1. 1 ENERGY EFFICIENCY IMPROVEMENT IN GAS HANDLING & PROCESSING (5 th JUNE 2008) DELHI M M MANDAL GAIL (INDIA) LTD.

2. 2 PRESNTATION OUTLINE ENERGY SCENARIO – AN OVERVIEW ENERGY SCENARIO – AN OVERVIEW BARRIERS TO ENERGY CONSERVATION BARRIERS TO ENERGY CONSERVATION BENEFITS OF CONSERVATION BENEFITS OF CONSERVATION GAIL’s APPROACH TO ENERGY EFFICIENCY GAIL’s APPROACH TO ENERGY EFFICIENCY SUGGESTIONS SUGGESTIONS

3. 3 INDIAN ECONOMY: SNAPSHOTS INDIAN ECONOMY IS:INDIAN ECONOMY IS: -12 TH LARGEST IN THE WORLD WITH A GDP OF US $ 1.25 TRILLION (CHINA-3.25 TRILLION & USA- 13.79 TRILLION) -3 RD LARGEST ECONOMY IN THE WORLD, IN TERMS OF PURCHASING POWER. (SOURCE: CIA WEBSITE) ACHIEVED A GDP GROWTH RATE OF 9.4% IN 2006-07 viz-a-viz CHINA-10.7 %, BRAZIL-3.7% & RUSSIA-6.7%.ACHIEVED A GDP GROWTH RATE OF 9.4% IN 2006-07 viz-a-viz CHINA-10.7 %, BRAZIL-3.7% & RUSSIA-6.7%. TARGET FOR NEXT 20 YEARS – 10 %.TARGET FOR NEXT 20 YEARS – 10 %.

4. 4 ENERGY SCENARIO (INDIA Vs OTHERS) ● 15% OF WORLD’S POPULATION- 3% OF GLOBAL ENERGY USAGE. ● PER CAPITA CONSUMPTION OF ENERGY (TOE/CAPITA): -INDIA: 0.49 -CHINA: 1.32 -BRAZIL: 1.12 -USA: 7.89 -WORLD AVERAGE: 1.77 (Source: Key world Energy Statistic-2007 - IEA) ● FLOURISHING ECONOMY – HIGH ENERGY REQUIREMENT TO SUSTAIN GROWTH.

5. 5 ENERGY SCENARIO: PRIMARY ENERGY CONSUMPTION PATTERN WorldIndia Energy Consumption (MTOE) 10,878423 5 th Largest Energy Consumer Energy Mix (%) Coal28.4%56.2% Oil35.8%28.4% Natural gas 23.7%8.5% Nuclear5.8%0.9% Hydro6.3%6.0% Oil & Gas Imports (MTOE) -2006 3,264119 Growth in Energy (10 yrs) Total Primary Energy 2.3%5.6% Natural Gas 2.7%9.4% Source : BP Statistical Review of World Energy June 2007

6. 6 BARRIERS TO ENERGY CONSERVATION EFFORTS ● NEW PROJECTS GET PRIORITY ● ANNUAL BENEFITS ON ENERGY CONSERVATION LOOKS SMALL AND HENCE USUALLY GET LESS ATTENTION. ● LACK OF FOCUS / ADEQUATE KNOWLEDGE TO IDENTIFY POTENTIAL AREAS FOR ENERGY OPTIMIZATION. ● IN-ADEQUATE R&D INVESTMENTS. ● IN-ADEQUATE INDUSTRY AWARENESS OF NEW TECHNOLOGY.

7. 7 CONSERVATIONIN GAS SECTOR

8. 8 OVERALL DEMAND SUPPLY BALANCE 2007-082008-092009-102010-112011-12 Projected Domestic Supply 80.54119.98189.97197.09202.3 LNG Supply 30.4533.652.57083.12 Total Supply 110.99153.58242.47267.09285.42 Total Demand 179.17196.64225.52262.07279.43 Demand Supply Gap 68.1843.06 (-) 16.95 (-) 5.02 (-) 5.99 Source: Sub-Group of Natural Gas, MoP&NG MMSCMD

9. 9 ENERGY CONSERVATION GAIL’s APPROACH ● IDENTIFICATION OF AREAS OF IMPROVEMENT AND THEIR SOLUTION THROUGH -QUALITY CIRCLE AT SHOP FLOOR -STATISTICAL PROCESS CONTROL(SIX SIGMA) -5S -KAIZAN -RE-ENGINEERING & EVALUATION ● IDENTIFICATION OF ENERGY EFFICIENT TECHNOLOGY / EQUIPMENT. ● TRAINING AND AWARENESS TO ALL EMPLOYEES THROUGH SEMINARS / WORK SHOPS / QUIZES AT PERIODIC INTERVALS. ● PERIODIC ENERGY AUDITS AT ALL WORK CENTERS. ● IMPLEMENTATION OF EMPLOYEES SUGGESTION SCHEMES. ● SYSTEM OF MoU INCLUDING ENERGY PARAMETERS BETWEEN VARIOUS REGIONAL CENTRES & CORPORATE MANAGEMENT.

