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Wk2-PowerofNaturalGasPipelinesTheEmergenceofaNationalGasGrid.pdf

Electronic copy available at: http://ssrn.com/abstract=1980137

POWER OF NATURAL GAS PIPELINES

THE EMERGENCE OF A NATIONAL GAS GRID

M S Pahwa*, Swati Dasika # and Mahesh Radhakrishnan

#

University of Petroleum and Energy Studies, Dehradun

ABSTRACT: Purpose- The purpose of the paper is to study the feasibility of laying a Natural gas pipeline in the unexplored areas of India and to form a National Gas Grid. The new pipeline would supply natural gas to the never before explored states, Orissa, Jharkhand and Chhattisgarh by taking gas input from a floating LNG terminal at Haldia, and end at Vijaipur. Demand estimation of Natural gas in these states has been done and the capacity of the pipeline has been calculated. Gas hydraulics has been simulated and desired pipeline specifications estimated, also allowing a bi-directional flow of gas. Detailed financial study has been carried out.

Design/ Methodology/Approach- Demand estimation has been done using the capacities of various industries and the corresponding natural gas requirement has been estimated. The gas hydraulics have been simulated using Pipeline tool Box- Gas version 2010, and the desired pipeline diameter has been found out with respect to desired pressure output and length of the pipeline at the given temperature and input pressure conditions. Desktop survey has been done for the route selection process .Detailed financial analysis has been done using all the capital and operating expenditures and project IRR estimated. Findings- A detailed structure of the pipeline network has been given and the locations of the compressor stations and diameters and thickness of pipeline estimated. The demand study shows the need of natural gas in the said states and the possibilities of the coal based companies being transformed to natural gas based companies. Major route study gave information about the route pattern where the pipeline would exist. The telecommunication systems and SCADA system study provided detailed information for the pipeline provisions. Financial study gave a concrete structure to the work in terms of investment required and returns that would happen and the project is financially viable. Research Implications/limitations- New entrants in the industry could not be fit in, as limited information is provided. All the major details and financial calculations were done with reference to the existing Gas pipelines. Route study was only theoretical and field study has to be done. Originality/ Value- The proposed pipeline would supply Natural gas to the never before touched states of Orissa, Jharkhand and Chhattisgarh. The pipeline would connect the major Gas pipelines of India and form a National Gas Grid. Keywords- National gas grid, demand estimation, gas hydraulics, route selection study, financial analysis.

Paper type: Research paper

* Associate Professor and HoD, Department of Accounting and Finance, College of Management And Economic Studies, University of Petroleum and Energy Studies, Dehradun (Uttrakhnd) INDIA

# Students, MBA (Oil and Gas Business), Batch 2010-12, College of Management And Economic Studies, University of Petroleum and Energy Studies, Dehradun (Uttrakhnd) INDIA

Electronic copy available at: http://ssrn.com/abstract=1980137

1. INTRODUCTION

The world’s energy system is characterized by many challenges. Current global trends in energy supply and consumption are patently unsustainable — environmentally, economically, socially. But that can and must be altered; there’s still time to change the road we’re on (World Energy Outlook, 2008).Natural gas is a very effective and efficient fuel and is in high demand in the recent years. Global energy continues to grow in steadily but at a slower rate due to higher energy price and slower economic growth (Global Energy trends, 2008). Due to strong economic growth, China and India account for 51% of incremental world primary energy demand in 2006-2030. Middle East countries emerge as an important demand centre. Of the global increase in oil demand, 43% comes from China, 20% from the Middle East and 19% from India. Over a quarter of the growth in world gas demand comes from the Middle East. Non-OECD countries account for 87% of the increase in global demand between 2006 and 2030. As a result, their share of world primary energy demand rises from 51% to 62% (World Energy Outlook, 2008).

2007 and 2008 have been tumultuous years for the energy sector; natural gas markets have not been immune from the strong fundamental forces driving other energy sources. Strong upward trends in price levels and continued demand growth have marked natural gas markets, while market events were increasingly through LNG trade on a global scale. Tight supply, rising oil prices, and a lack of transparency in many gas markets fostered security of supply concerns, while ongoing investment project delays and rising costs fuelled discomfort for long-term market prospects. However, improved hub trading in Europe, a strong market response by gas producers in North America to rising prices, and the advance in a number of big supply projects represent positive developments in the evolution of gas markets in IEA member countries during the past year (Energy Diversification Division, 2008). World primary demand for natural gas expands by just over half between 2006 and 2030 to 4.4 trillion cubic metres, a rate of increase of 1.8% per year. The share of gas in total world primary energy demand increases marginally, from 21% in 2006 to 22% in 2030. The Non-OECD regions are the bulk consumer of gas, especially those that are well endowed with gas resources. Gas demand is projected to grow most absolute terms in the Middle East. The pace of demand growth is fastest in China. Since the demand for electricity is increasing in many countries, so is the demand of natural gas, power sector accounts for 57% of the projected increase in world gas demand. Hence power sector is the main driver of gas demand (World Energy Outlook, 2008).

The Indian gas market is expected to be one of the fastest growing in the world over the next two decades: the IEA forecasts gas demand to increase at 5.4% per annum over 2007-30 (IEA,2009) reaching 132 bcm by 2030. Indian primary energy supply is currently dominated by coal (37%), biomass and waste (27%) and oil (26%) while the share of natural gas is only 6%. Natural gas use in India really started to grow in the late 1970s after the first major gas finds in the western offshore and the development of the first transmission pipeline in the northern region. Before 2009, gas demand potential was estimated to be 20 or 30 bcm higher than actual use as consumption had been constrained by the lack of supply for over a decade (MoPNG, 2000). To address the supply shortfall, the Indian government passed some reforms at the end of the 1990s to encourage domestic production and the construction of liquefied natural gas (LNG) terminals. In particular, the New Exploration Licensing Policy (NELP) opened Exploration & Production to private and foreign companies. This has been relatively successful: after stagnating since the early 2000s, Indian gas production is expected to double between 2008 and 2011 due to the start of the Krishna Godavari KG-D6 field in April 2009 (Corbeau, 2010).

The potential for growth of the natural gas market in India is tremendous; however, this is a very price sensitive market as the ability of customers to pay differs between sectors. The power generation and fertilizer sectors are the main consumers. Fertilizer producers are subsidized by the government and have limited ability to absorb higher prices. In the power generation sector, gas has to compete against coal for base-load generation. Any change in the power sector or in coal markets will have a huge impact on whether gas is used as a base-load option or for peak purposes, and therefore on future gas demand in the power sector. City gas and industrial users show greater price flexibility, but they are still emerging markets. Historically, gas had been allocated in priority to fertilizer and power plants, while city gas, compressed natural gas (CNG) and industrial had the remainder. Furthermore, fertilizer producers and power generators were allocated gas at low Administrative Price Mechanism (APM) prices determined by the government. But the recent pricing reforms that took place mid-2010 mean the end of low APM prices, and that new gas supplies are likely to be more expensive (Anne- Sophie Corbeau, 2010).

