Natural Gas Grid in India

About Natural Gas

• Natural gas is a fossil energy source that formed deep beneath the earth's surface. Natural gas contains many different compounds.
• The largest component of natural gas is methane, a compound with one carbon atom and four hydrogen atoms (CH4).
• Natural gas also contains smaller amounts of natural gas liquids (NGL, which are also hydrocarbon gas liquids), and nonhydrocarbon gases, such as carbon dioxide and water vapor. We use natural gas as a fuel and to make materials and chemicals.
• It is found along with other fossil fuels and escapes while drilling underground for petroleum sources. The gas is thus a non-renewable source of energy.

How did Natural Gas form?

• Millions to hundreds of millions of years ago and over long periods of time, the remains of plants and animals (such as diatoms) built up in thick layers on the earth’s surface and ocean floors, sometimes mixed with sand, silt, and calcium carbonate.
• Over time, these layers were buried under sand, silt, and rock. Pressure and heat changed some of this carbon and hydrogen-rich material into coal, some into oil (petroleum), and some into natural gas.

Where is the Natural Gas found?

• In some places, natural gas moved into large cracks and spaces between layers of overlying rock. The natural gas found in these types of formations is sometimes called conventional natural gas.
• In other places, natural gas occurs in the tiny pores (spaces) within some formations of shale, sandstone, and other types of sedimentary rock. This natural gas is referred to as shale gas or tight gas, and it is sometimes called unconventional natural gas.
• Natural gas also occurs with deposits of crude oil, and this natural gas is called associated natural gas. Natural gas deposits are found on land, and some are offshore and deep under the ocean floor.
• A type of natural gas found in coal deposits is called coalbed methane.

Forms of Natural Gas: It comes in 4 basic forms

1. Liquefied Natural Gas (LNG) - Natural Gas which has been liquefied at – (Minus) 160 degrees Centigrade. Natural Gas is liquefied to facilitate transportation in large volumes in cryogenic tankers across seas/land.
2. Regasified Liquefied Natural Gas (RLNG) – LNG is Re-gasified at import terminals before transporting it to consumers through Pipelines.
3. Compressed Natural gas (CNG) - Natural Gas compressed to a pressure of 200-250 kg/cm2 is used as fuel for transportation. CNG decreases vehicular pollution on the virtue of being cleaner fuel than liquid fuels.
4. Piped Natural gas (PNG) - Natural Gas is distributed through a pipeline network that has safety valves to maintain the pressure, assuring safe, uninterrupted supply to the domestic sector for cooking and heating/cooling applications.

Production and Delivery of Natural Gas

• Natural gas withdrawn from natural gas or crude oil wells is called wet natural gas because, along with methane, it usually contains NGL—ethane, propane, butanes, and pentanes—and water vapor.
• Wellhead natural gas may also contain nonhydrocarbons such as sulfur, helium, nitrogen, hydrogen sulfide, and carbon dioxide, most of which must be removed from natural gas before it is sold to consumers.
• From the wellhead, natural gas is sent to processing plants where water vapor and nonhydrocarbon compounds are removed and NGL are separated from the wet gas and sold separately.
• Some ethane is often left in the processed natural gas.
• The separated NGL are called natural gas plant liquids (NGPL), and the processed natural gas is called dry, consumer-grade, or pipeline quality natural gas.
• Some wellhead natural gas is sufficiently dry and satisfies pipeline transportation standards without processing.
• Chemicals called odorants are added to natural gas so that leaks in natural gas pipelines can be detected.
• Dry natural gas is sent through pipelines to underground storage fields or to distribution companies and then to consumers.
• In places where natural gas pipelines are not available to take away associated natural gas produced from oil wells, the natural gas may be reinjected into the oil-bearing formation, or it may be vented or burned (flared). Reinjecting unmarketable natural gas can help to maintain pressure in oil wells to improve oil production.
• Coalbed methane can be extracted from coal deposits before or during coal mining, and it can be added to natural gas pipelines without any special treatment.
• Most of the natural gas consumed in the United States is produced in the United States. Some natural gas is imported from Canada and Mexico in pipelines. A small amount of natural gas is also imported as liquefied natural gas.

Uses of Natural Gas

• Power sector: As fuel for base load power plants In combined cycle/co-generation power plants
• Fertilizer industry: As feed stock in the production of ammonia and urea
• Industrial uses: As an under boiler fuel for raising steam As fuel in furnaces and heating applications
• Domestic and commercial: It is used as PNG and CPNG for cooking and fuel respectively.
• Automotive: It is used as an eco-friendly fuel.
• Petrochemicals: As the raw material from which a variety of chemical products e.g. methanol, are derived.

