Pre-Feasibility Study Report

CITY GAS DISTRIBUTION – GUWAHATI
PRE-FEASIBILITY STUDY REPORT-APRIL 2017
EXECUTIVE SUMMARY
Sufficient midstream natural gas assets, such as gathering systems, processing plants,
transmission pipelines, storage fields, and liquefied natural gas (LNG) import terminals, are
crucial for an efficient natural gas market. Insufficient natural gas infrastructure can lead to
price volatility, reduced economic growth, and reduced delivery of natural gas to consumers
who value it most.
The objective of this report is to provide a long term planning document that can form a
basis upon which DNP Limited can engage a policy on the issues that are important for
commissioning of a city gas distribution system based on mobile pipeline within a short time
as an alternative to a conventional pipeline.
The report contains the established set of indicators and corresponding reference values for
the investment costs for the projects for city gas distribution infrastructure.
Natural gas is the preferred fuel due to its cost competitiveness and environmental
advantages. Distribution of natural gas to domestic consumers is expected to subsequently
reduce Government’s subsidy on LPG. ONGC and OIL are the two major natural gas reserves
with potential of 12 MMSCMD. City gas Distribution (CGD) is one of the target markets for
this gas.
CGD business has witnessed rapid growth in India recently. India’s decadal energy
consumption growth rate in 2015 has outstripped that of China for the first time in 15 years,
indicative of the anticipated ascendency of India as an economic heavyweight in times to
come.
The report has relied extensively on secondary sources of data and the study covers the
current scenario of Oil and Gas industry with a brief introduction to the sources and
statistical figure of Natural Gas. It also covers the CGD structure in detail and provides an
easy access of CGD network processing.
The study encapsulate the rationale and current status of proposed Badulipara to Guwahati
mobile pipeline system of DNP Limited and carry out SWOT analysis of the organization
regarding Guwahati City Gas Distribution network establishment.
The share of natural gas in the energy mix of India is expected to increase to 20% in 2025 as
compared to 11% in 2010.In recent years the demand for natural gas in India has increased
significantly due to its higher availability, development of transmission and distribution
infrastructure, the savings from the usage of natural gas in place of alternate fuels, the
environment friendly characteristics of natural gas and the overall favourable economics of
supplying gas at reasonable prices to end consumers. Power and fertilizers remain the two
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biggest contributors to natural gas demand in India and continue to account for more than
55% of gas consumption. In Hydrocarbon Vision 2030 as projected by Ministry of Petroleum
and Natural Gas, it was proposed that the main cities of the entire Northeast India will be
connected with natural gas pipeline and the Ministry of Petroleum and Natural Gas has
entrusted DNP Limited to carry forward the construction and commissioning works of the
Numaligarh-Guwahati pipeline.
The study proposes few suggestions regarding the establishment and marketing of Natural
Gas and comes out with a conclusion about the pros and cons of Guwahati City Gas
distribution on the basis of demand figure and some external factors.
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CONTENTS
EXECUTIVE SUMMARY
INTRODUCTION
BACKGROUND AND RELEVANT CONDITIONS
DEMAND AND SUPPLY ANALYSIS
DESIGN OF INTEGRATED GAS DISTRIBUTION SYSTEM
OUTLINE OF THE PROJECT
FINANCIAL AND ECONOMIC ANALYSIS
CONCLUSION AND RECOMMENDATIONS
APPENDICES
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TABLE OF CONTENTS
Contents Page No
Chapter 1 Introduction 1
1.1 Objective 1
2.2 Methodology 2
1.3 Structure of the report 2
Chapter 2 Background and relevant conditions 3

2.1 Application of natural gas 4
2.2 Sources and supply 4
2.3 Advantages of using natural gas 5
2.4 City profile 5
2.5 Demography 6
2.6 Composition and properties 8
Chapter 3 Demand and supply analysis 9

3.1 Demand side projections 9
3.2 Supply side projections 9
3.3 Demand and supply gap 26
3.4 Price of NG in industries of Assam 27
Chapter 4 Design of integrated gas distribution system 28

4.1 Procedures for conceptual design 28
4.2 Design of the proposed CGD 29
Chapter 5 Outline of the project scheme 34

5.1 Project scheme assumption 34
5.2 Implementation schedule 35
5.3 Capital requirement 36
5.4 Project cost 36
5.5 Project cost financing plan/cash flows 37
5.6 Operating plan and sales volume 37
Chapter 6 SWOT analysis 39
Chapter 7 Financial and economic analysis 40

7.1 Financial internal rate of return 40
7.2 Economic internal rate of return 41
Chapter 8 Conclusion and recommendation 42

8.1 Conclusions 42
8.2 Recommendations 43
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LIST OF TABLES
Tables Page No
Table 1 Population of Guwahati city 7
Table 2 Composition of natural gas 8
Table 3 Properties of natural gas 8
Table 4 Current status of CGD network in India 12
Table 5 Major producers of natural gas in Assam 12
Table 6 Ward wise population of Guwahati city 15
Table 7 Domestic demand of natural gas in Guwahati 16
Table 8 Year wise commercial demand with conversion factor 18
Table 9 Commercial demand of natural gas in Guwahati 18
Table 10 Average fuel consumption of automotive sector 19
Table 11 CNG demand in Guwahati 21
Table12 Total natural gas demand in Assam 21
Table 13 Production of OIL and NG in Assam 22
Table 14 HOEC exploration share 26
Table 15 Demand and supply gap 26
Table 16 Comparative project cost statement 37
Table 17 Cash flow assumption 40
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LIST OF FIGURES
Figures Page No
Figure 1 Schematic geological natural gas resources 3
Figure 2 Proposed route of IPI and TAPI pipeline 5
Figure 3 Map of Guwahati city 6
Figure 4 Source comparison of fuel in fertilizer industry 9
Figure 5 Sources of electricity generation in India 10
Figure 6 City Gas Distribution across India 11
Figure 7 Map of Guwahati city with ward 15
Figure 8 Area of exploration by HOEC 25
Figure 9 CGD value chain 29
Figure 10 Proposed CGD system of the project 30
Figure 11 Badulipara-Guwahati route 31
Figure 12 Meter signalling and control system 31
Figure 13 Pressure signal through GPRS/SMS technology 32
Figure 14 Schematic image of system integration 33
Figure 15 CGD benefit impact 42
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ABBREVIATIONS
AGCL Assam Gas Company Limited
ASTC Assam State Transport Corporation
CAGR Compound Annual Growth Rate
CGD City Gas Distribution
CNG Compressed Natural Gas
GAIL Gas Authority of India Limited
GMA Guwahati Metropolitan Area
GMDA Guwahati Metropolitan Development Authority
HOEC Hindustan Oil Exploration Company Limited
IPI Iran Pakistan India Pipeline
JHBDPL Jagadishpur-Haldia and Bokaro-Dharma natural gas pipeline
LPG Liquefied Petroleum Gas
M.F.O Marine Fuel Oil
MMSCMD Million Metric Standard Cubic Meter
NG Natural Gas
NGHP Natural Gas Hydrates Programme
OIL Oil India Limited
ONGC Oil and Natural Gas Corporation
PNG Piped Natural Gas
SCM Standard Cubic Meter
SWOT Strength Weakness Opportunity Threat
TAPI Turkmenistan-Afghanistan-Pakistan-India Pipeline
VAT Value Added Tax
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ENERGY CONVERSION TABLE

__________________________________________________________________________________
Energy Calorific Value Calorific Value in kcal Calorific Value
in MMBTU as Natural Gas
__________________________________________________________________________________
LPG 47.23 MMBTU/Ton 11,902 kcal/kg 1kg=1.2051 Nm 3

Kerosene 43.97 MMBTU/Ton 8,864 kcal/litre 1litre=0.8975 Nm3
(S.G. 0.8)
Diesel 43.33 MMBTU/Ton 9,281 kcal/litre 1litre=0.9398Nm3

(S.G. 0.85)
M.F.O. 41.03 MMBTU/Ton 9,823 kcal/litre 1litre=0.9946 Nm 3

(S.G. 0.95)
Coal
Bituminous 11,000 BTU/lb 6,111 kcal/kg 1kg=0.6188 Nm3
Wood 3,000 kcal/kg 1kg=0.3038 Nm3
Charcoal 7,000 kcal/kg 1kg=0.7088 Nm3
Electricity 860 kcal/kwh 1kg=0.0871
Natural Gas 1,050 BTU/SCF 9,876 kcal/Nm3 _

