1. THE CONTRIBUTION OF NATURAL GAS TOWARDS CLEANER AIR IN INDIA GAIL (INDIA) LIMITED

2. POLLUTION FROM FOSSIL FUELS It is well known that fossil fuels cause air pollution by contributing harmful substances such as Oxides of carbon and Nitrogen, Sulphur compounds, methane and HCs, SPMs etc. Amongst the fossil fuels Natural Gas is considered the least polluting.

3. NATURAL GAS Vs COAL For a 100 MW power plant, percent reduction in pollutants by use of Natural Gas In place of Coal is given below: Sulphur Dioxide: 100% Nitrogen Oxides: 81% Carbon Dioxide: 42% SPM: 95% This is over and above elimination of tens and thousands tonnes of ash and slurry.

4. CNG IS THE LEAST POLLUTING Source: US energy department ENVIRONMENT FUEL/ EMISSIONSCO2UHCCONOxSOxPM PETROL22,00085634788.31.1 DIESEL21,000211061082112.5 LPG18,20018168370.380.29 CNG16,2755.622.225.80.150.29 (gm/100km)

5. LONG-TERM (CHRONIC) EFFECTS Increased susceptibility to bacterial or viral respiratory infections Asthma Persistent cough Lung cancer Lack of coordination Blood disorders EFFECTS OF AIR POLLUTION

6. SHORT-TERM EFFECTS Irritation of eyes, nose and throat Dizziness (lightheadedness) Nausea (feeling sick to stomach) Wheezing Headache Weakness & numbness Chest tightness EFFECTS OF AIR POLLUTION

7. APPLICATIONS OF NATURAL GAS Due to its limited availability in India, priority has been given for use of NG in Power and Fertilizer plants. Entirely due to environment concerns NG use in sensitive areas such as for industries in Agra and Firozabad and transport sector in Delhi and Mumbai was enforced by SC.

8. NATURAL GAS USE IN INDIA Natural Gas availability in 2002-03 was 30 BCM. Internal Consumption and LPG production account for 5 BCM. 11,700 MW power generation capacity is gas based (Total-110,000 MW). 10 MMTPA fertilizer production capacity is gas based (Total-15MMTPA). These 2 sectors account for 75% of NG sold.

9. NATURAL GAS USE IN INDIA Other uses of Natural Gas are: Petrochemical production (1 MMTPA) Steel production Glass and Ceramic industry Tea gardens CNG and PNG About 2.4 MMTPA LPG is produced from NG - about 30% of total LPG production in India.

10. NATURAL GAS IN AGRA The Hon’ble Supreme Court directed that Natural Gas must be supplied on a priority to the industries In Agra and Firozabad areas to protect the world famous historical monument – the Taj Mahal. Accordingly GAIL took up steps to arrange gas supply to the industrial consumers of what is commonly known as the Taj Trapezium.

11. SUPPLY OF GAS IN TAJ TRAPEZIUM ZONE

12. GAS SUPPLY IN TAJ TRAPEZIUM ZONE GAIL established gas supply network in the cities of Agra & Firozabad in the year 1997. Natural Gas to replace fuels like coke, coal, diesel etc. 0.9 MMSCMD gas is supplied in TTZ thereby replacing over 3000 Tonnes of the polluting fuel i.e. Coke and coal. Considering the sulphur content of 2 - 3% in coal used, 75 Tonnes of sulphur is prevented from being released in the environment every day.

13. GAS SUPPLY IN TAJ TRAPEZIUM ZONE No. of Consumers: No. of consumers in Agra – 110 No. of consumers in Firozabad – 133 Total no. of registered consumers– 297 R-LNG is being introduced for all industrial and commercial establishments in TTZ- Demand registered by 538 units for R-LNG.

14. CNG SUPPLY IN TAJ TRAPEZIUM ZONE ‘Project Blue Sky’ launched for establishment of CNG & city gas distribution network in five cities that includes Agra (IOC as JV partner). Detailed engineering completed. In phase – I, 7 CNG stations shall be established at an estimated cost of 49.28 Crores. In phase-II, another 5 stations shall be established at an estimated cost of 52.63 Crores.

15. CNG TO IMPROVE AIR QUALITY IN URBAN INDIA Supreme Court directive led to implementation of CNG program in Delhi, which faced high pollution levels, almost 70% from automobiles. Delhi today boasts of the world’s largest CNG bus fleet > 15,000 taking mini and RTVs together; Delhi breathes cleaner air today. Mumbai has also implemented a major drive to convert taxis and auto rickshaws to use of CNG.

16. WHY CNG? Benefits of CNG use are multifold. Environment friendly and hence better health Economical Safer

17. CNG IMPROVED AIR QUALITY IN DELHI SOURCE: CPCB SO2 NO2SPMMOTOR VEHICLES Standard Emission Level SO2 : 80 µg/m3 NO2 : 80 µg/m3 SPM : 200 µg/m3 46 33 6.4 76.1 543 396.2 1.81 4.39

18. COST COMPARISON WITH ALTERNATIVE FUELS In USD per km CNG : 0.37 USD/Kg PETROL :0.82 USD/Lt. DIESEL : 0.54 USD/Lt. 1 USD=45.03 INR ECONOMICS DELHI PRICES

19. SAFETY ASPECTS OF CNG Lighter than air in event of leak it will rise and disperse in atmosphere. Unlikely to ignite due to narrow combustible range (5% - 15% concentration in air). High ignition temperature (540 0 C). CNG Cylinders structurally most sound and have passed every severe test. A survey on a size of 8,000 vehicles. conducted in USA, reported 34% less injury rates per Vehicular mile traveled. SAFETY

