WELCOME WELCOME TO PRESENTATIONTO PRESENTATION

ONON

GSPL GAS GSPL GAS GRIDGRID

(Gujarat Natural Gas (Gujarat Natural Gas Infrastructure)Infrastructure)

66thth May May 20062006

Topics CoveredTopics CoveredGSPL Scenario GSPL Scenario Need of PipelinesNeed of PipelinesDemand and Supply GasDemand and Supply GasTechnical details of PipelineTechnical details of PipelinePipeline construction photographsPipeline construction photographsPricing Mythology / costingPricing Mythology / costingChallenges / IssuesChallenges / IssuesQuestion & Answers Question & Answers

S U R E N D R A N A G A R

J A M N A G A R

B H A V N A G A R

V A L S A D

N

KHADIR ISLAND

Mundra Bandar

R A J K O T

J U N A G A D H

A M R E L I

A H M E D A B A D

S A B A R K A N T H A

S U R A T

B H A R U C H

T H E D A N G S

N A V S A R I

N A R M A D A

P O R B A N D A R

V A D O D A R A

D A H O D

A N A N D

K H E D A

M E H S A N A

P A T A N

B A N A S K A N T H A

K A C H C H H

International Border

NAWA BANDAR

DHARA BANDAR

Salaya

Badana

Chuda

Gaduli

JananBalasar

Desalpar

Khavda

Lakhpat

Narayan Sarovar

MithaviMiyal

Talaseri

L&TCements

AmbujaCements

L&TPlant

ADANI Port

Pindara

GSFC

PHASE- II

PH

AS

E-

I

SHERKHI

GODHRA

KHEDA NADIAD

VADNAGAR

SURENDRANAGAR

DHANDHUKA

BHAVNAGAR

J AFRABAD

PIPAVAV BANDAR

RAJ KOTJ AMNAGAR

OKHA

PORBANDAR

NAVI BANDAR

MANGROL

VERAVAL

AMRELI

MANDVI MUNDRA

GANDHIDHAM

GIPCL

ANKLAV

NTPC Jhanore

GSEGSUVALI

HIMMATNAGARMEHSANA

Gandhinagar

AHMEDABAD

KALOL

SANTEJ

ANAND

GACLBHADBHUT

GPECPAGUTHAN

GNFCVEDIOCONSAJOD

AMBOLI

GEBUTRAN

KRIBHCO

ESSAR

MORA

PETRONE T LNG DAHEJ

HAZIRALNGTERMINAL

VAPI

MORBI

THANWANKANER

CHOTILA

LIMBDI

DHUVARAN

BARODA

COMMISSIONED480 Kms. P/L

RoU IN PROGRESS700 Kms.

UNDER CONSTRUCTION750 Kms. P/L

BHACHAU

GSPL AT A GSPL AT A GLANCEGLANCE• Gujarat State Petronet Limited was setup on 23rd

December, 1998 for transportation of Natural Gas throughout the state. The major features are as follows:-

• Prime Objective of GSPL is connecting all the available sources to demand centres.

• Open Access: GSPL is the first pipeline company in India operating on open access basis and is a pure transmission network.

GSPL ACHIEVEMENTSGSPL ACHIEVEMENTS

YEARYEAR 20012001 20022002 20032003 20042004 20052005 20062006

LENGTH (KMS)LENGTH (KMS) 5858 120120 216216 289289 434434 11541154

LENGTH ADDED (KMS)LENGTH ADDED (KMS) 6262 9696 7373 145145 720720

0

200

400

600

800

1000

1200

2001 2002 2003 2004 2005 2006

LENGTH (KMS)

LENGTH ADDED(KMS)

GSPL GSPL ACHIEVEMENTSACHIEVEMENTS

GSPL has successfully commissioned 58 GSPL has successfully commissioned 58 KM of Pipeline by 2001 and 480 KM of KM of Pipeline by 2001 and 480 KM of pipeline till date.pipeline till date.GSPL is currently transporting 13 GSPL is currently transporting 13 MMSCMD of Gas.MMSCMD of Gas.GSPL’s revenue grew at a compound GSPL’s revenue grew at a compound annual growth rate of 50.1% between annual growth rate of 50.1% between Fiscal Year 2003 and Fiscal Year 2005.Fiscal Year 2003 and Fiscal Year 2005.GSPL operations and maintenance GSPL operations and maintenance systems and procedures have been systems and procedures have been certified with ISO 9001:2000 quality certified with ISO 9001:2000 quality standards by M/s DNV.standards by M/s DNV.