__________________________________________________________________________________
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1. INTRODUCTION
Natural Gas is emerging as the preferred fuel of the future in view of its being an environment
friendly, economically attractive fuel and also desirable as feedstock for petrochemicals, power
sector and domestic purposes. The demand for the natural gas has sharply increased in the last two
decades at the global level. In India, natural gas was first discovered for the west coast in 1970s, and
today it constitutes for 10% of India’s total energy consumption. Over the last decade it has gained
importance as a source for energy and its share is slated to increase to about 25% for the total
energy basket by 2025-2030.
Natural gas pipeline network are generally broken into three distinct systems;
 Gathering Systems carry natural gas from individual oils for bulk processing at a treatment
facility,
 Transmission systems carry the processed natural gas, often over long distances, from the
producing region to local distribution systems around the country,
 Local distribution systems deliver natural gas into our homes, businesses and power plants.
This document is based on feasibility study carried out by secondary survey and presents a proposal
and philosophy of setting up a city gas distribution network in the city of Guwahati in Assam. This
document is designed to help estimating the cost factors associated with establishing a natural gas
gathering system at Guwahati to store natural gas and setup a pipeline network in Guwahati for
domestic gas distribution as well as commercial uses in future.
1.1 OBJECTIVE
The broad objective of the exercise is as follows:
1. Future market demand assessment for the subsequent enhancement of natural gas market
in the state of the Assam amongst the segment
 Domestic
 Commercial
 Automotive
2. To propose initiatives to ensure full capacity utilization of the gas production in upper Assam
and to tap the total domestic, automotive and commercial usage potential in the state.
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3. Design and commissioning of a mobile pipeline system to transport natural gas from
Numaligarh to Guwahati and set up a city gas distribution network in Guwahati for domestic
and commercial consumers.
1.2 METHODOLOGY
The study was a desk based research. Information on various aspects related to demand for Natural
Gas was collected through various reliable sources. Data regarding the supply potential is collected
via various journals, reports from the respective gas producers. Though due to non disclosure policy
of the organization not much of the information was made available.
1.3 STRUCTURE OF THE REPORT
Chapter 2 introduces Natural Gas (NG) as a fuel of future in terms of its available resources and
benefits associated with it.
Chapter 3 gives a detailed overview of demand and supply of Natural Gas across Assam.
Chapter 4 gives an overview of the city gas distribution network with appropriate system to be
used.
Chapter 5 briefly introduces outline of the project system and its associated working
methodology.
Chapter 6 covers the financial and economic feasibility of the project.
Chapter 7 comes out with conclusion and key learning’s from the study.
The first annexure is about the mobile pipeline system.
The second annexure is about the wireless physical parameter monitoring system.
The third annexure is about the communication of the meter systems.
The last annexure is about the CMMS software system.

2. BACKGROUND AND RELEVANT CONDITIONS

Natural gas is a mixture of hydrocarbon gases and is a colorless, odorless fuel, environment friendly
energy source, which burns cleaner than many other traditional fossil fuels. It is highly flammable
hydrocarbon gas chiefly consisting methane CH4 and on the basis of the concentration of methane it
is also termed as Dry and Wet gas. In addition to it natural gas may also include other gases such as
oxygen, nitrogen, hydrogen, ethane, ethylene, propane and even some helium. As far as its
occurrence is concerned it occurs deep below the surface of the earth in three principal forms-
associated gas, non-associated gas and gas condensate. Associated gas is found in crude oil
reservoirs, either dissolved in the crude oil or in conjunction with the crude oil deposits while Non-
Associated gas occurs in reservoirs separate from crude oil wells. It is also termed as dry gas. Gas
Condensate is the hydrocarbon liquid dissolved in saturated natural gas that comes out of solution
when pressure drops below dew point. Natural gas is used mainly in the industrial, commercial,
transportation, and domestic sectors out of which power and fertilizer sector consume maximum
amount of natural gas in India.
Figure 1: Schematic Geological Natural Gas Resources
Natural Gas occupies about 8.5% of the total energy basket of the country which is much lesser than
the world average of 24%. However, the scenario is fast changing, largely because of the expected
increase in the availability of natural gas in the country. The structure of primary energy
consumption in India shows that coal (51%) still dominates as the major energy source. Hydrocarbon
(45%) is the next available energy provider of the nation. Natural gas is fast emerging as an
alternative; it meets around 9% of the primary energy needs. Considering the global trend of shift in

energy axis from oil to gas, the share of gas in consumption pattern, in the Indian context is
expected to increase gradually in the days to come.
2.1 APPLICATIONS OF NATURAL GAS
Natural gas is used by the end user in different ways as per need. The various ways or applications of
natural gas in industry as well as household needs are:
1. Natural gas as a fuel in electricity generation by utilities;

2. Natural gas as a clean fuel in cooking and household needs in the form of Piped
Natural Gas (PNG);
3. Natural gas as a fuel for the boilers, furnaces, baking ovens and air conditioning in
Industries;
4. Natural gas as a motor fuel in the form of Compressed Natural Gas (CNG) and;
5. As a petrochemical and fertilizer industry feedstock.
2.2 SOURCES AND SUPPLY
Natural gas in India is available through different channels. The two conventional ways of sourcing
natural gas are:
1. Exploration and production activities in India itself.
2. LNG supplies from different parts of world.
In addition to the above mentioned sources and supply modes some other means are also followed
by the Govt. of India in an order to ensure future energy securities which are:
1. Coal Bed Methane to ensure the availability of gas through large coal reserves available in
the country itself.
2. Transnational NG pipelines (e.g. Turkmenistan-Afghanistan-Pakistan-India pipeline, Iran-
Pakistan-India pipeline etc.)
3. Natural Gas Hydrates Programme (NGHP) is employed in order to evaluate NG hydrate
resources and the possible ways to exploit them.
4. Underground Coal Gasification Programme.

Figure 2: Proposed route of IPI and TAPI pipeline
2.3 ADVANTAGES OF USING NATURAL GAS
Natural Gas offers multitude of advantages pertaining to the environment as well as the energy
efficiency. Some major advantages or benefits that it offers are:
1. It is a clean, efficient, safe and environment friendly fuel hence offer more efficiency
without sacrificing the environmental concern;
2. It does not required storage yard as the gas is directly delivered to the pipeline hence offer
less chances of any mishap due to storage leakage and spillage of storage tanks;
3. There is no risk of breakdown in fuel supply due to order processing delays to replenish the
fuel inventory;
4. It minimizes the manpower and mechanical power required for handling the fuel; and
5. In terms of the current global oil scarcity it offers the advantage of being the most efficient
and profitable alternative fuel.
2.4 CITY PROFILE

Guwahati (Pragjyotishpura in ancient Assam, Guwahati in the modern era) is the largest city of
Assam and North eastern India, a major riverine port city and one of the fastest growing cities in
India, situated on the south bank of the Brahmaputra River. Guwahati lies between the banks of the
Brahmaputra River and the foot hills of the Shillong Plateau, with LGB international airport to the

west and the town of Narengi to the east. It is gradually being expanded as North Guwahati to the
northern bank of the Brahmaputra.
Figure 3: Map of Guwahati City
As per provincial report of census India, population of Guwahati in 2011 is 957,352; of which male
and female are 495,362 and 461,990 respectively. The city of Guwahati has a total household of
184,454.
2.5 DEMOGRAPHY
Guwahati is the capital city of Assam, which is among the states with low level of urbanisation. 14.1
per cent of the state’s population was living in urban areas in 2011, which is an increase from 12.9
per cent in 2001 and 11.1 per cent in 1991. The urbanisation rate (rate of urban population growth)
for Assam for the decade of 1991-2001 was 3.3 per cent p.a, which was higher than that of India (of
2.8 per cent p.a.). But, in the last decade, that is, 2001-11, the urbanisation rate slowed down to 2.5
per cent p.a., which is lower than that of India (of 2.8 per cent p.a.). While there is marginal increase
in the urbanisation rate for India post-2001, coinciding with high economic growth rate in India that

for Assam has slowed down indicating low level of economic growth in the state. Guwahati, meaning
“areca nut marketplace” in Assamese, was known by the name of “Gauhati” during the British
period. It is situated along the Brahmaputra River and is bound on the southern side by the foothills
of the Shillong plateau. It is the capital city of Assam and gateway to North-East India. It is also the
business hub and largest city of Assam and the North-East. According to the 2011 census, Guwahati
municipal area and Guwahati Metropolitan Area (GMA) had a population of 963,429 and 968,549,
respectively (Table 1). The municipal area is under the jurisdiction of the Guwahati Municipal
Corporation (GMC) whose limits were last extended in 1991 to cover an area of 216.79 sq.km. The
GMA covers about 262 sq.km and is under the jurisdiction of the Guwahati Metropolitan
Development Authority (GMDA).
Year GMCA GMA excluding GMCA GMA

Population CAGR (%) Population CAGR (%) Population CAGR (%)
1951 43,615 - 53,774 - 97,389 -
1961 1,00,707 8.7 98,775 6.3 1,99,482 7.4
1971 1,23,783 2.1 1,68,436 5.5 2,93,219 3.9
1981* 2,68,945 8.1 1,02,351 -4.9 4,35,280 4
1991 5,84,342 8.1 61,827 -4.9 6,46,169 4
2001 8,09,895 3.3 80,878 2.7 8,90,773 3.3
2011 9,63,429 1.8 85,998 0.6 9,68,549 0.8
* The Census 1981 was not conducted in Assam. The population figures have been extrapolated on
the basis of the 1971-1991 Compound Annual Growth Rate (CAGR).
Table 1: Population of Guwahati City
Guwahati is the hub of economic activity in the entire north east region. The establishment of
Guwahati refinery in 1962 marked the beginning of industrialization in the city. The construction of
the bridge over river Brahmaputra at Saraighat and the shifting of the capital from Shillong to
Guwahati in 1972 made it into one of the most important cities in the north east

2.6 COMPOSITION AND PROPERTIES
Naturally gas is composed primarily of Methane with minor quantities of Ethane, Propane,
Carbon Dioxide, Nitrogen and traces of higher Hydrocarbons and Oxygen. It is a vital
component of the world’s supply of energy.
It is one of the cleanest, safest and most useful of all energy sources. It is a non poisonous,
nontoxic, colourless, tasteless, combustible source of energy.
It has no odour of its own; however, for City Gas Distribution Ethyl Mercaptan is added for
distinct colour so that man can identify the leak if any nearby and report authorities for
necessary corrective option.
Composition of Natural Gas
Composition of Natural Chemical Formulae Percentage

Gas Component
Methane CH4 70%-90%
Ethane C2H6 0%-20%
Propane C3H8
Butane C4H10
Carbon Dioxide C02 0%-8%
Oxygen 02 0%-0.2%
Oxygen 02 0%-0.2%
Nitrogen N2 0%-5%
Hydrogen Sulphide H2S 0%-5%
Rare Gases He, Ne, Ar, Xe Traces
Properties of Natural Gas
Specific Gravity (Air 1.0) 0.56 to 0.67