The Gas pipelines carry high pressure gas from the source to the destination, and the diameters of the pipeline are set according to the throughput and length of the pipeline. Natural Gas pipelines are the major mode of transporting Natural gas in India, and there exist many Gas pipelines across the country. While until 2006, Gas Authority of India Ltd (GAIL) alone had been responsible for pipeline gas transport. Recent reforms have brought more private investors in the upstream and downstream sectors, but a more transparent regulatory framework will be critical to incentivize future private investments (Anne- Sophie Corbeau, 2010). There are many upcoming projects in India and study for many is under process. Gas pipelines are well spread in the northern India and in Southern India, but the Eastern region is not well covered. On considering the demand requirements of Chhattisgarh, Orissa and Jharkhand, we intend to set up a pipeline system for transportation of RLNG to various industrial customers in the said region. A new pipeline for the transportation and distribution of Re- gasified Liquefied Natural Gas (RLNG) to various industrial customers in Chhattisgarh, Orissa and Jharkhand regions has been proposed by the authors and the objective of the paper. A detailed study of the pipeline model has been done which includes locations, supply of gas and demand of gas, and the layout of the pipeline has been designed.

A new RLNG receiving terminal has been proposed at Haldia to increase the gas inflow into India through imports. Natural gas can be directly tapped from the RLNG terminal to the pipeline system and transported further. A new pipeline from Haldia to Jagadishpur has been proposed by GAIL to cater to the increasing gas demands at Jagadishpur. We propose a new pipeline model that runs parallel to the Haldia- Jagadishpur pipeline half way till Sindri (120km). A tap off would be provided at Sindri to supply gas to the consumers in Jharkhand. The pipeline would then go to Sundergarh (Orissa- Chhattisgarh border) from where the pipeline would bifurcate in two directions, Paradip, to supply gas in Orissa and Vijaipur that goes through Jharkhand to provide gas in that region and also some East-Madhya Pradesh regions. The pipeline would end at Vijaipur connecting the HVJ pipeline. This would enable the formation of a circular gas grid. The proposed pipeline model has a bidirectional flow, i.e., supply of gas can be taken by tapping off at Vijaipur, source of which is Hazira or Dahej. This is possible if the imports increase at the mentioned places. Also if the supply at Haldia is hindered due to some reason, the supply can be taken from Vijaipur. The inclusion of such a pipeline system would connect the two major pipelines of India and also form a NATIONAL GAS GRID. The grid formed connects the gas hub Vijaipur, with Sudergarh, Paradip, Sindri, Haldia and Jagadishpur. The total length of the pipeline is 2209km. the desired diameters and the compressor stations have been simulated which would be explained further. This pipeline would also have provision for future CGD expansions. There is also a provision of setting up a LNG receiving terminal at Paradip to fulfill the country’s increasing gas demand. The natural gas to this terminal can be from west-Australia.

2. LITERATURE REVIEW

2.1 Natural Gas in India The Indian gas market is expected to be one of the fastest growing in the world over the next two decades. The IEA forecasts gas demand to increase at 5.4% per annum over 2007-30 (IEA, 2009) reaching 132 bcm by 2030. Indian primary energy supply is currently dominated by coal (37%), biomass and waste (27%) and oil (26%) while the share of natural gas is only 6%. Natural gas use in India really started to grow in the late 1970s after the first major gas finds in the western offshore and the development of the first transmission pipeline in the northern region. The Indian government passed some reforms after 1990 to encourage domestic production and construction of LNG terminals. With implementation of NELP, it opened Exploration & production for private companies. Indian gas production is expected to double with the operation of KG-D6 commencing from April 2009. Therefore after year 2009 the Indian gas consumption has increased from 43 BCM to 59 BCM. Meanwhile a third LNG terminal is expected to start in 2010.Despite of the growth, the Indian gas market faces lots of challenges like pricing, supply, Infrastructure, regulation and policy (Anne-Sophie, 2010)

2.2 Gas Transmission in India The gas transmission domain in India has been dominated by the GAIL India Limited. It operates the Hazira-Vijaipur-Jagdishpur (HVJ), Dadri Vijaipur Pipeline (total 3452 Km long), and a few other pipelines, connecting the LNG terminal at Dahej to Vijaipur and Uran and the power plant at Dabhol to Panvel .With the recent domestic gas finds in the KG basin off the East coast of India the transmission of gas to the demand centres based in the west and north of the country has assumed greater importance. Reliance Gas Transportation Infrastructure Limited (RGTIL) has implemented the 1385 Km East West Gas Pipeline to carry 80 mmscmd (million standard cubic meters per day ) of natural gas from Kakinada in Andhra Pradesh to Bharuch in Gujarat and traverses through the states of Karnataka and Maharashtra and it has further planned to construct four new cross country pipelines. Gujarat State Petronet Ltd. (GSPL), a GSPC Group company involved in gas transmission arm also has an extensive network of around 2400 Km in Gujarat, and recently, PNGRB has completed the bidding process for three new pipelines too.The existing pipeline capacity of 220 mmscmd is expected to increase to 660 mmscmd in the medium term. This expansion in infrastructure would lead to better gas availability, better tapping of demand and thus in turn increase the natural gas demand. (KPMG India, 2010) 2.3 Pipeline Tool Box The Pipeline Toolbox is a comprehensive suite of Pipeline software tools designed for those engineers who work with gas and liquid/product pipelines and gas distribution systems. Pipeline Toolbox - Gas is the latest release of the popular integrated software package. It has been designed specifically for gas pipeline professionals, and is based on ASME B31.8 standards. Pipeline Toolbox - Gas contains all the functional engineering modules present in previous versions, plus many new modules and added enhancements. It is designed to increase the productivity and efficiency of the user by providing him with all the "tools" to solve day-to-day pipeline design, analysis, maintenance and related engineering problems.

