Supply, Distribution and Marketing of Natural Gas including CNG and PNG by IGL (Including Pricing)

 

IGL was established on 23 December 1998 as a joint venture of GAIL (India) Ltd, BPCL and Govt. of NCT of Delhi to implement the city gas distribution project in the NCT of Delhi. In order to promote the usage of CNG in the NCT of Delhi, Government increased allocation of Natural Gas from 0.48 MMSCMD (July 1995) to 0.98 MMSCMD (December 2001) and further to 2.0 MMSCMD (June 2002).

Numbers of various categories of CNG stations set up by IGL in National Capital Region as on 28.02.2007 are as under:

In NCT of Delhi

Company Mother Online  Daughter Booster Daughter  Total Stations
IGL (Own) 65 14 5 0 84
At BPCL outlet 0 9 15 0 24
At HPCL outlet 0 5 6 1 12
At IOCL outlet 0 9 6 2 17
At IBP outlet 0 5 3 0 8
Total (A) 65 42 35 3 145

Delhi - Pipeline System

In Noida

Daughter Booster Station at HPCL outlet - 1 no. 

Total Number of CNG Stations - 146 Nos.

As on date there are no set norms/guidelines available w.r.t minimum and maximum distances between 2 filling stations. However-, selection of any CNG filling station mainly depends on the potential load/traffic flow in a given area and therefore is independent of any minimum/maximum distance criteria. While selecting any new site, it is usually ensured that it increases eases the geographical spread of CNG distribution network.

IGL endeavors to provide a comfortable refueling to al customers at the CNG stations. Though actual refueling time varies from 2 to 3 minutes per vehicle at the dispenser point, waiting time ranges from nil to 10 minutes depending upon the type of vehicle viz Auto, Car, RTV, Bus etc and a so on non peak hours/peak hours.

Pricing of CNG:

The Retail Selling Price of CNG in Delhi is based on the following parameters:

Based on the above parameters the RSP of CNG in Delhi is Re. 19.20/-per kg, which is the lowest in India.

The break up of selling price of CNG in Delhi is as under

Basis Price Rs.16.49 per kg.
Excise @ 16% Rs.2.64 per kg.
Education Cess on Excise @ 3% Rs.0.07 per kg.
Selling Price Rs.19.20 per kg.

There is no Sales Tax/Vat applicable on CNG in Delhi.

Growth in Compression Capacity

Piped Natural Gas (PNG)

The piped natural gas project was taken over by IGL in Dec. 1998. From 1500 domestic consumers, 8 small commercial and 3 large commercial consumers in March 99 the consumer base has grown to 70819 domestic PNG connections, 257 small commercial consumers and 46 large commercial consumers as on Marc 31 , 2007. Presently, PNG supply is available in 57 nos. of colonies of NCT of Delhi. Though, we are having 70819 PNG connections, the present network is adequate to cater 1.5 lac consumers for which innovatve marketing strategies are being adopted to expand consumer base.

Further, work is in progress in new areas of Paschim Vihar, Vikas Puri, Rohini Sector 18 and CPWD colonies of Andrews Ganj, Sadie Nagar, NW Moti Bagh, South West Moti Bagh, Sriniwaspuri, DIZ Area to spread the network in a big way. IGL has plans to cover subject to technical feasibility all areas of Delhi in phases over next five years.

The economic viability of the project is dependent on the number of households and commercial customers located in the area. Taking into account economic viability and available capital expenditure budget, new areas are added each year. The hurdles being faced in carrying out this job is 1) delay in availability of digging permissions from multiple agencies. Viz. MCD, DDA, NDMC, CPWD, PWD, NHAI, NOIDA, GNIDA, AAI, etc. for which a single window permission provision may be enacted for speedy coverage of Delhi and 2) additional allocation of Natural Gas.

IGL faces difficulty in laying down pipelines owing to multiplicity of agencies from which permissions need to be taken. IGL has been emphasizing the need for dedicated corridors for gas pipelines with all the land owning agencies in different forums. Private builders who approach IGL for PNG supply during planning stage of their projects are offered suitable advice on gas pipeline infrastructure required in their projects.

The parameters on which PNG pricing is based in Delhi are given below:

Pricing for Piped Natural Gas Customers in Delhi:

The PNG consumers of Indraprastha Gas Limited have been categorized as follows

  1. Domestic PNG Consumer -

    The price of PNG is indexed to the administered retail-selling price of domestic LPG (14.2 Kg) cylinder in the National Capital Territory of Delhi, as applicable from time to time, taking into account the respective heating values of Natural Gas & LPG.

    The current price of domestic PNG is Rs. 13,00 per scm + 4 % VAT-

  2. Small Commercial Consumer -

    The delivered price of PNG for small commercial consumer is indexed to 19 Kg commercial LPG cylinder as applicable from time to time in N.C.T. of Delhi after the adjustment for the respective heating values of natural gas and LPG.

    Current Price - Rs.17.79 + 4 % VAT.

  3. Large Commercial Consumer -

    The delivered price of piped natural gas (PNG) ''or a large commercial consumer is indexed to the weighted average price of LDO and LPG (Bulk) as applicable in National Capital Territory of Delhi, from time to time after adjustment for the respective heating values of natural gas, LPG and LDO.

The prices of PNG for large commercial is are as follows -

For consumption upto 2100 scmd - Rs.20.83 + 4 % VAT,

For consumption above 2100 scmd -Rs.12.23 + 4 % VAT.

However with effect from March 15,2007 price slab of Rs.12.23 + 4 % VAT for consumption above 2100 scmd has been withdrawn.