Boiling Point -161 °C
Melting Point -182 °C
Flash Point -161 °C
Auto Ignition Temperature 560 °C
Flammable Limit 5% to 15% by volume in air
Critical Pressure 45.99 Bar
Critical Temperature -82.59 °C

3. DEMAND AND SUPPLY ANALYSIS

3.1 DEMAND SIDE PROJECTIONS
4 main industry segments acting as demand drivers of natural gas as a clean fuel.
1. Fertilizer as a demand driver

2. LPG and petrochemical as demand driver
3. Power as driver
4. City gas distribution as demand driver
1. FERTILIZER AS DEMAND DRIVER

Natural gas is the most efficient and economical feedstock for urea in the fertilizer sector which is
mainly in public, private, joint and co-operative sectors. Shortage of NG is leading the producers of
urea to use Naphtha as an alternative fuel, although Naphtha is a costly option. Even the existing gas
based fertilizer plants shifting towards the use of naphtha. The expansion projects implemented
recently have dual feed arrangements, both for natural gas and naphtha. This is because there was
an inadequate or suboptimal use of the infrastructure of gas based units which are forced to operate
below capacity. Government burdened with subsidy on manufacture as well as imports. Nearly 47
per cent of the total existing urea capacity is through natural gas while naphtha and fuel oil account
for 32 per cent and 11 per cent respectively.
SOURCE OF FUEL IN FERTILIZER INDUSTRY
NAPTHA
36%
NATURAL
GAS
52%
FUEL OIL
12%
Figure 4: Source comparison of fuel of Fertilizer industry
2. LPG AND PETROCHEMICALS AS DEMAND DRIVER
The Petrochemicals sector is expected to ride a wave of new capacity additions and is expected to
see significant growth, one of the fastest growing sectors of Indian economy - growing at 13%,
Petrochemical industry is highly capital and technology intensive; it is highly organized industry with

handful of players. The industry is oligopolistic in nature with two main players dominating the
sector in Assam noticeably Brahmaputra Cracker and Polymer Limited (BCPL), Assam Petrochemicals
Ltd (APL).
Even in the midst of an economic downturn, Assam remains a growth market for basic
petrochemicals. Assam is net short of ethylene and propylene for the derivative plants that are in
place, and the state is a net importer of downstream products like polyethylene, polypropylene, and
vinyl. To promote the development of more petrochemical capacity, the government has approved
the establishment of larger special economic zones for which they will provide the basic
infrastructure; and are dedicating some of these zones to basic petrochemical production. In
addition, the government has cleared the way for 100% foreign ownership of the new plants. Major
feedstock for the petrochemical industry is Naphtha and natural gas. .
Petrochemicals have clearly become a global market with production and consumption based on
regional comparative advantages. India’s comparative advantage is as a consumer, not a producer.
If the new capacity gets built, it will have to be price protected which will eventually drain India’s
comparative advantage in exports.
3. POWER AS DEMAND DRIVER
Coal is the predominant source of power generation in India and is expected to maintain its
dominant position (more than half) in the Indian electricity mix. The share of natural gas does
increase from 11% to 18% of the electricity market – much of this fuelled by the new gas supplies.
The general trend depicts an increase in gas demand for power till 2020 and downturn post 2020.
The situation may be different in a pessimistic approach when we change the supply side by
introducing the imported pipeline gas. Pipeline gas helps in keeping gas price lower with respect to
imported LNG by delivering gas directly into Northern parts of India which are far away from coast
(LNG terminals). Secondly this market is also far away from coal deposits. The main power sector
industry in Assam utilizing natural gas is NEEPCO.
SOURCES OF ELECTRICITY GENERATION IN
INDIA
Nuclear
2%
Wind and Hydro
Renewable 15% Coal
Energy 32%
5%
Others Diesel
39% 1%
Gas
6%
Figure 5: Sources of Electricity Generation in India

4. CITY GAS DISTRIBUTION AS DEMAND DRIVER
City gas distribution or CGD is the supply of gas to domestic consumers as well as commercial users.
The following represents pictorially the scenario in India.
Figure 6: City Gas Distribution across India
The current situation of CGD is depicted in the table where the towns with supply of gas are
tabulated along with the supplier.
CITIES WITH CGD – CURRENT SITUATION

STATE ENTITY
MAHARASHTRA Mahanagar Gas Limited – (Mumbai, Thane, Mira-Bhayendar, Navi-
Mumbai)
DELHI Indraprsatha Gas Limited – Delhi, Noida
ANDHRA PRADESH Bhagyanagar Gas Limited, Hyderabad, Vijayawada
MADHYA PRADESH Aavantika Gas Limited – Indore, Ujjain, Gwalior

UTTAR PRADESH Central UP Gas Limited – Kanpur and Bareilly

Green Gas Limited – Agra, Lucknow
GUJARAT GAIL-HPCL JV – Vadodra, Ahmedabad
GGCL – surat, Bharuch, Ankleshwar
Adani Energy – Ahmedabad, Vadodra
GSPC Gas – Rqajkot, Murbi
Sabarmati Gas – Gandhinagar, Mehsana, Sabarkantha
TRIPURA Tripura Natural Gas Company Limited – Agartala
ASSAM Assam Gas Company Limited (AGCL) - Upper Assam
Table 2: Current Status of CGD network
3.1.1 POTENTIAL USAGE OF PNG IN THE DOMESTIC, COMMERCIAL SEGMENTS & CNG IN THE
AUTOMOTIVE SEGMENT IN ASSAM
HISTORY OF PRESENCE OF NATURAL GAS IN ASSAM
India’s association with natural gas dates back to 1889 when oil and gas were struck at Digboi,
Assam. But the gas market evolved rather slowly, due to inadequate production and supplies until
recently. Almost all the petroleum producing areas of the Brahmaputra Valley in Assam contain
'associated natural gas' as well as non-associated gas fields. These fall in the upper Assam
geography. These natural gas producing basins of the major producers are located at
• OIL fields: Dibrugarh, Tinsukia, Sibsagar districts and Arunachal Pradesh

• ONGC fields: Sibsagar, Golaghat, Jorhat districts
GAIL and AGCL are responsible for distribution of natural gas.
MAJOR PRODUCERS OF NATURAL GAS IN ASSAM
PRODUCTION IN INTERNAL USAGE IN COMMERCIAL SALE IN

MMSCMD MMSCMD MMSCMD
OIL INDIA 6.5000 1.4000 5.1000
ONGC 1.1816 0.5718 0.6099
CANARO RESOURCES 0.1400 0.0045 0.1355
GEO ENPRO 0.0140 0.0140 0.0000
HOEC 0.0000 0.0000 0.0000
Table 3: Major producers of Natural Gas in Assam

Assam state has certain cities where natural gas is being supplied to the consumers in the domestic
and commercial segments both. These cities include:
1. Digboi
2. Tinsukia
3. Duliajan
4. Naharkatiya
5. Dibrugarh
6. Moran
7. Sibsagar
Currently, Assam Gas Company Limited is the sole supplier of natural gas in the state. It has plans to
expand the connection network to Golaghat and Jorhat.
DETAILS OF FEW TOWNS CONNECTED WITH NATURAL GAS
The customers in all the towns connected with PNG have shown a high level of satisfaction. Though
they expect low installation charges, still they do not find any problem with the connection and
usage of natural gas.
Margharita
The total number of wards is 4 with a total population of 20000. Ward number 1 is maximum slum
area whereas ward number 2 is residential high-income group. Ward 3 is a commercial colony and
office area. Ward number 4 is a mixed income group.
Tinsukia
Although, natural gas was available in the city since last decade, the city has been well connected
by natural gas since 2005. The supplier is Assam Gas Company Limited. A large chunk of the
population has opted for the connection in the first year itself. The supply is provided 24 hours.
Duliajan
The city is well connected by natural gas since 2002. The supplier is Assam Gas Company Limited. A
large chunk of the population has opted for the connection in the first two years itself. The supply is
provided 24 hours.
Dibrugarh
provided 24 hours.

Dibrugarh Gas Grid (AGCL)
• Total number of domestic connections: 5500

• Total number of commercial connections: 203
• Total number of tea gardens supplied: 59
• Domestic consumption of gas: 10000 SCMD
• Commercial consumption of gas: 2200 to 2500 SCMD
• Domestic pressure: 0.28 kg/cm2
• Commercial pressure: 1 kg/cm2
• Tea garden pressure: 1.2 kg/cm2
Sibsagar
provided 24 hours.
Sibsagar Gas Grid (AGCL)
• Number of commercial connections: 193

• Number of active commercial connections: 93
E.g., Pragati nursing home – 813.38 SCM per month
Sampriti nursing home – 102.12 SCM per month
East point nursing home – 147.5 SCM per month
 Number of domestic connections – 4315
 Active connections – 4035
 Total supply (domestic + commercial) – 8000 SCMD
 Price per SCM – INR 13/-
 Transmission charges: INR 9 / SCM
 Other costs: INR 20 per meter of pipe.
 AGCL has provided measurement meters to the domestic consumers; cost of meter is INR
1550.
 Domestic pressure is 0.5 kg/cm2
• Commercial pressure is 2kg/cm2
ASSUMPTIONS FOR DEMAND PROJECTIONS FOR GUWAHATI
1. ASSUMPTIONS FOR PROJECTION OF DEMAND FOR DOMESTIC SEGMENT
The study and projections were based on the following ward divisions of Guwahati.

