major players in cgd and future expansion

8/6/2019 Major Players in Cgd and Future Expansion

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2/21

Topics Covered

Natural Gas Market An overview

City Gas Distribution (CGD) Developments inIndia

New markets for CGD networks

Challenges


3/21

Natural Gas Market Today

Natural Gas occupies 9% oftotal energy basket of India

World average is 24%

Increase in the availability ofnatural gas in India will changescenario

Power and Fertilizers sectorsmajor consumers of natural gasat 41% and 30% respectively

Energy Mix

28%

9%

6% 1%

56%

Coal

Oil

GasHydro

Nuclear

Sector Wise Consumption of Gas

41%

30%

7%

5%

5%

3%10%

Power

Fertilizers

LPG + other

liquid HCCity Gas

Petrochemicals+ Refineries

Steel

Others

Source : BP Statistical Review of World Energy (June2007)


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Natural Gas Market Today

Natural Gas current demandin 2006-07 - 150 MMSCMD

Natural Gas availability in2006-07 - 96 MMSCMD

NG Availability (MMSCMD)

53

20

18

5

ONGC/OIL

PVT/JV

PLL LNG

LNG Spot

Source : Infraline


5/21

Projected Sector wise Growth inNatural Gas Demand

80

127

41

7625

33

15

20

12

16

8

6

0

50

100

150

200

250

300

2007-08 2008-09 2009-10 2010-11 2011-12

Period

Pow er Fertilizer Pet che/ref/int conIndustrial City gas Sponge iron/Steel

Source : XI plan report

MMSCMD


6/21

Projected Natural Gas Supply Breakup

58 56 55

62 60 58

74 8434

5370

5157

5723

94

83

30

0

50

100

150

200

250

300

2007-08 2008-09 2009-10 2010-11 2011-12

Period

MMSCMD

ONGC + OIL Pvt./JVs RIL & GSPC LNG Supply



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Projected Natural Gas Demand & Supply


179

111 111

197

154154

226

168

242

262

183

267279

191

285

0

50

100

150

200

250

300

MMSCMD

2007-08 2008-09 2009-10 2010-11 2011-12Period

Demand Supply (Scenario 1) Supply (Scenario 2)


8/21

Topics Covered


City Gas Distribution (CGD) Developments inIndia


Challenges


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Evolution of CGD network in India

Calcutta Gas Company (1880) -- Coal Gas

Bombay Gas Company (1900 1960s) -- Coal Gas

Assam Gas Company Limited (1962) supplied natural gas to AssamState Electricity Board subsequently started supplying gas to

industries and various towns in Assam

Delhi Municipal Corporation (1980) operated a bio gas distributionsystem in Okhla, now this system carries Natural Gas

ONGC started Natural Gas distribution system for its township atMehsana, Kadi, Hazira & Sibsagar (1982-86)

Post 1995, MGL & IGL were formed for CGD in Mumbai and Delhirespectively.

Current demand for CGD is 11 MMSCMD


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Prerequisites for Development of CGDNetwork

Regulatory framework

Transmission Pipelines

Gas availability

Government support


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Some Existing Market Players in CGD Business

> 0.6 ???Parts of Assam, Gujrat andAP

Govt / Pvt /JVs

Others (8-10)

0.3L - Transport

1.7L

Domestic3000 I&C

1.28L -Transport

0.8L Domestic

260 I&C

1.8L - Transport

3.6L - Domestic

850

I&C

Customer base

Surat, Bharuch,Ankhleshwar & Jhagadia

NCR

Mumbai, Thane, NaviMumbai & Mira -Bhayander

Existing Areas

4BGGGCL

1.6GAIL, BPCL,DelhiGovernment,IL&FS, IDFC

IGL

1.5GAIL, BG &GoM

MGL

ApproxGas salesinMMSCMD

OwnershipCompany

Source : Infraline


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NG preferred fuel over others