10. 10 ENERGY CONSERVATION - MEASURES TAKEN ● QUICK HIT PROJECTS - BENCH MARKING OF VARIOUS PROCESS UNITS WITH WORLD BEST. - AWARENESS CAMPAIGN TO SAVE ENERGY THROUGH OPTIMAL UTILIZATION / RUNNING OF STATIC AND ROTATING EQUIPMENTS. - MAINTAINING P.F. IN THE RANGE OF 0.95 TO 1.0 THROUGH INSTALLATION OF ADDITIONAL P.F. IMPROVEMENT EQUIPMENTS RESULTED IN ANNUAL SAVINGS OF RS. 20.6 LACS. - MODIFICATION IN LIGHTING SYSTEM RESULTED IN OVER 8 LACS KW HRS OF ENERGY SAVING WITH COST SAVINGS OF RS 40 LACS. - REDUCTION IN NITROGEN CONSUMPTION IN PROCESSING PLANT RESULTED IN COST SAVINGS OF RS 1.27 CRS PER ANNUM. - SAVINGS IN FUEL GAS CONSUMPTION THROUGH SWITCHING OVER FROM FUEL GAS TO NITROGEN FOR FLARE END PURGING RESULTED IN FUEL SAVINGS OF RS 14.72 CRS PER ANNUM.

11. 11 ● VARIABLE FREQUENCY DRIVE(VFD) SYSTEM IMPLEMENTED FOR SOME PUMPS e.g. JOCKEY PUMPS (LPG-GANDHAR), REACTOR FEED PUMP (LLDPE UNIT). ● REINFORCEMENT OF METTALIC EXPANSION BELLOWS OF HRSG WITH FABRIC EXPANSION BELLOWS FOR ARRESTING LEAKAGES RESULTING IN REDUCTION IN FUEL GAS CONSUMPTION TO THE TUNE OF 4.8 CRS PER ANNUM. ● REPLACEMENT OF THYRISTOR BASED UPS WITH ENERGY EFFICIENT UPS SYSTEM RESULTING IN ANNUAL COST SAVINGS OF RS 28 LACS. ● STATE OF THE ART TECHNOLOGY FOR MONITORING & CONTROL OF P/L OPERATION THROUGH SCADA. ● RR 15 (JAGOTI), BECOMES THE FIRST “GREEN RR” WITH ALL LOADS ON SOLAR POWER IN HVJ ENERGY CONSERVATION MEASURES TAKEN (Contd…)

12. 12 ENERGY EFFICIENCY – MEASURES TAKEN BENEFITS OF SCADA REAL TIME MONITORING AND CONTROL FROM A CENTRAL LOCATION. REAL TIME MONITORING AND CONTROL FROM A CENTRAL LOCATION. ● LEAK DETECTION. ● PREDICTIVE LOOK AHEAD MODEL FOR OPERATION. ● PREDICTIVE MAINT. REQUIREMENTS FOR COMPRS.

13. 13 ENERGY EFFICIENCY –MEASURES PLANNED ● ENERGY SAVING IN HVJ COMPRESSOR STATIONS AT JHABUA & KHERA - MODIFICATION FOR SWAPPING OF APM + PMT RICH GAS &LNG BETWEEN DVPL & HVJ SYSTEM RESULTING IN STOPPING OF COMPRESSORS AT JHABUA & KHERA. ADVANCED PROCESS CONTROL SYSTEM(APC) IS UNDER IMPLEMENTATION FOR UPSTREAM UNITS (GPU/LPG/GCU) AT PATA PETROCHEMICAL PROJECT. EXPECTED REDUCTION IN SP. ENERGY CONSUMPTION TO THE TUNE OF 3%. ADVANCED PROCESS CONTROL SYSTEM(APC) IS UNDER IMPLEMENTATION FOR UPSTREAM UNITS (GPU/LPG/GCU) AT PATA PETROCHEMICAL PROJECT. EXPECTED REDUCTION IN SP. ENERGY CONSUMPTION TO THE TUNE OF 3%. ● ETHYLENE BOIL OFF GAS & SPHERE VAPOURS DIVERSION TO HDPE UNIT - REDUCING RECYCLING IN GCU. EXPECTED BENEFIT OF RS. 10 CRS PER ANNUM ● 32 SVs CONVERTED TO GRID POWER FROM TEG IN JLPL RESULTING IN SAVING OF 232 MT OF LPG IN 2007-08

14. 14 ENERGY EFFICIENCY –MEASURES PLANNED (Contd….) ● SOLAR POWER SYSTEM AT GANDHAR AT AN APPROX. COST OF RS 9.3 LAKHS WHICH WOULD RESULT IN ANNUAL ENERGY SAVING @ 45360 KWH AND ANNUAL COST SAVING OF RS 2.43 LAKHS. INSTALLATION OF VARIABLE SPEED DRIVE IN DVPL COMPRESSOR STATION, VIJAIPUR. EXPECTED SAVINGS OF RS 7.84 LAC / ANNUM. INSTALLATION OF VARIABLE SPEED DRIVE IN DVPL COMPRESSOR STATION, VIJAIPUR. EXPECTED SAVINGS OF RS 7.84 LAC / ANNUM. ● WIND ENERGY PROJECTS IN THE STATE OF MAHARASHTRA, RAJASTHAN & GUJARAT. ● WASTE HEAT RECOVERY PROJECTS (GT’s EXHAUST) FOR STEAM / POWER GENERATION AT VAGHODIA / HAZIRA / JHABUA / KHERA COMPRESSOR STATIONS.