Figure 7: Map of Guwahati City with ward
• Population of Guwahati city – 9.57 Lakhs (Census 2011)

• 1991- 2001 decadal growth rate - 38.6 %.
• Total number of households in Guwahati - 184,454.
Given below are the densely populated wards out of the total wards in the city where a number of
high rise buildings and densely located households have been observed, The projection although has
been done on the basis of overall household count, it is necessary for us to understand that which
wards have the maximum potential.
Ward Number Population Households Area

15-17 13,535 6450 Part of AK azad rd,baskar ngr,jyoti kuchi,bet kuchi,odalbhakra,barsa para
12 10,924 3607 AK dev rd,hirenpara,ambari,gosala,GS colony,dalbama
18 7,394 1272 part of AT rd,MG rd
25 18,425 3505 bhanga ghar,harbala rd,shrimantapur,silarai nagar
35-37 14,546 6964 ulubari area,kharguli, MG rd
38 8,123 1179 purba sarania,south sarania, lachit nagar
39 13,257 2708 gandhi basti,muniram dew an rd
41-43 20,360 10471 zoo naragi rd,RGB rd,medical college,basista rd,GS rd.
46-49 13,455 9042 noonmat,jyoti nagar,gitanagar rd, mathharia,narangtinali rd,surya nagar,satgaonrd
12 13,622 3607 pandu road, khamakhya temple,
7 12,331 2205 at road,chakreshw ar
19 15,010 2785 BR Phukhan rd,TR Phukan rd,AT rd,MG rd,Faiz Ahmed rd , Machhkhue
22 9,126 1930 dispur
24 9,111 1637 dispur
50-60 88,423 24825 dispur
TOTAL ####### 82187
Table 4: Ward wise Population of Guwahati City

Population growth has been taken as 2.3% year on year as per National Commission of
Population
• Conservative figures have been taken for the household growth which is pegged at 2.7%.
• Conversion rates have been taken as
- 2008 – 2009 21 %
- 2010 – 2012 30 %
- 2013 – 2016 50%
- 2017 - 2019 60%
• Annual demand in Kgs has been considered as 170.4 Kgs per household every year.
• The calorific value conversion is that 8500 Kcal/ kg for natural gas and 11500 Kcal/kg for LPG.
Thus the conversion factor will be 11500/ 8500 = 1.35
• Ward number 18 includes the area of Bharalumukh which has multi-stories high rise
buildings also
• Ward number 2, 11 and 19 are also included in the high density wards because of the high
rise buildings existing there.
DOMESTIC DEMAND OF NATURAL GAS IN GUWAHATI
Year Annual Annual Annual

demand of demand of demand of
PNG in SCM PNG in SCMD PNG in
MMSCMD
2009 10344350 28341 0.0283
2010 15176640 41580 0.0416
2011 15755826 43167 0.0432
2012 16181234 44332 0.0443
2013 27696878 75882 0.0759
2014 28444694 77931 0.0779
2015 29212701 80035 0.08
2016 30324040 83080 0.0831
2017 37371347 102387 0.1024
2018 38380373 105152 0.1052
Table 5: Domestic demand of Natural Gas in Guwahati

2. ASSUMPTIONS FOR DEMAND PROJECTIONS FOR GUWAHATI IN COMMERCIAL SECTOR
 Guwahati city’s commercial spread comprises of different type of establishments which have
a license to run their unit. As per GMC there are in all 1730 such establishments registered
with GMC.
 As regards the potential usage of PNG, we have considered only those establishments which
are using LPG.
Hotels (food and lodging) – 297
Hotels only lodging – 39
Restaurants – 526
Bars - 93
Canteen – 19
Dhabas /Sweet meat shops /others – 647
Hostels – 98
 Conversion from LPG to natural gas has a conversion factor of 1.35 SCM of NG = 1 kg of LPG
 Rice hotels and chat houses are not considered for the projections.
 It was observed during the field study that dhabas, sweet meat shops/restaurants were
using both types of cylinders whereas canteen/ hotels were by and large using both types
but majority 19.1 kg cylinders
Units units
Units units Demand
for Dhaba for Demand for
Hot Restau for Hos for for LPG
Year conv & conv PNG (SCM/
els rants conver tels conver (Kg/annum
ersio Others ersio annum)
sion sion )
n n
2009 343 137 537 215 100 40 774 310 2,69,41,347 3,63,70,819
2010 350 175 547 274 102 51 790 395 3,43,50,218 4,63,72,794
2011 357 214 558 335 104 62 805 483 4,20,44,667 5,67,60,300
2012 364 255 569 399 106 74 822 575 5,00,33,153 6,75,44,757
2013 371 260 581 407 108 76 838 587 5,10,33,816 6,88,95,652

2013 371 260 581 407 108 76 838 587 5,10,33,816 6,88,95,652
2014 378 265 592 415 110 77 855 598 5,20,54,493 7,02,73,565
2015 386 270 604 423 113 79 872 610 5,30,95,583 7,16,79,036
2016 394 276 616 431 115 80 889 623 5,41,57,494 7,31,12,617
2017 402 281 629 440 117 82 907 635 5,52,40,644 7,45,74,869
2018 410 287 641 449 119 84 925 648 5,63,45,457 7,60,66,367
2019 418 292 654 458 122 85 944 661 5,74,72,366 7,75,87,694
Table 6: Year wise Commercial demand with conversion factor
ANNUAL DEMAND IN
YEAR SCM DEMAND IN SCMD DEMAND IN MSCMD
2009 36370819 99646 0.0996
2010 46372794 127049 0.127
2011 56760300 155508 0.1555
2012 67544757 185054 0.1851
2013 68895652 188755 0.1888
2014 70273565 192530 0.1925
2015 71679036 196381 0.1964
2016 73112617 200309 0.2003
2017 74574869 204315 0.2043
2018 76066367 208401 0.2084
2019 77587694 212569 0.2126
Table 7: Commercial demand of Natural Gas in Guwahati

3. ASSUMPTIONS FOR DEMAND PROJECTIONS FOR GUWAHATI IN AUTOMOBILE SEGMENT
The average fuel as consumed by the automobile sector is listed below which has been taken from
the average usage of fuel per vehicle as per primary findings with some of car owners.
Fuel
Consumption Fuel
per vehicle Consumption
Vehicle per month per annum
segment (Ltrs) (Ltrs)
BUS 1500 18000
3 WHEELER 75 900
CAR 50 600
TAXI 200 2400
Table 8: Average Fuel Consumption of Automobile sector
• Vehicle population has been taken from the Regional Transport Office.
• 10% of the buses are considered off the road.
• 15% of the cars are considered to be running on diesel.
• 8% taxis are considered to be running on petrol.
• The fuel consumption pattern has been given on the table which has been taken from the
average usage of fuel per vehicle as per the primary findings.
• In case of HSD used by buses, 1 litre HSD= 1SCM OF NG
• In case of MS used by TAXIES, AUTOS, CARS, 1 litre MS= .90 SCM OF NG
• In case of buses we have divided into city bus & long distance buses.
• In case of city bus – app 30 lt hsd is used /day & long distance app. 80 lt hsd /day as the
running in case of city buses is app. 150 –160 kms & long distance app. 420 kms.

RTO INFORMATION FOR GUWAHATI
OWN FLEET SIZE 1-5 YEAR OLD 166
6-10 YEAR OLD 69
11-15 YEAR OLD 89
ABOVE 15 YR 1
TOTAL 325
FLEET UNDER ASTC OPERATION 2004-05 25
2005-06 32
2006-07 50
2007-08 43
2008-09 39
2009-10 150
2010-11 210
NUMBER OF BUSES TRAVEL ( WITHIN

OWN 54
GUWAHATI)
UNDER ASTC 40
NUMBER OF BUSES TRAVEL ( WITHIN

OWN
STATE) 258
UNDER ASTC 1383

CNG DEMAND IN GUWAHATI
Total CNG Demand Total CNG Total CNG Demand

YEAR SCM Demand SCMD MMSCMD
2009 10355005 28370 0.028
2010 10355895 28373 0.028
2011 24766396 57853 0.058
2012 30024316 82258 0.082
2013 39833041 109132 0.109
2014 44706020 122482 0.122
2015 49753998 136312 0.136
2016 57989001 158874 0.159
2017 66699846 182739 0.183
2018 75307757 206323 0.206
2019 ######### 215909 0.216
Table 9: CNG demand in Guwahati City
3.1.2 TOTAL NATURAL GAS DEMAND IN ASSAM
YEAR Demand of PNG in MMSCMD
REALISTIC OPTIMISTIC PESSIMISTIC

2009 5.7675 6.0252 5.4827
2010 6.3123 6.5783 6.0183
2011 9.087 9.4746 8.6587
2012 12.041 13.7112 12.5109
2013 13.6802 14.2467 13.0154
2014 14.9714 15.614 14.2611
2015 15.717 16.393 14.9698
2016 15.8144 16.4929 15.0645
2017 16.1204 16.8109 15.3573
2018 16.2448 16.9377 15.4789
2019 16.3052 16.9984 15.5391
Table 10: Total Natural Gas demand in Assam

3.2 SUPPLY SIDE PROJECTIONS
The major Natural Gas producer organisations are briefly discussed as follows:
OIL AND NATURAL GAS CORPORATION
• Oil and Natural Gas Corporation is a public sector enterprise formed in 1993.
• It contributes to 77% of India’s crude oil production and 81% of India’s natural gas
production.
• It is Asia’s largest and most active E&P Company.
• The north east headquarters are located in Nazira in upper Assam.
• The fields of ONGC in North East are located at Tura in Lakwa, Geleky, Nazira &
Mekeypore and new fields like Laipling Gaon, Changmai Gaon.
• Major consumers are GAIL and AGCL (distributors in Assam)
• Supply to AGCL is 8.5 MMSCM per month
• Price is INR 3860 per thousand SCM
• Royalty is INR 192
• VAT is 20%
• Service tax is 10.3%
• Education cess is 3%
YEAR PRODUCTION OF
NATURAL GAS IN
MMSCM IN ASSAM
2006 – 07 400.45
2007 – 08 453.73
2008 – 09 500
PRODUCTION OF
CRUDE OIL IN MMT
IN ASSAM
2006 – 07 1.21
2007 – 08 1.5
Table 11: Production of OIL and Gas in Assam
OIL INDIA
• Oil India Limited (OIL) is a premier Indian National oil company under the administrative
control of Ministry of Petroleum and Natural Gas, Govt. of India.

