C&MD, GAIL (India) Limited
http://www.gailonline.com
So the World Oil price has finally impacted on us also. This was perhaps inevitable. It was just a matter of when and how much. However, this is not a discussion on the merits or demerits of the Oil price. But on how to minimize and mitigate the impact on the Hydrocarbon Sector and to highlight the need for reducing criticality of dependence on oil imports.
The recent trends in domestic Exploration and Production have shown a marked increased in Gas discovery over oil. Naturally, one priority which recommends itself is to therefore try and maximize the replacements of oil to the extent possible by Gas.
This is especially important when Economic progress combined with envisaged GDP growth rate has resulted in a gradual economic transformation in the industrial and service sectors in India. Raising prosperity in Urban India and increased economic activity is leading to a manifold increase in energy demand which has been increasing at an average rate of 4.5 % annually for the last ten years.
The Oil and Gas sector meets around 45% of this demand for energy. However, our self-sufficiency in meeting oil and gas demand is just about 25%. Imports of Crude Oil accounted for almost 30% of India’s import bill in 2006-07. Total consumption of Crude in India is around 146 Million Tonnes, 45% of which is produced as Petrol and Diesel out of which over 60% is consumed in the transport sector alone.
The transport sector is a major contributor to rising demand for petroleum fuels. There has been a rapid increase in the volume of motor vehicle traffic throughout the Country. From 1990-91 to 2001-02, the population of two-wheelers and Cars rose by about three times and two-and-half times respectively. Numbers of trucks have gone up by 1.5 times. Reflecting this trend, Petrol and Diesel consumption in the country grew by 7.5% and 6.7% respectively last year. In view of the rising crude prices in the global economy, it has become very difficult to affordably meet the rising demand for these fuels.
CNG: A Practical Alternative
A feasible alternative to petroleum fuels for use in vehicles is offered by Compressed Natural Gas (CNG). CNG is a source of mobile-energy which can be easily supplied on a mass scale at affordable prices. Due to its inherent clean properties, the substitution of Petrol & Diesel by CNG is advantageous in not only enhancing energy security but also in cutting harmful GHG emissions.
Vehicles running on CNG have found widespread acceptance worldwide. The average annual growth in natural gas vehicles (NGVs) since 2000 has been more than 30% worldwide while that in Asia has been more than 50% per annum. One in every four vehicles in Bangladesh and Pakistan is an NGV. Iran and Argentina are also fast catching up.
The technology to employ CNG on a large scale has matured and is widely commercialized. Natural gas vehicles are ready to operate with slight modifications in the engine and fuel storage tank and on the same basic principles as gasoline-powered vehicles. In fact, Delhi as a metropolitan city already has the world’s largest fleet of CNG driven buses in the world.
With judicial mandate and government’s support, GAIL initiated steps in 1992 to set up pilot projects for CNG system for the automobile industry in the cities of Delhi, Mumbai and Vadodara. This established CNG as a commercially and technically viable fuel for the transport sector. The two retail projects in Mumbai and Delhi incorporated way backin 1995 and 1998 respectively have been successful examples of a Government-Public-Private partnership model in the larger socio-economic interest.
CNG Corridors: Supply Security & Expansion in CNG Usage
Till date, however, City Gas Projects in the country have been conceptualized in a manner that they have remained confined to the limits of Municipal Boundary of few cities.
* In this article, Dr. Choubey makes a forceful plea for use of CNG for long distance and Highway traffic to reduce the impact of high and uncertain prices.
This has put a cap on the usage of CNG in the transport sector because of lack of distribution infrastructure and limited availability through dispensing centres. Due to this reason, it has prevented the plying of CNG vehicles on the highways connecting them if the distance is more than 150 KMs. To overcome this limitation and enhance the usage of CNG, it is important to create CNG Corridors along highways across the country to ensure availability of CNG to personal and commercial vehicles plying on them.
Such CNG Corridors will develop much needed user confidence in CNG’s reliability, availability and affordability.
From a social perspective, implementation of CNG Corridor project would not only lead to enhanced development of infrastructure along the corridors, but would also expand the gas market, improve the health and living conditions of the populations and create new economic and employment opportunities. Over a period of time, it could also spread into cities and towns as well as promote industries along such Corridors. CNG being a cheaper fuel might make the industry along the corridor more cost effective.
Such Corridors will not only boost passenger vehicles to switch over to CNG but also incentivize heavy vehicles such as LCVs, HCVs, Lorries etc towards CNG. In this way, it could make a major contribution towards reduction in vehicular pollution.
The recent trends in domestic Exploration and Production have shown a marked increased in Gas discovery over oil. Naturally, one priority which recommends itself is to therefore try and maximize the replacements of oil to the extent possible by Gas.
