenced with the
establishment of Central Government owned Public Sector plants (PSUs) of Hindustan Antibiotics
Limited and Bharat Heavy Electricals Limited, in pre-Uttarakhand 1960s period. The State
Infrastructure & Industrial Development Corporation Limited of Uttarakhand Government (SIDCUL)
has now established one new ‘industrial development zone’ in the district, near Haridwar, to encourage
industrialization; with industrial giants like Hindustan Lever, Dabur, Mahendra & Mahendra and
Havells having moved in, it is making the desired progress. Not insignificant to the district’s economy
is the contribution of Hindu pilgrims who visit the holy places and attend the religious fairs in large
numbers.

Fig 1 Haridwar Map

6.3 Demand Estimation of Natural Gas in Haridwar City


6.3.1 Compressed Natural Gas (CNG:)

about Compressed Natural Gas (CNG)

CNG is a fossil fuel substitute for other auto fuels such as petrol, diesel, Auto LPG etc. For use in
Automobiles as fuel, Natural Gas is compressed & dispensed to vehicles at high pressure of 200 bar to
enhance the vehicle on board storage capacity.

In and around the Mumbai city, MGL has been supplying CNG to over two lakh vehicles, through its
robust network of around 150 CNG stations with more than 700 dispensing points.
Today, almost all the auto-rickshaws and taxies are plying on CNG. CNG is also
being supplied to transport undertakings such as BEST, TMT, MSRTC & NMMT.
Besides these, passenger cars, postal vans, school buses, courier vans, Light and
Heavy commercial vehicles are also enjoying the benefits of CNG.

CNG is substantially economical and eco-friendly than the conventional liquid auto
fuel. Moreover, it is easily available in and around the Mumbai city, making it the
preferred auto fuel of Mumbai.

CNG Facts

Economical

• Easy on the pocket


• CNG delivers high performance at low cost, as it gives your vehicle
a better mileage
• CNG does not contaminate or dilute crank case oil, giving engine an
extended life

Eco Friendly

• The use of CNG significantly reduces harmful vehicular exhaust gas


emissions like carbon dioxide, carbon monoxide and other
suspended particles
• It protects the environment by reducing the effects of global
warming
• Non –toxic, non corrosive, non-carcinogenic and hence improves public
health

Safety

• CNG is lighter than air and hence disperses quickly without any dangerous accumulation
• CNG has a narrow flammability range making it much safer than other fuels
• CNG has a higher ignition temperature than other fuels, reducing chances of accidental
and spontaneous ignition

CNG Supplied Through:

In a CGD network the CNG can be supplied through the following ways:

• Mother Station: Mother stations are connected to pipeline & have high compression capacity.
These stations supply CNG to both vehicles & daughter stations (through mobile cascades).
Typically they have facility of filling all types of vehicles & require heavy investment towards
compressor, dispensers, cascades, pipelines, etc.

• Online Station: CNG vehicle storage cylinders need to be filled at a pressure of 200 bars. “On
line Stations” are equipped with a compressor of relatively small capacity, which compresses
low pressure pipeline gas to a pressure of 250 bar for dispensing CNG to vehicle cylinder.
Investment in an online station is midway between daughter station & mother station
• Daughter Station: “Daughter Station” dispenses CNG using mobile cascade, which is replaced
when pressure falls & is refilled at “Mother Station”. There is reduction in storage pressure at
daughter stations with each successive filling. Once the storage pressure drops, the refueling
time increases, while quantity of CNG dispensed to vehicle also decreases. Daughter-Booster
Station: Installing a booster compressor can eliminate drawbacks of daughter stations. Mobile
cascade can be connected to dispensing system through a booster. Daughter booster
(compressor) is designed to take variable suction pressure & discharge at constant pressure of
200 bars to vehicle being filled with CNG. Investment in daughter booster station is slightly
higher than that of daughter station.

CNG Demand Projection (Haridwar City):


Table 1 shows the No of vehicles that will be mandatorily converted into CNG vehicles like autos
(1900), Vikram (1000), taxis (2000) and buses (20). Mileage and distance travelled per month is also
given for each type of vehicles in second and third column respectively.

DATA NO Mileage(Km/lit) Distance travelled/month


Auto 1900 25-30 6000
Vikram 1000 25 5250
Taxis 2000 20 3500
Buses(intercity) 20 16 7500

Table 1

In table 2 the total diesel consumption is calculated for all type of vehicles. It’s come out that 1050375
litre of diesel is consumed per month. Therefore the yearly consumption of diesel is 12604500 litre or
12604.5 KL.

Mileage(KM/l Dist/month(K Consumptio Cons/mnt Consumption/y


Vehicles No it) Avg dist/day(KM) M) n/v-m h ear
3-
wheele 290
r 0 25 200 6000 240 696000
200
Taxes 0 20 115 3450 172.5 345000
Buses 20 16 250 7500 468.75 9375
1050375 12604500

Table 2

Graph 1 shows the CNG demand projection for the next 25 years. The demand for 2011 is already
calculated in above table2. The growth rate of automobile industry (3-wheeler and taxis) is 10.11%.
For growth rate calculation refers annexure I.

Year wise total CNG demand:

year 2011 2012 2013 2014 2015


1260450 13879261. 15282947 16828595.
Liter 0 93 .5 46 18530563.23
KL 12605 13879 15283 16829 18531
NG(CM)*100
0 11092 12214 13449 14810 16307
NG(MMSCM) 11.09 12.21 13.45 14.81 16.31
NG(mmscm
d) 0.03 0.03 0.04 0.04 0.05

2016 2017 2018 2019 2020 2021 2022


20404660. 22468295. 2474063 27242792. 29998004.5 33031866 36372559
31 06 6 16 3 .58 .7
20405 22468 24741 27243 29998 33032 36373
17956 19772 21772 23974 26398 29068 32008
17.96 19.77 21.77 23.97 26.4 29.07 32.01
0.05 0.05 0.06 0.07 0.07 0.08 0.09

2023 2024 2025 2026 2027 2028 2029 2030


40051115 44101703 4856194 5347328 588813 6483632 7139357 78613993
.3 .3 9.5 4.7 30 0.6 1.8 .7
40051 44102 48562 53473 58881 64836 71394 78614
35245 38810 42735 47056 51815 57056 62827 69180
35.25 38.81 42.74 47.06 51.82 57.06 62.83 69.18
0.1 0.11 0.12 0.13 0.14 0.16 0.17 0.19

2031 2032 2033 2034 2035 2036


8656465 9531941 1049595 1155747 1272634 1401342
6.2 2.8 86 22 25 70
86565 95319 104960 115575 127263 140134
76177 83881 92365 101706 111991 123318
76.18 83.88 92.37 101.71 111.99 123.32
0.21 0.23 0.26 0.28 0.31 0.34

The graph shows that the CNG demand curve is increasing exponentially. That means the future
demand will be very high. The demand will increase from 11.09 MMSCM in 2011 to 123.32
MMSCM in 2036.

For calculation of CND demand projection and data collected refers Annexure I.
Graph 1 CNG Demand Projection

6.4 Piped Natural Gas (PNG)

Domestic PNG is used for various purposes like cooking and water heating. It is also widely used by
Hospitals, Nursing Homes, Hotels, Flight kitchens, Restaurants, places of Worship etc. PNG satisfies
most of the requirements for fuel across all segments, being efficient, non-polluting and relatively
economical
Benefits of Piped Natural Gas

Fig 4 PNG Benefit

Piped Natural Gas is the preferred fuel. Here are some of the major benefits of using natural gas:

• Convenience – Gas is continuously fed into the system so there are no hassles of refilling /
changing the cylinder; it is piped and does not require any space to store, hence handling is
easy, safe and secure.
• Economical – Higher savings than any other conventional fuel.

• Safe – Robust systems and processes as per international safety standards that match the best in
the world, are practiced. PNG being lighter than air disperses easily and avoids spontaneous
flammability.
• Consistent, reliable supply – MGL has got a track record of almost 100% reliability in its gas
supply. Even during the deluge of July 2005 in Mumbai, when most other utilities failed, PNG
supply continued uninterrupted.
• Eco-friendly – Use of PNG improves public health. It also reduces the transportation of bottled
gas within the metro thereby reducing traffic congestion and safety on the roads.
PNG Composition

With only one carbon and four hydrogen atoms per molecule (Methane) Natural Gas is a
composition of hydrocarbons (Almost 95% Methane & rest other Hydro Carbons). Its calorific
value generally ranges from 8000 kcal/m3 to 9000 kcal/m3, Natural Gas has the lowest carbon to
hydrogen ratio, hence it burns completely, making it more environment friendly fuel.

Physical state Gas


Colour Colourless
Odourless (For easy detection through smell, Ethyl Mercaptan is added
Odour
as Odourant)
Melting point -182oC
Boiling point -161.5oC
Vapour density 0.6 to 0.7 (with respect to air)
Flammability ratio 5 to 15% by volume in air

540oC
Auto ignition temp

PNG Demand Projection:

According to the census of India, Haridwar(urban) has a population of 1679519 lakh. No of household
in Haridwar urban are 279344.

Assumption

1. Consumption of NG per family 0.7 SCMD.


2. 1.5% increase in the growth of population.

Therefore the total consumption of domestic PNG in 2011 is 70.39 SCM. And it will increase to 102.19
SCM in 2036.

Year 2011 2012 2013 2014 2015


No of Houshold 279344 283534 287787 292104 296486
Gas 195541 198474 201451 204473 207540
demand/scmd(100%
penetration)
MMSCMD 0.196 0.198 0.201 0.204 0.208
MMSCM 70.56 71.28 72.36 73.44 74.88
Penetration( 5%, then
increases by 5% till
35%, then remain
constant 0.0098 0.0198 0.03015 0.0408 0.052

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
30093 30544 31002 31467 31939 32419 32905 33398 33899 34408
3 7 9 9 9 0 3 9 9 4
21065 21381 21702 22027 22357 22693 23033 23379 23729 24085
3 3 0 5 9 3 7 2 9 9
0.211 0.214 0.217 0.22 0.224 0.227 0.23 0.234 0.237 0.241
75.96 77.04 78.12 79.2 80.64 81.72 82.8 84.24 85.32 86.76
0.0759 0.0794 0.0829 0.0843
0.0633 0.0749 5 0.077 0.0784 5 0.0805 0.0819 5 5

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
34924 35448 35980 36519 37623 38760 39342 39932 4053
5 4 1 8 370676 6 381880 8 2 3 13
24447 24813 25186 25563 26336 27132 27539 27952 2837
2 9 1 9 259473 5 267316 6 5 6 19
0.244 0.248 0.252 0.256 0.259 0.263 0.267 0.271 0.275 0.28 0.284
102.2
87.84 89.28 90.72 92.16 93.24 94.68 96.12 97.56 99 100.8 4
0.085 0.086 0.088 0.089 0.0906 0.0920 0.0948 0.0962 0.099
4 8 2 6 5 5 0.09345 5 5 0.098 4

Graph2 shows the domestic demand projection. Here we can see that the demand will increase linearly
with slope less than 45 degree.
Graph 2 Domestic PNG Demand projection(assume 100% penetration)

For Calculation refers Annexure II.