– OIL is engaged in the business of Exploration, Development and Production of Crude

Oil and Natural Gas, Transportation of Crude Oil and products and production of
LPG. The Company has over 1 lakh sq. km. of license areas. It is an integrated
upstream petroleum company performing the following main activities:
– Exploration for hydrocarbons.
– Production of crude oil and natural gas.
– Transportation of crude oil to refineries and product from NRL to Siliguri.
– Supply of gas to consumers.
– Extraction and bottling of LPG.
• In recent years, OIL has stepped up E & P activities significantly including Gas monetization in
the North-East India. OIL has set up the NEF (North East Frontier) project to intensify its
exploration activities in the frontier areas in North East, which are logistically very difficult
and geologically complex. Presently, seismic surveys are being carried out in Manabhum,
Pasighat and other Thrust Belt areas. The Company operates a crude oil pipeline in the North
East for transportation of crude oil produced by both OIL and ONGCL in the region to feed
Numaligarh, Guwahati and Bongaigaon refineries and a branch line to feed Digboi refinery.
OIL also has a pipeline from NRL to Siliguri
CANARO RESOURCES
Canaro resources is a joint venture company of Canada based CALGERY and Assam Company
Limited. The oil fields are based in Arakan basin. These oil fields were with ONGC when in 2003 2004
the government of India allotted it to CANARO Resources.
The location of its 5 wells is in Amguri which is 40kms from Sibsagar.
• Production:
– 35KLPD of crude oil
– 0.14 MMSCMD of natural gas
• Distribution:
– 125000 SCMD to AGCL
– 10000 SCMD to GAIL
– 4500 SCMD is own consumption
–
Five tea gardens which are customers of GAIL are supplied by CANARO resources. A pipeline of 5
kms joins the GAIL point at a distance of 4.5 kms and joins the AGCL point at a distance of less than
one kilometer. Point of GAIL is Borbati and point of AGCL is Salanu Tea Estate. Pressure provided by
Canaro is 12kg/cm2. Canaro price to AGCL is INR 3800 per thousand SCM and to GAIL is INR 2500 per
thousand SCM. Transportation cost is borne by the distributing company:

– Royalty : Rs.149.19 per thousand SCM
Quantity of gas and the pressure as well as calorific value are the issues which are the bone of
contention between producer/ distributor and the consumer. This is a vicious cycle which may be
resolved by installation of better equipments and efficient supply.
GEO ENPRO
GeoEnpro is a 50: 50 joint venture between Jubilant Enpro Pvt Ltd and Geopetrol Mauritius Ltd. It is
the operating company of Kharsang Oil Field, Arunachal Pradesh, India. Kharsang is a PSC oilfield
operation. The Kharsang Field Mining Lease covers an area of 11.59 sq kms. The oil fields lie in the
Upper Assam basin approximately 60kms east of Digboi field in the state of Arunachal Pradesh.
14000 SCMD of natural gas for captive consumption, no production is for commercial purpose. A
total of 36 wells were drilled in Kharsang out of which 28 are oil wells, 4 are gas wells and 4 are
abandoned.
HINDUSTAN OIL EXPLORATION CORPORATION
HOEC was incorporated in 1983 for taking up Exploration and Production (E&P) activities. HOEC was
the first private company in India to enter into field of oil and gas exploration. In 2005, Burren Shakti
Ltd (BSL) and Burren Energy India Ltd (BEIL), wholly owned subsidiary of Burren Energy plc (Burren),
acquired 26% controlling stake in the Company from Unocal. HOEC has participating interest in
seven oil/gas fields in India (in Cambay basin, Cauvery basin and Assam Arakan basin), which are in
varying stages of E & P life cycle i.e. exploration, development and production.

Figure 9: Area of exploration by HOEC
Block AAP-ON-94/1 covers the area between the Naga thrust and the Singyang thrust. It appears to
contain at least two major hydrocarbon trends, the Assam Shelf trend and the Foothills trend. The
Jorajan, Kusijan, Shanti-Tarajan and Digboi oilfields are located along the block boundary, whilst the
giant Nahorkatiya oil field is only a short distance away. HOEC has recently struck natural gas in AAP-
ON-94/1 in Margherita (industry sources)

Exploration Share Development/ Production

Business Unit Joint Ventures % Share (%)
AAP-ON-94/1
ASSAM (Operator) 40.323 26.882
CY-OS/90-1 (PY –
3) 21 21
CAUVERY PY –1 (Operator) 100 100
Asjol (Operator) 50 50
CB-OS-1 57.11 38.07
CB-ON-7
(Operator) 50 35
North Balol
CAMBAY (Operator) 25 25
Table 13: HOEC exploration shares
3.3 DEMAND SUPPLY GAP
DEMAND VS. SUPPLY

DEMAND SUPPLY IN MMSCMD
YEAR IN MMSCMD IN MMSCMD (DEMAND – SUPPLY)
REALISTIC FIGURES
2009 5.7675 5.85 -0.07
2010 6.3123 6.05 0.26
2011 9.087 6.25 2.83
2012 12.041 6.48 5.56
2013 13.6802 6.73 6.95
2014 14.9714 6.99 7.98
2015 15.717 7.26 8.45
2016 15.8144 7.55 8.26
2017 16.1204 7.85 8.27
2018 16.2448 8.17 8.07
2019 16.3052 8.49 7.81
Table 14: Demand and Supply Gap

3.4 PRICE OF NG IN INDUSTRIES OF ASSAM
As specified in the previous section, being an North East state as per the Government Directive the
Natural Gas which is being supplied to the various consumers are getting an subsidy of app 40% as
compared to users of NG in other parts of the country.
The various price details for natural gas in the industrial user segment are presented in the table
below.
UNIT PRICE
Brahmaputra Valley Fertilizers 1920/ thousand SCM
Corporation limited @ 10000 Kcal/ SCM
NEEPCO 1920/ thousand SCM @ 8000 – 9000 Kcal/ SCM till
demand of 1MMSCMD
Extra gas @ 4175.36 (wef 01.04.2009)/ thousand SCM for
8000 - 8500 Kcal/ SCM
Assam Petrochemicals Limited 3200/ thousand SCM for 10000 Kcal/ SCM
IOC 3200/ thousand SCM for 10000 Kcal/ SCM
NTPS 1920/ thousand SCM for 10000 Kcal/ SCM upto 0.66
MMSCMD
Extra 4175.36(WEF 01.04.2009)/ thousand SCM (8000 –
8500 Kcal/ SCM)
LTPS 4175.36/ thousand SCM (8000 – 8500 Kcal/ SCM)
TEA GRIDS 2304/ thousand SCM for 10000 Kcal/ SCM : upto
commitment
Extra @ non APM

4. DESIGN OF INTEGRATED GAS DISTRIBUTION SYSTEM
4.1 PROCEDURES FOR CONCEPTUAL DESIGN
An integrated Gas Distribution System was designed based on the forecast potential city gas demand by the follow-
ing steps:
The design procedure is roughly described in the figure below:
Procedures of Conceptual Design
Forecast of potential demand for city gas Construction price study
Assumption of basic structure of system
Unit Number of City Gas City gas Physical

Consumption potential introduction conversion structure of
Number of
Activc onsum-
 Supply Area Unit

 Skelton of Supply Route Construction
Sales Gas Volume Load concentration factor
Design flow rate
Design facilities
 Transmission system
Construction cost of facilities
Final Analyses

4.2 DESIGN OF THE PROPOSED CGD
The selection of design for CGD Network is based on the gas properties, required flow rates,
operating pressures and the environment.
A typical CGD Network shall comprise of one or more or all of the following:
1. City Gas Station (CGS)
2. Pipeline Network – Steel Pipeline, Polyethylene Pipelines, GI/Cu Pipes
3. Regulating Stations – District Regulating Stations (DRS), Service Regulators, Domestic/

Commercial/ Industrial Regulators.
4. Metering Stations/ Metering & Regulating Stations (MRS)
5. CNG Stations
Figure 10: CGD Value Chain

The main system of the project is such that the transmission of the natural gas will be through the
mobile transmission system which substitutes a conventional pipeline system. The mobile
transmission will then feed the natural gas to a underground gas gathering system through proper
pressure let down system.
Figure 11: Proposed CGS system of the Project
As the basic supply facility system, a system comprising 254 kg/cm2 mobile pipeline transmission
system, 3 kg/cm2 distribution system for large volume consumers and 0.3kg/cm2 general distribution
system were selected. This system fits a relatively sparsely distributed demand and possesses high
adaptability for change in demand in future.
The transmission pipeline route designed to supply natural gas is proposed to be supplied from
intermediate pigging station located at Badulipara situated at around 300km away from Guwahati
city where a boost up compressor is necessary for raising the pressure as necessary and required by
the mobile transmission pipeline.