Used in domestic, transport, industrial

and commercial sectors for its:

Convenience

Economics

Safety

Saves space

Cleanliness


13/21

Topics Covered


City Gas Distribution (CGD) Developments in

India


Challenges


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Further Developments

40 cities (including existing cities) identified for implementation ofcity gas projects in XI - 5 year Plan

Demand for these 40 cities is estimated to be 15.8 MMSCMD by 2011-12 and 23.3 MMSCMD by 2016-17

Natural gas companies have identified additional 74 new cities withestimated demand of 11 MMSCMD by 2011-12 and 15 MMSCMD by2016-17

There have been reports of India having CGD potential of 200+

towns/cities in the medium/long term.

These city gas projects will be connected with the existing pipelinenetwork and the new pipelines expected to come up in the next 5-10

years


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CGD Demand Projections for 40 Cities


12.08

12.93 13.8314.80 15.83

23.26

0

5

10

15

20

25

MMSCM

D

2007-08 2008-09 2009-10 2010-11 2011-12 2016-17

Period

CGD demand expected to increase

by 93 % in next 10 years


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CGD Demand Projections for 114 Cities

Source : Infraline

12.08

26.67

37.39

0

5

10

15

2025

30

35

40

MMSCMD

2007-08 2011-12 2016-17

Period

CGD demand expected to

increase by 210 % in next 10years


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Players in CGD Business

NOCs

Private Companies

State Govt. companies

JVs of above.


18/21

15

LNG

Existing (7.5 MMTPA)

Transmission Pipelines

Existing (6,300 Kms)

Upcoming (16.25 MMTPA , US$ 2 Billion)

Planned (8,400 Kms, US$ 5 Billion)City Gas/ CNG

Existing (10 cities)Planned (40 cities, US $ 2 Billion)

Gas By Sea Receipt (Likely Location)

LNG Terminal

GAS SECTOR INFRASTRUCTURE:

CURRENT AND FUTURE

A COMPOSITE PICTURE

TOTAL INVESTMENT

US$ 9 Billion(Rs.40000 Cr)

INTEGRATED GRID TO LINK ANY SOURCE TO ANY MARKET

JAGDISHPUR

PHOOLPUR

BHATINDA

JAMNAGAR

BAREILLY

DISPUR

DELHI

AGARTALA

BARODASURAT

KANPUR

LUCKNOW

PATNA

AHMEDABAD

RAJKOT

KOTA

MATHANIA

GWALIOR

UJJAIN

AGRA

KOLKATA

GAYA

BOKAROVARANASI

JHANSI

DAHEJ I & II10 mmtpa*

HAZIRA2.5 mmtpa

MYANMAR-IndiaPipelineA 1 BLOCK,MYANMAR

COIMBTORE

MANGLORE

MUMBAIBHUBANESHWAR

KRISHNAPATNAM

NELLORE

CHENNAI

TUTICORIN

TIRUCHCHIRAPALLI

PUNE

BHARUCH

HASANBANGLORE

KOLHAPURHYDERABAD

SOLAPURRAJAMUNDRY

VIJAYAWADA

DAMRA

DABHOL5 mmtpa

COCHIN5 mmtpa KANJIRKKOD

AURAIYA

Iran-Pak-IndiaPipeline

Turk-Afg-Pak-IndiaPipeline

KAKINADA

BHOPALVIJAIPUR

INDORE

GOA

CUTTACK



19/21

Topics Covered


City Gas Distribution (CGD) Developments in

India


Challenges


20/21

Challenges

Development and Connectivity of Gas Transmission Lines

Expeditious Development of New Natural Gas sources

Affordable Gas Prices

Fair Regulatory Polices to Encourage Investments Awareness about the CGD concept in Small Cities and Towns

Availability of Resources

Support from all Nodal Agencies

Standardization of Technical & Safety norms


21/21

Thank You

major players in cgd and future expansion

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