15. 15 ● USE OF REACTOR EFFLUENT HEAT TO PRE-HEAT DE- BUTANISER COLUMN FEED, EXPECTED BENEFIT OF RS. 7.84 LACS PER ANNUM. ● DIVERSION OF 0.5 MMSCMD GAS IN BHARUCH REGION FOR PROCESSING AT GPU-GANDHAR. ● REPLACEMENT OF V-BELT WITH POLY V-BELT IN INST. AIR COMPRESSOR IN LPG-USAR FOR ENERGY SAVING. ENERGY EFFICIENCY –MEASURES PLANNED (Contd….)

16. 16 ENERGY EFFICIENCY IMPROVEMENTS – SOME SUGGESTIONS ● BENCHMARKING OF ENERGY CONSUMPTION -INTERNALLY THROUGH HISTORICAL / TREND ANALYSIS. -EXTERNALLY ACROSS SIMILAR INDUSTRIES. -IDENTIFICATION OF BEST PRACTICES (BASED ON EXTERNAL BENCHMARKING DATA). ● PERIODIC ENERGY MONITORING AND TARGET SETTING. ● MATCHING SYSTEM / EQUIPMENT SIZING OR RATING WITH ACTUAL PROCESS REQUIREMENTS. ● USE OF SP. ENERGY PARAMETERS FOR ASSESSING PERFORMANCE. ● JUDICIOUS LOADING ON ENERGY REQUIREMENTS FOR EVALUATION OF BIDS.

17. 17 ENERGY EFFICIENCY IMPROVEMENTS SOME SUGGESTIONS (Contd…) ● LUCRATIVE DIRECT INCENTIVES TO INDIVIDUAL EMPLOYEES THROUGH SUGGESTION SCHEMES INDUCES MANY FOR OUT OF BOX THINKING. ● SUBSTITUTING EXISTING FOSSILS FUEL WITH MORE EFFICIENT & LESS COST / LESS POLLUTING FUELS. ● CREATION BY STATE BODIES OF AN APPROPRIATE SET OF INCENTIVES THROUGH PRICING & OTHER POLICY MEASURES FOR PROMOTING ENERGY EFFICIENCY & CONSERVATION.

18. 18 THANK YOU

19. 19 GAIL’s ENERGY CONSUMPTION (LIQUID HYDROCARBON) S. NO UNITCAPACITY(MMSCMD) LHC PROD. (000’ MT) FUEL GAS CONSUMPTION (% OF O/P ENERGY) BENCH MARK ACTUAL 2005-062006-072007-082005-062006-072007-08 1 LPG VIJAIPUR 15.0601.59569.41588.51119.249.328.34 2 LPG GANDHAR 5.0285.62297.73299.891110.1810.3210.42 3 LPG USAR 5.045.2147.2050.651124.9325.3421.3 4 LPG VAGHODIA 2.579.6075.0681.38112.502.652.4 5 LPG PATA 12288.85323.0293.45119.358.937.46 6 LPG LAKWA 2.024.8731.0333.191174.6070.9360.81 DUE TO INCONSISTENT SUPPLY OF FEED GAS FROM ONGC, FUEL CONSUMPTION IS HIGH FOR LPG – LAKWA & USAR

20. 20 S. NO PRODUCT PRODUCTION CAPACITY (KTA) SP. ENERGY CONSUMPTION (KWH/MT) GLOBAL INTERNAL TARGET ACTUAL 2005-062006-072007-08 1ETHYLENE40048505465536553954892 2LLDPE2109801077111711361171 3HDPE100980890967884891 GAIL’s ENERGY CONSUMPTION (PETROCHEMICALS)

21. 21 GAIL’s ENERGY CONSUMPTION (PIPELINES) S. NO PIPELINE AVG. FLOW RATE ENERGY CONSUMPTION (KJ/MT/KM) INTERNAL TARGET ACTUAL 2005-062006-072007-08 1 JAMNAGAR-LONI LPG P/L 168 MT/HR 34.234.3433.1630.23 2 VIZAG – SECUNDERABAD LPG P/L 100 MT/HR 67.4879.6369.2163.06 A.NATURAL GAS PIPELINES AVG. FLOW RATE (MMSCMD) FUEL GAS CONSUMPTION (% OF GAS DELIVERED IN ENERGY TERMS) 2005 - 06 2006 - 07 2007 - 08 BENCHMARKACTUAL 2005-062006-072007-08 45.4947.8649.372.82.02.052.068 B.LPG PIPELINES