6.5 INDUSTRIAL:
Fig5 shows the different application of industrial and commercial sector.

Fig 5 I and C Application of NG

The following table shows the conversion units

1 lit to 1kg 0.92


1 m3 NG 1 kg diesel 1 lit diesel
0.809 0.88

Table3 Conversion

This survey contains small, medium and large industries


Year 2011 2012 2013 2014 2015 2016
103644 120085 12926 13913 14976
Diesel(lit/year) 0 1115624 8 04 59 59
105675 11374 12243 13179
NG(CM/year) 912067 981749 5 92 96 40
NG(MMSCM/year) 0.91 0.98 1.06 1.14 1.22 1.32
Sub-Total(Actual of 100 cos) 1.279 1.349 1.429 1.509 1.589 1.689
Total(MMSCM/year) 500
companies 6.395 6.745 7.145 7.545 7.945 8.445

2017 2018 2019 2020 2021 2022 2023 2024 2025


16120 17352 18678 20105 21641 23294 25074 26989 29052
80 43 16 17 20 59 30 98 01
14186 15270 16436 17692 19044 20499 22065 23751 25565
30 14 78 55 26 24 38 18 77
1.42 1.53 1.64 1.77 1.9 2.05 2.21 2.38 2.56
1.789 1.899 2.009 2.139 2.269 2.419 2.579 2.749 2.929
8.945 9.495 10.045 10.695 11.345 12.095 12.895 13.745 14.645

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036
31271 33660 36232 39000 419802 45187 48639 52355 563559 60661 65296
58 73 41 57 1 50 83 91 0 49 03
27518 29621 31884 34320 369425 39765 42803 46073 495931 53382 57460
99 44 52 50 8 00 05 20 9 11 51
2.75 2.96 3.19 3.43 3.69 3.98 4.28 4.61 4.96 5.34 5.75
3.119 3.329 3.559 3.799 4.059 4.349 4.649 4.979 5.329 5.709 6.119
15.595 16.645 17.795 18.995 20.295 21.745 23.245 24.895 26.645 28.545 30.595

The Graph shows the NG demand projection for industrial sector. The demand for 2011 is 6.39
MMSCM. The growth rate for industrial manufacturing sector is taken as 7.64% (Refer Annexure
III). So the demand in 2036 will be 30.59 MMSCM. The graph shows an exponential increase in
demand of NG for industrial sector.
Graph 5 NG Demand Projections for Industrial

6.6 Demand Projection of Natural Gas in Commercial Sector

Commercial Development in Haridwar

The use of NG in commercial establishments like Hotels, Hospitals, Restaurants,


Malls, and Canteens etc. comes under commercial sector. Mainly, the usage of NG
is from cooking and water heating. Captive power generation by gas based
gensets and space heating / cooling by VAM (Vapour absorption refrigeration)
machines are emerging as the high potential consumption area in commercial
usage of NG.

Usage of Natural Gas in Commercial Sector

Natural gas has a multitude of commercial uses as in cooking, cooling, steam


generation and heating. Natural gas absorption systems are also being used
extensively in the developed countries to heat and cool water in an efficient,
economical and environmental friendly manner.

The commercial sector includes public and private enterprises, like office
buildings, schools, churches, hotels, restaurants, hospitals, nursing homes,
hostels, canteens, guest houses, sweet shops, and bakeries. The usage of natural
gas in space and water heating for commercial buildings is very similar to that of
residential complexes. Natural gas is an efficient and economical fuel for heating
in all types of commercial buildings. Cooling and cooking represent two major
growth areas for the use of natural gas in commercial settings. Another area of
use in the commercial natural gas is in the food service industry. Natural gas is an
excellent choice for commercial cooking requirements, as it is a flexible energy
source being able to supply the food service industry with appliances that can
cook food in many different ways. Natural gas is also an economical, efficient
choice for large commercial food preparation establishments. New developments
such as non-traditional restaurant systems, which provide compact,
multifunctional natural gas appliances for smaller sized food outlets such as those
found in shopping malls and airports, are expanding the commercial use of natural
gas. These types of systems can integrate a gas-fired fryer, oven, hot and cold
storage areas, and multiple venting options in a relatively small space - providing
the ease and efficiency of natural gas cooking while being compact enough to
serve small kiosk type establishments.

Due to wide variation in the energy consumption pattern between major and
minor commercial units, almost all the major units in commercial sector have
been surveyed. Table 6.4 shows the segment and size wise sample plan of
primary data survey.

Here for commercial I have calculated only the no of restaurant, hotel, hospital
and school.
Commercial
Restaure Hospital H - M-
Establishment Hotels School
nt s C-O
Type
Size Large 5
Medium 3
Small 8
Total 42 50 6 16
Table 6.4: Segment wise sample plan

6.3.1 Survey of Commercial Units

The primary data was collected through a field-structured questionnaire


administered to representative sample. The information sought in the
questionnaire includes:
(i) Number of beds in hospitals and nursing homes.
(ii) Average number of persons served in hotels, restaurants, guest houses and
canteens.
(iii) Average number of inmates in hostels and official establishments.
(iv) Monthly fuel consumption pattern of the establishment indicating different
varieties of fuels used and monthly expenditure on fuels.
(v) Willingness to switch over to piped gas if it is available at cost equal to present
fuel cost and alternately if available at higher/ lower cost than the present
expenses on fuel.
(vi) Usage of PNG for AC application and Space heating.

The secondary data was collected to present an alternative independent source of


demand estimation so as to validate in macro terms the data obtained from the
primary data collection exercise.
The universe of the commercial establishments is established from the business /
yellow pages directory and town plan for the city.

The PNG commercial market is primarily a replacement market. The approach


adopted to gain insight into these aspects includes,
• A primary survey to get the market feels on the current usage and the
future requirements.
• Secondary data collection to validate the primary survey findings.
• Demand estimation based upon the primary and the secondary data.

Survey Feedback

From the survey feedback it has been found that the energy used by commercial
sector is generally in the form of LPG, coal / coke and wood for cooking purpose.
Electricity is predominantly used for lighting, space / water heating. Kerosene is
used as fuel for DG sets for generation of power.
Based on the survey conducted across selected commercial establishments,
average daily NG consumption (SCMD) was calculated (analzsed) on the basis of
their various fuel (energy sources) consumptions. The table below shows the
average NG consumption by a large, medium and small unit across commercial
segments.

Commercial
Restaure Hospital H - M-
Establishment Hotels School
nt s C-O
Type
Size Large 20.42 17.02 19.5 25.85 18.77
Medium 11.24 11.16 11.21 17.87 8.42
Small 4.84 6.67 5.09 4.32 5.87
Table 6.6: Average NG consumption Pattern across various categorie

Equivalent Demand for PNG Commercial distribution

This is based on the current consumption levels as observed from the survey. The
sample size was used to extrapolate to the universe. The calculation of total fuel
consumed of different types and their NG equivalent has been made Commercial
type wise and size wise taking into account the universe has been presented in
the table below:
Commercial
Restaure Hospital H - M-
Establishment Hotels School
nt s C-O
Type
Size Large 530.92 357.42 156 542.85 957.27
Medium 1079.04 636.12 325.09 964.98 1161.96
Small 2154 2494.58 936.56 725.76 1725.78
3488.1 2233.5
Total 3763.76 2 1417.65 9 3845.01
Table 6.7: Equivalent NG Consumption

Switchover pattern and commercial growth rate

It is assumed that the commercial growth will be 2 times of residential growth in


each CA. The switchover pattern and commercial growth rate is assumed to be in
tandem with domestic sector.

Year 2011 2012 2013 2014 2015


Commercial 10% 35% 55% 75% 80%
Establishment Table 6.8: Switchover pattern
Percentage conversions to Natural gas for various fuels used in commercial
establishments are assumed as follows:

Diesel/F Rice
Size Fuel Type LPG Coal Wood
O Husk
Commercial
100% 50%/50% 50% 0% 0%
Establishment
Table 6.9: Conversion to PNG Connections from other Fuel
7. EXAMINATION OF VARIOUS ALTERNATIVES

Three alternatives have been considered. All 3- types i,e garland, Tree Type
branches and Circular ring type Network has been considered In all the alternative
main distribution loop to City Gate Station has been kept 12” Dia .
Straight line flow philosophy is not recommended because in this case we get the
pipe line size higher which amount to increase in capex and flow regime with
respect to pressure and volume is acceptable. Pressure drop is more is more in
this case.
Hydraulic study to show ring structure concept correspondense to above staright
line philossphy keeping all the profile same i.e pipe line size and flow.It has been
noticed that by conceptualizing the city gas network on ring base we can save
more capex and gain pressure profile as the volume is distributed on both the
directions where as in staright line philosphy it has to be transported in one
direction and distributing the gas demand enroute the pipe line route.
Further, In loop methodology also we had studied by selecting various diameter
pipes.
Option:1

Pipeline : In this option we have to lay the pipeline as follows:

i. 12” Dia Steel Pipeline from CGS to periphery of main HARIDWARcity along main
road /State Highway. This may be treated as Feeder /Sub Transmission Pipeline.
This includes one major road crossing.
ii. 8” Dia Steel Pipeline along National Highways as primary network. This pipeline
section has been selected keeping in view of present /future demand, as said
above ROW comes under premises of National Highway Authority of India (NHAI)
which may helpful in smooth execution of Laying & construction activities.
iii. 8” Steel Pipeline, along Main Roads/State Highway creating a loop around Main
City, covering maximum no of Charged Areas ( CAs).
iv. 8” Pipeline as spur line for covering demand located at periphery of GA
Boundaries.
v. 6”/4” Steel Pipeline, these has to be used mainly for Tapping/branching purpose
in case of installation of various DRS and CNG Stations.