 

 

 

 

 

 
Basic Grid

The 19 bar existing Basic Grid, fed from GAIL's existing network near Delhi makes the supply with the required flow rates possible in various districts of the city through the district regulator stations. 

District Regulator Stations

Each locality has a District Regulator Station (DRS). The 19-KG line terminates at the DRS and the DRS then feeds the gas to the 4-KG network. All the DRSs are equipped with two regulating lines, one stand-by to be used in case the main line needs any repairs. These stations can be isolated in case of any problem by closing the valves located very near to them, both upstream and downstream (on 19 bar and 4 bar networks respectively).

Distribution Networks

The Delhi CGD network is based on the modern gas distribution technology. Such a system is usually supplied with gas from the high-pressure transmission system, through one (or more) city gate stations. From there, after pressure reduction takes place the gas is transmitted through the basic grid, which forms the backbone of the distribution system. The district regulators form the next interface between the steel basic grid and the MDPE distribution network. The distribution pipeline network is installed in the colony lanes of the project area and feeds the service lines. The service line connects the distribution network to the industrial/commercial and domestic consumers through service regulators and gas meters.

The distribution networks of MDPE Pipes originate from the District Regulator Stations. Since the gas pipeline network is intended to transmit gas to the Domestic/Commercial consumers, these networks are operated under a maximum pressure of 4-KG, which is comparable to traditional low-pressure distribution systems. There is also a higher degree of safety as the pressure Regulators of residential customers (which reduce the gas pressure from 4 bar down to the appliances operating pressure [20M bar]) are such that in case of an accidental leakage in the network, gas supply will be automatically stopped.

Future Plans

IGL is presently supplying CNG and PNG to NCT of Delhi.  The compression capacity of IGL will be increased to 18 lakh kg/day from the present 16.48 lakh kg/day. The Company has drawn out plans to consolidate its presence in the city of Delhi by investing Rs. 947 million during the financial year 2005-06 for CNG expansion. The Company has also planned a capital expenditure of Rs. 442 million for PNG expansion in Delhi during the financial year 2005-06 to provide additional PNG connections to over 30,000 domestic households, 75 small commercial and 16 large commercial customers. The oil ministry has allocated 0.7 MMSCMD of natural gas for these three cities. CGD networks will be implemented in phases in the three cities. Under Phase-I, IGL plans to set up about 20 CNG stations in three years time, subject to approvals from concerned State Governments viz. Uttar Pradesh and Haryana.

Top

Latest News Items. (Click for More)
IGL seeks clubbing of its domestic gas allocation for cities in Delhi NCR 11/19/2014 12:00:00 AM
 
  • In a bid to provide synergy in its City Gas Distribution (CGD) operations in the Delhi NCR, Indraprastha Gas Limited (IGL) has requested the Petroleum Ministry to merge its domestic gas quota allocated for Delhi, Gautam Budh Nagar, Ghaziabad, Faridabad and Gurgaon.

  • Currently, IGL has commissioned 324 CNG stations in Delhi, Gautam Budh Nagar and Ghaziabad. In addition, 28 CNG stations are awaiting for statutory clearances.

  • Further, IGL has laid 8629 km of MDPE pipeline network to strengthen the PNG (Domestic) activities in Delhi, Gautam Budh Nagar and Ghaziabad. IGL has already connected approx. 4.89 lac customers in the areas under IGL's operation.

  • IGL has claimed that since all cities in Delhi NCR, namely Delhi, Noida, Greater Noida, Ghaziabad, Faridabad and Gurgaon for which its has domestic gas allocation are interconnected, a huge number of vehicles ply between the cities which makes it difficult to have a clear demarcation of the city wise consumption of CNG. Therefore, it is logical that the total Domestic gas allocated to IGL for Delhi, Noida, Greater Noida, Faridabad & Gurgaon, instead of being considered separately should be treated together for these cities.

  • The company has further claimed that the proposal will be in line with MoP&NG's recent insistence asking the company to be more aggressive in expanding its CGD operations in Delhi NCR.

  • As per the company, the expected growth in CNG (transport) and PNG (domestic) segment of Gautam Budh Nagar and Ghaziabad require more Domestic Gas than current allocation/supply levels (even more than 110%).

  • The merging of gas allocation will be a step towards an integrated development of CGD project undertaken by IGL in NCR, the company has further noted.



 
Indraprastha Gas gets government backing over power to fix transport tariff in Delhi 11/17/2014 12:00:00 AM
 
  • The government is backing distributor Indraprastha Gas Ltd (IGL) in the Supreme Court in its dispute against the Petroleum and Natural Gas Regulatory Board (PNGRB) over transportation tariffs for the fuel supplied in Delhi through pipelines. The outcome of the case will likely determine the future of the regulator when it comes to regulating prices of compressed natural gas delivered to vehicles and piped natural gas to homes in the city.

  • A Supreme Court bench comprising justices Dipak Misra and UU Lalit will take a call on the rival arguments. The regulator issued a notification in April 9, 2012, fixing network tariffs and compression charges to be levied by IGL with effect from April 1, 2008. It also asked IGL, which has a monopoly over gas distribution in Delhi, Noida, Ghaziabad and Greater Noida, to reveal these two specific components to consumers in its invoices in the interests of transparency.

  • IGL challenged this in the Delhi High Court and won. It argued that it cannot be forced to reveal cost components as this was commercial information and contested the board's powers on this score. The board said Indraprastha Gas had always submitted tariff data to it and this was part of the process of fixing these two components. But the high court ruled that since the government had not yet notified Section 11(e) —which empowers the board to monitor natural gas prices— of the Act under which the regulator was set up, it could not fix these rates. The regulator appealed against this in the Supreme Court. Since then it has given up claims related to the power to fix prices. Instead, it has argued through senior advocate Arvind P Datar that it has the power to fix transport tariffs under the Act.

