the key challenges facing the uk gas distribution

8/8/2019 The Key Challenges Facing the UK Gas Distribution

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Presented by:Rakesh Rakesh


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Introductiony Gas distribution is the process whereby gas is taken from the high pressure

transmission system and distributed through low pressure networks of pipes

to industrial complexes, offices and homes.

y There are eight gas distribution networks (GDNs), which each cover a

separate geographical region of Britain.

y

The gas distribution sectors has undergone a major change. On 1 June 2005 National Grid Gas plc sold four of the eight GDNs to Scotia Gas

Networks (which owns Southern Gas Network and Scotland Gas

Network), Northern Gas Networks and Wales & West Utilities.


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Key Challengesy Security of supply

y Pipeline leakage

y Storage

y Meeting the standards directed by Regulating bodies

y Climate change

y Customer satisfaction


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Security ofsupplyy Gas is the largest proportion of the UKs primary energy supply, and gas-

fired power plants are the main method of power generation.

Gas38%

Electricity37%

Coal

14%

Nuclear Power9%

Other source2%

Energy Production in UK


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y Gas-fired power plants are also the main method of power

generation, generating 38% of the UKs electricity requirement.


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y Increase in demand.

y Increased reliance on imported supplies.

y Regulatory frameworks actively promote security of supply and the

maximum economic recovery of the UKs gas.


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Pipeline Infrastructurey Total coverage of 275,000 km pipelines.

y Early 70s cast iron pipes used.

y After 70s Ductile iron pipes used.

y Recently Polyethylene (PE) pipes are using.

y Pipelines using for distribution process operates at different pressure.

y High pressure (50-70 bar)

y Medium pressure (7-38 bar)

y Low pressure (up to 7 bar)

Polyethylene

Pipe

Ductile ironpipes


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Leakage and Damage

y Corrosion

y Leakage

y Slow crack growth/ destruction of iron metal pipelines.

y The number of damaged gas pipes caused by construction activities went up

by one third during the recent years (2005-2007).


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Preventionofleakagey Replacement of iron pipe lines by polyethylene pipelines that are

engineered to resist the slow crack growth and provides decade of corrosion

free service.

y Cathodic protection.

y welding should meet international standards for structural integrity and

operational performance


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y Use of high integrating cladding technology- polyethylene coating MDPE

and FBE.

y Regular testing of pipelines.

y Damages occurs due to third party can be decreases by good planning and

awareness of process causes.


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Storagey Gas storage facilities can act as a buffer against surges in demand or

disruption of supply

y Gas is stored in three ways:

y as LNG;

y in salt cavities; and

y in depleted gas field onshore and offshore.Storage Tanks


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Role ofRegulatorsy Gas supply is a licensed activity under the Gas Act.

y Regulating bodies

y Ofgem

y HSE

y Ofgem and HSE as being in top two comparable utilities for the delivering

of customer service, safety management and efficiency.

y Gas distribution network (GDN) and Independent gas transporters (IGT) are

regulated by Ofgem to protect consumers from potential abuse of monopoly

power.


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y All GDNs are required to maintain a use of system charging methodology,

which must explain to customers.

y To ensure the appropriate level of service is delivered to the consumer,

Ofgem specify a number of quality of service out that GDNs must deliver.

y Guaranteed Standard of Performance (GSOP)

y Overall standard of performance (OSOP)

y Ofgem can impose financial penalties of up to 10% of the licensed entitys

turnover in the event of breach of licence conditions.

y HSE drew up the inspection plan to ensure the safety regulation are

adequate and being followed properly.


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Climate changey Emission of gasses.

y Increment in green house effect.

y methane concentrations in the atmosphere have more than doubled

y leading to global warming.

y Ofgem embarked a 500 million fund for low carbon project to combat

climate change.


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Customerfocusy The gas supply market in Great Britain is completely open to

competition, with customers able to choose freely the company from which

they buy their gas.

y Customer satisfaction

y Understand the customer requirement.

y

Provide the excellent service.

y Collect customer feedback and seek to improve the customer satisfaction.

y Always give priorities to customer.


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Thank You

the key challenges facing the uk gas distribution

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