Option:2

System Description:

Pipeline: In this option we have to lay the pipeline as follows:

i. 12” Dia Steel Pipeline from CGS to periphery of main HARIDWARcity along main
road /State Highway. This may be treated as Feeder /Sub Transmission Pipeline.
This include one major road crossing.

ii. 12” Dia Steel Pipeline along National Highways as primary network. This pipeline
section has been selected keeping in view of present /future demand, as said
above ROW comes under premises of National Highway Authority of India (NHAI)
which may helpful in smooth execution of Laying & construction activities.
iii. 18”/12” Steel Pipeline, along Main Roads/State Highway creating a loop around
Main City, covering maximum no of Charged Areas ( CAs).
iv. 8” Pipeline as spur line for covering demand located at periphery of GA
Boundaries.
v. 6”/4” Steel Pipeline, these has to be used mainly for Tapping/branching purpose
in case of installation of various DRS and CNG Stations.

To have more flexibility in operation and maintenance and to cater the


future demand to supply gas in expansion projects option-i ie 12”and
8” Dia pipeline for Tap Off Line and Internal Ring has been finalized
.Total inch -km ,as calculated, is found to be approx 1157.84 inch km.

Further,please refer annexure i & ii for detail of pipeline route map and
length details.
8.0 GA MAP SHOWING PROPOSED PIPELINE ROUTE

Figure 8.1: Proposed Pipeline Route


Figure 8.2: Proposed Detail of Pipeline Length and Diameter
9. BASIC DESIGN OF CGD NET WORK – PEAK DEMAND FLOW

For HARIDWAR GA, natural gas is considered to be tapped-off from Spur line of
Dadri-Bhavana Nagal Pipeline near Haridwar . A steel pipe of 12 inch Dia shall be
laid from the City Gate Station (CGS) to main HARIDWAR city. The pressure at
inlet to CGS has been considered at 49kg/cm2g with a gas flow rate of 0.48
MMSCMD, which is the peak demand flow on realistic scenario in 25th year.

9.1 DESIGN CAPACITY


The design is based on a daily peak demand requiring gas for various sectors. The
city gas distribution system has been designed considering demand load, supply
pressure and future requirements for all the consuming sectors and the available
pressure at tap-off points. The details are as follows:

Gas Analysis

Density of gas : 0.719


Design Temperature :
- Buried : 45oC
- Above ground : 65oC
City Gate Station

Inlet pressure : 49.5 kg/cm2g


Outlet pressure : 49.0 kg/cm2g
Capacity X30.48
: MMSCMD

Main Grid Line

Joint factor : 1
Temperature factor : 1
Population density factor : Class-IV
Pipeline specification
Size Material
For 12" size P/L : API 5L Gr.52.
For 8" size P/L : API 5L Gr.52.
For 6” size P/L : API 5L Gr.52.
For 4" size P/L : API 5L Gr.52.
Industrial Sector

In HARIDWAR GA, industries are mainly located at Sidqul Industrial Area. Gas shall
be transported from DRS through MDPE grid. Supply pressure at consumer end
shall generally be kept as 4-2 kg/cm2g. However it shall be as per consumer
requirement.

City Gas Distribution Network

The considered pressure which shall be followed for the system design has been
shown in Table-9.1.

Table-9-1
Considered Pressure for City Gas Distribution Network

Distribution Network Considered Service Pipe


Pressure
Main Grid Line 49 kg/cm2g Steel
(High Pressure
System)
Distribution/Service connection 4-2 kg/cm2g MDPE
(Medium Pressure
System)
Industrial/Large Commercial 4-2 kg/cm2g MDPE
connection
Small Commercial connection 300 m bar MDPE
Domestic connection 21 m b GI
21 m bar
Supply pressure to industrial/commercial consumers shall be need based.
CNG Station

The design parameters of CNG Stations are as follows:

Inlet pressure : 19- 49 For


kg/cm2g Mother
Outlet pressure : 255 /Online
kg/cm g2
Stations
Cascade capacity
- Mother station : 3000 liters of
water/cascade
- Daughter station : 3000 liters of
water/cascade
- LCV Mounted (Mobile) : 3000 liters of
water/cascade
- Average Filling capacity
o Bus : 80-100 kg
o Car/LCV : 8-10 kg
o Auto : 3.5-5 kg

9.1.2 PEAK HOUR DEMAND


Domestic
Peak hours per day : 4

Commercial
Peak hours per day : 12

Industrial
Peak hours per day : 16
Automobile (CNG)
Compressor Capacity : 1200 SCMH each
Peak hours per day : 18

BASIS OF PEAK DEMAND


RANGAREDDY-MEDAK

Sl.N
o. Particulars Peak
Deman
d

1.0 Automobile Sector


30682
Projected daily average 25th year (SCMD) 2
Duration i.e. hrs of working in a day 18
Peak Hourly demand in automobile SCM
sector H 17046
2.0 Industrial Sector
Projected daily average 25th year (SCMD) 78205
Duration i.e. hrs of working in a day 16
SCM 4887.8
Peak Hourly demand in Industrial sector H 4

3.0 Commercial Sector


Not
Projected daily average 25th year (SCMD) taken
Duration i.e. hrs of working in a day 12
Peak Hourly demand in Commercial SCM
sector H 0

4.0 Domestic Sector


Projected daily average 25th year (SCMD) 96949
Duration i.e. hrs of working in a day 4
SCM
Peak Hourly demand in Domestic sector H 24124

Total Peak Hourly Demand (1.0 to SCM


4.0) H 46057

9.1.3 PIPELINE NETWORK


From CGS, the pipeline network for HARIDWARGA has been designed in two parts.

Steel Grid

MDPE Network

9.1.3.1 STEEL GRID


Natural gas from CGS has been considered at a minimum pressure of 49 kg/cm 2g
and temperature 350C. The steel grid has been designed covering the entire
geographical area to maintain required pressure at all points in the grid so that
sizes can be optimized. Steel grid of 12", 8”,6" & 4" has been considered to cater
the demand of CNG stations and to supply gas to DRS for domestic, commercial
and industrial sectors. The design is based on 25 th year demand projected under
realistic scenario.
9.1.3.2 MDPE NETWORK
For supplying gas to domestic, commercial and industrial sectors, the pressure of
piped gas shall be reduced to distribution pressure in the District Regulating
Station (DRS), which shall feed gas to MDPE distribution network. The domestic
consumers shall be fed from the MDPE distribution network through service lines
up to the domestic premises where regulating and metering facilities shall be
provided. Industrial and commercial consumers shall also be supplied gas from
distribution network through service lines up to the industrial and commercial
consumer’s premises from where regulating and metering facilities shall be
arranged.
In the present study, the routing of pipeline of different diameter i.e. 180mm, 125
mm, 90mm, 63 mm, 32 mm of MDPE and 20mm of MDPE & GI have been
considered.
The MDPE Network has been made to cater to the need of gas at 4 kg/cm 2g and
lower pressure after DRS.
9.1.4 DESIGN OPTIMIZATION
The entire network has been designed and optimized with the help of SynerGEE
4.4 module software. The software is the latest version new generation software
used to calculate the pressure drop, velocity, flow etc. of gas. etc
To obtain the desired optimum size of the pipes the input like scaled map of the
pipeline routing, required pressures, temperature, flow and length of the pipes
have been used.

Pipeline Sizing

The optimum sizing of steel grid and MDPE pipes have also been carried out with
the help of SynerGEE 4.4 software.
9.1.5 CNG NETWORK
The CNG station design is based on the following:
The actual sizing and numbers of the compressors for the CNG stations is a
function of the following:

• The actual gas filling time for the vehicle.

• The dwell time between vehicle or turn-around time for the vehicle.
• The storage capacity provided in the cascades for the system.

The actual gas filling time is primarily dependent on the following:

• The cylinder capacity provided for the various types of vehicles that are to
be serviced at the CNG station e.g. auto-rickshaws (autos), Rural Transport
Vehicles (RTV), cars, taxis and buses.

• The cylinder capacities vary for the vehicles depending upon whether the
vehicles have been retrofitted with gas cylinders for operation on CNG or
are factory installed. Especially the total cylinder capacities for the buses
vary widely between 80 to 100 kg affecting the actual filling time required
for the vehicles.

• The gas pressure in the cylinder at the time of gas filling. This has been
observed to vary between 10 and 50 bar (g).

The turnaround time of the vehicles considered is furnished as below:


Table-9.2
Vehicles Turn-around Time

Vehicle Fuel cylinder Actual gas Turnaround


capacity filling time time
(minutes) (minutes)
• B
use 80 - 100 kg 4-5 minutes 10
s
• C
8-10 kg 3-4 minutes 5
ar
• T
10 kg 3-4 minutes 5
axi
• A 3.5 - 5 kg
uto
-
1.5-2 minutes 3
rick
sha
w
The turnaround time indicated above accounts for the time required for the
vehicle to be positioned, the filling nozzles to be connected, the gas filling and
finally the payment transaction before the vehicle makes way for the next vehicle.
The gas compressor operates continuously and the compression achieved during
the difference between the dwell time and the actual filling time between vehicle
fillings is diverted to the cascades.
Filling cut-off pressure for the cylinder is 250 bar (g). The actual gas filled
therefore shall vary between about 90% and 95% of the available cylinder
capacity. Considering the actual average filling requirements for the vehicles to be
about 90 % of the cylinder capacities. i.e. the corresponding average gas
dispensing rates would be about 15.5 kg/min for buses, 2.3 kg/min cars and taxis
and about 2 kg/min for autos.
Dispensers provided are of the following types:

• Single hose fast fill free standing type for bus filling.

• Double hose fast fill free standing type for auto / car filling.