Figure 12: Badulipara – Guwahati route
The gas distribution system is proposed to be designed in such a way that it can be operated and
controlled through GPRS/ SMS technology. The meter installed at the consumer end will be a new
generation smart meter with GPRS/ SMS gas logger with valve controller i.e. whenever a consumer
defaults bill payments more a set period of time the connection will be automatically cut off.
Figure 13: Meter Signalling and Control System

The monitoring the pressure, temperature and other necessary physical parameters of the entire
system will be designed to operate through GPRS / SMS technology.
Figure 14: Pressure Signal through GPRS/SMS Technology
SYSTEM SOFTWARE INTEGRATION
The overall system is proposed to design in such a way that the entire MIS system will be controlled
by a single platform. The single platform has to be integrated with the following software’s which
are necessary for various operations of various aspects
 GIS software
 Project Management Software
 Computerised Maintenance and Management Software
 Inventory and accounting Software
 Billing and Invoicing Software
 The respective software of the instruments
 Mobile application/Platform

Figure 15: Schematic Image of the System Integration

5. OUTLINE OF THE PROJECT SCHEME

5.1 The project scheme is assumed as follows:
(1) Project : Guwahati City Gas Distribution
(2) Organization: DNP Limited
(3) Number of proposed employee for the project:
(i) Project In-charge 01
(ii) Instrumentation Coordinator 01
(iii) Mechanical Coordinator 01
(iv) Electrical Coordinator 01
(v) Civil Coordinator 01
(vi) Materials Coordinator 01
(vii) Accountant 01
(viii) Clerk 01
(ix) Office peon 01
(x) Mechanical Fitter/JE 02
(xi) IT coordinator 01
(xii) Back office management 01
Total 13
(4) PROJECT LIFE SPAN
Start of Investment : 2017
End of Life : 2053
Total life span : 36 years

5.2 IMPLEMENTATION SCHEDULE
The implementation schedule is assumed to consist of the following phases:
2017 Creation of Project & Development Cell
Consultant appointment for detailed feasibility &

EPC
Detailed Feasibility study

July 2017 -Jan 2018
2018
Evaluation of the project and preparation

(4 months)
2019 Section Of Contractors & Detail engineering

(1 year)
Initial Construction (1.5 year)

2020
2021
Start-up of the system
Continual instruction
Construction of the rest of the transmission system and yearly extension of the
distribution system
2022 Completion of the system
Throughout the period, successive investments to complete the ultimate city gas distribution system
will be made according to the demand increase.

5.3 CAPITAL REQUIREMENT
Total capital requirement for the project is estimated as follows. This estimation is purely base on
comparative study about the other city gas distribution projects of cities as available in secondary
sources. However, the probable estimation could only be possible after the detailed feasibility
study. The heads of capital investment are summated as follows:
(i) Land cost
(ii) Building & other civil works
(iii) Equipment & machineries
(iv) Construction & consultancy cost
(v) Preoperational expenses
(vi) Interest during construction
(vii) Working capital
5.4 PROJECT COST
Construction cost is purely hypothetical. The method is a conceptual one deriving from different
secondary aspects. Recently GAIL (INDIA Limited announced to invest Rs. 5,750 crore for its pipeline
projects in Odisha. The investments include Rs. 1,750 crore for the City Gas Distribution (CGD)
project in Bhubaneswar and Cuttack.
As part of the project, natural gas will be supplied to the cities through the Jagadishpur-Haladia and
Bokaro-Dharma natural gas pipe line (JHBDPL), known as ‘Pradhan Mantri Urja Ganga’. Households
and small industries in the cities can avail Piped Natural Gas (PNG) while vehicles can use
Compressed Natural Gas (CNG) once the CGD network becomes operational.
GAIL Director (Projects) Dr. Ashutosh Karnatak said while 2.5 lakh households each in Bhubaneswar
and Cuttack will be provided by PNG in next few years, at least 10,000 houses will be connected by
end of December in the capital city on a pilot basis.
The 2,619 km (JHBDPL) pipe line project is being executed at an investment of Rs. 12,940 crore,
which includes capita grant of 40 percent (Rs. 5,176 crore) from the Centre. The pipe line will pass
through five states – Uttar Pradesh, Bihar, Jharkhand, West Bengal and Odisha – covering 49
districts.
Karnatak said the pipeline will be constructed at an estimated investment of Rs. 4,000 crore in
Odisha and it will cover 13 districts and a length of about 762 km, including Bhadrak, Jaipur,
Dhenkanal, angul, Sundargarh, Sambalpur, Jharsuguda, Deogarh, Jagadsingpur, Cuttack, Khurda, Puri
and Kendrapara.

GAIL Gas Limited CEO P K Pal said while the Bhubaneswar CGD project will entail a capital
expenditure of around Rs. 1,000 crore, there will be an investment of Rs. 750 crore for Cuttack
project.
Based on the above statements, a comparative assumption for the project cost estimation of the
Guwahati city CGD is prepared with a total investment of around Rs. 400 crore as summarizes and
tabulated below.
Pipe Line Households Investment Cost Investment

(Pipe Line) Cost (CGD)
Bhubaneswar 762 km 2.5 Lakh 40000Crore 1000 crore
Cuttack 2.5 Lakh 750 crore
Guwahati 300 km 1 Lakh 1575 crore 400 crore
Table 15: Comparative table of Project Cost
5.5 PROJECT COST FINANCING PLAN / CASH FLOWS
The total capital requirement will be financed by owner’s equity 10%, a long term loan of 10%,
central government subsidy of 40% and the rest (40%) will be financed by Government of Assam.
5.6 OPERATING PLAN AND SALES VOLUME
Commercial operation of the project is proposed to be commenced in 2019 for city gas distribution
to completely cover the entire Guwahati city with One Lakh of households to be connected through
natural gas pipeline. The next expansion is proposed to be completed within 2021 for CNG project
and for commercial purpose after the pipeline extension from Badulipara to Guwahati is completed.
In the current scenario of Assam, AGCL is the only one and only one company providing PNG to
household consumers. The present gas rate of AGCL is Rs. 4.05 per SCM with marketing margin
@Rs.0.20, handling charges@Rs.1.27 and VAT@14.50%. The transportation charge is Rs.8.80 with
service tax@15.00%.
Assuming 1, 00,000 of households and 50 SCM of gas consumption per month on an average, the
total volume of gas sales for a month will be 50, 00,000 SCM.

Calculating with the rate of AGCL, the total earnings will be as follows:
Total Consumption = 50,00,000 SCM
Gas Price @Rs.4.05 2,02,50,000
Marketing Margin @Rs. 0.20 10,00,000
Handling Charges @Rs. 1.27 63,50,000
VAT @14.50% 40,02,000
Total Gas Sales 3,16,02,000
Transportation Charge @Rs. 8.80 4,40,00,000
Service Tax @15.00% 66,00,000
Total earnings 7,62,62,000
Earning by DNP Limited, Rs. 5,13,50,000 per month.

6. SWOT ANALYSIS
SWOT analysis of City Gas Distribution - Guwahati

STRENGTH WEAKNESS
Consumption: Supply:
• Lack of pipeline and adequate supply
• More than 1 lakh of households of
• High level of industrial development Natural Gas
• Currently no focus action on
immediate
development as core market
OPPORTUNITY THREAT
Production: Pricing:
• Future connection to National Gas
Grid • Unfavourable pricing mechanism may
• IPI & TAPI extension cause a roadlock for the consumers
Compettition:
• OIL & AGCL also preparing for the CGD
and are well organised.

6. FINANCIAL AND ECONOMIC ANALYSIS

Based on the conditions and estimations above, financial and economic analyses were
made.
The detailed information and financial and economic internal rate of return and net present
value are as follows:
Considering an initial investment of Rs. 400 crore and cash inflows of around Rs. 60 crore
per annum for consecutive seven years as tabulated below.
Year Cash inflows

1 60,00,00,000
2 60,00,00,000
3 60,00,00,000
4 60,00,00,000
5 60,00,00,000
6 60,00,00,000
7 60,00,00,000
Table 16: Tabulation of Cash Flows
1. FINANCIAL INTERNAL RATE OF RETURN (FIRR)
IRR is the interest rate, also called the discount rate that is required to bring the net present
value (NPV) to zero. That is, interest rate that would result in the present value of the capital
investment, or cash outflow, being equal to the value of the total returns over time, or cash
inflow.
Now,
NPV=0=∑ 𝑃𝑒𝑟𝑖𝑜𝑑 𝐶𝑎𝑠ℎ 𝐹𝑙𝑜𝑤 / (1 + 𝑟)^𝑡 - Initial Investment
Where r is the interest rate and t is the number of time periods. Computing for t =7years
and we get r= 1%.
Thus Internal Rate of Return is 1%.
The IRR is calculated for 7 years, however the total life span of the project is considered as
36 years, IRR will increase as time elapsed.

2. ECONOMIC INTERNAL RATE OF RETURN (EIRR)
The economic viability depends on the following:
1. NPV: Do not accept the project with negative NPV.

2. IRR : When the IRR is greater than the default discount rate, the project can be
proceeded.
To calculate the NPV, let us assume that the annual effective discount rate is 10%.
Applying the formula
Where C0 = Initial cash Flow
C = Cash Flow
r = Discount rate
T = Time
The NPV will be Rs. 3,63,69,16,717.57.
Thus NPV is positive hence it can assume that the project is feasible. Moreover from the
economic point of view as the project is a public one, the employment generation as well as
well being of the public need to keep in consideration.

7. CONCLUSION AND RECCOMENDATION

7.1 CONCLUSION
1. Validity of the project
The complete concept on investment on this project and business strategy on this concessionaire is
directed towards the improved availability of domestic gas supplies but at the same time securing
supplies would be important.
The financial and economic analysis doesn’t show a good impact on a short term basis, however the
overall long term impact will earn a lot of benefits. Figure below shows an overall benefit from a city
gas distribution.
Figure 16: Overall impact of CGD
The project has the merit of supplying clean and convenient energy to clients in the Guwahati city
area and contributes to reducing pollution.