Why Pipelines ?Why Pipelines ?

Natural Gas can be transported through pipelines Natural Gas can be transported through pipelines or by tankers in liquefied form.or by tankers in liquefied form.Advantages of transporting natural gas through Advantages of transporting natural gas through pipelines vis-a-vis transportation by tankers.pipelines vis-a-vis transportation by tankers.

Safe –Safe – since transported through underground since transported through underground pipeline, pipeline,

not exposed to nature.not exposed to nature.

Cheap –Cheap – Cheaper than transportation by tankers. Cheaper than transportation by tankers.

Effective –Effective – No disruptions due to man or nature. No disruptions due to man or nature.

Efficient –Efficient – No losses in transportation, handling, No losses in transportation, handling, etc.etc.

What is Natural Gas ?What is Natural Gas ?

Natural Gas is a fossil fuel in the gaseous form.Natural Gas is a fossil fuel in the gaseous form.Methane is its basic constituents.Methane is its basic constituents.Primary Users of Natural Gas as a fuel:-Primary Users of Natural Gas as a fuel:-

Power SectorPower Sector RefineryRefinery FertilizerFertilizer IndustryIndustry Domestic cooking and heatingDomestic cooking and heating

Chemical CompositionChemical Composition

GSPC Hazira GSPC Hazira GasGas

Shell Hazira Shell Hazira GasGas

% Mole% Mole % Mole% Mole

MethaneMethane 96.0196.01 91.7991.79

EthaneEthane 1.901.90 3.933.93

ProponePropone 1.141.14 2.752.75

I-ButaneI-Butane 0.310.31 0.700.70

n-Butanen-Butane 0.220.22 0.610.61

I-PentaneI-Pentane 0.070.07 0.010.01

n-Pentanen-Pentane 0.060.06 0.010.01

Hexanes+Hexanes+ 0.110.11 0.000.00

CO2CO2 0.180.18 0.000.00

N2N2 0.000.00 0.200.20

TOTALTOTAL 100100 100100

GCV (MJ/sm3)GCV (MJ/sm3) 39.739.7 41.4941.49

Energy Demand In IndiaEnergy Demand In India Energy demand growth of 4%Energy demand growth of 4% Gas demand growth of 6%Gas demand growth of 6% Large demand of Natural Gas.Large demand of Natural Gas. Meeting demand through mix of optionsMeeting demand through mix of options

India’s Potential DemandIndia’s Potential DemandEstimatesEstimates

In India the demand for Natural Gas is going to In India the demand for Natural Gas is going to increase from 9% to 23% in the next 25 years.increase from 9% to 23% in the next 25 years.

•Source: Hydrocarbon Vision Source: Hydrocarbon Vision 20252025

Demand Supply Gap ofDemand Supply Gap ofNatural Gas (Indian Scenario)Natural Gas (Indian Scenario)

SimulationSimulationWhy?Why?

For establishing the capacity of pipeline.For establishing the capacity of pipeline.Suggestions for enhancing the capacity of Suggestions for enhancing the capacity of existing grid.existing grid.Effect of new / future pipeline on the existing Effect of new / future pipeline on the existing grid.grid.

ResultsResultsProvides detailed throughput capacity of entire Provides detailed throughput capacity of entire pipeline grid for various scenarios.pipeline grid for various scenarios.Suggests requirement of necessary loop lines, Suggests requirement of necessary loop lines, compressors, etc.compressors, etc.Provides capital costs and operating costs for Provides capital costs and operating costs for various scenarios.various scenarios.