The filling rate of the vehicle is limited by the maximum velocity of the CNG
flowing through the piping connections and the dispenser nozzles. The maximum
velocity that may be achieved through the dispenser nozzles will be sonic velocity
due to the large pressure difference between the full cascades and the empty
vehicle cylinders. At the beginning of the filling cycle this pressure differential may
be as high as 240 - 230 bar (g).
The actual filling time of the vehicle is a part of the total time that the vehicle
occupies at the dispenser during the filling cycle as indicated above.
Cascades shall be installed for capacities of 3000 litre water capacity. The holding
capacity of the 3000 litre water capacity cascades at a pressure of 250 bar (g) is
about 550 kg. As per established practices the cascades are provided with low-
medium-high banks to maximize the utilization of the storage capacity of the
cascades. The maximum capacity utilization of the cascades may be as high as
40% of the storage capacity of the cascades giving a storage capacity of about
220 kg.
Compressors are available for capacities varying from 110 SCMH to 1200 SCMH
for suction and discharge pressures of 12 bar (g) to 255 bar (g). It is noted that
the largest compressor frames supplied by the major manufacturers have a
maximum capacity of 1200 SCMH (15.3 kg/min).
The CNG system is ideally designed to have the compressor operating for the
duration of daily operation with the cascades providing the peak flow
requirements as and when they occur during vehicle filling.

CNG Station Sizing

It has been observed that the average filling time for a bus is about 10 mins.
Based on the peak load and turnaround time, the capacities of compressors and
the corresponding cascade required for each CNG station has been finalized.
The peak consumption load of CNG at the end of 25th year (based on 18 hours
working with 83% efficiency) has been taken as the basis for sizing of CNG
stations.

The Mother Stations are installed on the steel grid. The daughter booster stations
shall be placed away from the grid line within the premises of existing
petrol/diesel outlet of oil companies covering the entire geographical area where
surplus land is available for installation of booster compressor, cascade, dispenser
etc.
The gas in the daughter Booster Station shall be supplied through mobile
cascades filled from the mother station.

Mother / Online Station

The mother / online station shall be equipped with 1200 SCMH capacity mother
compressors to compress the NG from a pressure of 49 kg/cm 2g to 255 kg/cm2g.
All categories of vehicles are refueled i.e. Bus, Car, LMV, LCV, and auto. Apart
from above, LCV mounted mobile cascades for feeding CNG mother station to
other Daughter Booster Stations will also be refueled from this station but
cascades filling facilities will not be available in online station.
Daughter Booster Station

The daughter booster stations for refueling of Cars/LMV and Autos are provided by
unloading CNG brought in mobile cascades from mother station. The pressure
drop in CNG while dispensing is boosted by installing a booster compressor of
1200 SCMH. Once the pressure in the LCV mounted cascade drops below 30
kg/cm2g, the same cascade is sent back to the mother station for reloading. A
loaded mobile cascade is always parked at daughter booster station for unloading.
9.1.6 CRITERIA FOR ROUTING OF GAS PIPELINES
The gas pipeline route shall be selected considering the following criteria:

• Shortest length of grid pipeline

• Minimize rail, major road, drain and river / major canal crossings

• Availability of space

• Least stretch through slushy, rocky and cultivable terrain.

• Avoiding HT transmission lines.

• Minimum number of turning points.

• Easy access to the route during construction phase.

• Availability of any existing pipeline corridor.

• Close proximity to unstable structures or where construction could


lead to damage to pipeline.

• Areas of known or suspected aggressive soil conditions.

Pipeline crossings of major obstructions like waterways, railways and highways


are envisaged using Horizontal Directional Drilling (HDD). However, the crossings
of minor obstructions wherever necessary shall be done by "boring" methods.

9.2 CODES & STANDARDS

The principal international standards proposed for distribution network is


ANSI/ASME B 31.8, ‘Gas Transmission and Distribution Piping System’. Since ASME
B31.8 does not adequately cover plastic pipes, for this ISO : 4431 ‘Buried
Polyethylene (PE) pipes for the supply of gaseous fuels- Metric Services
specifications’ shall be followed.

Steel Pipes

ANSI / ASME B31.8

ANSI B31.3

API 5L

OISD: 226

MDPE Pipelines for U/G Gas Services

ANSI / ASME B31.8

IS: 14885
OISD: 220

CNG System

OISD: 110, 132, 137 & 179

NZS – 5425

NFPA – 37, 52, 70

ANSI B 31.3 & B 31.8

IS – 2148

API - 11P, API - 618

Indian Electricity Rules

Indian Explosives Act

• ASTM, NEMA, NGV, NEC


• CCOE & Guidelines
10.0 PROJECT IMPLEMENTATION SCHEDULE

10.1 The project will be implemented by utilizing its own resources as equity. The
project will be implemented by appointing a reputed Project Management
Consultant (PMC) and through contractors appointed to carry out the pipeline
laying and construction / installation of other facilities.

10.2 The project has been divided into broad areas like –
• Construction of Feeder Pipeline, City Gate station, Main Steel Grid Pipeline

• Construction of CNG Station

• Construction of MDPE Pipeline Network for Industrial, Commercial and


Domestic Customers.

• Arrangement of Mobile cascades for transportation of gas from CNG mother


stations to daughter booster stations.

We may appoint an Engineering and project Management Consultant to


undertake complete basic and detail Engineering, Procurement ,and to provide
Construction supervision .The PMC Consultant shall be responsible for managing
the complete project based on basic Engineering parameter developed in Detailed
Feasibility Report .This philosophy has inherent advantages of single point
responsibility by the owner .The construction shall be carried out by employing
suitable contractor as per requirement .A Typical work break down structure for a
conventional Implementation strategy includes the following phases ;-
• Pre project activities

• Basic Engineering and long feed procurement

• Detailed Design

• Contracting

• Construction and commissioning


It is estimated that, in the 1st year itself city gas distribution operation shall start
after installation of feeder pipe line from gas tap-off point to CGS, CGS to nearest
DRS, Mother /Online station with one compressor, Daughter stations, part steel
grid and part MDPE grid, gas connection to domestic, commercial & industrial
sectors as per estimated realistic demand of gas in CGD. The remaining CNG
mother/Online stations, daughter stations, DRSs and steel / MDPE grid ,gas
connections has been proposed to be installed in 2nd & 3rd year & thereafter as
per realistic demand scenario and hence will be effected progressively up to 25
year .

10.3 IMPLEMENTATION MODE

10.3.1 CGS, FEEDER PIPE LINE FROM TAP-OFF TO CGS, MAIN GRID
LINE AND DRS
The pipeline laying shall conform to the provisions as specified in ASME B-31.8 or
equivalent as approved by statutory authorities. In addition, safety provisions
under OISD GDN 192 (Safety Practices during Construction) shall be complied. The
construction of CGS & feeder/main grid line shall include followings:
i) Allotment/Acquisition of land for CGS & arrangement of land on rent for DRS
ii) Finalization of R.O.W/R.O.U/land restoration charge for pipe line laying
iii) Obtaining statutory clearances/approvals
iv) Basic & detailed engineering
v) Award of works contract for CGS , steel pipe line & main grid line
vi) Construction of feeder pipe line from tap-off to CGS
vii) Construction of CGS
viii) Construction of main grid line
ix) Construction of DRS
x) Commissioning of CGS, feeder/main Grid line and DRS
Within 8th month duration in 1st year, feeder pipe line from gas tap-off point to
CGS DRS, part steel grid shall be commissioned. All excavation and laying
activities shall be carried out as per OISD STD -226
The execution of work of remaining main steel grid line and DRSs shall be carried
out mainly during 2nd & 3rd year .Thereafter in a progressive manner based on
requirement to satisfy the demand. The quantum of work is need based. All safety
precautions during construction shall be followed as specified in OISD-STD-147.

10.3.2 CNG STATIONS


THE CONSTRUCTION OF CNG STATIONS SHALL INCLUDE FOLLOWING
ACTIVITIES:

i) Land Survey.

ii) Obtaining statutory clearances/ approvals & arrangement of land on rent

iii) Basic & detailed engineering

iv ) Procurement of compressors & other associated items

v) Execution of Civil Work, Mechanical, Electrical works & Instrumentations jobs


vi) Erection and Commissioning of Dispenser, Compressor, cascades etc

The execution of work of CNG stations with one compressor shall be carried out in
a staggered manner. However, installation of additional compressors in the
existing CNG station shall be continued up to 23rd year as per realistic demand of
automobile sector. The execution of work of CNG (daughter/booster) stations with
one compressor shall also be carried out in a staggered manner starting from 1st
year of construction/operation as per realistic demand of automobile sector. The
quantum of work is need based.
10.3.3 CITY GAS DISTRIBUTION (MDPE GRID & GAS CONNECTION)
THE CONSTRUCTION OF CITY GAS MDPE DISTRIBUTION NETWORK SHALL
INCLUDE FOLLOWING ACTIVITIES:

i) Survey & Pipe line laying permission

Ii) Finalization of R.O.W/land restoration charge

iii) Obtaining statutory clearance and approvals

iv) Basic & detailed engineering

v) Execution /Laying of pipeline & allied facility

vi) Gas connection to domestic, commercial and industrial sectors

vii) Testing & commissioning of the system


The execution of work under city gas distribution (MDPE grid) shall be carried out
in a staggered manner over a period of 25 years starting from 1st year. The
quantum of work is need base. From 1st to 25th year, gas connections to different
consumers as per realistic demand scenario have been considered.
10.4 PROJECT 'ZERO' DATE

Finalization and appointment of a Project Management Consultant (PMC) shall be


considered as the 'ZERO' date of the proposed CGD project. PMC shall carry out all
the activities as per project implementation schedule with the approval of Owner
for timely implementation and completion of the project.
10.5 IMPLEMENTATION METHODOLOGY

PMC shall provide necessary technical services in the areas of basic design,
detailed engineering, procurement of major equipment and materials, selection of
suitable vendors and contractors, construction supervision, commissioning
assistance and project management.
Feeder/Main grid line construction along with erection of free issue items, erection
of CGS, DRS, CNG stations and City Gas Distribution system shall be given to
competent contractors, preferably an EPC agency, which shall complete the works
as per project schedule. All major/ critical equipment and machinery will be
procured by Owner, as this shall ensure the quality of equipments / material as
well as their availability in time. All statutory approvals, fire protection and
detection facilities shall be in place before commissioning as per approved
procedure after due checks and certification by the authorized personnel.
10.6 SUMMARY OF IMPLEMENTATION OF CGD NETWORK
The proposed City gas distribution network shall be carried out in a staggered
manner over a period of 25 years starting from 1st year.
Further, please refer annexure iii & iv for detail of implementation schedule and
Bar Chart.
11.0 YEARWISE PLANNED CAPEX & OPEX

11.1 CAPEX
Estimated Capital Expenditure (Capex) of the proposed CGD project of
HARIDWARGA is based on the facilities considered such as Feeder steel pipe from
tap-off point to CGS, City Gate Station, Steel & MDPE gridline, on line CNG
stations, DRS and other allied equipment and facilities works out to Rs. 349.97
Cr. There is no foreign exchange requirement envisaged for the proposed project.
Year-wise project capital cost is given in Table -11.1.