This is especially important when Economic progress combined with envisaged GDP growth rate has resulted in a gradual economic transformation in the industrial and service sectors in India. Raising prosperity in Urban India and increased economic activity is leading to a manifold increase in energy demand which has been increasing at an average rate of 4.5 % annually for the last ten years.
The Oil and Gas sector meets around 45% of this demand for energy. However, our self-sufficiency in meeting oil and gas demand is just about 25%. Imports of Crude Oil accounted for almost 30% of India’s import bill in 2006-07. Total consumption of Crude in India is around 146 Million Tonnes, 45% of which is produced as Petrol and Diesel out of which over 60% is consumed in the transport sector alone.
The transport sector is a major contributor to rising demand for petroleum fuels. There has been a rapid increase in the volume of motor vehicle traffic throughout the Country. From 1990-91 to 2001-02, the population of two-wheelers and Cars rose by about three times and two-and-half times respectively. Numbers of trucks have gone up by 1.5 times. Reflecting this trend, Petrol and Diesel consumption in the country grew by 7.5% and 6.7% respectively last year. In view of the rising crude prices in the global economy, it has become very difficult to affordably meet the rising demand for these fuels.
CNG: A Practical Alternative
A feasible alternative to petroleum fuels for use in vehicles is offered by Compressed Natural Gas (CNG). CNG is a source of mobile-energy which can be easily supplied on a mass scale at affordable prices. Due to its inherent clean properties, the substitution of Petrol & Diesel by CNG is advantageous in not only enhancing energy security but also in cutting harmful GHG emissions.
Vehicles running on CNG have found widespread acceptance worldwide. The average annual growth in natural gas vehicles (NGVs) since 2000 has been more than 30% worldwide while that in Asia has been more than 50% per annum. One in every four vehicles in Bangladesh and Pakistan is an NGV. Iran and Argentina are also fast catching up.
The technology to employ CNG on a large scale has matured and is widely commercialized. Natural gas vehicles are ready to operate with slight modifications in the engine and fuel storage tank and on the same basic principles as gasoline-powered vehicles. In fact, Delhi as a metropolitan city already has the world’s largest fleet of CNG driven buses in the world.
With judicial mandate and government’s support, GAIL initiated steps in 1992 to set up pilot projects for CNG system for the automobile industry in the cities of Delhi, Mumbai and Vadodara. This established CNG as a commercially and technically viable fuel for the transport sector. The two retail projects in Mumbai and Delhi incorporated way backin 1995 and 1998 respectively have been successful examples of a Government-Public-Private partnership model in the larger socio-economic interest.
CNG Corridors: Supply Security & Expansion in CNG Usage
Till date, however, City Gas Projects in the country have been conceptualized in a manner that they have remained confined to the limits of Municipal Boundary of few cities.
* In this article, Dr. Choubey makes a forceful plea for use of CNG for long distance and Highway traffic to reduce the impact of high and uncertain prices.
This has put a cap on the usage of CNG in the transport sector because of lack of distribution infrastructure and limited availability through dispensing centres. Due to this reason, it has prevented the plying of CNG vehicles on the highways connecting them if the distance is more than 150 KMs. To overcome this limitation and enhance the usage of CNG, it is important to create CNG Corridors along highways across the country to ensure availability of CNG to personal and commercial vehicles plying on them.
Such CNG Corridors will develop much needed user confidence in CNG’s reliability, availability and affordability.
From a social perspective, implementation of CNG Corridor project would not only lead to enhanced development of infrastructure along the corridors, but would also expand the gas market, improve the health and living conditions of the populations and create new economic and employment opportunities. Over a period of time, it could also spread into cities and towns as well as promote industries along such Corridors. CNG being a cheaper fuel might make the industry along the corridor more cost effective.
Such Corridors will not only boost passenger vehicles to switch over to CNG but also incentivize heavy vehicles such as LCVs, HCVs, Lorries etc towards CNG. In this way, it could make a major contribution towards reduction in vehicular pollution.
4 comments:
Good Post..
There isn't any better alternate than CNG. Though CNG is being widely accepted but still people here in India think twice opting for CNG.. reason: one has to travel long for refilling spots.. long ques.. efforts in both directions are required.. getting refill stations and educating people.
Interesting reading. So people thinking that ways. Keep up. Looking forward for more posts from you.
I have started my blog too. Do visit when you get chance http://hornriver.wordpress.com/2008/08/02/2009-is-the-year-for-natural-gas/
well it sure is a insight to the future but i m sure there will be a cost to be paid it will be grt if u can post smtg on the consequences of this alternate energy......looking forward to it...........
Nice post mate. I totally agree with what you saying.
Do visit http://www.gas-guide.org.uk/blog.html to know gas scenario in UK. I'll be writing more.
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