Oil minister tells gas companies to work on waste-to-energy projects

Petroleum minister Dharmendra Pradhan on Friday said both the city gas distribution companies — MNGL and Mahesh Gas — should focus on converting municipal waste into energy. He was in the city to lay the foundation stone for five new CNG stations in the rural areas of Pune district. While the Maharashtra Natural Gas Limited (MNGL) has been present in the city for over a decade, Torrent Gas, through its partner Mahesh Gas, has committed an investment of Rs 6 billion in expanding the piped natural gas network and CNG stations in Pune district. Pradhan said the city doesn’t have a dearth of scientists, thinkers, academicians or firms, which are trying to convert waste products into energy. He urged the two companies to use their might to make these initiatives a success. He said one of the two companies have just started provisioning for services in the district. According to the MNGL, it has been finding it difficult to negotiate officialdom in many places and has a pendency of over 3,000 connections (due for over 90 days).Meanwhile, Torrent Gas said in Phase I of the project, the company aims to connect 100,000 households and set up over 50 CNG stations by March 2021. “Pune can be a pilot as far as usage of environment-friendly fuel is concerned,” he said. Mahesh Gas has been authorized by Petroleum and Natural Gas Regulatory Board to establish and operate city gas distribution network in only those geographical areas of Pune district where MNGL is not present.

India’s oil regulator ropes in ICF for gas demand, infra assessment

Oil and gas regulator PNGRB has hired global consultancy ICF to carry out an assessment of India’s natural gas demand and the infrastructure needed to unleash the country’s massive pent-up requirement, its Chairman Dinesh K Sarraf said. Natural gas — which has far lower emissions compared to alternate liquid fuels such as petrol and diesel used in automobiles and naphtha and coal burned in factories — makes up for just 6.2 per cent of all forms of energy consumed in the country. This compares to a global average of 24 per cent. One reason for the low use of the environment-friendly fuel is inadequate domestic gas production and the lack of infrastructure, particularly pipelines to carry the fuel to end users.”We have engaged ICF to do a comprehensive assessment of demand and infrastructure needed,” Sarraf said, adding the report is expected by mid-2020. India is targeting 15 per cent share of natural gas in the energy basket by 2030. It consumed 166 million standard cubic metres per day of gas during the 2018-19 fiscal year, mostly in western and northern India as east and south were barely connected with the pipeline grid. The consumption does not reflect demand as some demand centres do not have access to gas. A Petroleum and Natural Gas Regulatory Board (PNGRB) demand assessment in 2012-13 had stated that gas demand will grow significantly at a compounded annual growth rate of 6.8 per cent from 242.6 mmscmd in 2012-13 to 746 mmscmd in 2029-30. ICF has been asked to study gas demand in different regions as well as the ideal locations for constructing liquefied natural gas (LNG) import terminals, he said, adding the consulting firm would also look at the pipeline network needed to connect the gas source to users. “We closely studied the Gujarat model where the share of natural gas in the energy basket is the highest in the country at 25-26 per cent. And one remarkable feature we found was that the state administration under its then chief minister Narendra Modi embarked on laying of a massive grid of gas pipeline that crisscrosses the state,” he said. This network aided increased usage of gas as well as made Gujarat home to the maximum number of LNG import terminals. “The report of ICF will help in a great deal of planning,” he said. “Once we have a comprehensive assessment of demand and the routes where the pipelines are to be laid, we can invite bids for the construction of such lines.” The study would also point out the ideal location of the LNG import terminals and user industry can plan projects accordingly. India currently has six LNG import terminals — Dahej, Hazira and Mundra in Gujarat, Dabhol in Maharashtra, Kochi in Kerala and Ennore in Tamil Nadu. While the LNG import capacity could more than double to 66 million tonnes by 2020-21, pipeline distribution infrastructure needs to expand to drive offtake. LNG makes up about half of India’s gas consumption. LNG terminals are planned through the east and west coastlines to drive gas import and consumption. The gas demand is largely led by industrial and city-gas distribution consumers. Sarraf said gas consumption will rise once the city gas distribution networks for sale of CNG to automobiles and piped cooking gas to households expands to 400 districts. And with limited domestic resources, imports are the only option. “It would serve the industry if we are aware of the most appropriate locations for setting up an LNG terminal and the pipelines that need to be built,” he said. Demand growth has faced impediments in the past due to weak domestic supply, poor pipeline infrastructure and a pricing policy that limits corporate investment. India’s demand is one-fifth of China’s.

Pipeline projects pose threat to tiger corridor, sanctuary in Andhra Pradesh

A tiger corridor and a mangrove sanctuary in Andhra Pradesh may soon come under threat if two proposed pipeline projects are approved by the Centre. The proposed Hindustan Petroleum Corporation Limited (HPCL) pipeline project will pass through 7 hectares of land that comes under the tiger corridor in Kadapa, while the Oil and Natural Gas Corporation (ONGC) has sought for diversion of 19 hectares of land for its pipeline that would pass through Coringa Wildlife Sanctuary in Kakinada . HPCL proposed to lay 16-inch diameter pipeline for transport of finished petroleum originating from Vijayawada HPCL terminal to the proposed terminal at Dharmapuri in Tamil Nadu. The Ministry of Environment and and Forests (MOEF) had earlier given nod to HPCL for diversion of 16.57 hectares of forest land in Chittoor, Kadapa and Proddutur division on condition that the state government verifies the status of the proposed area to check if it falls in the tiger corridor. The chief wildlife warden in February 2019, while okaying the proposal, had approved the project on condition that the pipeline is 1 metre below the soil surface and that the use of heavy machinery is minimal. Environmentalist Devidas Manghnani said, “ONGC must try to avoid the tiger corridor and choose an alternate route. More damage will be done during the laying of the pipeline. This corridor is crucial to connect Nallamalai and Seshachalam forests.” ONGC has proposed to lay a 20-inch 31km-long pipeline from the mouth of the Goutami river to ONGC onshore plant at Mallavaram village in Tallaravu mandal of East Godavari district, Andhra Pradesh.

ICF to weigh demand as govt pushes gas use, split GAIL

Global energy market consultant ICF is to assess India’s natural gas demand and the infrastructure needed to tap latent demand as the backdrop of the government pushing to expand the clean-burning fuel’s share in the country’s energy basket and divest GAIL of its pipeline network by splitting the state-run gas transportation utility. The Petroleum and Natural Gas Regulatory Board (PNGRB) has ICF to study gas demand in different regions and the ideal locations for constructing terminals for importing gas in ships. The consultant will also examine the pipeline network needed to connect users with gas sources. The share of natural gas in India’s energy basket stands at 6 per cent against a global average of 24 per cent. The government wants to raise it to 15 per cent over the next decade. Low domestic gas production and inadequate infrastructure, particularly pipelines to wheel fuels to consumers, are blamed for the low share of gas in the country’s energy basket. Somehow, GAIL is taking much of the blame for the lack of regional connectivity. Most of the gas pipeline network in the country owe their existence to the company’s efforts over the years. The rpivate sector has used the situation to consistently demand unbundling of GAIL’s piepline network by splitting the company. An assessment in 2012-13 had projected gas demand growing at a compounded annual rate of nearly 7 per cent from 242.6 (mcmd) million cubic meters per day in 2012-13 to 746 mcmd in 2029-30. India’s gas consumption stood at 166 mcmd in 2018-19. Most of the consumption was recorded in the western and northern regions as the east and south lacked the required pipelines. The consumption does not reflect demand as some demand centres do not have access to gas.