Table – 11.1
Estimated Project Capital Expenditure
Sl. No. Year Estimated Expenditure
(Rs. Lakhs)
1 1 Year
st
25758.37
2 2nd Year 773.49
3 3rd Year 777.56
4 4th Year 777.07
5 5th Year 291.95
6 6th Year 291.34
7 7th Year 296.08
8 8th Year 294.11
9 9th Year 298.63
10 10th Year 303.58
11 11th Year 307.32
12 12th Year 312.08
13 13th Year 316.90
14 14th Year 321.79
15 15th Year 326.76
16 16th Year 331.80
17 17th Year 337.00
18 18th Year 342.21
19 19th Year 347.54
20 20th Year 352.97
21 21st Year 356.68
22 22nd Year 362.14
23 23rd Year 367.63
24 24th Year 373.24
25 25th Year 378.94
Total 34997.18

11.1.1 MAJOR FACILITIES

The major facilities envisaged for the project have been presented in Table-11.2.

Table–11.2
Major Facilities
Sl. Particulars Details
No.
1.0 City Gate Station 1 no.
2.0 Grid Line
2.1 Steel Grid (Km)
2.1.1 12" (Rating Sch 40 precoated steel
pipe line) 10
2.1.2 8" (Rating Sch 40 precoated steel
pipe line) 117.730
2.1.3 6" (Rating Sch 40 precoated steel
pipe line) 8
2.1.4 4" (Rating Sch 40 precoated steel
pipe line) 12
2.2 MDPE Grid (Mtr)
2.2.1 180mm MDPE 376726
2.2.3 125mm MDPE 48894
2.2.4 90mm MDPE 240463
2.2.5 63mm MDPE 280541
2.2.6 32mm MDPE 1688053
2.2.7 20mm MDPE 801545
3 GI pipe(Mtr) 4408496
4 DRS 6 nos.
4.1 DRS (5000 SCMH) 4 nos.
5.0 CNG Stations 8
5.1 3600 SCMH 1nos.
Sl. Particulars Details
No.
5.2 2400 SCMH 7 nos.

11.2 OPEX

Estimated Operating Expenditure (Opex) of the proposed CGD project of


HARIDWARGA is based estimated manpower deployment for undertaking O & M
activities with requisite salary and wages, cost of general administration, utilities,
consumables, repair & maintenance(R&M) etc. as per standard practice. Year-wise
operating cost is given in Table-11.3.

Table – 11.3
Estimated Operating Expenditure
Sl. No. Year Estimated Expenditure
(Rs. Lakhs)
1 1 Year
st
325.69
2 2nd Year 366.50
3 3rd Year 401.27
4 4th Year 439.33
5 5th Year 481.24
6 6th Year 527.25
7 7th Year 577.66
8 8th Year 633.26
9 9th Year 694.33
10 10th Year 761.69
11 11th Year 835.61
12 12th Year 916.89
13 13th Year 1006.36
14 14th Year 1104.56
15 15th Year 1212.84
16 16th Year 1331.75
17 17th Year 1462.63
18 18th Year 1606.57
19 19th Year 1764.93
20 20th Year 1939.06
21 21st Year 2130.84
22 22nd Year 2341.64
23 23rd Year 2573.88
24 24th Year 2829.19
25 25th Year 3109.99
Total 31374.97

12.0 FINANCIAL ASSUMPTION

12.1 MAJOR ASSUMPTIONS


The following assumptions towards financials of major capex, opex, tax rates,
depreciation methodology and all other items having a significant impact on cash
inflows/outflows of the project have been made while developing financial
projections:

The costs of equipment and supplies have been estimated based on the cost data
available with consultant for similar purposes supported with budgetary cost of
major equipment & supplies from reputed vendor.

i) Only regulated cost has been considered for estimation of capital cost.

Following taxes & duties have been considered:

- Excise Duty @ 10%

- Sales Tax @ 2%

- Service Tax @ 10%

- Education Cess @ 3%

ii) Inland freight & handling and insurance have been considered as 1% and 1%
respectively of cost of supplies.

iii) The Capex have been made on present market conditions without considering
any escalation .

iv) Project cost has been considered to be funded with equity only.

v) A provision has been made towards start up and commissioning expenses and
Owner’s project management charges @ 1.0% of landed cost.
vi) The life of equipment & machineries has been considered are as follows:

Compressor :25 years

Pipeline & associated equipment : 30 years

vii) Land Cost except CGS has not been considered, it has been assumed that all
land is on rental basis.

13.0 PROJECT FINANCING, CASH INFLOW/ OUT FLOW ETC.

13.1 General

Project Financing-Year wise Cash inflows from Network Tariff and Compression
charges only, year wise cash outflows towards capex ,opex & other heads,
Financial Analysis taking in account the funding scheme, debt servicing has been
estimated based on the projected gas flow in realistic scenario, facilities
considered, manpower & utility and consumable requirement etc.

13.2 Network Tariff and Compression Charges

Network Tariff and Compression Charges for the proposed City Gas Distribution
project in HARIDWAR GA have been calculated in accordance with the Petroleum
and Natural Gas Regulatory Board (Determination of Network Tariff for City or
Local Natural Gas Distribution Networks and Compression Charge for CNG)
Regulations, 2008. The Network Tariff has been considered equal throughout the
economic life of the CGD project i.e. 25 years where as Compression Charges has
been considered equal for 1st 10 years thereafter it has been increased
progressively till the end economic life of the CGD project. Details are as per
annexure v.
13.3 Profit & Loss (P&L) Statement

Profit & loss statement has been worked out considering cash inflows/revenue
generation from network tariff & compression charge only based on volume of
natural gas transported in all sectors and volume of natural gas transported by
pipeline to on line compressors for compression in to CNG and cash outflows as
expenditure on utilities like power, consumables, salaries, general administrative
expenses, insurance etc. Profit before Depreciation and Tax (PBDT) is the Net of
inflows/outflows from the project.

For Further detail please refer annexure vi.


13.3.1 Project Internal Rate of Return (PIRR)

The IRR is a discount rate at which the present worth of benefits and costs are
equal. The IRR calculation has been done for the proposed project based on the
expanded 25 years installation regulatory cost of different segment of city gas
distribution system plus normative working capital which is equal to twenty
days of operating cost excluding depreciation (cash out flow). The cash inflow
is the revenue from net work tariff & compression charge only. On the above
basis, Pre-tax IRR (project) of the proposed project is estimated as 6.0%.

Please refer annexure Vii.


14.0 CREDIBLE PLAN FOR INDEPENDENTLY
UNDERTAKING & EXECUTING THE PROJECT

14.1 GENERAL

The organizational structure and manpower requirement as detailed in the


following sections defines the credible plan for independently undertaking
and executing proposed CGD project on a standalone basis including
development of in-house Operation & Maintenance (O&M) team for
smooth running of the CGD equipment/machinery/facilities and
distribution of Piped Natural Gas (PNG) to domestic/commercial/industrial
sectors & Compressed Natural Gas (CNG) to automotive sector.
14.2 ORGANISATION AND FUNCTIONS

It is expected that organizational improvements, accompanied by new


perceptions of the functions to be carried out with the growth of the
organization and the gas distribution system. Structural changes may be
required as the organization gains experience and particular challenges of
the local operating environment are addressed.
Initially, the organization will focus on proper planning for construction
and installation of feeder pipeline from tap-off point to CGS & main grid
line, installation of CNG network, DRS, Gas Distribution system, Domestic
connection and other associated construction/erection works .Gradually,
as the infrastructure grows and customer appliances are converted, there
shall be a need for operation & maintenance of systems and associated
facilities. Also, additional resources shall be required in the areas of meter
reading, billing and general customer services.
The proposed structure caters for the work change requirement
anticipated as the organization grows.
14.3 MANPOWER REQUIREMENT

14.3.1 PROJECT IMPLEMENTATION


Services of a reputed and experienced Project Management Consultant
(PMC) are of utmost necessity for timely and successful implementation of
the proposed CGD project.
The organizational structure for project Implementation shall be headed
by a Project Manager (Projects/O&M) who shall be assisted by
Construction Manager, QA/HSE executive, Project engineer and Assistants
account/finance/administration etc. They will look after activities of
following Areas:

• License & Approvals

• Contract & Procurement

• Safety

• CGS & DRS Installation

• Steel Grid Installation

• CNG & Daughter Stations Installation

• Gas Distribution Network Installation

• Connection to consumers

• Stores Management

• Finance & Administration Management

• Proper Planning & Co-ordination of all CGD related


activities

14.3.2 OPERATION AND MAINTENANCE


The main grid line, CGS/DRS, CNG/Daughter stations and city gas
distribution shall all have a unified control mechanism headed by a Chief
Manager (O & M) supported by Additional Manager, Deputy Managers ,
QA/HSE executive, Project engineer, Technicians ,Assistants
account/finance/administration and Billing staff etc. who will look after
distinct departments, namely,

• City gate station

• City gas distribution network

• CNG /Daughter station operations

• Maintenance
• Safety Aspects

• Stores

• Finance & Administration

• Co-ordination

It is proposed that the services will be out-sourced where ever possible,


i.e. services be contracted as required rather than employed as
permanent staff, particularly in the field of O&M, meter reading and
account remittance, etc. However, there shall be a requirement for a
small permanent core group with expertise to carry out work, supervise
and ensure quality control on work performed by the personnel on
contract.
Such an arrangement shall provide flexibility to the organization to
contract appropriately skilled personnel, as the skill requirement changes
with the organizational expansion and customer’s growth.
Key management staff shall be required to manage the different
Departments. This shall range from Managers to Supervisors and
Supporting staff.
14.4 TRAINING

Regular training to permanent core group managers is required to get


them acquainted with the latest improvement of CGD industry and
development of managerial skills. In addition to this, appropriate training,
both classroom and on-the-job, shall be required for operation and
maintenance staff to ensure that they shall be able to perform the
required work effectively and safely.
Instructors experienced in specific areas of the gas industry shall be hired
to train the personnel deputed for the proposed project.

