Welcome to the Presentation on CNG : Indian Experience & Emerging Scenario

1. Welcome to the Presentationon CNG : Indian Experience & Emerging Scenario

2. Presented By Mr. A.K. Purwaha MD- Mahanagar Gas Ltd., Mumbai

3. Contents • Overview of MGL’s growth • Evolution of MGL • Physical and Financial growth • Milestones Achieved • Details of CNG Program • Need for CNG Program in India • Judicial Intervention • Nation-wide Developments • Current Infrastructure in Delhi / Mumbai • Benefits to the Environment/ End users • Drivers of CNG Program • Difficulties in Implementation • Future Scenario

4. Contents • Overview of MGL’s growth • Evolution of MGL • Physical and Financial growth • Milestones Achieved • Details of CNG Program • Need for CNG Program in India • Judicial Intervention • Nation-wide Developments • Current Infrastructure in Delhi/Mumbai • Benefits to the Environment/ End users • Drivers of CNG Program • Difficulties in Implementation • Future Scenario

5. Evolution of MGL • The Ministry of Petroleum & Natural Gas (MoPNG) conducted a study in late 1980’s on the imputed economic value of natural gas and found that City Gas Distribution provides one of the best values for utilization of natural gas. • Based on the study, 1.5 MMSCMD of Natural gas was allocated for City Gas Distribution Project in Greater Mumbai for the following segments Sector Nos. • Domestic 6,26,000 • CNG Vehicles 20,000 • Small commercial 4,500 • Small Industries 146 • GAIL formed JVC (MGL) with BG and Govt. of Maharashtra in May’95 to implement the project

6. Customer Segments for a typical Gas Distribution Company : • Domestic Customers • Commercial Customers • Industrial Customers • CNG Customers

7. Typical Piped Natural Gas Distribution Network

8. MGL Growth Profile SALES VOLUME(MMSCM) Steel and PE Grid for the period 1995-96 till date (Kilometers) PE Grid Substantial progress made. Extensive network of steel and PE pipelines laid out... 1400 Kms Kms Steel Grid 125 Kms

9. MGL Growth Profile Cumulative-66,546 Taxi-44,500 CNG GROWTH Auto- 22,000 Buses-46 DOMESTIC GROWTH

10. Milestones Achieved • MGL formed as a Joint Venture between GAIL, BG and GoM – May’95 • First 100 houses connected in Postal Colony, Chembur -Oct’95 • First Commercial Connection – Oct’96 • First Industrial Connection – Jan’98 • 100,000 domestic connections crossed – Mar ‘02. • Accredited with ISO 9002 certification – Apr ‘02. • 200,000 domestic registrations achieved – Nov ‘02 • 46 CNG stations (cum.) opened– Feb ’03 • 1,65,000 domestic connections achieved- Feb ‘03.

11. Contents • Overview of MGL’s growth • Evolution of MGL • Physical and Financial growth • Milestones Achieved • Details of CNG Program • Need for CNG Program in India • Judicial Intervention • Nation-wide developments • Current Infrastructure in Delhi/Mumbai • Benefits to the Environment/ End users • Drivers of CNG Program • Difficulties in implementation • Future Scenario

12. Need for CNG Program in India • Rising urban pollution • Rising global concern for environment • Increasing vehicular pollution from conventional fuels • Rising public awareness & expectations • Exponential rise in pollution related diseases • Economics • Fuel security

13. Cost of Pollution • According to an estimate by the World Bank study, using 1992 data, the annual health cost to India was up to about 1.15 Bn. USD, due to ambient air pollution. Out of this, the health cost of air pollution in Delhi alone was found to be about 0.21 Bn. USD. Source : Order of Hon’ble Supreme Court of India Dtd. 5th April 2002

14. Major Contributor to Pollution in Metros SOURCE - CPCB, DELHI

15. Sector-wise Pollutants SOURCE - CPCB, DELHI

16. Judicial Intervention • Hon’ble Supreme Court on 28th July 1998 directed 80 CNG stations to be set up in Delhi • All public transport vehiclesin Delhi were directed to be on single fuel mode of CNG • In Mumbai, there is a recent High Court order for conversion of taxis , auto rikshaws and transport vehicles of prescribed age-limit to CNG/LPG • Hon’ble Supreme Court has identified nine other polluted cities in India for CNG projects where the air quality is critical . These cities are : Agra , Lucknow, Kanpur, Varanasi, Jharia, Patna, Faridabad, Jodhpur, and Pune .