As mentioned above result, this project is recommendable as a national project.
Financial internal rate of return is 1% before tax at current price in case of the low price scenario of
natural gas. This rate can be considered as enough for a public project; however it is not enough for
private investment.
Even in case of the low price scenario of the natural gas, there is a possibility that the natural gas
price will become lower than the present price. In such a case, FIRR will be improved to a higher one.
Furthermore, natural gas price will become much lower than the price of fuel oil, city gas demand
will increase by replacement of diesel oil and fuel oil used by manufacturing industry.
As mentioned above. The project is profitable as a national project, however though there is
possibility of improvement of FIRR by re estimation of natural gas, the risk is too big for a private
company.
2. CASH FLOW
In the first year of year of operation, short term loan is necessary to cover the shortage of fund, but
after that no shortage will occur.
3. ORGANISATION
Because of high profitability as national project, but low profitability as a private project it is
desirable for this project to be realised by public investment. In case of Public investment, the long
term loan with low interest could be available from central govt. and will be suitable for this project.
7.2 RECOMMENDATIONS
1. Government should take necessary initiative step with the supply providers of Natural
Gas for securing the supply of natural gas.
2. As the DNPL pipeline as on now has a total capacity of only 1MSCMD and almost all the
gas is required and consumed by NRL, may it need to install one more compressor at
DNPL, Modhuban, Duliajan.
3. The proposed National Gas Grid with the API & TAPI connection is about to
commissioned within a few years as well as Myanmar Bangladesh connection to this grid
is also on the progress way , it is beneficial to start the CGD connection to stop the last
hour rush.
4. The risk factor and the risk mitigation are not well covered in this study. For the
implementation of the project, various preparatory works including those to settle

problems are needed to exercise. The details of preparatory works and the program for
actualising the project are as follows:
i. Setting up of a Project Development Cell
ii. Make a detailed feasibility study
iii. Ensuring the supply of Natural Gas
iv. Establishment of the project scheme for implementation
v. Preparation and authorization and control of City Gas Business
vi. Appointment of consultants for Basic Engineering of construction facilities and
operation systems
vii. Construction of facilities and operation system
Direct impact on the city
When the project of city gas distribution network come to success and applied to the city Guwahati,
great changes in the society and among housekeepers will be observed. This kind of project make
the life easier for people, easily obtain the gas via pipe at home in a way similar to water. The city
residents are not anymore lifting these heavy cylinders and paying for transportation. In addition,
the city will get rid of these cylinders from the streets and local shops. Like any other developed
countries across the world, people can get the gas whenever they want from their homes. So the all
idea is to modernize the city of Guwahati and develop it in all directions by using the recent
technologies in urban development.
Suggestions
The project of city gas is no new ideas, but it can be said that it will be new application in the city of
Guwahati particularly in lower Assam generally. In this study the following are suggested to make
the project success:
1. Allocating budget: this might be provided by the State Government or Central Government
with consortium to DNP Limited.
2. International regulator: based on the world regulation and classifications the project should
be applied, in addition the international standards must be followed in design procedures.
3. Local city authority: the local city authority in the city should assign and support the project,
without their support the project cannot be done.
4. Gas suppliers: the oil and gas companies that do supply the gas should agree on that
providing the project with the amount of gas needed for Guwahati.

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Number of MAGNUM™ Tanks 0 0 7 all-carbon tanks
Water Volume 6,475 G / 24,512 L 8,993 G / 34,047 L 13,010 G / 49,250 L
Operating Pressure 3,600 psi / 248 bar 3,600 psi / 248 bar 3,600 psi / 248 bar
Gas Volume 262,105 scf / 7,422 scm* 364,059 scf / 10,309 scm* 526,612 scf /14,912 scm**
Gas Mass 11,781 lb / 5,344 kg* 16,363 lb / 7,422 kg* 24,524 lb / 11,124 kg**
Gasoline Equivalent 1,947 G / 7,370 L 2,705 G / 10,240 L 3,913 G / 14,812 L
Diesel Equivalent 1,812 G / 6,859 L 2,517 G / 9,528 L 3,640 G / 13,780 L
Tare Weight 28,892 lb / 13,105 kg 34,500 lb / 15,649 kg 51,150 lb / 23,200 kg
Loaded Weight 40,673 lb / 18,449 kg 50,860 lb / 23,070 kg 75,674 lb / 34,325 kg
Overall Dimensions
Length 30 ft / 9.14 m 40 ft / 12.19 m 40 ft / 12.19 m
Width 8 ft / 2.44 m 8 ft / 2.44 m 8.5 ft / 2.59 m
Height 8 ft / 2.44 m 8 ft / 2.44 m 13.5 ft / 4.11 m
*CNG @ 0.72 kg/scm, 15 °C / 0.04578 lb/scf, 59 °F **CNG @ 0.75 kg/scm, 15 °C / 0.04682 lb/scf, 59 °F
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MOVE GAS
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SMARTSTORE® SIZE 10 FT 20 FT 20 FT
Number of TUFFSHELL® / MAGNUM™ Tanks 20 x 10 ft 14 x 20 ft 15 x 20 ft
Water Volume 2,377 G / 9,000 L 5,714 G / 21,630 L 6,122 G / 23,175 L
Operating Pressure 3,600 psi / 248 bar 3,600 psi / 248 bar 3,600 psi / 248 bar
Gas Volume 94,162 scf / 2,666 scm** 227,721 scf / 6,448 scm** 243,987 scf / 6,909 scm**
Gas Mass 4,409 lb / 2,000 kg** 10,426 lb / 4,729 kg** 11,171 lb / 5,067 kg**
Gasoline Equivalent 762 G / 2,883 L 1,830 G / 6,928 L 1,961 G / 7,422 L
Diesel Equivalent 681 G / 2,578 L 1,637 G / 6,196 L 1,754 G / 6,638 L
Module Tare Weight 13,390 lb / 6,074 kg 19,070 lb / 8,650 kg 19,842 lb / 9,000 kg
Module Loaded Weight 17,799 lb / 8,073 kg 30,267 lb / 13,729 kg 31,012 lb / 14,067 kg
Overall Dimensions
Length 10 ft / 3.05 m 20 ft / 6.10 m 20 ft / 6.10 m
Width 8 ft / 2.44 m 8.20 ft / 2.50 m 8.37 ft / 2.55 m
Height 9.5 ft / 2.90 m 9.5 ft / 2.90 m 9.5 ft / 2.90 m
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Wireless Active Pressure Monitoring
Reliable and cost efficient solution for gas network management
Alevel 303 OKO 5513
Flexible sensor scanning & data logging Zone 0 – ATEX approved
GPRS communication Easy installation with mobile app commissioning tool
Easy IO expansion with local RF communication Web application data access, daily reporting
Economic and versatile monitoring solution Support various types of pressure sensors
Long Life lithium battery Custom alarms for pressure events or digital
(Up to 10 years, depends on the configuration) input states
AIUT’s Active Pressure Monitoring is a reliable and robust solution for remote monitoring of
gas networks. This includes network pressure validation, nitrogen sleeve monitoring, pressure
regulating stations, safety valve operation, etc. The system offers:
• Quick and accurate overview of the pressures in the gas network
• Full access to historical records, and data back-up
• Simplicity and clarity of presented data
• Alarms on dynamic pressure changes, automatic user notifications via email or mobile
• Easy fit to 3rd Party IT systems
• Hosting, communication & maintenance, also available for flat monthly fee
• Complete package: telemetry equipment, high quality digital sensors, communication, extensive alarming and
reporting, software as a service, commissioning assistance and tech support, system integration.
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Balanced Inputs configuration of the system devices (2 x Analog Inputs; 2 x Digital Inputs), along with easy RF expansion
allows for unmatched flexibility in configuration, system sizes, ease of installation and GSM reception capability
Simple single point installation
OKO 5503
sensor
GPRS/SMS
Customer Portal
Underground locations with challenging GSM reception
433 MHz
sensor
Alevel 303
GPRS/SMS Reports
sensor OKO 5513
IMR Server
Installation with active monitor regulator (example of use DI)
433 MHz
3rd Party IT Systems

sensor e.g. SCADA
Alevel 303 GPRS/SMS
active monitor digital input OKO 5513
regulator
OKO 5513
• Data logger, designed to work with pressure sensors

• Up to 60 measurements recorded in an hour (min/max/avg values)
• ‘Over the air’ communication allows setup updates
pressure sensorand troubleshooting without sites visiting
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• A master logger for up to 6 slave Alevels, meeting the limitation of IO number
• In locations with challenging GSM reception, working as a communication hub for Alevels 303
• 433 MHz RF radio connection with slave units – Alevel 303
• Optional double battery pack and external antenna provides even better GPRS reception
Alevel 303
• A slave device, delivering measurements from additional sensors or digital signals

• Transmits data via 433 MHz RF to nearby master OKO 55x3
• Effective RF communication within 10-20 m distance
OKO 5513 / Alevel 303

• Robust units designed for outdoor use. IP 68
• Runs on replaceable batteries for up to 10 years (when fitted with double battery pack)
• Can be delivered preconfigured with Keller I2C pressure sensor
• Ability to use two sensors for each device, when using an extension on I2C input
• Local connections:
2 Analog serial Input I2C and 2 Digital Inputs
1 Analog serial Input (current loop 4..20 mA, RS 485)
Products branded with IMR logo have been designed, developed, manufactured and supported by AIUT in Gliwice,
Poland. IMR Smart Monitoring & Management System is a cost effective solution for Gas & Oil.
sensor
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GPRS/SMS
sensors
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Customer Portal
sensor
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Alevel 303
digital input slam-shut
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valve
OKO 5513
Reports sensor
IMR Server
OKO 55x3 used as a communication hub ( up to 6 probes within the RF range)
433 MHz sensor
3rd Party IT Systems Alevel 303

e.g. SCADA
GPRS/SMS 433 MHz
OKO 5513
Alevel 303 sensor
Analog Value Events

IMR generation
Server
Scanned sensor value is checked against event thresholds and triggers immediate communication to the server.
Such an event can be assigned as an alarm and relayed to authorised users.
Pressure HIHI Level - ON HIHI Level - OFF HI Level, HIHI Level- ON