  • IGL, through senior advocate Harish N Salve, has resisted this, arguing that when the board cannot fix prices, it cannot set a component of this either for a city or local gas distribution network. That would imply that the board has the power to decide something indirectly that it cannot do directly, according to the argument. The gas regulatory board only has the power to ensure display of information on the maximum retail price, monitoring of rates to take corrective measures and prevention of restrictive trade practices, Salve said in his written submissions. The government has backed IGL, arguing that the board cannot fix the maximum retail price under the Act and that this will be decided by the company. The board can only monitor and regulate this. On the issue of whether the board can fix the transport tariff also, the ministry also backs Indraprastha Gas.



 
Petroleum and Natural Gas Regulatory Board wants break-up of MRP from local distribution entities 11/12/2014 12:00:00 AM
 
  • Gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB) on Tuesday told the Supreme Court that all city or local natural gas distribution entities (CGD), including Delhi-based Indraprastha Gas, should provide a detailed break-up of the MRP charged by them from consumers, including various cost components. A bench headed by Justice Dipak Misra, while posting the matter for hearing on Wednesday, observed that prima facie PNGRB didn’t appear to have powers for regulating retail price or transmission tariff and thus cannot compel the government to pass any such notification to regulate prices and tariffs.

  • Stating that IGL may not fall under common or contract carrier category, the apex court also sought to know the impact of the central government’s February 18 notification that directed all city or local natural gas distribution entities to ensure transparency in pricing, the break-up of CNG (transport) and also disclosure of PNG (domestic) price to consumers. Senior counsel Arvind Dattar, appearing for PNGRB, said such disclosure of transportation tariff based on self-declaration by the entities is in the interests of fair trade.

  • According to PNGRB, CGD entities, which have been granted authorisation based on competitive bidding after the establishment of the Board, were already complying with the disclosure requirements. Such disclosure norms are equally applicable to entities like IGL, which were authorised by the central government prior to the establishment of PNGRB, and have been conferred with “deemed authorisation” status under section 16 of the PNGRB Act. It further argued that while it does not have powers to fix the selling price, the statute provides for fixing of transmission tariffs. However, IGL alleged that PNGRB was adopting indirect means to assume power for regulating prices and it cannot fix transportation cost for city gas carriers. Meanwhile, the government also backed IGL stating that PNGRB is not empowered to determine retail prices.

  • PNGRB in April 2012 had directed gas utility company IGL to cut it’s network tariff to R38.58 per million British thermal unit against R104.05, down by around 63%. The regulator fixed CNG compression tariff at R2.75 a kg against R6.66/kg charged by IGL. The Delhi-based gas utility had appealed against this order in the Delhi High Court, which in June last year held that the regulator had no jurisdiction to fix rates or regulate gas tariffs for entities like IGL who have their own distribution network. Aggrieved by this, the gas regulator had moved the apex court, which in August 2012 ordered that for the time being, it would be open to PNGRB to collect all relevant information to fix any component of network tariff or compression charge for an entity but such fixation shall not be notified without its permission.



 
Gurgaon: Pay more for piped gas, CNG from today 11/6/2014 12:00:00 AM
 
  • Food and travel are set to pinch city residents' pockets as Haryana City Gas (HCG) Distribution Limited has decided to increase the prices of compressed natural gas (CNG) and piped natural gas (PNG) starting Thursday morning. The CNG price will be hiked by Rs 5/kg while the PNG will be dearer by Rs 4.75/kg. Starting Thursday, CNG will be sold at a revised price of Rs 45/kg and PNG at Rs 26.75/unit for the basic slab in domestic use.

  • Satish Chopra, managing director of HCG, said that an increase in domestic natural gas prices has led to this hike. "There has been a significant increase in our gas purchase costs owing to recent revision of domestic natural gas prices by the Centre," said an official. The increase in gas prices is likely to translate into spiked charges by 'unregulated' autorickshaw drivers in the city. While the PNG price hike will burden 6,000 households in the city, the rise in CNG prices will affect approximately 1 lakh CNG-run vehicles, including 10,000 autorickshaws.

  • The CNG and PNG prices were increased in Faridabad three days ago. HCG officials said it was the first price hike this year, after the one in 2013 and three hikes in 2012. In comparison with Delhi, Gurgaon users will have to pay Rs 6 more for every kg of CNG. The price in Delhi is Rs 38.15/kg. Now many vehicle owners are planning to get their tanks filled up from pumps at Kapashera and Rajokri on the Delhi-Gurgaon border. Currently there are five CNG pumps in the city. Serpentine lines of CNG-run vehicles were seen at the other four pumps, with consumers wanting to fill up their tanks before the revised prices kick in.



 
City gas distributors likely to take a hit of Rs 5 billion in profits in current fiscal 10/27/2014 12:00:00 AM
 
  • City gas distribution companies fear a hit of Rs 500 crore in their profit margins in the remaining part of this fiscal as they find it difficult to pass on all the additional cost to their customers. The economics of city gas sale has changed after the government's decision last week to raise natural gas to $5.61 per unit from $4.2, industry executives said. They said that the companies need to maintain a gap between the price of compressed natural gas (CNG) and diesel to be competitive in the market. Some executives said they may raise rates in small doses. Some executives, who did not want to be identified, said the government did not want the companies to raise prices but petroleum secretary Saurabh Chandra said the government does not interfere in pricing decisions at all.

  • Natural gas prices were raised on October 18, which company executives say would translate into an increase of Rs 4.25 per kg in the price of compressed natural gas (CNG) used in automobiles and Rs 2.60 in piped natural gas in households. The government accords top priority to city gas in allocating scarce natural gas.

