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Despite being an agricultural State, India doesn’t have adequate infrastructure to store perishable eatables. The idea of CNG corridor also gives birth to the possibility of setting up of Cold Storages along the Corridors. In fact CNG Corridors are a reality in foreign Countries and with suitable technology collaboration it can be taken forward in India as well.
Further, it can enable large scale conversion of vehicles to CNG leading to a huge savings in the petroleum import bill thereby saving precious Foreign exchange. Crude Oil prices have zipped past $135/bbl stoking fears of a global recession and stimulating high inflation. Under such a scenario, CNG Corridors can provide considerable relief and advantage to the policy makers in reducing to a considerable extent increased dependence on import of Crude and evolve suitable policy on this increasingly serious issue.
CNG corridors can enable large scale substitution of petrol and diesel run commercial and personal vehicles through an extensive distribution and dispensing infrastructure.
Such pipeline infrastructure of around 10,000 Kms is already available and needs slight modifications to enable CNG dispensing through CNG retail outlets.
Proposed development of Gas Grids and upcoming additional pipeline infrastructure across the country in the next few years could totally provide almost 20,000KM of trunk pipeline which will enable supply of CNG to a large number of vehicles plying particularly on the highways along/near the proposed pipeline routes. Presently, we are consuming around 9 MMTPA of Petrol and 24 MMTPA of Diesel in Transport sector. 100% replacement of the same by CNG would require about 100 MMSCMD of gas. Every 10 MMSCMD of gas as replacement in Transport sector would save 2.9 MMTPA of crude oil. It is estimated that even if 25% of the bus, truck, car and three-wheeler population on the roads is converted to CNG, a saving of almost Rs 20,000 Crores per annum can be expected. This will be lighter on the user’s pocket as well. Significantly, if entire fleet of bus, truck, car and 3-wheeler population is converted on CNG, the expected savings could offset the entire under-recoveries incurred by Oil Marketing Companies in 2007-08.
A mandated policy for replacement of Petrol and Diesel vehicles to CNG will not only save precious forex outgo but also prevent harmful CO2 emissions while earning Carbon Credits for the country. This way it is expected to enhance Energy Security by reducing import dependence on supplies of Crude Oil and its price volatility, thereby resulting into a major positive impact on the economy.
CNG Economics in transport Sector
Relative economics indicate that CNG Corridors can provide a great boost on supply/distribution side in the value chain while capitalising upon the economic advantages of CNG over competing vehicle fuels.
On an energy-equivalent basis, natural gas costs considerably lower than LPG, gasoline and diesel. At the prevailing prices of various fuels in Delhi, the economics of running a CNG vehicle vis-à-vis its operation on petrol / diesel in terms of Rupees/Kilometre expenditure is quite attractive. CNG offers average savings ranging from 0.91 Rs/Km for a three-wheeler to Rs 4.5/Km for Bus as compared to Petrol/Diesel operation. On an average, CNG is price-competitive to the extent of 30-35% than diesel and about 70% cheaper than Petrol. It is, therefore, more sustainable from the point of view of security of supply also.
Apart from direct cost benefit in running cost, CNG is a clean-burning fuel that reduces vehicle maintenance such as extended interval of oil change and standard spark plugs last longer. Yet another interesting advantage is that CNG cannot be siphoned-off from a vehicle, unlike liquid fuels where fuel theft is an on-going concern of commercial operators.
GHG Emissions and Local Air Pollution:
Unrestrained use of petroleum fuels in the transport sector also results in air-pollution and GHG emissions which are very harmful to the health of local population apart from causing climate warming. In large cities, the transport share of air pollution is upto 60 – 80% of toxic atmospheric emissions. Transport sector alone is responsible for more than 13% of the Greenhouse gas emissions worldwide.
Exhaust emissions from CNG vehicles are much lower than those from petrol/diesel powered vehicles. It is the cleanest burning alternative transportation fuel available today. Emissions of carbon monoxide with CNG are approximately 79% lower than Diesel and 96% lower than Petrol, NOX emissions are 67% and 79% lower than Petrol and Diesel respectively and there is more than 98% reduction in SOX emissions than both Petrol and Diesel. In addition to these reductions in pollutants, CNG also emits significantly lower amounts of greenhouse gases and toxins than do petrol vehicles. Reduction of pollution level in the city of Delhi (and Mumbai) has been an eye opener once CNG in transport sector was introduced.
Safety:
Natural gas is one of the safest transport fuels available. There are two fundamental reasons for a CNG vehicle’s safety record: structural integrity of the CNG vehicle fuel system and physical qualities of natural gas as a fuel. CNG is safe, lighter than air and does not cloud on the ground like liquid fuels. Unlike gasoline, it dissipates into the atmosphere in the event of an accident. Petrol pools/accumulates on the ground which creates a fire hazard.
Consensus of Stakeholders and Mandate by Authorities
Involvement and participation of the stakeholders plays a major role for the successful implementation of any project. A partnership based model between the State Governments, Public and Private enterprises is essential for growing CNG usage through CNG Corridors in India. The role of vehicle and CNG kit manufacturers is of utmost importance in the implementation of CNG project.
We have a successful example right in Delhi. The dedicated effort of bus/three-wheeler manufacturers to supply CNG vehicles to replace entire public transport fleet in Delhi in the short time span and commitment displayed by all stakeholders for the project implementation earned the Clean City Partnership award from US Energy department for Delhi in year 2003.
With promising upstream scenario and upcoming natural gas pipeline grid in the country, CNG Corridors can play a key role in meeting the growing needs of transport sector while providing significant reduction in import of crude and of course health benefits through reduced pollution.