17. Nationwide Developments • Pilot project initiated in 1992 by GAIL in 3 cities of Delhi, Mumbai & Baroda • Currently, GAIL is involved in Two CNG distribution projects through Joint Ventures : • Mahanagar Gas Limited (MGL) in Mumbai, and • Indraprastha Gas Limited (IGL) in Delhi. • CNG infrastructure has also been developed by Gujarat Gas Co. in cities of Surat & Ankleshwar. • 160 CNG stations and about 1,50,000 CNG vehicles in the country today

18. Nationwide Developments : GAIL’s Expertise • During last 10 years, GAIL has acquired good expertise in all aspects of CNG Distribution, viz. design, installation & commissioning of equipments, operation & maintenance of infrastructure etc. • This experience has been gained within GAIL and also through 2 JV Companies, i.e. MGL and IGL • GAIL is currently involved in providing Consultancy to Petrobangla for CNG Distribution projects in Bangladesh • GAIL is also looking forward to leverage this experience for Distribution projects including CNG in West Asia & elsewhere.

19. Typical CNG station layout

20. Testing / approving authorities for CNG kits and cylinders • For CNG conversion kits. • Automotive Research Association of India, Pune. • Vehicle Research Development and Establishment, Ahmednagar • Indian Institute of Petroleum, Dehradun. • For CNG cylinders. • Chief Controller of Explosives, Nagpur. • BIS, New Delhi.

21. Approved CNG Kits and cylinders used in Mumbai • For 4 wheelers : • Transenergy, India. • Tartarini, Italy • Landi Renzo, Italy • Lovato, Italy • MTM s.r.l, Italy, • Bedini, Italy. • For 3 wheelers : • Vanaz, India • Sagas, India • MTM s.r.l, Italy. • Bedini, Italy Cont…

22. Approved CNG Kits and cylinders used in India. (Contd…) • Cylinders : • Everest Kanto, India. • Maruti Koatsu, India. • BPCL, India. • Faber, Italy • Worthington, USA. • Argentoil, Argentina.

23. Current CNG Infrastructure in Delhi • 106 CNG stations set up in Delhi by IGL till date with an installed compression capacity of 11,77,000 kg/day • 78,500 vehicles converted to CNG in Delhi including 8600 buses as on date • Definite improvement in air quality of Delhi due to the CNG program • Greater public awareness and satisfaction

24. Current CNG Infrastructure in Delhi • CNG Stations : 106 as on date • Mother cum online Stations : 29 • Daughter Stations : 12 • DTC Stations : 17 • Daughter booster Stations : 29 • Online Stations : 19

25. Growth of CNG Stations in Delhi

26. Growth Of CNG Vehicles In Delhi

27. Current CNG Infrastructure in Mumbai • CNG Stations : 46 as on date • Mother cum online Stations : 03 • Online Stations : 29 • Daughter booster stations : 14

28. CNG – Present Status in Mumbai • No. of CNG vehicles : 66,546 ( 44,500 taxies, 22,000 Autos & 46 BEST buses) • No. of CNG outlets : 46 (20 in city and 26 in suburbs ) • Installed Compression Capacity : 3,92,000 Kgs / day • (based on 20 hrs operation) • Average daily sale : 2,50,000 Kgs • No. of dispensing points : 188 • Average running of compressors : 18 to 20 Hrs • Waiting time during • Peak hrs : 30 to 45 mins. • Turn out of vehicles : More than 100%

29. CNG infrastructure growth

30. Vehicle population in Mumbai • Source : Transport commissioner’s office

31. Affected vehicles as per Hon’ble High Court Orders *About 10000 autos have been either phased out or registration cancelled. It is assumed that about 6000 autos out of the 10000 autos will go in for OE fitted CNG auto or buy new petrol auto with CNG retrofittment. ** Revised dead line *** Depends upon availability of CNG kits and conversion capabilities.