Pipeline Toolbox - Gas consists of 24 separate modules supporting gas pipeline engineering, design, analysis and maintenance requirements. Each of these modules contain separate programs, and together provide more than 75 assorted software engineering tools for the pipeline engineer, manager and technician. (Pipeline Tool Box, 2010)

2.4 ASME 31.8 Gas Transmission and Distribution Piping system The ASME code for pressure piping consists of many individually published sections, each an American National Standard. The ASME 31.8 is specifically published for gas transmission and distribution piping system. The code gives guidelines for engineering requirements deemed necessary for the safe design and construction of pressure piping. The design requirements are stated in the form of basic design principles and formulae, this helps in uniform application of principles and to guide selection and application of piping elements. This code includes acceptable material specification s and component standards, including dimensions and mechanical properties and Designing of components and assemblies. Data for evaluating stresses, reactions and movements associated with pressure, temperature change and other forces. The code also covers fabrication, assembling and installing piping, its testing, examining & inspection and Operation and maintenance of pipeline for public safety. It also provides guideline for protecting the pipeline from internal and external corrosion. (ASME, 2004)

2.5 Importance of a Natural Gas Grid A Gas grid is an integrated network of natural gas pipelines which connects all the major Natural gas sources in the country to allow cross-functional flow of Natural gas .A grid formation is possible only when there are Natural gas pipelines across the country supplying natural gas to majority of the area of the nation. A pipeline network will enable integrated transmission and distribution of natural gas. The added advantage to this network would be the bidirectional supply of gas, ie. if there is a lack of supply form one gas source, the supply can be met by tapping gas from the other sources via the interconnected pipelines. India is a very Energy demanding nation and natural gas contributes significant amount to the energy basket of the country. Natural gas pipelines have been a major infrastructure investment in the country since many years and it has been increasing significantly. Many gas pipelines are in

existence in the country and many are proposed and planned covering many states. The formation of a natural gas grid is the need of the hour as it would integrate all the pipelines and form an interconnected network. This would enable the country to be at par with the other developed countries like USA in terms of infrastructure and Energy supply. The Grid would also be of added advantage in meeting the energy requirements in the future.

2.6 U.S. Natural Gas pipeline grid The U.S. natural gas pipeline network is a highly integrated transmission and distribution grid that can transport natural gas to and from nearly any location in the lower 48 States. The natural gas pipeline grid comprises of more than 210 natural gas pipeline systems.3 00,000 miles of interstate and intrastate transmission pipelines which touches the length and breadth of the country. More than 1,400 compressor stations that maintain pressure on the natural gas pipeline network and assure continuous forward movement of supplies. The network has More than 11,000 delivery points, 5,000 receipt points, and 1,400 interconnection points that provide for the transfer of natural gas throughout the United States. 29 hubs or market centers that provide additional interconnections. The country also has 394 underground natural gas storage facilities. There are 55 locations where natural gas can be imported/exported via pipelines. 5 LNG (liquefied natural gas) import facilities and 100 LNG peaking facilities. (EIA, 2007)

2.7 Advantages Of Pipeline Transportation

Pipeline transportation is the most preferred mode of transport for gaseous consignment like RLNG over long distances. The advantages of Natural gas transportation through pipelines are shown below:

• Energy consumption is least in Pipeline transportation and is most suited mode of transportation for conservation of energy.

• Cost of transportation is least, for large volumes and over long leads.

• Pipeline transportation is highly environment friendly. Its impact on environment during the stages of construction, operation and maintenance is negligible, compared to other modes.

• Safety is an intrinsic feature of pipeline transportation. Vagaries of nature like floods, breaches etc. do not disrupt pipeline transport systems.

• In pipelines, the carrier is stationary. Thus, the wasteful use of energy and infrastructure for transportation of empty carrier (as happens in the case of rail and road transportation) is totally avoided.

• Petroleum products are volatile in nature. Thus, handling of products results in evaporation losses. In the case of rail and road, such losses are as high as 0.3 to 0.5% of the volumes transported. In comparison, transportation losses in pipeline are only about 0.1%.

• While railways need different types of wagons for different classes of products, a single pipeline can transport a large number of products. The developments in technology would also allow transportation of propane and butane in the same pipeline making this mode still more versatile.

• Increase/decrease of transportation volume can be affected in pipelines with lower time delay, disturbance and cost. Quantity variation within certain limit is possible without compromising on safety, economic & operational consideration.

• Pipelines can traverse highly difficult terrain where laying railway lines would be almost impossible.

• Pipelines can be characterized as interstate or intrastate. Interstate pipelines carry natural gas across state boundaries, in some cases clear across the country. Intrastate pipelines, on the other hand, transport natural gas within a particular state.

• Interstate pipelines are the 'highways' of natural gas transmission. Natural gas that is transported through interstate pipelines travels at high pressure in the pipeline, at pressures

anywhere from 200 to 1500 pounds per square inch (psi). This reduces the volume of the natural gas being transported (by up to 600 times),

3. METHODOLOGY USED/ PROJECT DESCRIPTION

3.1 Demand

The design capacity of the pipeline is 50 MMSCMD which includes the industrial, domestic and other commercial requirements of the 3 states. The fertilizer companies are mainly targeted as an immediate consumer of natural gas. There are several large and small fertilizer companies in the location. The next major consumers are the power generating companies. As of now all the power plants are thermal (coal) based, which have a scope of being converted to gas based plants. This is both economic and environmental friendly. Though there would be a requirement of some major initial investment, it would be a profitable deal in the long run. The proposed pipeline would supply the natural gas required for all the power plants in the 3 states. The total demand estimated solely by the power plants of this area is 41 MMSCMD. Separate lines would go to the power plants as per their requirements from the tap off stations. The pipeline would also cater to the domestic gas requirement. Tap off provisions would be given at all major cities like, Jabalpur, Bilaspur, Sundergarh, Sindri and Paradip for City gas distribution purpose. The demand details are attached in ANNEXURE-I.

3.2 Pipeline Description

The new pipeline model would follow the route Haldia-Sindri-Sundergarh. From Sundergarh it would bifurcate to Paradip and Vijaipur.

NAME OF PIPELINE PIPE SIZE LENGTH OF PIPE km

Haldia- Sindri 42" 357

Sindri-Sundergarh 42” 430

Sundergarh-Vijaipur 32" 982

Sundergarh-Paradip 32" 440

RLNG terminal Sindri Haldia

Sundergarh

Paradip Vijaipur

Existing HVJ

pipeline

3.3 Gas Distribution Terminal

Natural gas would be tapped off from Haldia and distributed at the main junctions Sindri, Sundergarh, and Paradip

3.4 Consumer Terminals

The consumer terminals shall be at 3 locations namely, Sindri, Sundargarh and Paradip. Provisions for tap offs would be provided wherever there is a future demand for CGD.

3.5 Design Basis and Pipeline Hydraulics

The basic pipeline designing for the pipeline model has been done using software called PIPELINE TOOLBOX 2010-gas edition. The software enables easy and accurate calculations of the pipe parameters.