  • A total of around 11 million metric standard cubic metres a day of natural gas was made available to the sector after making cuts from supplies to non-priority sectors. Industry executives say that city gas firms in the country will together take a hit of more than Rs 3 crore per day on account of this price hike, which broadly translates into an impact of Rs 500 crore for the remaining part of the fiscal year. IGL, the sole supplier of compressed natural gas and piped natural gas in the national capital, will alone take a hit of Rs 1 crore per day, company executives said. The city gas operators say they are under pressure to absorb the higher cost but government officials clearly deny this. Petroleum secretary Saurabh Chandra said: "We do not interfere in the determination of gas prices by the city gas entities."

  • Most city gas operators in the country are joint ventures of government-owned gas transporter Gail. Even the most mature city gas market of the country, Gujarat, is mainly operated by the state government-owned GSPC. MGL and IGL distribute gas in Mumbai and Delhi and are joint ventures between Gail and British Gas and, Gail and BPCL, respectively. A senior executive at leading city gas operator said: "We are trying our best not to increase the prices by absorbing the increase in gas price; however, this also depends on diesel prices; there has to be a 30% difference between CNG and diesel prices for CNG to survive."

  • A leading private sector operator said: "We, too, will be constrained not to increase the prices unless the bigger operators do so; however, our operations are not as big as IGL in Delhi or MGL in Mumbai; so we will not take a big hit. I think the government will allow IGL and MGL to increase the prices in small doses later but the damage will have been done to the nascent industry." The government has encouraged the city gas sector considering its immense potential in bringing down LPG consumption and consequently the huge subsidy on it by replacing it with piped gas. The subsidy provided by the government on LPG alone was 46,000 last year. Together with this, the use of compressed natural gas to run vehicles and buses is supposed to bring down the consumption of diesel and petrol and, thereby, also bring pollution under control.



 
Oil and gas data-IV: City Gas Distribution network (state-wise) 10/16/2014 12:00:00 AM
 

Following are the details on City Gas Distribution (CGD) network in the country:

 

State & UT PNG (domestic) PNG (Commercial & Industrial) CNG Stations Total network length (Km)
Andhra Pradesh 1,790 41 11 218.00
Assam 27,051 1,304 - 5586.00
Delhi 373,066 1,253 255 5380.21
Gujarat 1,320,834 19,792 327 20925.14
Haryana 19,674 244 17 1066 05
Madhya Pradesh 2,732 94 27 394 73
Maharashtra 743,917 2,581 201 4626.62
Punjab -     0.00
Rajasthan 191 18 3 93.37
Telangana 459 8 18 146.40
Tripura 15,249 320 5 402.96
UT -     0.00
Uttar Pradesh 123,619 1,418 79 5626.33
Grand Total 2,628,582 27,073 943 44465.81


 
Piped cooking gas to everyone in Delhi-NCR in 5 years: IGL - Gas major looking to buy into city gas networks 9/22/2014 12:00:00 AM
 
  • Indraprastha Gas (IGL) targets to supply piped natural gas (PNG) for cooking to all potential households in the national capital region (NCR) over the next five years, said Narendra Kumar, managing director of the company - a joint venture between GAIL (India), BPCL and Delhi government. This is in sync with Prime Minister Narendra Modi's move to make PNG more popular, which would reduce LPG usage and cut down the government’s oil subsidy burden.

  • Currently, IGL supplies PNG to nearly 4.8 lakh households in Delhi and its adjoining areas in Noida and Ghaziabad while there are about 315 compressed natural gas (CNG) filling stations for automobiles. Kumar said there was potential to add nearly 15 lakh consumers. However, there were many areas where PNG cannot be provided owing to safety hazards and the lack of feasibility to lay pipelines. Moreover, the absence of single-window clearance is a major challenge in the expansion of city gas networks.

  • The government has decided to allocate domestically produced natural gas to the city gas distribution (CGD) sector. Currently, in the lowest consumption slab, PNG costs 10-12% more than a 14.2-kg subsidised LPG cylinder. IGL charges Rs 27.30 per scm for consumption up to 36 scm in 60 days. For consumption beyond this limit, PNG is charged at Rs 48.75 per scm. On the other hand, a domestic subsidised LPG cylinder costs Rs 414 in the national capital after a discount of Rs 427.82 per cylinder.

  • IGL reported a net profit of Rs 114 crore in Q1FY15. Gross margin, which increased to Rs 9.58/scm, was aided by a slight decline in LNG prices to $ 13.91/mmbtu. Opex, which was flat in the past three quarters, rose 5.3% quarter-on-quarter to Rs 3.47scm due to seasonality. “With implementation of the government notification (100% domestic gas) to CNG and PNG customers, the attractiveness of CNG has increased dramatically. We now see increased demand growth coming from higher addition of CNG/PNG,” Edelweiss Securities said in a recent report.

  • IGL, which has bought 50% in Kanpur-based Central UP Gas (CUGL), for Rs 70 crore, is now closing a similar deal with Pune-based Maharashtra Natural Gas (MNGL). “We have followed another route for expansion where we are buying into existing CGD networks. This year, we have decided to take 50% in MNGL for Rs 190 crore. We are also studying some other cities (for buying equity),” said Kumar. "While near-term volume growth is a concern, we expect growth to revive in the medium to long term by a stable CNG price outlook for five years, post the scheduled domestic gas price hike leading to higher private car conversion and city buses addition that is pending for tendering," Motilal Oswal said in a recent report.



