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Strengthening City Gas Distribution (CGD) for Achieving a Gas-Based Economy

Strengthening City Gas Distribution Achieving Gas-based Economy

Before you peruse the complete article, watch the intriguing video on India’s evolving gas-based economy:

The video below gives you a glimpse into India’s transition to a gas-based economy. Read the entire article to get a complete picture of how the digitisation of City Gas Distribution (CGD) network can enhance the nation's Social, Environmental, and Economic values, while ensuring uninterrupted supply of clean fuel to thousands of citizens.

Robust economic growth, growing energy needs and commitment to reducing carbon footprint by 30-35%1 have bolstered India’s resolve to move towards a gas-based economy. While the transition will provide citizens, industrial and commercial users a clean fuel Piped Natural Gas (PNG) through city-gas supplies, admittance to less polluting Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG) at fuel stations will help reduce the number of diesel-guzzling vehicles on roads.

Natural gas, the cleanest-burning hydrocarbon, releases almost half the carbon dioxide as compared to coal, reducing air pollution significantly. Betting on the same, the Government of India is looking to more than double the share of natural gas in India's energy mix, from the current 6.3% to 15% by 20302.

A gas-based economy will also usher in a new ecosystem that encourages sustainable industrial and economic growth, generates employment opportunities for the youth and enhances the Quality of Life of millions of citizens by providing them affordable, clean energy solutions.

As a committed partner, Hitachi is actively collaborating with stakeholders, offering its OT x IT driven solutions, to strengthen the City Gas Distribution (CGD) network and boost India’s transition into a gas-economy. By integrating gas infrastructure with latest technologies and software such as SCADA (Supervisory Control and Data Acquisition) systems, Hitachi is also contributing to the government's progressive Digital India and Smart Cities missions.

India’s Booming Gas Sector

India’s Booming Gas Sector

India’s Booming Gas Sector - Industry Outlook
  • Gas Pipeline Infrastructure- 17,016 kms (June 30, 2020)(3)
  • Current Share in energy mix- 6.3%(2)
  • Target Share by 2030- 15%(2)
  • Growth in Natural Gas Demand- CAGR of 6.8%(4)
  • Growth in Natural Gas Supply- CAGR of 7.2%(4)
India’s Booming Gas Sector - Government Initiatives
  • Indian Gas Exchange (IGX)
  • One Nation, One Gas Grid
  • New Exploration Licensing Policy (NELP)
  • Rs 70,000 crore investment for expanding gas pipeline infrastructure(3)
  • Rs 7,000 crore investment for bio-CNG (compressed natural gas) plants(3)

Overcoming Challenges, Strengthening Infrastructure

The limited use of natural gas in India so far can be mainly attributed to high prices and inadequate infrastructure. Besides developing a favorable ecosystem for all market players, the government is also focusing on expanding the pipeline infrastructure.

An estimated $66 billion investment2 is being earmarked to develop gas infrastructure, including pipelines, city gas distribution, and LNG regasification terminals. The launch of Indian Gas Exchange (IGX), increased exploration under New Exploration Licensing Policy (NELP) and creation of the 'One Nation, One Gas Grid' are taking India forward towards realizing its goal of ‘AatmaNirbhar Bharat’ or self-reliant on the energy front.

Driving Success in City Gas Distribution

To boost the nation’s energy security & provide clean energy access to the masses, India will be investing a whopping Rs 1.2 lakh crore in City Gas Distribution (CGD) by 20305. With the efforts of Indian gas regulator Petroleum and Natural Gas Regulatory Board (PNGRB), CGD network has already grown from 34 Geographical Areas (GAs) in 2014 to 228 GAs covering 406 districts in 2019, covering approximately 70% of India's population and 53% of its geographical area5. The number of CNG stations has expanded from 938 in 2014 to 1,769 and is estimated to reach 10,000 by 2030. Likewise, nearly 52 lakh household kitchens are now getting clean fuel with the number projected to reach 5 crore by 20305.

However, to cater to such massive demand, all stakeholders – government, PNGRB, transporters and gas suppliers, CGD entities and vendors – must work cohesively. Overcoming operational challenges and maintaining revenue efficiencies for the suppliers would ensure uninterrupted service to the general public.

Setting up an example, Hitachi India Pvt. Ltd. Infrastructure System Division supported Indraprastha Gas Limited (IGL), one of India’s largest CGD service providers, to scale-up its network and meet the ever-increasing demand for clean and green fuel in the National Capital Region (NCR). Leveraging its operations automation expertise, Hitachi installed its core OT technology HIACS-AZ SCADA sensors and HIACS-AZ SCADA systems at Indraprastha Gas Limited (IGL) sites spread across the NCR, thus enabling remote control of the entire CGD network and safe and reliable Pipe Natural Gas (PNG) operation. For IT & telemetry part, the team used proven IT hardware and Dual SIM GPRS Communication technique for communication between field and command control center.

The scalable, data-driven solution enabled the operators to recognize the peak hour consumption patterns based on which differential pricing during peak hours can be introduced. The project supported the customer to reduce operational cost, increase operational safety, and provide uninterrupted, safer and affordable PNG supply to thousands of consumers. The successful digital transformation of operations ensured that the CGD network becomes safer and more responsive to deliver clean and green fuel to citizens, thus improving their Quality of Life and building a sustainable society.

Hitachi’s Proven ICT Solution - HIACS-AZ SCADA

Hitachi’s Proven ICT Solution - HIACS-AZ SCADA

Hitachi’s Proven ICT Solution Key Outcomes
  • Complete Digital Transformation of Operations
  • Remote Control of Operations
  • Real-time, Deep Data Analysis
  • Convergence of Disparate Data
  • Enhanced Revenue & Customer Base
  • Peak Demand Prediction
  • CGD Network Optimization
Hitachi’s Proven ICT Solution Key Software Capabilities
  • Monitoring & Control of Critical Points in City Gas Distribution Pipe Network
  • Monitoring Live Pressure Values & Remote Shutting of Sectionalizing Valves (SV)
  • Monitoring Process Parameters of SV Station
  • Undertaking Alarm & Trend Analysis

Powering good to Create a Low-Carbon Society

Eco-friendly nature of the fuel, cost-effectiveness and government efforts to promote its usage is driving the demand for natural gas. As India marches forward to realize a gas-based economy, close coordination amongst all stakeholders across the value chain is the need of the hour.

Hitachi is utilizing its 100+ years of expertise in Operational Technologies (OT) and 50+ years of expertise in Information Technologies (IT) to help all stakeholders reach their full potential. Committed to its visionl of enhancing Social, Environmental and Economic values, Hitachi is constantly working towards making India a low-carbon society to ensure good health and enhance Quality of Life for billions of citizens.

Source:

1. https://theprint.in/india/india-to-cut-carbon-footprint-by-30-35-says-prime-minster-modi/549166/

2. https://www.livemint.com/industry/energy/india-to-see-66-billion-investment-in-gas-infrastructure-11606907971431.html

3. https://www.ibef.org/industry/oil-gas-india.aspx

4. https://www.pngrb.gov.in/Hindi-Website/pdf/vision-NGPV-2030-06092013.pdf

5. https://www.deccanherald.com/national/india-to-invest-rs-12l-cr-in-cgd-by-2030-oil-min-757014.html