32. CNG plans up to March 2004 Cumulative figures

33. Benefits of CNG to the Environment/ End users : • Cleaner Environment due to improvement in Ambient Air Quality • Reduced Health Cost • Better Utilisation of Natural Gas Resources • Alternative Choice for the customers • Economical Fuel for the customers

34. Fuel Vs Emissions (gm/100km) SOURCE: US ENERGY DEPARTMENT

35. Improved Air Quality in Delhi Source : Central Pollution Control Board

36. Improved Air Quality in Mumbai Source : NEERI, Mumbai

37. Improved Air Quality in Mumbai Source : NEERI, Mumbai

38. Improved Air Quality in Mumbai Source : NEERI, Mumbai

39. Conversion Economics for CNG Vehicles in Mumbai

40. Drivers of CNG Program • Strong support of Environmentalists, Judiciary, NGO’s and Government • Economics of CNG as a fuel vis-a-vis other conventional fuels • Readily available Natural Gas pipeline • Strong public awareness

41. Contents • Overview of MGL’s growth • Evolution of MGL • Physical and Financial growth • Milestones Achieved • Details of CNG Program • Need for CNG Program in India • Judicial Intervention • Nation-wide developments • Current Infrastructure in Delhi/Mumbai • Benefits to the Environment/ End users • Drivers of CNG Program • Difficulties in implementation • Future Scenario

42. Difficulties in implementation of Mumbai CNG Distribution Project • Capital intensive • Long gestation period • Constraints in building a network in the crowded metropolis of Mumbai : • Limited corridor for utilities • Concretized Roads • Multiple clearances required • Crowded and congested city • Only 6-7 months available for laying pipelines in a year

43. Contents • Overview of MGL’s growth • Evolution of MGL • Physical and Financial growth • Milestones Achieved • Details of CNG Program • Need for CNG Program in India • Judicial Intervention • Nation-wide developments • Current Infrastructure in Delhi/Mumbai • Benefits to the Environment/ End users • Drivers of CNG Program • Difficulties in implementation • Future Scenario

44. NATIONAL GREEN QUADRILATERAL “CLEAN ENERGY CORRIDOR” DELHI JAISALMER JAIPUR LAKWA JAGDISHPUR AURAIYA BOKARO VIJAIPUR VIJAIPUR RANCHI J’PUR TRIPURA KOLKATTA VAGHODIA ROURKELA HALDIA DAHEJ DAHEJ BHUBANESHWAR MUMBAI GOPALPUR LNG TERMINALS HYDERABAD HBJ Expansion VIZAG MAJOR CENTERS ON PROPOSED GREEN QUADRILATERAL DABHOL KAKINADA VIJAYAWADA FUTURE P/L FROM BANGLADESH GREEN QUADRILATERAL BANGALORE CHENNAI MANGALORE ENNORE COIMBATORE KOCHIN Source : GAIL (I) Ltd.

45. Future Scenario • A nation-wide Gas Pipeline Grid being laid to bring more cities on Natural Gas Map • Heavy capital investment expected in the coming years • CNG distribution infrastructure to be provided in other cities : • Nine non-Metro cities as per the Supreme Court Order, • Adjoining areas of Metro cities ,viz. Thane and Vashi near Mumbai; Faridabad, Gurgaon and NOIDA near Delhi • Other Metro/ Mega cities in a phased manner • These plans will lead to a clean, green and healthy environment in Urban India

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