Gas is emerging as an important policy element in achieving equitable, balanced and sustainable economic growth through widening its user base beyond industries. Specifically, city gas projects offer a way to improve its availability through large-scale distribution of piped natural gas (PNG) to households and compressed natural gas (CNG) to the transport sector. PNG for city gas distribution provides an avenue to spread the gains of a new and liberalised economic policy to the common man. CNG is equally important to further this objective since it is linked to improving our health and quality of life through providing a clean environment.
On an energy-equivalent basis, natural gas costs considerably lesser than LPG, gasoline and diesel. Natural gas reduces vehicle maintenance costs as well. An added advantage is that unlike liquid fuels, gas cannot be adulterated or siphoned off from a vehicle. However, certain fiscal support or incentives may be required to induce switchovers and conversions.
Exhaust emissions from CNG vehicles are much lower than from petrol/diesel vehicles. For instance, CNG emissions of carbon monoxide are approximately 70% lower, non-methane organic gas emissions 89% lower, and oxides of nitrogen emissions 87% lower. In addition, CNG also emits significantly lower amounts of greenhouse gases and toxins. Vehicles that run on CNG are as safer as vehicles that run on fossil fuels. Being lighter than air, CNG, unlike gasoline, dissipates into the atmosphere in the event of an accident. CNG fuel systems are ‘sealed’, preventing any spills or evaporative losses. Also, natural gas is not toxic or corrosive and will not contaminate ground water.
The emerging change in city gas/CNG consumption pattern in India is evident through its growth from 1% of total gas usage in 2000 to 4-5% currently. In fact, the consumption in India’s domestic sector is substantially low compared to that in developed economies like the US and the UK. This only demonstrates the potential for huge expansion and growth in this area.
The expected higher availability of gas and aggressive growth plans of various players are likely to boost the supply, and consequently, demand. It is projected that CGD projects would account for nearly 20 mmscmd of gas in the long run against the current consumption of 5-6 mmscmd. Apart from households and the transport sector, demand from industries is also is expected to grow at a fast pace.
Public health and safety are of paramount importance, especially when the economically under-privileged sections lack measures to enhance their safety.
Here lies the importance of instituting universal standards and codes for designing CNG stations, equipment,network laying activities, etc. It is the need of the hour to devise such mandatory standards and a code of practice in this regard.
GAIL has been encouraging local entrepreneurs by providing technical guidance and sharing with them the market opportunities for developing/manufacturing indigenous CNG kits, storage cascades, compressors, NG-vehicles and related support services. This needs to be institutionalised for the continued growth of this sector.
The importance of effective regulation cannot be overemphasised. The gas industry in India is still at a nascent stage and the regulator has a pivotal role to play in ensuring good customer service and stimulating investment by ensuring a level-playing field for all players. The government needs to be complimented for timely enactment of the PNGRB Act, 2006, due to which the Petroleum & Natural Gas Regulatory Board is a reality now. The regulator will oversee the construction of new distribution networks and proposed additions to the network. The regulator can also ensure that the standards and code of practice are followed to take care of human safety and larger consumer interests.
Till date, city gas projects have been conceptualised in the country in a manner that it has remained confined to the municipal limits of a city. This has virtually ruled out the usage of CNG for a large number of vehicles plying on national highways because of the lack of distribution network and limited availability of the commodity. To overcome this limitation and to reduce pollution levels, mandatory use of CNG through the creation of a network along key highway corridors would be highly beneficial. Over time, such a network would also spread into cities and towns, and promote industries along such corridors.
As this new decade is going to be the decade of city gas distribution in India, the government, industry and transporters have to work in tandem to achieve the objective of effective and optimal utilisation of the commodity. ...
Source: Financial Express
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nicely done
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