Simulation Analysis - TypicalSimulation Analysis - Typical

Codes and StandardsCodes and Standards

1.1. ASME B 31.8 ASME B 31.8 2.2. OISD 141 OISD 141 3.3. ASME B 31.3 ASME B 31.3 4.4. API 1104 API 1104 5.5. ASME SEC II PART “C” ASME SEC II PART “C” 6.6. ASME SEC VASME SEC V7.7. ASME SEC IX ASME SEC IX 8.8. API RP 1102 API RP 1102 9.9. API RP 1109 API RP 1109

1.1. DIN 30672DIN 306722.2. SIS 055900SIS 0559003.3. APL 5LAPL 5L4.4. NACE RP 02 75NACE RP 02 755.5. NACE RP 06 75NACE RP 06 756.6. API 6DAPI 6D7.7. DNV RULES 2000DNV RULES 20008.8. ANSI, ASTM SPEC. ETC.ANSI, ASTM SPEC. ETC.

The following Codes/ Standards are Referred for Pipeline Design:

Pipeline Design Pipeline Design

1.1. Pressure – 95 BargPressure – 95 Barg

2.2. Temperature - -20ºC to +60ºCTemperature - -20ºC to +60ºC

3.3. Design Life- 40 YearsDesign Life- 40 Years

4.4. Standard / Code – ASME B31.8 / OISD- 14.1Standard / Code – ASME B31.8 / OISD- 14.1

DESIGN PARAMETERS:DESIGN PARAMETERS:

Permission to Lay PipelinePermission to Lay Pipeline

TRANSPORTERTRANSPORTERApplication for Permission Application for Permission for laying the pipelinefor laying the pipeline

MOPNGMOPNG

IF, QUERY ?IF, QUERY ?

TRANSPORTERTRANSPORTERApplication for Application for Appointment of Appointment of C.A.C.A.

State State Govt.Govt.

If If A

ppro

ved.

Appro

ved.

MOPNGMOPNG

If If A

ppro

ved.

Appro

ved.

IF, QUERY ?IF, QUERY ?

APPROVEAPPROVEDD

ROU / ROW ClearancesROU / ROW Clearances

ProcedureProcedure Reconnaissance & Route Survey.Reconnaissance & Route Survey. Finalization of Route.Finalization of Route. Final Route Survey.Final Route Survey. Preparation of Alignment Sheets. Preparation of Alignment Sheets. Preparation of 3(1) Schedule.Preparation of 3(1) Schedule. Submission of 3(1) Notification to MOPNG.Submission of 3(1) Notification to MOPNG. Publication of 3(1) Notification to Government Gazette.Publication of 3(1) Notification to Government Gazette. Notice to Land Owners.Notice to Land Owners. Submission of 6(1) Notification to MOPNG.Submission of 6(1) Notification to MOPNG. Publication of 6(1) Notification to Government Gazette.Publication of 6(1) Notification to Government Gazette. Notice to Land Owners for Land Acquisition.Notice to Land Owners for Land Acquisition. Taking Possession and laying the Pipeline.Taking Possession and laying the Pipeline. Restoration / Return.Restoration / Return.

Route Survey Route Survey Grading Grading Stringing Stringing Welding and NDT Welding and NDT Joint Coating Joint Coating Trenching Trenching Lowering Lowering Crossing of Road, Canals, Railway Crossing of Road, Canals, Railway Backfilling Backfilling Cleaning, Hydrotesting, Drying, Gas Charging Cleaning, Hydrotesting, Drying, Gas Charging

Construction Activities of Cross Country GasConstruction Activities of Cross Country Gas PipelinePipeline Construction Activities of Cross Country GasConstruction Activities of Cross Country Gas PipelinePipeline

WELDING

API 1104,

ASME SEC: II PART C, SEC.-V, SEC.-IX

STANDARDS:

Main Line Joints Tie-In Joints

Internal Clamp External Clamp

Root - Down Hill Hot & F/c Down Hill

Root- Up Hill Hot & F/c Down

Hill

100% X ray 100% X-ray + U.T

Repairs

All Pass- Up Hill

100% X-ray after repair + U.T.Note: 0.1% of total joints shall be cut for

P.T

1.1. Standards Standards

2.2. Type of Sleeve Type of Sleeve

3.3. Thickness Thickness

5.5. Surface Preparation Surface Preparation

6.6. Roughness Roughness

7.7. Strength Test Strength Test

8.8. Holiday Test Holiday Test

:::: DIN 30672 DIN 30672 :: :: SIS 055900SIS 055900:: :: Heat Shrinkable Sleeves Heat Shrinkable Sleeves :: :: 2.2 mm thickness after 2.2 mm thickness after

shrinkage and 50 mm shrinkage and 50 mm over lap on existing over lap on existing Coating. Coating.

:::: SA 2 ½ SA 2 ½

:: :: 60-80 Microns 60-80 Microns :: :: By peel off Test, By peel off Test,

frequency 1 in 50 Joints frequency 1 in 50 Joints :::: 25 K.V 25 K.V

Field Joint CoatingField Joint Coating Field Joint CoatingField Joint Coating

Air PiggingAir Pigging Each section shall be cleaned by using Batch Pigs with the help of compressed air. The following are the sequence of pigs for cleaning: 1) Cleaning pig with spring loaded brushes 2) Cleaning pig with air jet holes, nozzles to clean internal dust. 3) Batching pig with four cups to remove mud, dirt debris and any other material. 4) Gauging pig with Aluminum Plate of 95% thicker wall

pipe internal dia and thickness of plate is 6.35 m.m.

Note: Pig locator shall be used during pigging.Note: Pig locator shall be used during pigging.

Hydro-testingHydro-testing

Standard: ASME B 31.8 Standard: ASME B 31.8

Water source to be identified at site during construction. Water source to be identified at site during construction. Contractor shall submit laboratory test report of water Contractor shall submit laboratory test report of water to be used for testing. to be used for testing.

Dosing rate of corrosion inhibitor shall be decided after Dosing rate of corrosion inhibitor shall be decided after testing the water samples at suitable source. testing the water samples at suitable source.

Test pressure shall be 1.4 Times of DP (95 Kg/cm2) Test pressure shall be 1.4 Times of DP (95 Kg/cm2)

Air Volume by P-V plot at 30% of test pressure Air Volume by P-V plot at 30% of test pressure

Strength Test for 24 hrs. Strength Test for 24 hrs.

Tightness Test (Leak Proof Test) 24 hoursTightness Test (Leak Proof Test) 24 hours

Acceptance of test as per calculation shown in Bid Acceptance of test as per calculation shown in Bid Document. Dewatering shall take place in such a way that Document. Dewatering shall take place in such a way that the composition of effluent water does not exceed the the composition of effluent water does not exceed the limit set in IS: 2490 (Part-1) tolerance limits for Industrial limit set in IS: 2490 (Part-1) tolerance limits for Industrial effluent discharge into surface water. effluent discharge into surface water.

Chlorinator shall be included in dewatering circuit Chlorinator shall be included in dewatering circuit

SWABBING / DRYINGSWABBING / DRYING

Foam Pig are propelled with compressed air to Foam Pig are propelled with compressed air to remove the residual water.remove the residual water.

After Successful completion of swabbing the line After Successful completion of swabbing the line shall be propelled with foam pigs by using Dry Air shall be propelled with foam pigs by using Dry Air from Drying Unit from Drying Unit

Drying Operation shall be acceptable after checking Drying Operation shall be acceptable after checking the dew point temperature at both ends and Min(-) the dew point temperature at both ends and Min(-) 20 Degree Centigrade shall be achieved. 20 Degree Centigrade shall be achieved.

A digital dew point meter shall be used for checking A digital dew point meter shall be used for checking the dryness of the line. the dryness of the line.

C.P SYSTEMC.P SYSTEM C.P System is provided to protect the pipeline from C.P System is provided to protect the pipeline from corrosion.corrosion.