 
SC notice to IGL on plea over gas price 7/5/2014 12:00:00 AM
 
  • The Supreme Court on Friday asked all city natural gas distribution entities, including the Delhi-based Indraprastha Gas (IGL), to file replies as to why they should not provide detailed break-ups of the maximum retail price (MRP) charged by them from consumers as sought by gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB). A bench headed by Justice Dipak Misra, while issuing notice on the PNGRB's application to IGL, Mahanagar Gas, Aavantika Gas, Bhagyanagar Gas, Maharashtra Natural Gas, Central UP Gas and Sabarmati Gas observed:"This will not be a price control. You just have to give break-up for past prices to the consumers. As a citizen, I want to know about it." IGL opposed the Board's plea, saying it doesn't have any such break up.

  • Even the Central government on February 18 had directed all city or local natural gas distribution entities that for ensuring transparency in pricing, the break-up of the CNG (transport) and PNG (domestic) price needs to be disclosed to the consumers, PNGRB said, adding that the CGD entities were yet to comply with this directive. Till the top court decides the issue, it will be would be fair and reasonable that all other entities covered under the PNGRB Act, 2006 start disclosing the break-up of the component of network tariff and compression charge for CNG included in the MRP charged by them to the customers on self-declaration based on their submissions to it, senior counsel Arvind Dattar, appearing for the board, argued.

  • Such disclosure of transportation tariff based on self-declaration by the entities is in the interests of fair trade, he said. The board said that city gas distribution entities “have given their tariff submissions which in their view should be charged from their customers. However, due to efflux of time in the appeal, the data needs to be further updated by the entities.” However, a bench headed by Justice KS Radhakrishnan refused to give an early date for hearing after senior counsel Arvind Dattar and advocate Liz Mathew wanted urgent hearing on the board’s application.

  • PNGRB in 2012 had directed IGL to cut it's network tariff to Rs 38.58 per million British thermal unit against Rs 104.05, down by around 63%. The regulator fixed CNG compression tariff at Rs 2.75 a kg against R6.66/kg charged by IGL. IGL appealed against this in Delhi HC, which last year held that the regulator had no jurisdiction to fix rates or regulate gas tariffs for entities like IGL that have their own distribution network. Aggrieved by this, the gas regulator had moved the apex court, which in 2012 ordered it would be open to the Board to collect all the relevant information to fix any component of Network Tariff or Compression charge for an entity but such fixation shall not be notified without its permission.



 
Delhi government cracks down on illegal LPG refilling units 6/27/2014 12:00:00 AM
 
  • In a crackdown on people involved in illegal filling of cooking gas, Delhi government on Thursday raided 161 premises across the city and seized 277 cylinders. FIRs have been lodged against 31 persons allegedly involved in illegal filling of LPG from big cylinders into small cylinders and selling illegal small size cylinders. “The business of filling LPG from big cylinders to small cylinders is very dangerous and may lead to explosions and fire accidents. The small cylinders which are illegal and are locally made are also dangerous. Such premises also abet in siphoning off of LPG from the domestic gas cylinders and cheating of consumers by supplying underweight cylinders”, S S Yadav, Commissioner (Food Supplies & Consumer Affairs) said. “The department has seized 277 cylinders so far and FIRs under the Essential Commodities Act, 1955 have also been lodged against 31 offenders. On conviction, the accused may face imprisonment upto a period of 7 years,”

  • The Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order 2000 issued under the Essential Commodities Act, 1955 bans unauthorized possession, supply and consumption of LPG, as well as unauthorized storage and transport of LPG. There is also ban on sale or distribution of LPG cylinders below or in excess of the standard weight. Yadav said that the department received information that a number of premises in the city are indulging in the business of illegal filling of LPG from the bigger cylinders into the non standardized small cylinders and selling of such LPG cylinders illegally.

  • The areas where raids were conducted include Sant Nagar, Wazirpur, Burari, Raza Pur, Shahbad Daulat Pur, East Vinod Nagar, Mehrauli, Kapashera, Kalander Colony, Dilshad Gardern, Gokul Puri, Seema Puri, Dilshad Garden, Mandoli, Sadar Bazaar, Ballimaran and Tagore Garden. This is second such operation by Delhi government within a a month. Delhi government earlier had conducted similar operation across the city on June 5 and had seized 315 LPG cylinders and had registered 34 criminal cases under the Essential Commodities Act, 1955.



 
GAIL Gas signs agreement to invest Rs 1.41 billion in building CNG highway corridors in Uttar Pradesh 6/13/2014 12:00:00 AM
 
  • GAIL Gas Ltd, a unit of state gas utility GAIL India Ltd, on Thursday signed an agreement to invest Rs. 141 crore in building CNG highway corridors in Uttar Pradesh. GAIL Gas signed a memorandum of understanding (MoU) with Uttar Pradesh State Industrial Development Corp (UPSIDC) at the UP Investors’ Conclave in New Delhi. “This MoU will lay the foundation for building up natural gas infrastructure for fulfilling the demand of natural gas, setting up CNG stations along the highway corridor and distribution of gas to various industrial clusters and parks in Uttar Pradesh State,” the company said in a statement. The investment cost for developing this city gas project is Rs. 141 crore, it said. The MoU was signed by GAIL Gas chief executive Pankaj Kumar Pal and UPSIDC managing director Manoj Singh in presence of UP Chief Minister Akhilesh Yadav and GAIL Chairman and Managing Director B.C. Tripathi.