Following parameters were used:

Upstream pressure [psig] 1,352.4 psig or 92kg/cm 2

Temperature base [° F ] 60.0

Pressure base [psia] 14.71

Gas flowing temperature [° F ] 77.0

Gas specific gravity 0.60

Compressibility factor 1.00

Pipeline efficiency factor 0.90

Consumer requirement of gas is in the range of 45 to 55 kg/cm 2

Upstream elevation [feet] 0

Downstream elevation [feet] 0

Temperature base [° F] 60

Pressure base [psia] 14.71

Gas flowing temperature [° F] 77

Gas specific gravity 0.6

Compressibility factor 1

Pipeline efficiency factor 0.9

The whole pipeline model is divided into four regions and the diameters of each pipeline in the regions are estimated according to the lengths and the pressure availabilities and intermediate booster compressors have been proposed if required. The details of the design are shown in the table below:

Location Upstream pressure

Flow rate [MMSCMD]

Internal pipe diameter [inches]

Length of pipeline [km]

Downstream pressure

Number of Intermediate compressor

Location of intermediate compressor from the starting point

Haldia-Sindri 92kg/cm2 50 42 357km 63.4 kg/cm2 1 178.58km

Sindri- Sundargarh

92kg/cm2 34.9 42 430km 54.5 kg/cm2 nil -

Sundergarh- Vijaipur

92kg/cm2 16.5 32 982km 49.8kg/cm2 1 500km

Sundargarh- Paradip

92kg/cm2 18.4 32 440km 52.5 kg/cm2 nil -

3.6 Pipeline Thickness

The total diameter of the pipeline is obtained by adding the thickness of the pipeline to the inner diameter. The thickness of the pipeline has been calculated to get the exact outer diameter of the pipeline using BARLAW’s law:

� � ��

2���

Where: t: pipeline thickness P: internal pipe design pressure (psig) D: pipe diameter (inch) S: specified minimum yield strength (SMYS) of the pipe material (psig) E: seam joint factor 1.0 for seamless and submerged arc welded (SAW) pipes. F: design factor, varies with the class of pipelines Class I- 0.72, number of inhabitants less than 10 Class II- 0.6, number of inhabitants 10 to 45 Class III- 0.5, number of inhabitants less than 46 Class IV-0.4, number of inhabitants more than 46/ organizations T: temperature duration factor= 1.00 for temp below 250 F.

Following table gives the various pipe thicknesses in mm for different SYMS, classes and pipe diameter

PIPELINE THICKNESS

SYMS( psig)

70000 80000

CLASS

PIPE DIA

class I class II class III class I class II class III

42"" 14.3 17.17 20.6 12.52 15.01 18.034

32" 11.0 13.00 16.0 9.50 11.43 13.700

Both SYMS conditions are proposed and either of them can be used.

3.7 Route Description:

The route of the proposed pipeline model is through the cities, Vijaipur, Paradip, Sundergarh, Sindri and Haldia. The route map has been attached in ANNEXURE

The methodology adopted for the route selection and the salient feature of the pipeline route are described in the succeeding paragraphs. The selected route has been thoroughly reviewed with respect to construction methodology likely to be adopted.

The entire pipeline route between Haldia, Sindri, Sundergarh, Vijaipur and Paradip and is divided into four regions as follows:

1. Between Vijaipur and Sundergarh 2. Between Sundergarh and Paradip 3. Between Sundergarh and Sindri 4. Between Sindri and Haldia

Since the proposed pipeline is new, fresh ROU has to be developed to in order to lay the pipeline. 3.8 Methodology for Route Selection The route selection was done based on the relevant topographic maps. Various desktop surveys were also conducted before selecting the optimum route. Mainly Google Earth was used for selecting tentative route for pipeline construction. The route survey also included the EIA (Environmental Impact Assessment) to see what the environmental impact is during construction, operation and maintenance of the proposed pipeline. 3.8.1 Basis for Route Selection For selection of the optimum route, following features were considered:

• Shortest possible length • Minimum impact on environment • Avoiding of unstable ground features • Avoiding habituated areas, industrial areas, public utilities • Avoiding Reserved & Protected Forest land, wildlife sanctuaries • Minimize crossings of existing utilities like roads, railroads, canals, Pipelines Rivers, streams etc. • Favorable ground profile for pipeline hydraulics • Minimizing number of bends • Ease of construction • Accessibility to route during operation and maintenance • Avoiding areas reserved for planned development • Ease of ROU acquisition

3.8.2 From Vijaipur To Sundergarh: Then pipeline passes through number of ROW like national highways, rivers, rails and buildings. The details of which is given in Table 1. The pipeline also passes through some of the industrial and densely populated zone. Special permission has to take for lying of pipe in such critical zone. Beyond the industrial area the pipeline route continues in the west direction to Vijaipur and passes through several villages before crossing an electrified broad gauge railway line and NH-23. The route of pipeline is generally flat and sparsely populated. Industrial units exist in the vicinity of Sundergarh. The land is cultivated. Based on the visual assessment of the ground conditions, the nature of the soil encountered. The length of the pipeline route between Vijaipur and Sundergarh is 920 km and the crossings encountered are shown in ANNEXURE IV. Similar assessment is carried for the route from Sundergarh to Paradip, Sundergarh to Sindri. For the route between Sindri and Haldia, half way (120 km) from Haldia will not need any Route survey as it would run parallel to the Jadgishpur- Haldia pipeline. The rest of the distance would be surveyed by the above said method.

3.8.3 Pipeline Crossing

Major River and Minor River Crossings: There are two major river crossing, Narmada in Madhya Pradesh and Mahanadi in Orissa. While laying pipeline certain standard has to be considered. In such river the concept of buoyancy will come into picture, which states that whenever a heavy body is immersed in the water, the weight of the body lost will be equal to the amount of water displaced. It could be hazardous for the operating of pipeline if buoyancy comes into picture, it could damage the pipeline by changing its alignment and increasing its bending stress of the pipe. In order to avoid such circumstances the pipeline in such river crossing is coated with concrete coating so that it can act as the counter balance against the buoyancy force. The thickness of the concrete coating is calculated using a simple formula. Amount of water displaced = Volume of pipe (πr

2 h) X Density of water

This much amount of concrete will be required to cover the pipeline. Knowing the density of concrete we can calculate the thickness of the concrete coating, using the formula Amount of concrete = Volume of concrete (π (r2-r1)