Further,please refer annexure iii & iv for detail of implementation


schedule and Organogram.
15.0 HEALTH SAFETY ENVIRONMENT & DISASTER
MANAGEMENT PLAN

The Health, Safety and Environment (HSE) are technical reference


documents with general and industry specific requirement. The HSE
contain the performance levels and measures that are generally
considered to be achievable in new facilities at reasonable costs. The
applicability of the HSE should be tailored to the hazards and risks
established for each project on the basis of the results of an
environmental assessment in which site-specific variables, assimilative
capacity of the environment and other project factors are taken into
account. This section provides a summary of HSE issues associated with
gas distribution systems that occur during the construction and operations
phases, along with recommendations for the management.

15.1 OCCUPATIONAL HEALTH AND SAFETY

Occupational health and safety (OHS) issues in the construction phase


include potential exposures to dust, noise, physical strain, and trenching
excavation & equipment/machinery erection hazards. Occupational
health and safety hazards associated with the construction and operation
of gas distribution systems may also include:

• Occupational exposure to gas leaks and explosions

• Confined spaces

15.1.1 OCCUPATIONAL EXPOSURE TO GAS LEAKS AND


EXPLOSIONS
Excavation, construction, and repair of gas distribution systems may
result in accidental pipeline rupture or leakage and consequent exposure
of workers to harmful gases and an explosive gas atmosphere. In addition,
excavation by non-gas utility personnel may result in accidental ruptures
and exposure of untrained workers to explosion hazards. Recommended
techniques to prevent and control exposure to gases and explosive
atmospheres caused by accidental gas line ruptures and / or leaks
include:
• Training of employees and contractor personnel in safety
procedures, together with provision of appropriate tools and
tackles.

• Identification and location of existing gas and other buried


utility infrastructure prior to excavation for installation or repair
of gas pipelines. Installation of visual marking of gas lines as
part of installation, and updating as necessary on regular basis;

• Removal of sources of ignition prior to gas venting for


maintenance and repair activities. Purging of gas from pipeline
or pipe components prior to any hot job.

• Installation of gas lines and components using sufficient


separation distance and appropriate pipe protection layering to
minimize potential interference with other underground
infrastructures. Separation of plastic pipes from sources of heat;

• Odorization of gas to facilitate detection of gas leakage;

• Training of gas utility workers in procedures for emergency


preparedness and response involving appropriate public
authorities, in addition to emergency shutdown and pressure
reduction in the pipeline system.

15.1.2 CONFINED SPACES


Accumulation of natural gas in a confined space is a potentially fatal
condition. Entry by workers into confined spaces and the associated
potential for accidents may vary among gas distribution project phases
and facilities. Specific and unique areas for confined space entry may
include excavation trenches during construction and regulating & CNG
stations which contain equipments that may cause fugitive emissions of
gas and create a potential for oxygen deficient and explosive
atmospheres. Gas distribution companies should develop and implement
confined space entry procedures which include the following:

• Requiring work permits for all confined space entries;


• Installation of appropriate access controls for unauthorized
personnel including signage to alert workers to the hazards of
confined spaces;

• Use of ventilation and oxygen / explosive level detection and


alarm equipment prior to access.

15.1.3 ELECTROCUTION
Excavation, construction, and repair of Gas Distribution Systems may
result in workers’ exposure to existing above ground or underground
utilities, including aerial or buried electric transmission lines. Identification
and location of all relevant existing underground utilities should be
undertaken prior to any construction and excavation activities.
15.2 COMMUNITY HEALTH AND SAFETY

Community health and safety hazards associated with the construction


and operation of gas distribution systems include public exposure to gas
leaks and explosions.
15.2.1 PUBLIC EXPOSURE TO GAS LEAKS AND EXPLOSIONS
The presence of gas distribution systems within populated areas may
expose the public to hazards from gas leaks and explosions. Gas leakage
may result from accidental rupture of pipelines during installation and
repair or from contact during excavation unrelated to the gas distribution
system. Gas utility operators should inform and advise affected
communities, schools, businesses / commercial facilities, and residents
about the potential hazards presented by gas infrastructure. Gas
distribution system operators should establish an emergency
preparedness and response plan and communicate this plan to the public
as necessary.
As part of the plan, gas system operators should implement a
telephone notification system to respond to reports of leaks or questions
of general safety from the affected community and other interested
parties. Operators should also provide a pipe location service to assist
outside contractors and the general public to determine the location of
gas infrastructure prior to construction works proximate to gas pipelines.
Improper operation of natural gas fuelled appliances and equipment may
expose the user and the public to gas leakage and explosion hazards. Gas
distribution system operators should make information available to
customers regarding the safe operation of gas fueled appliances and
equipment. This information should address issues of proper and safe use
of gas-fired appliances, which in the case of residential use, may include
the following issues:

• Proper location, installation, and maintenance of appliances and


equipment such as natural gas fired heating units. For example,
installation in areas with adequate ventilation to ensure
dispersion of residual carbon monoxide. Poor combustion in a
natural gas fired appliance or piece of equipment may expose
the user and the public to carbon monoxide exposure,
especially in confined spaces;

• Recognition of potential hazards or operating problems. For


example, recognition of the hazards of poor ventilation or
identification of gas surges requiring action by the gas utility
operators (identifiable when flame color in natural gas burning
appliances is orange or yellow rather than blue), and how to
respond to possible accumulation of gas vapors when odor is
detected and instructions on proper response procedures. These
procedures may include avoiding sources of ignition (e.g.
electrical switches, lighters), ventilating area of gas
accumulation, and calling the emergency contact number of the
local gas utility from a safe location.

15.3 ENVIRONMENT

Distribution pipeline construction impacts greatly depend on the location


of proposed pipeline installation. In already developed urban areas,
environmental impacts are considerably different than in suburban or
mixed use areas. Common impacts may include noise and vibration
caused by the operation of earth moving and excavation equipment, and
materials transport and delivery; dust emissions generated by a
combination of on-site excavation and movement of earth materials,
contact of construction machinery with bare soil, and exposure of bare
soil and soil piles to wind; mobile emissions from exhaust of diesel
engines for earth moving equipment; and hazardous materials and waste
handling and fueling activities. In newly developed areas, impacts may
also include soil erosion resulting from excavated areas prior to the re-
establishment of vegetation. In urban areas, impacts may include noise,
traffic interruption, disposal of contaminated soil, and presence of
archeological artifacts.
Environmental issues that may occur during gas distribution projects
include the following:

• Habitat Alteration

• Air Emissions

15.3.1 HABITAT ALTERATION


Habitat alteration is only considered a relevant potential impact
during construction of gas distribution pipeline systems in newly
developed rural or urban areas. These impacts may be associated with
excavation, trenching, pipe laying, backfilling, and establishment of
infrastructure such as regulating stations. This may create temporary or
permanent terrestrial habitat alteration depending on the characteristics
of existing vegetation and topographic features along the proposed right
of way. Depending on the level of existing urbanization in the proposed
project area, habitat alteration from these activities for example, may
include landscape fragmentation; loss of wildlife habitat, including trees
for nesting; and establishment of non-native invasive plant species. In
addition, construction of distribution pipelines crossing aquatic habitats
may disrupt water courses and wetlands, and require the removal of
riparian vegetation. Sediment and erosion from construction activities and
storm water runoff may increase turbidity of surface water courses. To
prevent and control impacts to terrestrial habitats, distribution pipeline
rights-of-way and regulating stations should be sited to avoid critical
habitat through use of existing utility and transport corridors, whenever
possible. Use of guided / directional drilling for distribution pipeline
installation should be considered where feasible to reduce impacts to both
terrestrial and aquatic habitats.
15.3.2 AIR EMISSIONS
Gas distribution systems may generate gas leaks as a result of normal
operations, equipment venting for maintenance, and aging. Gas leakage,
principally consisting of methane (CH4), a greenhouse gas, may result
from corrosion & degradation of pipelines and related components over
time and fugitive emissions from pipelines and regulating stations.
Recommended measures to prevent and control air emissions due to
leaks include:

• Gas pipelines and pipeline components, in addition to general


installation and pipe joining techniques such as welding, should
meet international standards for structural integrity and
operational performance;

• Corrosion prevention of buried ferrous metal pipelines should be


undertaken using coating or cathodic protection techniques.

• Testing of pipelines and pipeline components for pressure


specifications and presence of leaks should be undertaken prior
to commissioning. The system should be gas tight when tested
at a higher pressure than the normal maximum operation gas
pressure;

• Leak and corrosion detection programs should be undertaken,


including use of appropriate leak detection assessment
techniques and equipment. Maintenance programs to repair and
replace infrastructure should be undertaken as indicated by
detection results. Areas of gas infrastructure subject to forces
from heavy load traffic or physical land shifts should also be
periodically monitored for leaks and ruptures;

• Comparisons of purchased and delivered gas amounts should


be periodically examined for discrepancies and unaccounted
gas .This may give an indication of quantum of system leakage;

• Regulating and CNG stations contain equipment (e.g. safety


valves, filters) that may emit fugitive emissions of gas.
Pipelines, valves, and other component infrastructure should be
regularly maintained, and ventilation and gas detection / alarm
equipment should be installed in station buildings.