  • GAIL is planning three major CNG corridor projects along the highways – Delhi-Agra covering 200 kms with 6 CNG station at Kosi, Sikandra, Etawah, Fatehpur Sikri, Vrindavan and Govardhan; Lucknow-Kanpur highway covering 77 kms with 2 CNG station at Unnao and Karanpur-Moradabad-Kashipur-Rudrapur Highway covering 145 kms and 4 CNG station at Chandausi and Rampur. The Delhi-Agra project will cost Rs. 48 crore while Lucknow-Kanpur project will cost Rs. 16 crore. The third project will cost Rs. 32 crore. “The CNG corridor will enable the usage of CNG in and outside the city limit and will promote the concept of long journeys on natural gas vehicle,” the statement said.

  • GAIL plans to use mobile cascades to meet demand for natural gas in industrial clusters in Uttar Pradesh. These will cover areas like Shamli, Gajraula, Saharanpur, Kosi, Sikandra, Etawah, Fatehpur Sikri, Vrindavan and Govardhan. GAIL Gas is a wholly owned subsidiary of nation’s youngest Maharatna PSU GAIL (India) Ltd. It was created for implementation of city gas distribution projects across the country. GAIL Gas has been authorised by Petroleum and Natural Gas Regulatory Board (PNGRB) for implementing CGD projects in Dewas (Madhya Pradesh), Kota (Rajasthan), Sonepat (Haryana), Meerut (Uttar Pradesh), Vadodara (Gujarat) and Taj Trapezium Zone (Uttar Pradesh). In addition, GAIL Gas is pursuing city gas business in Kerala, Andhra Pradesh, Karnataka, Rajasthan and West Bengal through its Joint Venture.



 
Gail sets sight in UP for downstream expansion - Signs MoU with UPSIDC to expand downstream distribution network 6/13/2014 12:00:00 AM
 
  • GAIL Gas, a wholly owned subsidiary of GAIL (India), and Uttar Pradesh State Industrial Development Corporation (UPSIDC) signed a Memorandum of Understanding (MoU) to expand the natural gas downstream distribution network in the state of Uttar Pradesh. This MoU will lay the foundation for building up natural gas infrastructure for fulfilling the demand of natural gas, setting up compressed natural gas stations along the highway corridor and distribution of gas to various industrial clusters and parks in Uttar Pradesh.

  • The investment envisaged for developing this city gas distribution project is about Rs 140 crore. The CNG corridor will enable the usage of CNG in and outside the city limit and will promote the concept of long journeys on Natural Gas vehicle. Three major CNG Corridor Projects are planned over the highways. Delhi- Agra Highway covering 200 kilometre, with six CNG stations at Kosi, Sikandra, Etawah, Fatehpur Sikri, Vrindavan and Govardhan. Lucknow-Kanpur highway covering 77 km and two CNG stations at Unnao. Karanpur- Moradabad- Kashipur- Rudrapur Highway covering 145 km and four CNG stations at Chandausi and Rampur.



 
Delhi to approach Petroleum Min for gas supply to 1500Mw Bawana power plant 5/6/2014 12:00:00 AM
 
  • Delhi government said it would soon approach the Union Petroleum Ministry for facilitating gas supply to the 1,500-MW Bawana power plant built at a cost of around Rs 4,500 crore. The plant, which was made ready in 2012, is currently generating around 350 MW of power daily against its optimum capacity due to shortage of gas supply. Chief Secretary S K Srivastava, during a visit to the plant at North West Delhi, said the city government would soon approach the Petroleum Ministry to demand gas supply to the plant. Bawana is the largest gas-based power plant in Northern India. It consists of a total of six units -- four gas units and two steam turbines.

  • Officials said the plant required 5.8 MMSCMD (million metric standard cubic metres per day) of gas, whereas only 1.564 MMSCMD of non-APM (Administered Price Mechanism) gas and 0.836 MMSCMD of RIL KG basin gas was allocated to it. They said supply from RIL KG basin had stopped completely since March 2013. Officials said commissioning of the plant would result in drop of power tariff in the city as the cost of power procurement would come down. The then Sheila Dikshit government in 2011 had also sought intervention of the Prime Minister's Office in getting natural gas for the Bawana plant following refusal of Reliance Industries Ltd to supply the fuel.

  • The Centre had allocated 0.93 MMSCMD gas from Reliance's Andhra offshore KG-D6 fields for Bawana for 2009-10 and 2010-11, but as the plant missed scheduled deadline, the Delhi government could not sign the Gas Sales Purchase Agreement with RIL. In April 2011, after synchronisation of two gas-fired turbines of 250 MW at the plant, the Delhi government had approached RIL to sign the contract. But Reliance said it was in not in a position to sign the contract as the available gas had already been allocated to other entities. Earlier, the Chief Secretary inaugurated a 66/11 KV sub-station set up by Tata Power Delhi Distribution Ltd (TPDDL) at Bawana. This new sub-station would go a long way way in providing stable and quality power supply to residential and industrial consumers of Bawana Industrial Area, said Srivastava.



 
Regulator seeks direction to CGD cos for disclosure of gas price break-up 4/19/2014 12:00:00 AM
 
  • The Petroleum and Natural Gas Regulatory Board (PNGRB) has requested the Supreme Court for a direction to all city natural gas distribution entities, including Delhi-based Indraprastha Gas (IGL), to provide detailed break-ups of the maximum retail price (MRP) charged by them from consumers. Even the central government on February 18 had directed all city or local natural gas distribution entities for ensuring transparency in pricing. The break-up of the CNG (transport) and PNG (domestic) price needs to be disclosed to the consumers, PNGRB said, adding that the CGD entities were yet to comply with this directive.