20. IGLMGL YEAR1998SEPT ’041998SEPT ’04 NO. OF STATIONS09124788 COMPRESSION CAPACITY (LAKH KG/DAY) 0.2016.040.569.22 NO. OF VEHICLES140695,00065581,30,000 AVE. CNG SALES (LAKH KG/DAY) 0.058.500.355.10 CNG PROGRESS IN DELHI & MUMBAI

21. CNG INFRASTRUCTURE IN DIFFERENT INDIAN CITIES CITYSTATIONVEHICLE DELHI 12495,000 MUMBAI 88 1,30,000 VADODARA 02 450 SURAT 03 600 ANKALESHWAR 01 100 TOTAL (IN INDIA) 218 2,26,150 Delhi has the Largest CNG Bus Fleet in the World AS OF NOW

22. CITY GAS DISTRIBUTION IN INDIA CITYCOMPANYNO. OF CONSUMERS DOMESTICCOMML’. DELHIIGL15,400108 MUMBAIMGL1,68,000450 VADODARAVMC67,0002,700 SURAT, BHARUCH & ANKLESHWAR GGCL1,45,0001800 ASSAM (8 CITIES) AGCL12,000300 AGARTALATNGCL3,55048 TOTAL4,10,9505,406 (UP TO JUNE 2004)

23. FUTURE PROSPECTS OF NATURAL GAS INDUSTRY

24. PROJECTIONS ON GAS AVAILABILITY There are differing opinions on how the NG scenario is going to emerge. Expected new sources are: Indigenous: KG Basin, Western Offshore LNG : Dahej, Hazira, Mangalore, Kochi Ennore, Dabhol Pipeline : Myanmar, Bangladesh, Iran It is projected that demand potential will go up to 166 MMSCMD by ‘07, 216 by ‘12 and 322 by ‘25. Availability may go up to 104 (64), 238 and 264 MMSCMD for the corresponding periods.

25. NATURAL GAS USE – FOCUS AREAS Gas based power generation will be the primary application driving future developments. NTPC, MSEB, KPC, REL, TPC, TPGL and many other IPPs have drawn up detailed plans to create gas based generating capacity. Fertilizer industry will be the other main application with demand for gas going up to 43 MMSCMD from current 23 MMSCMD. CNG and PNG in urban areas will be another major focus area due to rising pollution in cities.

26. NATURAL GAS INDUSTRY GROWTH Strong growth in Industry with increase in gas availability. There will be more suppliers, sellers and service providers – many more players.

27. NATURAL GAS INDUSTRY GROWTH LNG terminal at Dahej is being augmented. Hazira terminal is about to start. Dabhol revival is on the cards. New terminals at Kochi, Mangalore and Ennore are at advanced stages of planning and approvals. Cross border pipeline projects from Iran and Bangladesh may have some uncertainties but Myanmar offshore gas is more likely to find India as destination.

28. NATURAL GAS INDUSTRY GROWTH The major need is creation of a pipeline infrastructure to reach gas from the various sources to the markets. GAIL has proposed a National Gas Grid to achieve this objective. Regional networks have to be developed. GSPL has already made significant progress on this. It is expected that infrastructure creation will progress as new sources become ready to supply.

29. NATURAL GAS INDUSTRY REGULATION The Government of India intends to table the Petroleum Regulatory Board Bill in Parliament soon. Apart from other roles, the Board will regulate gas sector. Gas pricing, transmission tariff and protection of consumer rights by ensuring fair business Practices will be some functions of the Board. Gas pipeline policy is also under formulation for award of ROU for laying new pipelines.

30. THANK YOU

31. SELLING PRICE TO TRANSPORT SECTOR PRODUCT PRICE (INR) PRICE (USD) GASOLINE36.81 / LTR.0.82 / LTR. GAS OIL / DIESEL 24.16 / LTR.0.54 / LTR. LPG20.04 / LTR.0.45 / LTR. CNG16.88 / KG.0.37 / KG. Retail price in Delhi as on 20 Nov. 2004 1 USD = 45.03 INR ECONOMICS

32. MILEAGE COMPARISON FUELCARTHREE WHEELER BUS GASOLINE15 KM/ LTR35 KM/LTR- DIESEL--3.5 KM/ LTR LPG14 KM/LTR-- CNG20 KM/ KG47 KM/ KG4.1 KM/ KG ECONOMICS

33. BEGINNING OF CNG IN INDIA GAIL launched pilot project in 1992-93 in Delhi, Mumbai and Vadodara. Started conversion of vehicles. Identify and resolve technical, institutional, regulatory and economic issues. Did a pilot project for conversion of state owned diesel buses. GAIL formed Mahanagar Gas Ltd. With BG and Indraprastha Gas Ltd. With BPCL in Mumbai and Delhi respectively.

34. ISSUES IDENTIFIED AND RESOLVED Regulatory body for approvals Design and standards Infrastructure development Market development Development of equipment suppliers Development of workshops Initial kit supply and conversion Training to entrepreneurs, regulatory bodies etc. Type approvals for kits & converted vehicles for commercial use

35. CONTD…. FUTURE PLANS AGRA MATHURA BAREILLY ALLAHABAD LUCKNOW KANPUR JHANSI VARANASI NOIDA GWALIOR INDORE UJJAIN NAVI MUMBAI PUNE SHOLAPUR

36. FUTURE PLANS HYDERABAD RAJAMUNDRY VIJAYAWADA AHMEDABAD RAJKOT SURINDERNAGAR FARIDABAD GURGAON KOTA JAIPUR BANGALORE CHENNAI KOLKATA