2 h) X Density of concrete

In case of Minor River crossing and canals which are seasonal and are dry during major part of the year, here the pipeline will be laid by trenching and concrete PCC will be used to cover the entire length of the pipe. Railway All railway lines shall be crossed by boring. Approval of design and construction methodology shall be obtained from concerned railway authorities. The carrier pipe shall be installed with casing pipe. The casing pipe shall be at least 3 nominal sizes larger than carrier pipe. The minimum clear cover at the crossing above top of the pipeline shall be 1.7 meter. The crossing angle shall be as close to 90 deg as possible. Roads and Canals National highways, state highways and lined irrigation canals shall be crossed by boring. The carrier pipe shall be installed within a casing at least 3 nominal size larger than carrier pipe. All other roads and minor canals, nallahs shall be installed by conventional open cut method, unless directed otherwise by the concerned authorities. The crossing shall be provided with the minimum clear cover of 1.2m measured from the top of the carrier pipe. 4. BASIC REQUIREMENTS FOR THE PIPELINE

4.1 TELECOMUNICATION SYSTEM The new proposed pipeline will be part of the up gradation of the pipeline network and for transporting LNG from the proposed LNG terminal at Haldia. Since the pipeline shall pass through the cross country area not adequately covered by public telecommunication system, a new dedicated telecommunication system is proposed to be implemented to meet the operation and maintenance requirements of this pipeline and for future telecom requirements. Considering the implementation schedule, comparative economics of various communication media and availability of the right- of-way along the pipeline route, an optical fiber communication system is proposed for this project as the main communication system for the pipeline operation and for future requirements. 4.1.1 Telecommunication Requirements The telecommunication system shall provide voice, data and video communication. The following consideration and assumption are made.

1) New SV-2 stations will have to installed en-route Haldia, Sindri, Sundergarh, Vijaipur, Paradip and shall have RTU’s and shall require voice/ data connectivity

2) Haldia, Sindri, Sundergarh, Vijaipur, Jabalpur, Paradip are telecom attended stations (6 no). Rest of the stations shall be telecom unattended stations..

3) New satellite links (at Haldia) shall be used for providing one data and one voice back up communication to the new proposed telecom system. The new telecom system at these locations shall be co-located / near with/to the existing satellite rooms. Detailing of the same shall be done by the concerned authority.

4) Power required for the new system shall be from the existing power source and if required shall be augmented. Similarly space available for the new equipment in the existing telecom room is to be checked and finalized.

In line with above, the following requirements/ system are envisaged: a. Optical Fiber Communication System: Providing voice communication at the various stations through ordinary, digital, weather proof and explosion proof telephones ( at hazardous area)

b. Satellite Communication System A satellite back-up communication shall be provided at Haldia, Sundergarh, Sindri, Paradip and Vijaipur for high-speed data back-up link for SCADA and for voice. At Vijaipur the same shall be through the existing satellite link and at all the other location it shall be from a new link. c. Mobile Communication System A mobile communication system is proposed to be provided through satellite with mobile units (for people on the move) and fixed stations (for end stations) connected to the optical fiber communication system. 4.2 SCADA (SUPERVISORY CONTROL AND DATA ACQUISITION) 4.2.1 Scada Master Station Since the proposed pipeline is in the new route, new RTUs has to be placed in the route and has to be integrated with SCADA system at Vijaipur and new SCADA system has to be implemented at Haldia. 4.2.2 Remote Workstation A remote workstation along with color laser jet printer and WAN router at Haldia shall be provided for read access of parameter for the new proposed pipeline route.

4.2.3 RTUs The requirement of I/O point for the new proposed pipeline will be taken from the new SV/RR locations. New RTUs has to install at these locations. Also the adequate spare I/O and if required additional I/O cards and serial interface cards can be added in the FOXBORO C50 RTUs.

4.3 INSTRUMENTATION State of the art electronic/microprocessor based instrumentation should be provided for the safe and efficient control monitoring of the entire pipeline. Gas metering facilities suitable for custody transfer application should be provided at dispatch, receipt and intermediate dispatch stations as per P & IDs.

Gas metering should be provided with complete stand by run including filed sensors and flow computer. Flow computers should be microprocessor based for compressibility calculations. Flow computer should also be serially interfaced to station control system (PC-PLC based) to facilitate monitoring from station control system. In general, filed instruments (transmitter switches) should be intrinsically safe. Solenoid valve should be explosion proof type. Transmitter should be 2-wire smart type (Hart Protocol).

For temperature signals, field mounted RTD with 2-wire transmitter (Hart protocol) should be provided.

Gas chromatography (GC) should be provided for continuous on-line analysis of gas composition, energy calculations. GC should be serially connected to flow computer and station control system for digital data transfer. GC should be installed in field under sun/ rain shade and programming unit should be located in the control room.

4.4 ELECTRICAL SCOPE OF WORK

4.4.1 Scope and Assumptions

The scope of electrical work should involve the supply of power for the following:

• Permanent cathodic protection system (Impressed current) • Telecommunication loads • SCADA loads • Telemetry loads • Auxiliary loads for new compressors • Lighting for compressor house sub-station etc.

4.4.2 Power Supply Power supply for the above mentioned is proposed to be made available, as follows: As the proposed pipeline is new ROU, The power loads mentioned above should be generated using new CCVTs to be installed at suitable locations. All power supply arrangement should be included as a part of the present project, including AC/DC cabling, grounding etc.

4.4.3 Compressor Station Compressor stations are proposed along Haldia- Sindri, one at Sindri, along Sindri-Sundergarh, two at Sundergarh, one along Vijaipur-Sundergarh. Additional switchgear of 6.6kV has to be installed at Vijaipur for the new pipeline, whereas new switchgear should be required at all the above mentioned routes. Switchgears along with motor feeder, transformer feeders and 6.6/0.433kV transformer(s), 415V power cum motor control centers etc. along with necessary battery, battery charger, UPS etc. It is proposed to install this new equipment in separate sub-station to be located near the proposed compressor area.

4.4.4 Cathodic Protection The temporary cathodic protection is proposed, for a 2 year period. The permanent cathodic protection system has to be procured and new MTO has to be prepared.

4.5 OPERATION AND MAINTENANCE Operation and maintenance activities are a systematic method for identifying ways to optimize the performance of the gas pipelines. It involves gathering, analyzing, and presenting information based on the manager’s or the customers’ requirements. O & M activities are generally done for the following reasons:

• To identify low cost O&M solutions for improving energy efficient pipeline transportation of natural gas.

• To reduce premature failure of pipelines and other involved equipment. • To insure optimal equipment performance. • To obtain an understanding of current O&M practices and O&M documentation. • To avoid hazards and accidents in the pipeline • To have optimized and loss free transportation of gas. • For Timely checkups of the equipment.

