Presentation on theme: "GSPC GAS COMPANY LIMITED"— Presentation transcript:
1 GSPC GAS COMPANY LIMITED Assocham -11th Energy Summit Indian Oil & Gas SectorCity Gas distribution - Opportunities & ChallengesPPG SARMA, CEOGSPC GAS COMPANY LIMITED17 th Oct 2008
2 Natural Gas Supply & Demand Outlook MMSCMD SUPPLYDEMANDDomestic Gas8574New local sources120R-LNG3260Total (MMSCMD)117179254288
3 TRANSMISSION INFRASTRUCTURE Under Operation:GAIL: HVJ pipeline, Dahej-Vijapur pipeline, Dahej-Uran pipeline.GSPL: intra-Gujarat transmission networkUnder construction: ( Completion in 2008)Reliance: 48” East-West pipelineGSPL’s 30 “ Bharuch to Jamnagar pipelineUnder Planning / Approvals:Kakinada to Tamilnadu,Kakinada to West BengalDabhol to Bangalore
4 City Gas Infrastructure Limited development of CGD networksCGD’s in operation :- In New Delhi (M/s Indraprastha Gas Ltd)- Surat, Ankleshwar, Bharuch in Gujarat (M/s Gujarat Gas Co.)- Mumbai, Maharastra (M./s Mahanagar Gas Limited)- Upper Assam (M/s Assam Gas Company Ltd.);- Vadodara, Gujarat (M/s Vadodara Municipal Corporation); etc.New players like M/s Adani Energy Ltd., M/s Sabarmati Gas Limited & M/s GSPC Gas Company Ltd., and GAIL& OMC JV’sDaily Sales Volumes: 8.5 MMSCMD +The combined distribution network length of 8000 Kms.Domestic customer base 600,000 +CNG customer base is to the tune of 400,000.( 5th in the world)CNG Stations: 400+
5 KEY TRENDS Acceptance of NG as a viable alternative to liquid fuels NG share in the energy basket set to increase (Presently about 8.5%)CGD players have the market relying heavily on APM gas and support of judiciaryCouple of CGD players relying entirely on market driven gas pricing and still succeededMarket driven prices and high R-LNG prices finding buyers in the marketCGD sector likely to get some priority in the soon to be announced “ Gas Utilization Policy”
6 OPPORTUNITIES Accelerated development of transmission networks Improving Gas supply position in Indian markets due to local new finds.Accelerated development of transmission networksThe enactment of PNGRB ACT 2006 is a welcome sign to look at authorizing the entities to develop city gas networksStandardization in terms of quality, safety & standards of services.Huge Potential for employment generationIndustry growth ,development incl. equipment suppliers ,vendors , contractors
7 ISSUES & CHALLENGES CGD Industry: CGD Operator: Gas sourcing: To compete with bulk consumers power /FertilizerAvailability of Trained & experienced manpowerAbsence of formal certification and licensing of contractorsLow awareness in the general public about Piped GasCGD Operator:Ensuring multiple gas sourcing options for flexibility in supplies / redundancyEnsuring proper safety distance from the building & premises at all locations in congested cities / towns.Contd….
8 Awareness creation amongst the customers/ general public Contd…Effective coordination with local municipal authorities & utilitiesAwareness creation amongst the customers/ general publicInexperienced contractors/ Unauthorized extension of pipelinesEffective monitoring of emergency control room activities to quickly address any potential damages to the networks & thereby reducing its potential side effectsUse of non standard equipments, cylinders (CNG) by customers
9 Challenges for PNGR Board Ensure proper facilitation for market creation stage leading to market take off stage and further to market maturity stageClear cut policy framework & accelerated approval process for pipeline infrastructure creation .To ensure formulation of codes/ standards and making use of these standards mandatory for all Pipeline/CGD players.Put in place a level playing field & robust monitoring mechanism post authorization of entities
10 ROLE for Regional Boards Adopt a proactive role in coordination with municipal authorities & all utilitiesContinuous awareness creation amongst the customers/ general public.Facilitate setting up Technical institutes/collages for courses in “gas engineering “, training institutes offering certified courses.Develop framework for contractor certificationIssue of licenses to local contractors and their manpower for undertaking the gas installation related works in the customer premises to ensure consistency of output.
11 Challenges for Local Municipal Corporations Assessment of Operating company’s Emergency preparedness ( Mock drills offsite/onsite etc)Oversee safety aspects for operating city gas networks.Properly planned utility corridorsStrict enforcement of safe distances for networks from the populationSpeedy permission/ approval process networks /CNG stations.RTO’s to enforce surprise checks to identify CNG leakages on the vehicles on roads.
12 CUSTOMER EXPECTATIONS Comparable/affordable gas prices vis a vis liquid fuelsStability of Gas PricesUninterrupted gas supplies.Fast response times in case of emergenciesQuality of service
13 NEW PRODUCT TECHNOLOGIES/TRENDS De-centralized power generationDe- centralized energy consumption.co-generation,combined heat& Power (CHP),combined cooling ,heat& Power (CCHP)Focus on Maximum use of available Heat of Gas molecules
14 GSPC Group Presence across entire Value chain Turnover > Rs CrUpstreamDownstreamGSPCGSPLGSPC Gas/SGLGSEGE&PTradingTransportationMarketingDistributionPowerPlans for Expansion of downstream interests into other states
15 GSPC Acquiring exploration blocks Only State PSU in Oil & Gas E&PDominant player in E&P sectorAcquiring exploration blocksStrategic alliances for sourcing of gasInterests in various National & International exploratory blocksAndhra Pradesh, Gujarat, Mumbai, Assam, Tamil NaduAustralia, Egypt and YemenSuccessful bidder in NELP II, III, IV and VVarious discoveries made so far includingOne of India’s largest gas discovery in KG BasinOthers : PK – 2, Tarapur, Sanand East Block
16 Pure Transmission Play GSPL GAS GRID – A growth storyPresence in 12 Districts.Pure Transmission PlayHandles 20 MMSCMD
18 FUTURE OUTLOOKMajor transmission projects in execution /on drawing board stageHuge supply augmentation through KG basin gas and RLNG terminals,More & more CGD networks through existing as well as new players
19 CONCLUSIONIndian market is a key opportunity for players interested in distribution.Issues and challenges regards to safe operation needs to be tackled.Huge employment /Ancillary development opportunityThere is huge business space to accommodate multiple playersGSPC Group would continue to play a very active role in the entire value chain in Gujarat as well as other states in India
20 THANK YOU VERY MUCH FOR YOUR KIND ATTENTION. Contact Info:e mail:Mobile no: