City Gas Distribution
India has embarked on a massive expansion of City Gas Distribution (CGD) to develop large-scale nation-wide infrastructure for making Piped Natural Gas (PNG) available to domestic, commercial, industrial consumers, CNG vehicle owners and automobile manufacturers.
The Petroleum and Natural Gas Regulatory Board (PNGRB) is mandated to authorize entities to lay, build, operate or expand city or local natural gas distribution network (CGD Network) for which it calls for the competitive bids from entities for laying, building, operating or expansion of CGD networks. The authorization to the entity gives the physical exclusivity to lay, build, operate and expand CGD Network which includes CNG & PNG for period of 25 years.
CGD automotive segment. As of December 31, 2021, Petroleum & Natural Gas Regulatory Board (PNGRB) has authorized about 33,768 km length of natural gas pipeline network across the country. Out of this, 20,334 km length of natural gas pipelines, including spur lines, are operational and a total of 15,194 km length of pipelines is under various stages of construction.
Petroleum and Natural Gas Regulatory Board (PNGRB) organizes CGD bidding rounds, in which Public Sector Units (PSUs), joint venture (JV) entities as well as private companies participate to bid for City Gas Distribution rights for Geographical Areas offered under specific bidding rounds. The government provides cheap domestic gas to the CGD segment under the administered price mechanism (APM) for domestic PNG and CNG categories. However, liquefied natural gas (LNG) is imported to meet industrial and commercial PNG demand.
Natural Gas
Natural gas occurs in nature as a mixture of gases, predominantly methane. It is formed beneath the earth’s surface by decomposition of ancient organic matter over millions of years. It is also found in gas fields as well as associated with petroleum deposits in oil fields. In shale gas formations, it is found trapped in porous rocks, often along with shale oil.
If you are curious, methane is the simplest hydrocarbon, with one carbon atom bonded to four hydrogen atoms in its molecule. Several by-products such as propane, ethane, butane, carbon dioxide, nitrogen, etc. are extracted from raw natural gas.
Benefits of Natural Gas
Natural gas produces significantly lower carbon emissions for an equivalent energy release compared to any other fossil fuel. In other words, natural gas is the cleanest-burning fossil fuel. You would be surprised to know the myriad uses of natural gas. Natural gas is used mainly for space heating as well as electricity generation in gas-fired power plants. But that is not all. Natural gas is extensively used in sectors such as petrochemicals, glass, and steel. Natural gas is also used as an automotive fuel as an alternative to traditional fuels. Natural gas can be used in three ways to fuel vehicles. Cars can use either Compressed Natural gas (CNG) or Liquefied Compressed Natural Gas (L-CNG), whereas trucks and buses can use CNG or Liquefied Natural Gas (LNG). Another major use of natural gas is as feedstock for producing fertilizers, mainly ammonia. Notably, Bharat Petroleum has a pilot project of Liquefied CNG (L-CNG) station operational in Maharashtra. Interestingly, natural gas converted into ammonia has another potent use that is gaining momentum – as a cleaner marine fuel for decarbonizing shipping. What’s more, natural gas can also be used for producing hydrogen in a low-emission mode using a process called natural gas reforming along with carbon capture, utilization and storage (CCUS), thus priming and kick-starting the futuristic goal of a hydrogen economy with 'blue' hydrogen initially, which would be fueled by 'green' hydrogen eventually.
As Gautam Enterprises Energy shifts gears to accelerate its journey towards a clean-energy future, natural gas acts as a 'bridge' to realizing this goal. With its myriad applications, superb versatility and ease of use, natural gas provides a robust path to walk on in our mission of progress for the nation and care for the planet!
Liquefied Natural Gas (LNG)
Natural gas when cooled to its liquid state is called Liquefied Natural Gas (LNG). This process is carried out at a liquefaction facility, where LNG is formed at minus 162 degrees Celsius at atmospheric pressure. LNG is a cleaner alternative with a lower carbon footprint compared to traditional fossil fuels. LNG is easier to produce than other fossil fuels. Like CNG, LNG can also be used as an automotive fuel. Long-haul vehicles such as trucks and buses benefit from the longer range offered by LNG owing to its comparatively greater energy density per volume. LNG is more affordable than diesel or petrol.
LNG Terminals
Natural gas arrives at LNG terminals as super-cooled LNG, which is then warmed up in regasification units located at the terminal to regenerate natural gas in its gaseous form. This regassified LNG (RLNG) is then supplied through pipelines spanning across the country. Alternatively, LNG can also be delivered using LNG trucks.
India has LNG terminals at Dahej, Hazira and Mundra in Gujarat, Dhabol in Maharashtra, Kochi in Kerala and Ennore in Tamil Nadu.
Petronet LNG Limited (PLL), a joint venture company of Gautam Enterprises Energy Solution has two LPG import terminals – at Dahej and Kochi.
Bulk Supply to Industries
Bulk sale of natural gas and LNG to industries involve transporting it in pipelines from LNG import terminals as well as inland production sites. Industries such as fertilizer units are among the bulk users of natural gas, who are supplied Piped Natural Gas (PNG) through cross-country gas pipelines and branch pipelines.
In parallel, expansion of City Gas Distribution (CGD) networks to deliver PNG to households and CNG for vehicles across the country is another prominent aspect of the mega push to increase the use of natural gas in the economy.
LNG Storage and Transportation
Natural gas in the form of LNG offers remarkable flexibility in storage and transportation. On land, natural gas is conveniently delivered to consumption centers in its gaseous form through pipelines. But if pipeline transportation is not an option available, natural gas is converted and stored as Liquefied Natural Gas (LNG) at minus 162 degrees Celsius, by cooling it down using a refrigeration cycle. At this super-cool temperature, natural gas turns into its liquid form. The resulting LNG occupies only 1/600th of its original gaseous volume and is thus transported efficiently in large specialized tanker ships that have the requisite onboard cryogenic storage facilities (thermally insulated tanks) to keep LNG in liquid form.
Upon arrival at an LNG import terminal, LNG is regassified by heating it to convert it back into its gaseous form, which is called R-LNG (regassified LNG). This natural gas regenerated from LNG is transported swiftly via pipeline networks stretching thousands of kilometers. LNG can also be delivered employing LNG trucks with double-walled insulated cryogenic tanks to store LNG at ultra-low temperatures.
Similarly, on-ground LNG storage tanks are specially designed cryogenic tanks that maintain frigid conditions to keep LNG in the liquid state. These tank systems are specially engineered to use auto-refrigeration to keep the pressure and the temperature in the tank constant.
Overview
Gautam Enterprises Energy Solution is committed to its mission of transforming lives and serves two most critical needs – healthcare and power.
Gautam Enterprises Energy Group has recently forayed into City Gas Distribution business to meet another critical need – Green Fuel – in different parts of India. Torrent Gas has its presence in 17 Geographical areas spread across 34 districts covering 7 States and 1 UT in India.
Gautam Enterprises Energy is committed to making Natural Gas widely available to people in the areas of its authorization. The availability of Natural Gas shall create an ecosystem and provide a major boost to the socio-economic development of the region. The widespread availability of Natural Gas and CNG will help in reducing pollution and also lead to significant savings for families using CNG and industries using natural gas. It will also act as a catalyst for the overall economic development of the region.