4.6 ENVIRONMENTAL STUDY An Environmental Impact Assessment (EIA) study should be carried out as per the notification of Ministry of Environment and Forests, Government of India by M/s Engineers India Limited (EIL) which addresses various environmental issues related to the setting up of the proposed project. The environmental impact assessment (EIA) report prepared for the proposed pipeline project covers the environmental components such as air, water, land, noise, flora/fauna and socio-economic aspects in the study area, i.e., within a corridor of 500m on either side of the pipeline. In addition, study area of 5km radius zone would be considered around six locations at Haldia, Sindri, Sundergarh, Paradip and Barasagar for land use/land cover study. The EIA study covers the following:

• Identification of impacts due to the proposed project • Collection and assessment of existing environmental baseline status based on the project

information, field survey relating to meteorology, air quality, water quality, socio-economic aspects, flora and fauna, existing land use pattern etc. within the study area mentioned above.

• Prediction and evaluation of the environmental impacts that may result from project development.

• Outline the environmental management plan (EMP) to mitigate the negative impacts of the pipeline.

A corridor of 500 m width on either side of the pipeline throughout the length would be taken as the spatial frame for the impact assessment. Temporal frame of assessment has been chosen to reflect the impacts in two distinct phases of the project namely:

a) Construction phase, b) Operation phase

5. COST ESTIMATION

5.1 GENERAL A detailed capital cost estimate has been prepared for the proposed new pipelines for transportation of re-gasified LNG. All the basic financial study has been carried out by estimating the capital expenditure, operating costs, revenues. Basic assumptions have been made about the life of the pipeline and the escalations given. A Balance sheet has been made for 25 years and cash flows have been estimated. Capital budgeting has been done and project and equity IRR have been calculated.

5.2 DETAILED DESCRIPTION: The pipeline has a total Throughput of 50 MMSCMD .Total 6 compressor stations have been installed as per the gas hydraulics.

Zero Date (NTP) 1-Jun-11

Construction Period 30 months

Scheduled COD 1-Dec-13

Gas Supply Agreement Period 25 years

Gas Supply Agreement End Date 30-Nov-38

Assumptions

The life of the project is considered for 25 years, with the operations ending in the financial year ended 31-Mar-39.

5.3 BASIS OF COST ESTIMATE

5.3.1 CAPITAL EXPENDITURE

ROU, Land, Survey and Soil Investigation

Pipeline Right of Use compensations, land acquiring costs, and route survey and soil investigation costs has been provided. This cost is estimated to be Rs 2.39 Cr

Line Pipe Line pipes of required specification are considered to be imported

COATED PIPELINE COST

Thus the cost of line pipe is estimated to be Rs. 10,621 Cr

Sectionalizing Valves 42” and 32 “valves have been used. The following table gives the number of valves used. Cost of each 42” valve is 1 Cr and 32” is valve 0.7Cr.

COST OF VALVES

The total cost of the 42 “dia valves will thus be Rs 51 Cr (for option a and b) and the cost of 32” dia valves will be Rs 64 Cr.

The total cost of the valves used will be Rs 115 Cr.

COATED PIPELINE PURCHASING/KM= 4.81 Cr

357 1716.5

430 2067.49

982 4721.57

440 2115.57

Total 10621.13

NO OF VALVES

TOTAL DISTE

class 1 class 2 class 3 class 4

Dist. in mile

Dist. in Km

No of valve s

Dist. in mile

Dist. in Km

No of valve s

Dist. in mile

Dist. in Km

No of valve s

Dist. in mile

Dist. in Km

No of valve s

Total no of valves

Avg no of valves

357 20 32 11.16 15 24 14.88 10 16 22.31 5 8 44.63 92.97 23.00

430 20 32 13.44 15 24 17.92 10 16 26.88 5 8 53.75 111.9 28.00

982 20 32 30.69 15 24 40.92 10 16 61.38 5 8 122.7 255.7 64.00

440 20 32 13.75 15 24 18.33 10 16 27.5 5 8 55 114.5 29.00

Line Material

Line materials like Flow trees, Insulating joints, floating, casing pigs, fittings, flanges.

LINE MATERIAL COST

42" 32"

Line material cost/km 500000 400000

Haldi-Sindri Sindri-Sundergarh Sundergarh-Vijaipur Sundergarh-Paradip

357 430 982 440

Line material cost(Rs.) 178500000 215000000 392800000 176000000

Sub Total (Rs.) 393500000 568800000

Total Material cost (Rs.) 962300000

Total Material cost in Rs. Cr 96.23

Thus, total Line material cost is estimated to be Rs 96.23 Cr

Compressor Stations

• Equipment: The cost estimate for major equipment required at compressor station and IP stations are considered. Gas turbine driven compressor packages required at compressor stations have been estimated. Other items like scrapper traps have been estimated to be Rs 362200 per km. which comes to 80.01 Cr totally for 2207 Km.

• Station ball valves have been estimated based on MTO and in-house cost data other piping items like pipes, valves, flanges, fittings etc., have been provided in factor basis and included in the total cost.

• Cost of electrical facilities is also included

• Cost of control valves, metering facilities, PC based system and PLC, analyzers, transmitters, pressure/ temperature gauges, PSVs.

The overall compressor cost comprising of all the above parameters is estimated to be Rs1200 Cr per compressor. There are 6 compressors which have been used in the pipeline, which sums up to Rs 7200 Cr.

Interest During Construction

A 30 months construction period is considered. The interest on all the project expenses considered in this period is estimated to be Rs 1,881.50 Cr, and is included in the project cost

Contingencies:

The contingencies cover the electrical, mechanical and other miscellaneous expenses. This is estimated to be2% of the EPC and material cost i.e., Rs 212.10 Cr.

The overall capital expenditure of the pipeline projects is estimated to be Rs 26,552Cr.

5.3.2 MEANS OF FINANCE

The Total Project Cost amounts to Rs. 26552 Cr are invested at a debt: equity ratio of 3:1. The equity portion of 25% is raised by the company for which a return on equity of 12% p.a. has been assumed

The debt portion of 75% of the Total Project Cost, i.e. Rs 19,914 Cr is taken as loan at a rate of Interest of 10% pa. The repayment has been structured as 12 Yearly installments with a moratorium period of 1 yr. from the Commercial Operation Date. The repayment date starts from 1

st December

2014 and the last repayment date is on 30 th September 2017.

Basic Assumptions Book depreciation of 3.17 % is considered. Written down value method is considered for deprecation calculations. Tax rates of 33 % are considered.

5.3.4 TARIFF CALCULATIONS

For the revenue generation, the following costs are taken into consideration.

