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Present Energy & CGD Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
7795
Pakistan
Russia
India
US
Argentina
Natural Gas consumption & share of house hold NG usage in various countries
(Source: EIA) (figures in BCM) 1 BCM = 2.8 MMSCMD/ year
700
653
600
481
500
400
300
200
178 137
100
20
0.4
66
14.5
31
5.5
42
0.25
44
11
Brazil
Ukraine
Pakistan
Russia
India
US
Argentina
64
42
Number of Towns as per 2001 Census 4378 nos. Projected Population as on 2010 - 34.7 Crores. Number of Household - 6.94 Crores. Unit Demand/Household 0.6 SCMD. Total demand of NG in Household is 42 MMSCMD i.e. 13% of the total demand of 336 MMSCMD.
230
in MMSCMD
About 22 entities are in CGD business. CGD infrastructure available in 42 cities and 20 more are being constructed. Over 12 lakh domestic and 14,400 I & C connections. CNG supply to over 10.27 lakh vehicles. Total Natural Gas Consumption by operating CGDS is over 12.09 MMSCMD. GOI has plans to implement CGDs in approx. 250 cities/ towns in next five years.
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CGD Present Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
Since 2007
Domestic Consumers
385585 345793 293302 254354 221390 195054 168047 103516 50045 30070
809 '0
304
596
697
899
900
102
798
405
001
203
607
708
'0
'0
'0
'9
'9
'9
'9
'9
'0
'0
'0
'0
'0
'0
910
506
Vertical Housing - More connections with relatively less pipelines as compared to other CGDs Nuclear family - Convenience is priority
Mumbai biggest metropolis and high consumption centre. Expertise of GAIL & British Gas. Availability of APM gas. Proximity to gas production centre (Bombay High). Constraints in supply chain of LPG facilitated usage of PNG.
Delay in execution of work owing to delay in grant of permission by Authorities. Many railway lines and highway crossings. Large areas under encroachment and technically not feasible. High reinstatement charges (around 2.5 times from 2005 level). Narrow corridors, crowded with utilities. Edge to edge concrete road.
Contents
CGD Present Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
Safe, convenient, continuous, hassle free and versatile fuel. Value addition to property. Payment after usage. Better family safety viz aviz LPG.
Company City Gas Distribution, Transmission Company, E&P Company, LNG Importer
Government
Contents
CGD Present Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
PNG relatively new concept when compared to LPG Safety & Reliability is the major concern of prospective customers. No subsidy in the Gas price little incentive for a customer to switch over to PNG. High upfront cost of domestic PNG connection. Late entrant amongst utilities - Clear corridor not available. Limitation to reach every household of the city PNG connection only for permanent structure. Non transferability connections. (shifting) of Domestic PNG
Development of Domestic PNG Challenges to meet customer aspirations Delivery commitments. Technology for enhanced customer base. Value added services. Latest communication technologies for customer delight. Higher vigilance/ Awareness to curtail fraudulent activities. Customization of processes.
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CGD Present Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
CGD has a low priority as per gas utilization policy but entity to secure gas supply with top priority for Domestic PNG.
Need to encourage investment in domestic PNG by providing right mix of potential of domestic, industrial-commercial and transport segment. Need differential pricing for domestic PNG segment. Creation of exclusive corridors for gas pipeline. Grant of essential utility services status to Domestic Piped Natural Gas. Single window system should be promoted by the Government for all the Statutory clearances to the entity.
CGD network planning needs to be undertaken early on as part of the city development plan. Natural Gas applications (CCHP solutions, gas geysers, gas air conditioners) need to be promoted since inception stage. Adoption of optimum gas sourcing strategy. Effective Marketing Communication for generating interest amongst the customers. Reticulated system should be promoted to enhance the productivity in Domestic PNG connections. Adopting latest technology ERP Solution IVR solution Emergency handling system Network Monitoring system.
Contents
CGD Present Scenario Overview of MGL Opportunities Domestic PNG Challenges Need for Policy and Regulatory Measures Conclusion
Conclusion
Despite all the challenges, Domestic PNG segment of City Gas Distribution remains a lucrative business prospect, as it provides Sustainability and Brand to CGD Companies. Domestic PNG segment acts as a cushion in securing supplies of Natural Gas. Domestic PNG may not bring high profits margins but is a very critical segment due to its huge socio- political impacts.