BPCL customers and service providers

City Gas Distribution Network

PNGRB has plans to roll out bidding rounds for setting up CityGas Distribution (CGD) networks in cities and districts across the country to cover areas which could receive supply by the pipeline network currently under development.

Bharat Petroleum has been pursing CGD networks on partnership with other entities in order to share the investments and the risks. Our partnership with ONGC and OIL is expected to help in getting domestic gas for the CGD networks, subject to government policy. With PNGRB announcing network development in districts instead of only cities, the Capexhas considerably increased without commensurate increase in demand. JVC route helps mitigate the risks attendant to such high investments.

With more clarity in policy and availability of indigenous gas for domestic PNG and CNG segments, it is also planned that few of the city gas distribution systems and networks would be developed by Bharat Petroleum on its own, subject to attractiveness and robustness of returns. Bharat Petroleum has further set up four JVCs - Indraprastha Gas Limited (IGL) in Delhi NCR, Central UP Gas Limited in Kanpur Uttar Pradesh, Maharashtra Natural Gas Limited in Pune Maharashtra and Sabarmati Gas Ltd (SGL) in Gandhinagar Gujarat.

Ministry of Petroleum & Natural Gas established the Petroleum and Natural Gas Regulatory Board (PNGRB) with effect from 01.10.2007, under the Petroleum and Natural Gas
Regulatory Board Act 2006, to regulate the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum prokducts and natural gas excluding production of crude oil and natural gas. The Petroleum & Natural Gas Regulatory Board Act, 2006 provides legal framework for the development of natural gas pipelines and city or local natural gas distribution networks. With the arrival of the PNGRB the implementation of PNG in various cities is being taken up in a phased manner as and when the bids are called for by the Regulator.

Sabarmati Gas Limited (SGL), incorporated on 6th June 2006, a joint venture company of Bharat Petroleum Corporation Limited (BPCL) and Gujarat State Petroleum Corporation (GSPC), has been conceived to retail natural gas by implementing gas distribution networks in Gandhinagar, Mehsana and Sabarkantha districts in Northern Gujarat.

The objective of Sabarmati Gas Limited is to construct, operate and maintain natural gas distribution systemsfor the supply of piped natural gas to various sectors i.e. industrial, domestic, commercial and transportation. Industrial demand comprises demand from small and medium scale industries. The Company operates in fairly large network in all the three districts of Gandhinagar, Mehsana and Sabarkantha of North Gujarat.

Maharashtra Natural Gas Limited (MNGL), was incorporated in January 2006 as a Joint Venture Company with GAIL for implementing supply of CNG to the household, industrial and automobile sectors in Pune and its nearby areas. MNGL has got the PNGRB authorization for city gas distribution in Pune &Pimpri-Chinchwad city including adjoining areas of Hinjewadi, Chakan andTalegaon and subsequently plans to move on to other districts of Maharashtra depending on economic feasibility.

Indraprastha Gas Limited (IGL), a Joint Venture Company with GAIL as the other co-promoter, was set up in December, 1998 for implementing supply of Compressed Natural Gas (CNG)to the household and automobile sectors in Delhi. IGL has commissioned over 325 CNG stations which supply environment friendly fuel to more than 7,50,000 vehicles. IGL has more than 4,70,000 domestic PNG customers and over 1300 commercial customers in Delhi. The company is also extending its business to the town of Greater Noida and Ghaziabad. IGL has acquired 50% of the equity held by financial institutions in Central UP Gas Limited, a Joint Venture Company promoted by BPCL and GAIL.

Central UP Gas Limited (CUGL), is a Joint Venture Company set up in March, 2005 with GAIL as the other partner for implementing the project for supply of CNG to household, industrial and automobile sectors in Kanpur and Bareilly in Uttar Pradesh. Indraprastha Gas Ltd., our joint venture has taken over 50% of the shares held by these financial institutions. CUGL has set up 13 CNG stations and is carrying on PNG operations.

BPCL customers and service providers

City Gas Distribution

A typical city gas distributionproject consists of the following segments which it caters to: domestic household use; commercial use in hotels, hospitals, restaurant and offices; transport sector use in three wheelers, buses, trucks and cars. It is also used by small scale industries for power generation.
Household use of gas has picked up in India especially when multiple use of Natural Gas in households has been effectively demonstrated. From gas being used for cooking, water heating, space heating, air conditioning, refrigeration, power generation and fuelling the vehicle, the concept of a single switch solution in the household sector is picking up momentum.

This concept provides that a household could be self-contained as gas users to meet its all energy needs at one go that means once the gas supply is switched on, all these services can be secured which are all gas based of course selectively or need based.

In the commercial sector, city gas is found to be very useful in applications like cooking, air conditioning, power generation. The concept of Combined Heat & Power (CHP) is getting popular in India wherein the system has much higher thermal efficiency as compared to other conventional services.

The use of Natural gas in the transport sector has contributed significantly in the control pollution due to vehicular exhaust emissions. Apart from this, natural gas as CNG, has been able to replace high priced hydrocarbon commodity like petrol and diesel, further helping the country to reduce oil imports.

Benefits of PNG

  1. Safe and assured supply of gas to domestic, commercial & industrial sectors
  2. Convenient to use
  3. Economically more viable compared to other fuels in same sector
  4. No traffic disruption as supplied through pipelines
  5. Continuous supply
  6. No wastage, no hassle for replacement of cylinder, no need for cylinder booking
BPCL customers and service providers

Benefits of CNG

  1. Environmental Benefits
    1. No impurities, No Sulphur (S), No lead (Pb)
    2. Very low levels of polluting gaseous emissions without smell and dust
    3. Molecular structure compactness prevents the reactive processes which lead to the formation of Ozone (O3) in the troposphere
  2. Safety Benefits
    1. Lighter than air - in case of leak no dangerous puddles
    2. Unlikely to ignite due to:
      1. High ignition temperature
      2. Narrow range of ignition
    3. Lowest injury and death rate per vehicle mile
    4. CNG cylinders structurally most sound and have passed every severe tests
  3. Monetary Benefits
    1. Cheaper than conventional fuel
    2. Pay-back period is short
  4. Technical Benefits
    1. Very high antiknock power (more than 120 ON) allows greater performance compared to petrol
    2. Does not require refining plant or additive adding and can be used immediately after its extraction
    3. No evaporation leaks and spills of fuel, both during refuelling and feeding of the car
    4. CHG combustion produces a very low quantity of carbon deposits (permits a longer life of lubricant oil, spark plug, piston drum, valves & other components)


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