FIXED COSTS

1. Overall Operation and maintenance expenses are estimated to be Rs 10 Cr per annum, with an Year on year escalation of 3%

2. overall administrative expenses are estimated to be Rs 10 Cr per annum, with an Year on year escalation of 3%

3. Rate of Interest on the loans that are raised have been considered at 10 % p.a.

4. Depreciation on the gross block has been considered.

5. Return on equity of 12% on the equity raised has been considered.

6. Fixed Commission on the gas of Rs 14 lakh per MMSCMD has been considered.

VARIABLE COSTS

1. Cost of the Natural gas in energy terms is given as of date as $7.6/MMBTU

Gross calorific value of gas is given as 9770 Kcal/ SCM.

And we know that 1kcal=4*10(^-6) MMBTU.

By carrying out the required calculations, Natural gas purchase price is estimated to be Rs. 1.45 Cr per MMSCMD. For a total annual purchase of 50 MMSCMD, the total gas price is estimated to be Rs. 26462.2 Cr.

2. The transportation tariff has been considered as per PNGRB regulations. The tariffs are different for each zone. 4 zones have been considered as follows:

TARIFF FOR DIFFERENT ZONES

Zone Area Distance Tariff

( INR/MMBTU on GCV basis )

Throughput in pipeline ( MMSCMD)

1 Haldia-Sindri 357Km 19.83 50

2 Sindri- Sundergarh 430 Km 22.48 34.9

3 Sundergarh- Vijaipur 982Km 25.10 16.5

4 Sundergarh- Paradip 440KM 27.70 18.4

On calculating the individual costs for each zone with their respective throughputs, the total transportation tariff is Rs 10.48 Cr.

Considering both fixed and variable costs, the total revenue is estimated to be Rs 31681.95 Cr.

A yearly escalation for all the above has been done for the total lifespan of the pipeline.

5.3.5 FINANCIAL CALCULATIONS

The gas purchase price, O&M expenses, administrative expenses and transportation tariffs are considered in the expense stream.

The above mentioned revenue cost is included in the revenue stream, and a profit generated from the revenue and expense id calculated. The profit for the 1

st yr. is Rs 5188.97 Cr and is escalated for 25

yrs. And the profit generated after interests and taxes is estimated to be Rs 2245.5 Cr.

Cash flows from operations, investment and financing are estimated to be Rs 28797.69 Cr.

A balance sheet is generated using the assets and liabilities in consideration and a balance is shown between the two.

A net present value (NPV) Rs 22797.40 Cr is estimated from the above.

Equity IRR (internal rate of return) of 29 % and project IRR of 12.2% have been estimated.

The required IRR limit for any project to be financially viable is 12% to 16 %. As this project meets the requirements, it is said to be FINANCIALLY VIABLE

PROJECT COST SHEET

Project Cost

In INR Cr

Land 311.00

EPC and Material Costs 10,605.04

pipeline cost 13,532.50

Pre-operative expenses 10.00

Contingency 212.10 2%

Interest during Construction 1,881.50

Total Project Cost 26,552

Detailed Project Cost Break Up

Land In INR Cr Total Land Cost including ROU and Crop Compensations 311

Equipment Procurement and Construction Cost (EPC)

Equipment

Consultancy 100.00

Errection and Commissioning 2,911.42

Inland Transportation 100.00

soil investigation survey 2.39

Total EPC Cost 3,113.81

Material Costs

filter &scrapper purchasing 80.00

line material cost 96.23

valves 115.00

compressors 7,200.00

Total Material Costs 7,491.23

Total of EPC and Material Costs 10,605.04

Preoperative Expenses In INR Cr

Admin Expenses 10.00

Sub Total 10.00

IDC In INR Cr

Total IDC 1,881.50

Pipeline Cost In INR Cr

coated pipeline purchase cost 10,621.10

pipeline layout cost 2911.4

total 13,532.50

ASSUMPTION SHEET

ASSUMPTION SHEET

1 Project Timelines

Zero Date (NTP) 1-Jun-11

Construction Period 30 months

Scheduled COD 1-Dec-13

Gas Supply Agreement Period 25 years

Gas Supply Agreement End Date 30-Nov-38

2 Technical Inputs

Length of Pipeline 2,209

Diameter 32" 42"

Capacity 50 mmscmd

3 Project cost INR Crore

Land 311.00

EPC and Material Costs 10,605.04

pipeline cost 13,532.50

Pre-operative expenses 10.00

Contingency 212.10

Interest during Construction 1,881.50

Total Project Cost 26,552

5 Means of Finance % INR Crore

Equity 25% 6,638.03

Senior debt 75%

19,914

Total 100%

26,552

Debt: Equity 3.00

Return on Equity 12%

6 Terms of Debt RTL 1

Amount of Debt 19,914

Rate of Interest 10.00%

No of Installments (yearly) 12

Moratorium ( from Plant CoD) 12 months

First repayment date 1-Dec-14

Last repayment date 30-Sep-17

7 Accounting Assumptions

Book dep 3.17%

Book Depreciate % 95%

Tax Depreciate % 100%

8 Tariff Structure

Price / MMSCMD (for First Year) 633.64

Year on Year Escalation 3%

Commission per MMSCMD 0.14

9 O&M

Yearly Expenses (Rs. Cr) 10.00

Year on Year Escalation 3%

CALCULATION OF IDC

Interest During Construction

Phasing 1-Jun-11 1-Apr-12 1-Apr-13

31-Mar-

12 31-Mar-

13 31-Mar-

14

Land 311.00 100% 0% 0%

EPC and Non EPC 10,605.04 33% 33% 34.00%

Pre-operative expenses 10.00 100% 0% 0%

pipeline cost 13,532.50 33% 33% 34%

Contingency 212.10 33% 33% 34%

Interest during Construction

Phasing

Land 311.00

-

-

EPC and Non EPC 3,499.66

3,499.66

3,605.71

pipeline cost 4,465.73

4,465.73

4,601.05

Pre-operative expenses 10.00

-

-

Contingency 69.99

69.99

72.11

Interest during Construction 558.72

651.52

671.26

Total ok 8,915.10

8,686.90

8,950.14

IDC Calculation

Equity 2,228.78

2,171.72

2,237.53

Debt (Closing Balance) 6,686.33

6,515.17

6,712.60

Interest During Construction

1,881.50

558.72

651.52

671.26

CONCLUSION

The particular research paper activity presented various sets of data covering a broad range of

information regarding natural gas as a vital source of energy from global as well as Indian context.

The data includes importance of natural gas in world energy basket, growth and trends around the

world, India’s contribution to the global gas market, future projection etc. The principle objective and

innovation of this paper is the emerging importance of natural gas in India and development of its

national gas grid. This paper has presented with the possible option of development of pipeline

infrastructure in the untouched region of eastern India where the potential demand of natural is very

high due to large industrial development. All the data in this paper are presented in well- structured

format.