Type of C.P SystemType of C.P System : : Impressed Current Impressed Current Cathodic Cathodic

Production Production Design Life Design Life : : 40 Years 40 Years Type of Anodes Type of Anodes : : Magnesium Magnesium

Zinc Zinc High Silicon Cast Iron High Silicon Cast Iron

(Low Consumption Rate) (Low Consumption Rate)

The pipe to soil potential shall be in between (-) 0.85V The pipe to soil potential shall be in between (-) 0.85V to (-) 1.5 V with reference to copper / copper sulfate, to (-) 1.5 V with reference to copper / copper sulfate, Ref. Cell. Ref. Cell.

TR Units at Stations TR Units at Stations

Test Stations at every 1000 Mtrs.and all crossings Test Stations at every 1000 Mtrs.and all crossings and all crossings. and all crossings.

Pipeline

Construction

Photographs

MOBILIZATION OF CONSTRUCTION EQUIPMENT

GRADING

PIPE TRANSPORTATION

PIPE UNLOADING

TRENCHING

STRINGING

BENDING

C.P INSTALLATION

Road Crossing

MANUAL ARC WELDING

BLASTING / PRIMING OF WELDED JOINT

COATED WELDED JOINT

LOWERING-IN

LOWERING-IN

MarkerMarker

Pricing Methods for Gas Pricing Methods for Gas TransportationTransportation

Postage Stamp Pricing systemPostage Stamp Pricing system: Constant toll : Constant toll independent of distance.independent of distance.

Distance related or Point to Point SystemDistance related or Point to Point System: Toll : Toll is Proportionate to the distance of the is Proportionate to the distance of the delivery.delivery.

Cost of a PipelineCost of a Pipeline

Thumb-rule for costing:-Thumb-rule for costing:-

COMPONENTCOMPONENT % COST% COST

Engineering & TPIAEngineering & TPIA 44

MaterialMaterial 6060

ConstructionConstruction 1919

Land & ROULand & ROU 88

OthersOthers 55

IDCIDC 44

TOTALTOTAL 100100

Thumb Rule for CostingThumb Rule for Costing

Approximate cost of pipeline per kilometer Approximate cost of pipeline per kilometer length typically are as follows:length typically are as follows:

SIZESIZE COST (Rs. in Cr.) / K.M.COST (Rs. in Cr.) / K.M.

12”12” 1.201.20

18”18” 1.801.80

24”24” 2.202.20

30”30” 3.503.50

32”32” 4.004.00

The pipeline has a life of 40 years.The pipeline has a life of 40 years.Feasibility Check to be done to see Feasibility Check to be done to see whether revenue generated are enough whether revenue generated are enough to cover operating expenditure, to cover operating expenditure, depreciation, interests and return on depreciation, interests and return on Equity.Equity.Pipeline projects are capital incentive Pipeline projects are capital incentive with Debt : Equity ratio of 65 : 35.with Debt : Equity ratio of 65 : 35.Pipeline has very low operating costs, Pipeline has very low operating costs, generally 2% to 2.5% of the Capex.generally 2% to 2.5% of the Capex.

Financial ViabilityFinancial Viability

Transmission:-Transmission:-

G.S.P.LG.S.P.LG.A.I.L.G.A.I.L.G.G.C.LG.G.C.LRelianceReliance

Distribution:-Distribution:-

G.S.P.C GasG.S.P.C GasG.G.C.LG.G.C.LAdaniAdaniCharotar GasCharotar GasIndraprastha GasIndraprastha GasAssam Gas Company.Assam Gas Company.Mahanagar Gas CompanyMahanagar Gas Company

Companies in Gas Transmission and Companies in Gas Transmission and DistributionDistribution

ChallengesChallenges

How to avoid duplicationHow to avoid duplication

How to optimize the How to optimize the infrastructureinfrastructure

Issues:-Issues:-

SafetySafety

Quality Std.Quality Std.

Regulatory IssuesRegulatory Issues

Questions & Questions & AnswersAnswers

THANK-YOUTHANK-YOU