As this is a new approach and CNG is different from conventional fuels, it would require thrust from the stakeholders and public awareness at large to make it popular and user friendly. A marshalling mandate from the authorities and consensus of all stakeholders would be key to success of CNG Corridors on a large scale as witnessed during the implementation of the Delhi CNG project.
Further, it can enable large scale conversion of vehicles to CNG leading to a huge savings in the petroleum import bill thereby saving precious Foreign exchange. Crude Oil prices have zipped past $135/bbl stoking fears of a global recession and stimulating high inflation. Under such a scenario, CNG Corridors can provide considerable relief and advantage to the policy makers in reducing to a considerable extent increased dependence on import of Crude and evolve suitable policy on this increasingly serious issue.
CNG corridors can enable large scale substitution of petrol and diesel run commercial and personal vehicles through an extensive distribution and dispensing infrastructure.
Such pipeline infrastructure of around 10,000 Kms is already available and needs slight modifications to enable CNG dispensing through CNG retail outlets.
Proposed development of Gas Grids and upcoming additional pipeline infrastructure across the country in the next few years could totally provide almost 20,000KM of trunk pipeline which will enable supply of CNG to a large number of vehicles plying particularly on the highways along/near the proposed pipeline routes. Presently, we are consuming around 9 MMTPA of Petrol and 24 MMTPA of Diesel in Transport sector. 100% replacement of the same by CNG would require about 100 MMSCMD of gas. Every 10 MMSCMD of gas as replacement in Transport sector would save 2.9 MMTPA of crude oil. It is estimated that even if 25% of the bus, truck, car and three-wheeler population on the roads is converted to CNG, a saving of almost Rs 20,000 Crores per annum can be expected. This will be lighter on the user’s pocket as well. Significantly, if entire fleet of bus, truck, car and 3-wheeler population is converted on CNG, the expected savings could offset the entire under-recoveries incurred by Oil Marketing Companies in 2007-08.
A mandated policy for replacement of Petrol and Diesel vehicles to CNG will not only save precious forex outgo but also prevent harmful CO2 emissions while earning Carbon Credits for the country. This way it is expected to enhance Energy Security by reducing import dependence on supplies of Crude Oil and its price volatility, thereby resulting into a major positive impact on the economy.
CNG Economics in transport Sector
Relative economics indicate that CNG Corridors can provide a great boost on supply/distribution side in the value chain while capitalising upon the economic advantages of CNG over competing vehicle fuels.
On an energy-equivalent basis, natural gas costs considerably lower than LPG, gasoline and diesel. At the prevailing prices of various fuels in Delhi, the economics of running a CNG vehicle vis-à-vis its operation on petrol / diesel in terms of Rupees/Kilometre expenditure is quite attractive. CNG offers average savings ranging from 0.91 Rs/Km for a three-wheeler to Rs 4.5/Km for Bus as compared to Petrol/Diesel operation. On an average, CNG is price-competitive to the extent of 30-35% than diesel and about 70% cheaper than Petrol. It is, therefore, more sustainable from the point of view of security of supply also.
Apart from direct cost benefit in running cost, CNG is a clean-burning fuel that reduces vehicle maintenance such as extended interval of oil change and standard spark plugs last longer. Yet another interesting advantage is that CNG cannot be siphoned-off from a vehicle, unlike liquid fuels where fuel theft is an on-going concern of commercial operators.
GHG Emissions and Local Air Pollution:
Unrestrained use of petroleum fuels in the transport sector also results in air-pollution and GHG emissions which are very harmful to the health of local population apart from causing climate warming. In large cities, the transport share of air pollution is upto 60 – 80% of toxic atmospheric emissions. Transport sector alone is responsible for more than 13% of the Greenhouse gas emissions worldwide.
Exhaust emissions from CNG vehicles are much lower than those from petrol/diesel powered vehicles. It is the cleanest burning alternative transportation fuel available today. Emissions of carbon monoxide with CNG are approximately 79% lower than Diesel and 96% lower than Petrol, NOX emissions are 67% and 79% lower than Petrol and Diesel respectively and there is more than 98% reduction in SOX emissions than both Petrol and Diesel. In addition to these reductions in pollutants, CNG also emits significantly lower amounts of greenhouse gases and toxins than do petrol vehicles. Reduction of pollution level in the city of Delhi (and Mumbai) has been an eye opener once CNG in transport sector was introduced.
Safety:
Natural gas is one of the safest transport fuels available. There are two fundamental reasons for a CNG vehicle’s safety record: structural integrity of the CNG vehicle fuel system and physical qualities of natural gas as a fuel. CNG is safe, lighter than air and does not cloud on the ground like liquid fuels. Unlike gasoline, it dissipates into the atmosphere in the event of an accident. Petrol pools/accumulates on the ground which creates a fire hazard.
Consensus of Stakeholders and Mandate by Authorities
Involvement and participation of the stakeholders plays a major role for the successful implementation of any project. A partnership based model between the State Governments, Public and Private enterprises is essential for growing CNG usage through CNG Corridors in India. The role of vehicle and CNG kit manufacturers is of utmost importance in the implementation of CNG project.
We have a successful example right in Delhi. The dedicated effort of bus/three-wheeler manufacturers to supply CNG vehicles to replace entire public transport fleet in Delhi in the short time span and commitment displayed by all stakeholders for the project implementation earned the Clean City Partnership award from US Energy department for Delhi in year 2003.
With promising upstream scenario and upcoming natural gas pipeline grid in the country, CNG Corridors can play a key role in meeting the growing needs of transport sector while providing significant reduction in import of crude and of course health benefits through reduced pollution.
As this is a new approach and CNG is different from conventional fuels, it would require thrust from the stakeholders and public awareness at large to make it popular and user friendly. A marshalling mandate from the authorities and consensus of all stakeholders would be key to success of CNG Corridors on a large scale as witnessed during the implementation of the Delhi CNG project.