[mbar]
HI Level - ON HI Level - OFF HIHI Level - OFF
50
HI Level - OFF
HIHI threshold set for 45
45
HI threshold set for 40

40
LO Level - OFF Relative change
LOLO Level - OFF STEPREL
35
LO threshold set for 30

30
LOLO threshold set for 25
25
Histeresis blocks the LO event generation
20
7:00 7:10 7:20 7:30 7:40 7:50 8:00 8:10 8:20 8:30 8:40 8:50 9:00 9:10 Time
LO Level - ON LOLO Level - ON Daily scheduled readout

Pressure sensors
• OKO/Alevels are compatible with 4..20 mA and various serial interface sensors
• AIUT as a partner of Keller pressure sensors manufacturer, can optionally deliver high quality sensors
• Piezoresistive pressure sensors with absolute or relative pressure measurement
• Temperature (0C) measurements with in sensor range
• Digital signal processing (DSP) for the compensation and normalization of the measurements
• Measurements ranges: 0-300 mbar, 0-10 bar, 0-30 bar, 0-100 bar
• Operating temperature -20 / +50 OC or -10 / +80 OC
• Connection threads: male ¼” BSP(T) or ¼” NPT
• Steel case, IP 67 and I2C digital interface
• ATEX Certified - Zone 0
IMR system elements includes communication equipment, data loggers, sensors, as well as, backoffice software
package for data acquisition, analytics and presentation. For more details, visit our website www.smartgasmetering.com
IMR Server
• IMR Server Database of measured readouts and devices configuration

• IMR Software supports: archiving process, records management, reports generation
• Access to the data through web application
• Integration with 3rd Party IT systems
• Data servers hosted by AIUT, or installed in the 3rd Party location
Customer Portal / Reports

• Data presentation in charts and tables
• Set a new measurement location
• Enable and set values for event alarms (LO ... HI, Step rel, Rapid drop/rise etc.)
• Defining alarms notification groups (SMS or/and e-mails)
• Generated alarms statistics and presentation
• Configuration of measuring range (min, max and average) and laches periods
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• Daily update on the field devices status (battery consumption, sensors / Alevels /OKO )
SITA - Mobile application

• Works on Android OS OKO 55x3 &
Bluetooth Opto Head
• Intuitive human-machine interface
• Map viewer shows site locations in the gas network
• Setup of a new location: hardware devices and the data parameters
• On-site parameters check-up, readout of measurements, actual status
of OKO55x3 and Alevels 303
• Maintenance of working site, e.g. replacement of sensor / Alevel 303/
OKO 55x3
• Using Opto head adapter for safe local Bluetooth communication with
OKO 55x3, allows to using Smartphone or Tablet out of EX zone
Ex Zone
aiut
www.aiut.com.pl • www.smartgasmetering.com • info@smartgasmetering.com
AIUT Sp. z o.o. ul. Wyczółkowskiego 113, 44-109 Gliwice, Poland
Phone: (+48 32) 77 54 000 Fax: (+48 32) 77 54 001
Smart Gas Metering
OKO I505 GPRS/SMS Gas Meter Data Logger with Valve Controller
GPRS or SMS communication Long life battery (10 years)
Hourly consumption recorded for 20 years Built-in pulse sensor
Cut off valve, remote control IP67 Extreme environment conditions
NFC Display Safe valve opening with leak detection procedure
Double Functionality Credit & Prepaid ATEX Zone 0
OKO I505 data logger installed on Elster BK G4 gas meter with internal valve, makes perfect Gas Smart
Meter device for commercial and residential applications. The device registers readouts and transmits
consumption via GPRS/SMS to back office server. OKO I505 controls the internal valve and allows
to close it remotely (on request of system operator) or automatically when the credit runs out.
IMR Smart Gas Metering designed, developed and manufactured by AIUT consists of communication
equipment, data loggers, sensors as well as back office software package for data acquisition, analytic
payment process and presentation.
aiut
www.smartgasmetering.com • info@smartgasmetering.com
Phone: (+48 32) 77 54 000 Fax: (+48 32) 77 54 001
Smart Gas Metering
OKO I505 GPRS/SMS Gas Meter Data Logger with Valve Controller
The data logger enables to control the valve remotely, without accessing the customer premises: on-demand
valve closing and permission for safe manual opening. It enables to keep your customer loyal and supports
“always on time” payments. In prepaid mode, OKO I505 supports user in controlling the credit and enabling
independent top-up by GPRS or NFC. While the credit runs out, the valve is automatically closed.
Functional and Technical Features
Data structures Environment

• Log 20 years of hourly consumption data. Configurable • Robust design, secured and sealed
logging interval of 30 or 60 minutes • Suitable for extreme environment
• Daily readout: current device state, temperature, daily • Operational temperature -25°C to +55°C
consumption, GSM summary • Ingress protection IP67. High humidity proof
• Tamper detection: device removal, external magnet, • Ex zone (ATEX Zone 0 approved - II 1G Ex ia II A T3 Ga)
exceeding Qmax or operational temperature range
Communication NFC on-site operation

• GPRS (TCP, UDP) and SMS NFC Display the new generation of meter user interface:
• Standard Smart-Gas protocol, optionally 3rd party protocols • Access to gas consumption history
• AES-128 data transmission encryption • Easy credit top-up
• Scheduled daily readouts, configuration
• Event triggered alarms For service operation:
• Server initiated query, command (valve cut-off), configuration • Extensive diagnostics
• Over the air firmware upgrade • Meter commissioning and configuration
• Optionally external pulse replicator - RJ 9 connector
User friendly interface Management system

LCD display with two buttons for navigating menu: current • Back office server with database for readouts,
meter value, customer and meter ID number, credit, configuration and devices management
payment mode, recommended amount and date for top-up. • Communication management and various protocols
support for system with thousands devices
• Browse current and historical data on the web and
customer mobile application, email summary reports
• Manage installation process, supervise and maintain
high system performance
• Integrate payment transaction processing
aiut
www.smartgasmetering.com • info@smartgasmetering.com
Phone: (+48 32) 77 54 000 Fax: (+48 32) 77 54 001

Pre-Feasibility Study Report

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CITY GAS DISTRIBUTION – GUWAHATI

PRE-FEASIBILITY STUDY REPORT-APRIL 2017

BACKGROUND AND RELEVANT CONDITIONS

DEMAND AND SUPPLY ANALYSIS

DESIGN OF INTEGRATED GAS DISTRIBUTION SYSTEM

OUTLINE OF THE PROJECT

FINANCIAL AND ECONOMIC ANALYSIS

CONCLUSION AND RECOMMENDATIONS

DNP LIMITED | iii

Chapter 2 Background and relevant conditions 3

Chapter 3 Demand and supply analysis 9

Chapter 4 Design of integrated gas distribution system 28

Chapter 5 Outline of the project scheme 34

Chapter 6 SWOT analysis 39

Chapter 7 Financial and economic analysis 40

Chapter 8 Conclusion and recommendation 42

Table 1 Population of Guwahati city 7

Table 2 Composition of natural gas 8

Table 3 Properties of natural gas 8

Table 4 Current status of CGD network in India 12

Table 5 Major producers of natural gas in Assam 12

Table 6 Ward wise population of Guwahati city 15

Table 7 Domestic demand of natural gas in Guwahati 16

Table 8 Year wise commercial demand with conversion factor 18

Table 9 Commercial demand of natural gas in Guwahati 18

Table 10 Average fuel consumption of automotive sector 19

Table 11 CNG demand in Guwahati 21

Table12 Total natural gas demand in Assam 21

Table 13 Production of OIL and NG in Assam 22

Table 14 HOEC exploration share 26

Table 15 Demand and supply gap 26

Table 16 Comparative project cost statement 37

Table 17 Cash flow assumption 40

Figure 1 Schematic geological natural gas resources 3

Figure 2 Proposed route of IPI and TAPI pipeline 5

Figure 3 Map of Guwahati city 6

Figure 4 Source comparison of fuel in fertilizer industry 9

Figure 5 Sources of electricity generation in India 10

Figure 6 City Gas Distribution across India 11

Figure 7 Map of Guwahati city with ward 15

Figure 8 Area of exploration by HOEC 25

Figure 9 CGD value chain 29

Figure 10 Proposed CGD system of the project 30

Figure 11 Badulipara-Guwahati route 31

Figure 12 Meter signalling and control system 31

Figure 13 Pressure signal through GPRS/SMS technology 32

Figure 14 Schematic image of system integration 33

Figure 15 CGD benefit impact 42

AGCL Assam Gas Company Limited

ASTC Assam State Transport Corporation

CAGR Compound Annual Growth Rate

CGD City Gas Distribution

CNG Compressed Natural Gas

GAIL Gas Authority of India Limited

GMA Guwahati Metropolitan Area

GMDA Guwahati Metropolitan Development Authority

HOEC Hindustan Oil Exploration Company Limited

IPI Iran Pakistan India Pipeline

JHBDPL Jagadishpur-Haldia and Bokaro-Dharma natural gas pipeline

LPG Liquefied Petroleum Gas

M.F.O Marine Fuel Oil

MMSCMD Million Metric Standard Cubic Meter

NGHP Natural Gas Hydrates Programme