15.4 PERFORMANCE INDICATORS AND MONITORING

15.4.1 OCCUPATIONAL HEALTH AND SAFETY


Occupational health and safety performance should be evaluated against
internationally published exposure guidelines, of which examples include
the Threshold Limit Value (TLV), occupational exposure guidelines and
Biological Exposure Indices (BEIs) published by American Conference of
Governmental Industrial Hygienists (ACGIH), the Pocket Guide to Chemical
Hazards published by the United States National Institute for Occupational
Health and Safety (NIOHS), Permissible Exposure Limits (PELs) published
by the Occupational Safety and Health Administration of the United States
(OSHA), Indicative Occupational Exposure Limit Values published by
European Union member states, or other similar sources.
15.4.2 ACCIDENT AND FATALITY RATES
Projects should try to reduce the number of accidents among project
workers to a rate of zero, especially accidents that could result in
lost work time, different levels of disability, or even fatalities. Fatality
rates may be benchmarked against the performance of facilities in this
sector in developed countries through consultation with published
sources.
15.4.3 OCCUPATIONAL HEALTH AND SAFETY MONITORING
The working environment should be monitored for occupational hazards
relevant to the specific project. Monitoring should be designed and
implemented by accredited professionals as part of an occupational health
and safety monitoring program. Facilities should also maintain a record of
occupational accidents and diseases and dangerous occurrences and
accidents.
15.5 ENVIRONMENT
15.5.1 EMISSIONS AND EFFLUENT
Although there are no significant point source emissions or effluents for
gas distribution sector, fugitive emissions (from city gate and CNG
stations, underground piping, and third party damage) from gas
distribution systems constitute a significant portion of the overall
atmospheric losses from the natural gas transmission and distribution
industry. Gas distribution system operators should conduct volume
reconciliation programs as an indicator of leakages by comparing
delivered gas amounts against sales to customers. Operators should also
implement inspection and maintenance programs to maintain and
upgrade infrastructure and minimize fugitive gas emissions.
15.5.2 ENVIRONMENTAL MONITORING
Environmental monitoring programs for this sector should be
implemented to address all activities that have been identified to have
potentially significant impacts on the environment, during normal
operations and upset conditions. Environmental monitoring activities
should be based on direct or indirect indicators of emissions, effluents,
and resource use applicable to the particular project.
Monitoring frequency should be sufficient to provide
representative data for the parameter being monitored. Monitoring should
be conducted by trained individuals following monitoring and record-
keeping procedures and using properly calibrated and maintained
equipment. Monitoring data should be analyzed and reviewed at regular
intervals and compared with the operating standards so that any
necessary corrective actions can be taken.

15.6 DISASTER MANAGEMENT PLAN

This Plan provides a guide for assuring safety for the public and
maintaining facilities in satisfactory condition, during emergency
conditions. The management or a responsible person of CGD project
should have procedures for emergency situation that must be employed
to protect the public safety or property from existing or potential hazard.

These hazards will include, but are not limited to, the following:

• Under pressure in the gas system


• Overpressure in the gas system

• Uncontrolled escaping of gas

• Fire or explosion near or directly involving a pipeline or CNG


facility

• Any leak considered hazardous

• Danger to major segment(s) of the system

The hazards also include:

• Natural disasters (floods, tornadoes, hurricanes, earthquakes,


etc.)

• Civil disturbances (riots, etc.)

• Load reduction conditions (result in voluntary or mandatory


reduction of gas usage).

15.6.1 EMERGENCY PROCEDURES

15.6.1.1 INCIDENT NOTIFICATION


Every event that fits the definition of a natural gas distribution system
incident as identified above shall be reported to the Physical Plant Work
Control Center.
15.6.1.2 INCIDENT PRIORITIES AND CRITERIA FOR ACTION

Priorities

1. The first priority of action for all incidents involving natural


gas will be directed towards life safety first followed by
property. Immediate care shall be given to any injured
person(s).

2. The surrounding area will be evacuated to reduce risk of


additional casualties.

Level - 1 Incidents

Definition:

A leak that represents an existing or probable hazard to persons or


property requires immediate repair, or continuous action, until the
conditions are no longer hazardous.
Action Criteria:

Prompt action to protect life and property, and continuous action until the
conditions are no longer hazardous. The prompt action in some instances
may require one or more of the following:

• Implementation of Emergency Plan

• Evacuating premises

• Blocking off an area

• Rerouting traffic

• Eliminating sources of ignition

• Venting the area

• Stopping the flow of gas by closing valves or other means

• Notifying police and fire departments

Examples:

i) Any leak, which in the judgment of operating personnel at the scene,


is regarded as an immediate hazard.

ii) Escaping gas that has ignited.

iii) Any indication of gas that has migrated into or under a building or
into a tunnel.

iv) Any reading at the outside wall of a building or where gas would likely
migrate to an outside wall of a building.

v) Any reading of high gas concentration in a confined space.

vi) Any leak that can be seen, heard or felt, and which is in a location that
may endanger the general public or property.

Level-2 Incidents

Definition:

A leak that is recognized as being non-hazardous at the time of detection,


but justifies scheduled repair based on probable future hazard.
Action Criteria:

Leaks should be repaired or cleared within one calendar year, but no later
than 15 months from the date the leak was reported. In determining the
repair priority, criteria such as the following should be considered:

• Amount and migration of gas

• Proximity of gas to buildings and sub-surface structures

• Extent of pavement

• Soil type and soil conditions (such as frost cap, moisture &
natural venting)

Level 2 leaks should be re-evaluated at least once every six months until
cleared. The frequency of re-evaluation should be determined by the
location and magnitude of the leakage condition.
Level 2 leaks may vary greatly in degree of potential hazard. Some Level
2 leaks, when evaluated by the above criteria, may justify scheduled
repair within the next 5 working days. Others will justify repair within 30
days. During the working day on which the leak is discovered, these
situations should be brought to the attention of the individual responsible
for scheduling leak repair.
On the other hand, many Level-2 leaks, because of their location
and magnitude, can be scheduled for repair on a normal routine basis with
periodic re-inspection as necessary.

Examples:

1. Leaks requiring action ahead of adverse changes in venting


conditions

2. Leaks requiring action within six months

• Any reading of lower concentration under a sidewalk in a


paved area that does not qualify as a Level-1 leak.

• Any reading under a street area that has significant gas


migration and does not qualify as a Level-1 leak.

• Any reading of low concentration in a confined space.


• Any reading on a pipeline or CNG station, which does not
qualify as a Level-1 leak.

• Any leak, which in the judgment of Operating Personnel at the


scene, is of sufficient magnitude to justify scheduled repair.

Level -3 Incidents

Definition:

A leak that is non-hazardous at the time of detection and can be


reasonably expected to remain non-hazardous.

Action Criteria:

These leaks should be re-evaluated during the next scheduled


survey, or within 15 months of the date reported, whichever occurs first,
until the leak is repaired or no longer results in a reading.

Examples:

Leaks requiring re-evaluation at periodic intervals -

• Any reading of low concentration in small gas-associated


substructures.

• Any reading under a street in areas where it is unlikely that the


gas could migrate to the outside wall of a building.

• Any reading of very low concentration in a confined space.

15.6.1.3 INCIDENT RESPONSIBILITIES

1. The 1st Responder, i.e. Environmental Health & Safety


Department of CGD project, shall establish a command post
near the scene, when necessary or required, to coordinate the
incident.

2. On-scene emergency personnel from Environmental Health &


Safety Department shall provide immediate first aid to injured
persons when it is safe to do so.

3. Environmental Health & Safety Department, Police, and Fire


Department shall conduct evacuations in the event of fire,
explosion, natural disaster or other incidents, when necessary,
as directed by the Incident Commander.
4. Local Police/security personnel, in conjunction with other
supporting agencies, shall establish, maintain, and man all
necessary incident perimeters and barricades as directed by
the Incident Commander.

5. Plant Mechanical Maintenance and/or Utilities personnel shall


isolate the incident area by shutting off the flow of any gas
from feed lines into the impacted area.

6. The Fire Department shall manage any fire suppression needs


as well as provide advanced emergency medical care and
transportation of patients.

7. Environmental Health & Safety Department shall monitor the


atmospheric conditions around the site and shall have the
appropriate equipment ready to be utilized in penetrating
affected areas upwind of the incident for monitoring and rescue
purposes if needed.

8. All the responsible departments shall work jointly upon


direction by the Incident Commander.

15.6.1.4 RESPONSE PROCEDURES


In case of fire located near or directly involving a CGD facility, explosion
occurring near or directly involving a CGD facility, natural disaster, or
other emergency incident, the following response procedures will be
followed:
Notification will proceed as mentioned.
The first responder(s) from Environmental Health and Safety Department
of CGD project shall designate an incident commander and activate the
incident command system (ICS). When necessary, an on-scene incident
command post shall also be established.
The on-scene incident command post shall be located upwind and
as close as practical to the incident site so that continual visual
observations may be maintained of the incident area, and immediate
response to changing conditions may be possible. The on-scene command
post shall stay in communication with all responding agencies.
Responding agencies shall provide designated responsibilities as listed
under the direction of the incident commander.
First Aid and medical care will be provided by Environmental Health
and Safety Department to injured persons as soon as possible.
Firefighting and fire suppression operations will be initiated and
conducted.
Gas valve shut off will be conducted as quickly as possible by
operating/maintenance personnel of CGD project.
Perimeter Zone(s) around the affected area shall be established as
directed by the incident commander in accordance with standard
emergency scene practices.

Hazard Zone

The Hazard Zone is the area in which personnel are potentially in


immediate danger from the hazardous situation. This zone shall be
established by the incident commander. Access to this area will be rigidly
controlled and only authorized personnel with proper protective
equipment and an assigned activity approved by the on-site incident
command post shall be allowed to enter the incident area. Police/Security
personnel will be assigned to monitor entry and exit of all personnel from
the Hazard Zone.

Evacuation Zone

The Evacuation Zone is the larger area surrounding the Hazard


Zone, in which a lesser degree of risk to emergency personnel exists, but
from which all civilians will be removed. The limits of this zone will be
enforced by the Police and other agencies based upon distances and
directions established by the incident commander. The area to be
evacuated depends upon the nature and extent of the fire, explosion,
natural disaster or other emergency. All evacuations shall be ordered by
the incident commander and shall be conducted in an orderly, expedient
fashion by Environmental Health & Safety Department, Police/security
personnel and Fire Department.
Incident-specific circumstances will dictate other procedures that
will be used to bring the emergency under control in accordance with the
priorities of life safety first, followed by the protection and salvage of
property.

15.6.1.5 POST-INCIDENT MANAGEMENT

1.Upon declaration of the Incident Commander that the incident is under


control and the incident area is safe, Environmental Health & Safety
Department and Police/Security personnel shall sweep the incident area
searching for any additional casualties. Upon completion of the sweep,
responsible personnel shall begin the cause and origin procedures. Upon
completion of the investigation, repairs may be initiated.

2.Barriers shall remain intact and any area vacated due to the incident
shall remain vacated until repairs and tests are completed before
restoring all systems back to normal operating conditions.

3. Repairs shall be initiated immediately and shall be expedited to restore


normal service and to place gas distribution system into a normal and
safe mode of operation.