  • Till the top court decides the issue, it would be fair and reasonable that all other entities covered under the PNGRB Act, 2006 start disclosing the break-up of the component of network tariff and compression charge for CNG included in the MRP charged by them on self-declaration based on their submissions to it, the board said in its fresh application. Such disclosure of transportation tariff based on self-declaration by the entities is in the interests of fair trade, it added. The board said that CGD entities “have given their tariff submissions which in their view should be charged from their customers. However, due to efflux of time in the appeal, the data needs to be further updated by the entities.” However, a bench headed by Justice KS Radhakrishnan refused to give an early date for hearing after senior counsel Arvind Dattar and advocate Liz Mathew wanted urgent hearing on the application.

  • PNGRB in April 2012 had directed gas utility company IGL to cut its network tariff to R38.58 per million British thermal unit against R104.05, down by around 63%. The regulator fixed CNG compression tariff at R2.75 a kg against R6.66/kg charged by IGL. IGL had appealed against this order in Delhi High Court, which in June last year held that the regulator had no jurisdiction to fix rates or regulate gas tariffs for entities like IGL. Aggrieved by this, the regulator had moved the apex court, which in August 2012 ordered that for the time being, it would be open to the Board to collect all the relevant information to fix any component of network tariff or compression charge for an entity but such fixation shall not be notified without its permission.



 
Petroleum Ministry's presentation on natural gas-IV: State-wise CGD infrastructure 3/24/2014 12:00:00 AM
 

Provided below are state-wise details on City Gas Distribution (CGD) infrastructure in the country:

S. No. State No. of CNG Station Domestic PNG Connections Industrial PNG Connections Commercial PNG Connections
1 Andhra Pradesh 29 1989 132 49
2 Assam   25215 371 857
3 Gujarat 326 1175945 3712 14867
4 Haryana 14 13952 132 49
5 Madhya Pradesh 15 2517 58 18
6 Maharashtra 186 685180 123 2151
7 Delhi 274 339486 209 887
8 Rajasthan 3 191 16 1
9 Tripura 4 13683 45 242
10 Uttar Pradesh 79 103922 798 406
Total 930 2362080 5596 19527


 
Petroleum Ministry's presentation on natural gas-IV: State-wise CGD infrastructure 3/21/2014 12:00:00 AM
 

Provided below are state-wise details on City Gas Distribution (CGD) infrastructure in the country:

S. No. State No. of CNG Station Domestic PNG Connections Industrial PNG Connections Commercial PNG Connections
1 Andhra Pradesh 29 1989 132 49
2 Assam   25215 371 857
3 Gujarat 326 1175945 3712 14867
4 Haryana 14 13952 132 49
5 Madhya Pradesh 15 2517 58 18
6 Maharashtra 186 685180 123 2151
7 Delhi 274 339486 209 887
8 Rajasthan 3 191 16 1
9 Tripura 4 13683 45 242
10 Uttar Pradesh 79 103922 798 406
Total 930 2362080 5596 19527


 
Gas price row: AAP may find company in Tripura 2/20/2014 12:00:00 AM
 
  • Former Delhi Chief Minister and Aam Aadmi Party leader Arvind Kejriwal may find a good support in Tripura’s Power Minister Manik Dey in his tirade against the Union Government’s decision to raise natural gas prices. While Kejriwal questions alleged corruption in the decision to almost double the price of domestically produced gas, the Tripura Government will be among the worst-hit by the price rise as over 90 per cent of electricity consumed in the State is gas-based. The rest is hydro-electric. In contrast, the national share of gas-based power generation capacity is a mere 9 per cent. Beginning June 2010, gas prices have increased three times in Tripura. First came a revision in prices from ₹2,376 to ₹4,700 a cubic metre. It further moved up to nearly ₹7,700 a cubic metre, after the rupee started falling last year. From April, the gas prices will rise further and cross ₹10,000 a cubic metre.

  • The impact is huge for Tripura that has successfully used economic development as a tool to contain extremism. For a hilly State where electricity consumption was once largely restricted to the capital city of Agartala, all the villages in Tripura are today connected by grid power. One of the corner stones of the State’s development campaign was cheap electricity. The State now pays nearly ₹40 crore of subsidy every year to ensure distribution of free electricity to its poor farmers and keep the household tariff at an average of ₹3.60 a unit.

  • While the low per capita consumption and lack of bulk users of electricity limit the prospect of cross subsidisation of tariff in Tripura, Dey was banking on export of surplus power to bridge this gap. But the calculation has gone haywire due to delay in implementation of the transmission line connecting Tripura with National Grid at Bongaigaon in Assam. The project has hit a green hurdle in Assam. The result is already telling on Tripura’s balance-sheet. Following the commissioning of the first 363.3 MW unit of ONGC Tripura Power Co (OTPC) on January 4, the State has been losing ₹25 lakh a day (over ₹90 crore on an annualised basis) for inability to sell the excess power. The losses will increase manifold, with another 250 MW increase in supplies scheduled this year.

  • The dual impact of the stretched finances of the State government due to revenue loss on surplus electricity and rise in gas prices is too big for Tripura to survive. Dey is apprehensive that the State may be headed for a sharp rise in electricity tariff, throwing the rural development plans out of gear. “On the one hand, we cannot increase our earnings, for failure of the Centre in implementing key infrastructure projects. And now, the gas prices are increased to unbearable levels. This is a development model for whom?” he asks. Apparently, Kejriwal has an answer to the question.



 
Higher allocation to city gas entities to hurt some majors 2/17/2014 12:00:00 AM
 
  • The decision by the ministry of petroleum and natural gas to increase allocation to city gas distribution (CGD) networks might hurt industrial customers such as Reliance, Essar, GAIL and Welspun, among other companies which have allocation in the non-priority sector, said an official source. The move had led to a cut in compressed natural gas (CNG) prices by Rs 15 a kg. The government had decided to raise allocation from domestic fields to city gas entities early this month, from 5.7 million standard cubic metres a day (mscmd) to 6.4 mscmd. Then, it decided another 1.9 mscmd would be added to this, taking the allocation to CGD networks to 8.3 mscmd. "This extra allocation would be cut from non-priority sectors like steel, refinery and petrochemicals," said a senior petroleum ministry official.