Some of the key points which are covered in this paper are given below.

1. Demand estimation was carried based upon various industrial, domestic and commercial

requirement in all the region, the details of which has been tabulated in ANNEXURE I

2. Route description of various pipeline route in all the three states mentioned in this paper

3. Methodology of route survey

4. Detailed technical feasibility was carried out using software called Pipeline Tool Box and the

gas hydraulics was calculated, this also helped us to decide the compressor location.

5. Financial feasibility was done for the period of 25 years, and the project was financially viable

with project IRR of 12%.

With the implementation of above project, India’s pipeline network will be well connected to all the

sources of natural gas from both East and West, thereby eliminating any possible Demand-Supply

gap and thereby making India’s national gas grid complete. With the help of this gas grid, demand

could be met from any source available in the country. The above project will not only add financial

value to the country but will also hold economic importance in the countries growth in its energy

basket.

LIST OF ABBREVIATIONS

MMSCMD MILLION METRIC STANDARD CUBIC METRE PER DAY

RLNG REGASIFIED LIQUFIED NATURAL GAS

CNG COMPRESSED NATURAL GAS

PNG PIPED NATURAL GAS

BCM BILLION CUBIC METERS

MMTPA MILLION METRIC TONS PER ANNUM

MOPNG MINISTRY OF PETROLEUM AND NATURAL GAS

APM ADMINISTERED PRICE MECHANISM

FDI FOREIGN DIRECT INVESTMENT

ROU RIGHT OF USE

CGD CITY GAS DISTRIBUTION

SBPS SPECIAL BOILING POINT SOLVENT

LPG LIQUIFIED PETROLEUM GAS

SV SECTIONALIZING VALVE

RR REMOTE REGULATORY

RTU REMOTE TELEMETRY UNIT

CCVT CLOSED CYCLE VAPOUR TURBO

GPRS GAS PRESSURE REDUCTION SKID

SMYS SPECIFIED MINIMUM YIELD STRENGTH

IP INTEGRATED PIGGING

TEG THERMO ELECTRIC GENERATORS

CPVCM C.P. VOLTAGE CONTROL MODULE/ CP POWER SUPPLY MODULE

GHS GAS HEATING SYSTEM

GPRS GAS PRESSURE REDUCTION SKID

ANNEXURE I

INDUSTRIAL DEMAND

LIST OF POWER PLANTS IN THE 3 STATES.

NAME OF THE PLANT LOCATION

PRESENT SOURCE OF ENERGY OUTPUT

ChSEB Korba Steam 4x50+2x120 = 440 MW

ChSEB Korba West Steam 4x210 = 840 MW

NTPC Korba STPS Steam 3x200+3x500 = 2100 MW

Orissa

NTPC Talchern TPC Steam 4x62.5+2x110 = 470 MW

NTPC Talcher STPS Steam 1x500+2x500+1x500 = 2000 MW

OPGCL IB Valley TPS Steam 2x210 = 420 MW

Jharkhand

JhSEB Patratu Steam 4x50+2x100+4x110 = 840 MW

Tenughat P.Co Tenughat Steam 2x210 = 420 MW

DVC Bokaro Steam 3x57.5+1x75+3x210 = 877.5 MW

DVC Chandrapura Steam 3x120+3x140 = 780 MW

Madhya Pradesh

MPSEB Sanjay Gandhi, Birsinghpur Steam 4x210 = 840 MW

MPSEB Amarkantak Steam 2x30+2x120 = 300 MW

MPSEB Satpura Steam 1x200+3x210+5x62.5 = 1142.50 MW

NTPC Vindhyachal Steam 6x210+2x500 = 2260 MW

The demands of the power plants in Madhya Pradesh are considered in case of expansion of the supply of NG. The said power plants fall en route the pipeline and thus the pipeline from Sundergarh to Vijaipur thus has future benefits.

A power plant if converted into a natural gas based plant would consume 1MMSCMD of NG to be an output of 220 MW power Thus calculating the NG requirements for each state, the following data is generated:

STATE TOTAL POWER GENERATED

REQUIREMENT OF NATURAL GAS

Chhattisgarh 3380 MW 15.21 MMSCMD

Orissa 2917.5 MW 13.13 MMSCMD

Jharkhand 2890 MW 13.00 MMSCMD

The total demand for power plants is thus 41.338 MMSCMD

List of fertilizer companies in the 3 states

State location Capacity NG requirement

Chattisgarh

Bhilai Engineering Corporation Ltd Bilaspur 135000 MTPA

Dharamsi Morarji Chemical Co. Ltd Bilaspur 66000 MTPA

TOTAL 201000 MTPA 0.5MMSCMD

Orissa

Paradeep Phosphate Limited Paradeep 720000 MTPA 1.4 MMSCMD

Steel Authority of India Ltd Rourkela 360000 MTPA 1.0 MMSCMD

The Fertilizer corporation Of India Ltd Talcher 330000 MTPA 1.0MMSCMD

TOTAL 1410000 MTPA 3.4 MMSCMD

Jharkhand

The Fertilizer corporation Of India Ltd Sindri 330000 MTPA 1.5MMSCMD

1MMSCMD of NG would produce 1380 MTPA

By calculation we formulate the above column of NG demands for the 3 states.

The total demand by fertilizer companies is 5.4 MMSCMD

DOMESTIC DEMAND

Consumption per household= 0.6 SCMD

(Census India, 2011)

COMMERCIAL DEMAND

A grace demand of 2.2 MMSCMD for commercial purposes is also given for the 3 states and is included in the total demand.

Total Demand requirement of natural gas in the 3 states (MMSCMD)

STATE TOTAL URBAN POPULATION IN THE STATE NG requirement

Orissa 488682 0.293MMSCMD

Jharkhand 768284 0.46MMSCMD

Chhattisgarh 497734 0.3 MMSCMD

Total 1.05 MMSCMD

Chhattisgarh Orissa Jharkhand

Fertilizer 0.5 3.4 1.5

City 0.3 0.3 0.46

Power 15.21 13 13.13

Thus a total demand of 50 MMSCMD is considered for the pipeline construction to cater to the 3 states

Commercial 0.49 1.7 0.01

Total 16.5 18.4 15.1

ANNEXUREII

(Oil and Gas Overview India, 2009)

ANNEXURE IV

LIST OF CROSSING ALONG THE PIPELINE ROUTE

List of crossings Sundergarh-Vijaipur Sundergarh to Paradip Sindri- Sundergarh Haldia- Sindri Total Major Roads and National Highways 10 10 10 15 45

Major Railway crossing 2 3 2 3 10

Major/ Minor Rivers 10 10 Nil 5 25

Minor Road 105 35 45 65 250

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