4. Normal procedures shall apply to the emergency repairs:

• Only qualified personnel shall perform the repairs.

• Only approved material shall be utilized.

• Safety procedures and guidelines shall be followed.

5Upon completion of repairs, and after the gas distribution system has
been successfully tested and restored to operation, the incident area may
be released for normal operation.

•A final inspection of the area shall be conducted by the


Incident commander.

• As directed the by the Incident Commander:

1. Barriers shall be removed

2. Personnel shall be allowed to return to the area

Emergency personnel shall be released upon direction by


the Incident Commander
15.6.1.6 POST-INCIDENT REPORTING

1. The Manager of Environmental Health & Safety shall, within 72


hours of the closure of the incident, schedule a debriefing with all
agencies concerned. This debriefing shall include, but not be limited to:

• Nature of the incident

• Problem areas identified

• Revisions to the emergency plan, if needed

• Factors that caused the incident

2.Upon completion of the debriefing, open discussion for questions and


answers.

The Manager of Environmental Health & Safety issues the final report.
15.7 RESPONDING TO GAS LEAK REPORTS

It is the responsibility of all employees of CGD project to become familiar


with policy and procedure concerned with gas leak calls and reports
1. The Plant employee receiving a report of a gas leak should get as much
of the information as possible to fill out a leak report.
2. All reports of gas leaks in the area get assigned a high priority. Leaks
inside a facility or building receive a Priority One.
3. Upon receiving pertinent information, and determining that a hazardous
leak exists inside a building, the caller should be advised on the following:

• Do not operate (do not turn on or off) any electrical appliance


or device.

• Extinguish all open flames. Do not light any matches,


cigarettes, etc.

• Ventilate the building.

• Turn off the gas supply (only if the caller knows how to do so).

• Evacuate the building to a safe distance. Be close enough to


relay information to arriving emergency personnel.

4. Dispatch necessary Physical Plant personnel to the location. The Dept.


employee should take any corrective action necessary to ensure
protection of life, then property. It is the responsibility of the person in
charge to:

• Set up communication

• Coordinate the operation

• Make all decisions concerning closing emergency valves and


isolating areas, as well as to coordinate the emergency
personnel and equipment.

15.8 MINIMUM OPERATOR RESPONSE ACTIONS

15.8.1 LEAKS OUTSIDE OF CGD PREMISES

1. Assess danger to passersby, surrounding premises and their


occupants and other properties.

2. Extinguish all open flames.

1. If necessary, notify the Fire Department and CGD project’s


main controlling office.

2. Block the street(s)

3. Notify Supervisor or other responsible persons.

4. Check neighboring buildings for gas vapors, fumes, etc.

5. Implement Check List for major emergency.

6. Repair leak

7. Upon completion of repairs, check the area using a


Combustible Gas indicator; if determined safe, allow occupants
to return to surrounding premises.

15.8.2 LEAKS INSIDE A PREMISE:

i. Immediately evaluate and determine concentration of gas and


source of the leak in the premise.

ii. Do not operate any electrical switches or electrical appliances.

iii. Do not use the telephone; turn off pagers and cell phones

iv. Shut off the gas meter valve

v. Ventilate the premise


vi. Bar hole the area, especially around the foundation. Check
water meter and other ground openings.

vii. If ground is gas-free, and if the premise is gas-free, turn on the


meter valve. Check all gas piping and appliance for leaks.

viii. Implement Check List for major emergency.

ix. Repair leak

x. If leak cannot be repaired, notify Supervisor. Turn off the


meter, lock it and tag it out.

15.8.3 GAS BURNING INSIDE A PREMISE

1. Call Fire Department

2. Call CGD project Control Office

3. If fire is at appliance, shut off the gas appliance valve, if


possible.

4. If not possible, shut the gas off at the meter or appropriate


valve.

5. Implement Check List for major emergency.

Interruption in the Gas supply

An interruption in gas supply could be due to break in the line,


sabotage, or gas cut-off.

1. Call gas supplier

2. Locate the leak; inform Gas supplier of the location of the leak.

3. Close appropriate valve in the system to isolate the break.

4. Implement Check List for major emergency.

15.9 MAJOR EMERGENCY CHECK LIST

1. Has the Fire Department been notified?

2. Have the occupants been evacuated and the area secured?

3. Has the Police Department been notified?

4. Has a repair crew been notified?

5. Has communication been established?

6. Has outside help been requested?


7. Have Emergency Medical Services been notified?

8. Has the leak been shut off or brought under control?

9. Has the fire services been notified?

10. Have emergency valves or proper valves to shut down or


reroute the gas been identified and located?

11. If an area has been cut off from a supply of gas, has the
individual building been cut off?

12. Is the situation under control and has the possibility of


recurrence been eliminated?

13. Has the surrounding area, including adjacent buildings and


cross streets, been probed for the possibility of further
leakage?

14. Has proper tag been placed on the meter?

15. Has telephonic report been made to the State /City


authorities?

16. Has telephonic report been made to DOT?

15.10 REPORTING REQUIREMENTS

A telephone call MUST be made to the city authorities for any leak
where:

The Telephone Report to DOT and OCC should contain:

• Address of the Operator/Reporting person

• Name and phone number of individual reporting the incident.

• The location of the leak (address).

• The time of the leak (hour and date).

• The number of fatalities and personal injuries, if any.

• Type and extent of property damage.

• Description of the incident.

A telephonic Report should be made at the earliest practicable


time following discovery (within 2 hours).
15.11 RESTORATION OF GAS SERVICE DUE TO OUTAGE

When the supply of gas has been cut off to an area, the gas should not be
restored to the affected area until the individual gas services in the area
have been turned off.
In restoring service to an affected area, all gas piping and meters must be
purged and appliances re-lighted. Never turn gas on at a meter unless you
have access to ALL appliances or equipment on the piping.
The person in charge is to coordinate this operation and be
responsible for same.
A complete record of the incident, with drawings, etc., must be
kept on file.
15.12 EDUCATION AND/OR TRAINING

Employee Training

CGD project operational/maintenance Personnel and Environmental


Health & Safety personnel must be trained annually in emergency
procedures that include but are not limited to:

1. Update of the emergency plan

2. Review of employee responsibilities in an emergency

3. Review of location and use of emergency equipment.

4. Review the properties of natural gas.

5. Review the locations of:

• Systems map

• Main records

• Service records

• Valve records

• Regulator station schematics

6. Take a hypothetical emergency situation and conduct a step-


by-step review with employees on the action to be taken,
including contact with public officials, Fire Department,
Police/security personnel etc.

7. Record keeping
8. Telephone reports

9. Records shall be kept on file of attendance and items


discussed.

10. Liaison with appropriate fire, police and other public officials.

15.13 PUBLIC EDUCATION

CGD management or a responsible personnel should, enable the general


public and appropriate governmental organizations, to recognize a gas
emergency. CGD management, through Environmental Health & Safety
departments shall report the incidence of gas odors, leaks and other
emergencies to Gas supplier, Police/fire fighting.
The program material should include, but not be limited to:

• Information about gas properties

• Recognition of gas odors

• What to do and not do when there is a strong gas odor

• Notification of the gas company prior to making excavation-


related activities.

• Telephone numbers for persons in CGD project to report gas


leaks or odors or other information during both business and
non-business hours.

This information may be conveyed by a number of means:

• Radio and television

• Newspaper

• Meetings

• Bill stuffers

• Mailings

• Hand-outs

• Posted on bulletin boards

• Employee newsletters etc.


15.14 LIAISON WITH PUBLIC OFFICIALS & LOCAL GAS
UTILITIES

CGD management through Environmental Health & Safety Department


will establish liaison with fire, police, civil defense and medical officials
with respect to these emergency procedures. These officials include
representatives of Police and Fire Departments, Medical Center / Hospitals
etc.
Liaison will consist of annual meetings to discuss what each
agency can do for the other to control an emergency situation. This
meeting will be performed with face-to-face communication, at which time
a copy of this Emergency Plan will be provided to each official.
Documentation must be kept of all meetings, training sessions, and other
related activities, such as:

• Date of meeting, attendance and titles of participants

• Training sessions on proper procedures to follow during a gas


emergency

• Meetings to learn capabilities, responsibilities, and procedures


respecting gas emergencies of each group.

15.15 INFORMATION TO THE MEDIA

During an emergency, refer all requests for information to CGD project


Administrative/Public Relation Office. The PRO will plan for public
announcements which include:

• Calm the situation

• Do not make unwarranted comments

• Tell precisely what the public can do to help

• Tell specifically what CGD management is doing about the


incident.

• Give facts to prevent baseless rumors.

• Repeat most encouraging view of situation that facts will


permit.

• Do not speculate regarding the situation in absence of facts.


15.16 ACCIDENT INVESTIGATION

CGD management will proceed in analyzing accidents and failures, and at


the minimum:

• Evaluate the situation

• Protect life and property

• Keep the area safe

• Conduct a leak survey

• Conduct pressure test of piping

• Perform meter and regulator checks

• Question persons on the scene

• Examine burn and debris patterns

• Request for test odorization level

• Record weather conditions

• Select samples of the failed facility or equipment for laboratory


examination for the purpose of determining the causes of the
failure and minimizing the possibility of recurrence.

• Notify the appropriate Risk Management Office.


16.0 RISK ANALYSIS OF THE PROJECT

16.1 RISKS
The major risks involved with the proposed project are as follows:

• Operating Risk

• Land availability and lease of land

• Time & Cost Overrun

• Project Funding

• Gas Supply & Transportation

• Environmental & Other Approvals

• Gas Off take

• Payment

• Technology related Issues

• Interest Rate & Inflation

• Force Majeure
16.2 RISKS MITIGATION
The mitigation of above risks involved with the proposed project has been
duly considered in making the FR as follows:

• Managing the operation of the project by experienced staff of


project owner.

• By entering in to timely and proper Sale/Lease deed of land.

• Fixed cost & time contract with EPC contractor.

• By firm equity & debt tie up (if required).

• Agreement with gas supplier well in advance with option ready


for alternate source/availability of gas supply.

• Obtaining requisite approvals at the start of the project.

• Creating awareness for gas conversion in different sectors and


enter in to suitable agreement.

• Expediting and constant monitoring.

• By appointing reputed and experienced Project Management


Consultant & EPC contractor.

• By Hedging

• By suitable Insurances, back to back clauses of Agreements.