  • According to the ministry, an average of 0.2 mscmd would be required for cities across the country. Following the decision, Indraprastha Gas Ltd (IGL) cut its CNG prices by Rs 14.90 a kg to consumers in Delhi and Rs 16.55 a kg in Noida, Greater Noida and Ghaziabad. The consumer price of CNG is Rs 35.20 a kg in Delhi and Rs 40.15 a kg in the latter places. However, the drop would be a short-term relief. With the price of domestic natural gas set to double from the current $4.2 a million British thermal units to $8-8.4 an mBtu, the price of CNG might increase by Rs 5-8 an mBtu, say ministry sources. "These companies will have to depend on imported LNG (liquefied natural gas) now, which would cost them around $19 an mBtu. This will have a marginally negative impact on these companies," said Dhaval Joshi, research analyst, Emkay Global Financial Services.



 
Price of CNG and PNG: Wide variation across cities 2/13/2014 12:00:00 AM
 
  • There is a huge variation in price of CNG and PNG across cities. This is understandable given the variation in taxes and allocation of domestic gas for City Gas Distribution network.

  • As on December, 2013, CNG is priced highest in the city of Moradabad in Uttar Pradesh at Rs 69.88 per KG (Siti Energy Limited), followed by Mathura at Rs 69.80 per KG (Saumya DSM), Ujjain and Gwalior, at Rs 69 per KG (Aavantika Gas Limited) and Kanpur, Bareilly and Indore where CNG is currently sold at a price of Rs 68 per KG.

  • Within the NCR, CNG is dearest in Noida, Greater Noida and Ghaziabad (Rs 56.7 per KG), followed by Delhi (Rs 50.1 per KG), Faridabad (Rs 40.95 per KG) and Gurgaon (Rs 40 per KG).

  • Similarly, PNG is priced at Rs 41.04 per SCM in Moradabad, Rs 32.20 per SCM at Sabarkantha, Gandhinagar and Mehsana and at Rs 31.6 per SCM in Meerut.

  • For further details, please mail your query to support@infraline.com



 
Latest CGD data (as on December, 2013) 2/13/2014 12:00:00 AM
 

Provided here is data on City Gas Distribution (CGD) sector as on December, 2013. Following areas have been outlined:

  • Tax component in CNG and PNG price

  • Comparison of domestic PNG price with that of 14.2 KG domestic LPG cylinder in Delhi

  • Geographical areas covered by various entities and their authorisation status as granted by PNGRB

  • CNG stations in the country (state and entity-wise)

  • JVs formed by GAIL in CGD sector along with respective stake of partners

  • Areas yet to be covered by IGL in Delhi and NCR

For further details, please mail your query to support@infraline.com



 
LIC raises stake in Indraprastha Gas to 7.2pc - Prior to this, the nation's largest life insurer held 7.13 million shares of IGL 2/10/2014 12:00:00 AM
 
  • Life Insurance Corporation of India (LIC), the country's largest money manager, has raised its stake in Indraprastha Gas Ltd by over 2% to become the third largest shareholder in the company. LIC last week acquired 2.95 million equity shares of IGL - the firm that sells CNG in national capital, from the open market to increase its shareholding in the company from 5.097% to 7.204%, according to disclosures made by IGL to the stock exchanges.

  • Prior to this, the nation's largest life insurer held 7.13 million shares of IGL. GAIL India Ltd, the nation's largest gas distributor, and state refiner Bharat Petroleum Corp Ltd (BPCL) hold 22.5% stake each in IGL while the Delhi Government has 5% equity. LIC's acquisition of 2.107% additional shares has made it the third largest shareholder in IGL. Prior to this, Allard Partners Ltd with 5.93% shares was the third largest shareholder. HDFC Standard Life Insurance Co Ltd hold 4.78% stake in the firm.

  • IGL retails compressed natural gas or CNG to automobiles and piped cooking gas to households in Delhi and its adjoining towns - Noida, Greater Noida and Ghaziabad. It has over 8,500 kilometres of gas pipeline network and 296 CNG stations that cater to over 7.5 lakh vehicles and over 4.3 lakh households Delhi and adjoining towns. The company yesterday slashed CNG price by Rs 14.90 per kg and natural gas piped to household kitchens for cooking by Rs 5 per standard cubic meters. CNG in Delhi now costs Rs 35.20 per kg Rs 40.15 in Noida, Greater Noida and Ghaziabad, IGL said in a statement on Friday evening announcing the new rates effective from February 8.

  • Similarly, piped natural gas (PNG) rates were cut from Rs 29.50 per scm for consumption up to 30 scm in two months to Rs 24.50 per scm for consumption of up to 36 scm in two months. The rate cut follows oil ministry's decision to give city gas distribution firms cheaper domestic gas to meet all their needs for CNG and PNG supplies compared to the previous limit of 80% for most states. This was the first reduction in fuel rates in almost six years. CNG rate was cut in March 2008 when prices were cut by 30 paise following a reduction in excise duty. However, the relief may be temporary, as the prices of domestic natural gas - raw material for CNG and PNG - will almost be doubled to USD 8-8.2 from April 1. The rate hike may translate into a CNG price increase of Rs 10.6 per kg and PNG rates of Rs 8 standard cubic meters.



 
Click for More