Natural Gas Transmission

• Natural Gas Pipeline Infrastructure connects various gas sources to different gas markets to meet the existing/ future natural gas demand of various Powers, Fertilizer, CGD and other industries in the Country.
• The gas pipeline infrastructure has facilitated widespread industrialization and has brought significant socio-economic changes to different parts of the country.
• The Government recognizes the need to augment the natural gas transmission infrastructure in the country and has been driving the development of natural gas pipeline connecting all regions of the country which is shaping-up into Natural Gas Grid (NGG).
• Over the years, GAIL as a major gas pipeline operator has contributed to the growth and development of natural gas pipeline infrastructure and natural gas market.
• It has an existing 13,718 Km. of gas pipeline network with a capacity of 204 MMSCMD.
• GAIL’s existing natural gas pipeline network covers 20 States (Andhra Pradesh, Assam, Bihar, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh,Jharkhand, Karnataka, Kerala, Maharashtra, Madhya Pradesh, Punjab, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh Uttarakhand and West Bengal) and 2 UT’s ( Puducherry & Dadra Nagar Haveli).

Operational Natural Gas Pipelines of India

• Hazira-Vijaipur-Jagdishpur & Gas Rehabilitation and Expansion Project & Dahej-Vijaipur Pipeline Network (HVJ-GREP-DVPL-I)
• Dahej-Vijaipur Pipeline (II) & Vijaipur-Dadri Pipeline Network.
• Tripura Network
• Cauvery Basin
• Chhainsa-Jhajjar-Hissar Pipeline Network (CJPL)
• Dahej-Uran-Panvel-Dabhol Pipeline Network
• Dadri-Bawana-Nangal Pipeline Network
• Dabhol-Bengaluru Pipeline Network (DBPL)
• Gujarat Regional Pipeline Network
• Jagdishpur Haldia & Barauni Guwahati Pipeline Network (JHBDPL)
• KG Basin Pipeline Network
• Kochi-Koottanad-Bengaluru-Mangaluru Pipeline Network (KKBMPL)
• Mumbai Regional Pipeline Network

Why is there a need to move towards Natural Gas?

• Despite coming under the bracket of the much-defamed non-recyclable energy source, India needs to invest to reap its benefits.
• This is because the only by-product of natural gas is water and carbon dioxide, and we do not have to deal with pollutants such as Sulphur dioxide, Nitrogen Dioxide, etc.
• Also, India today has the dubious distinction of being the third-largest emitter of greenhouse gas after the USA and China.
• Switching to natural gas will help the Indian energy roadmap to move to greener pastures.
• It will also be in line with India’s energy commitments at COP 21, that is, the Paris Convention of 2015. We have pledged to reduce carbon emission by 33-35% as compared to 2005 levels in India.
• Today India sources substantial amounts of its natural gas imports from Qatar, with whom it has a long-term agreement. With the goal of Atmanirbhar Bharat at the forefront, investing in pipeline infrastructure will be a step forward in self-reliance, and decreased dependency on imports.
• Also, pipelines are an economical, safe, and hassle-free mode of gas transportation.
• Transparency and speedy progress in the natural gas sector will promote ease of doing business.
• This in turn will generate employment in gas-consuming sectors and will aid investment in industries downstream, such as City Gas Distribution.
• We see applications of natural gas in the day-to-day activities of industries and households. Manufacturing, fertilizer industry, urea manufacturing, and other commercially important chemicals are manufactured by using natural gas as an energy source. Other applications include electricity generation, cooking gas at home, and fuel for vehicle transportation.

Natural Gas data in India

• To increase the share of natural gas, the government has announced the expansion of the natural gas grid from the previous 17,500 kilometers to 34,500 kilometers. To which, 450 kms have already been added making it approx 18000. The next 16000 kms is expected to be achieved in the next 4-6 years.
• Total consumption of natural gas in India stands at 148.02 Million Metric Standard Cubic Meter Per Day.
• The government is looking forward to achieving the goal of clean energy, by increasing the share of natural gas in the primary energy basket of India from 6.2% to 15% by 2030.
• Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The government plans to increase this share to 15% by 2030. India’s gas demand is expected to be driven by fertilizer, power, city gas distribution, and steel sectors.
• Globally, the share of energy production from natural gas stands at 23.4%. India thus has a lot of catching up to do when compared to its global counterparts. The $60 billion gas pipeline project is in line with this goal.

Challenges of Gas Pipeline project

The execution of the gas pipeline project envisioned by the Prime Minister will be an uphill task because the scope of natural gas is severely limited in India at present.

• Firstly, the gas fields are concentrated in only a few pockets across the country, namely in Bombay high, offshore Mumbai coast, Tripura and Assam in the North East, and Krishna Godavari Basin down south.
• Secondly, the pipeline system is insufficient, given that it connects only the northern states.
• The existing pipelines are also grossly underutilized. For example, GAIL has noted, it can use only 47% of its existing 11,500km gas pipeline capacity. This leads to a low return on investment for companies, thus disincentivizing more companies to carry forth natural gas exploration.
• Due to these infrastructural hiccups, we have to import Liquified Natural Gas (LNG) from the USA and Qatar, through the Open General License (OGL). Also, we have only six natural gas refueling terminals presently, including those at Mundra, Ennore, etc.
• Petroleum, including natural gas, falls under the Union List in the Constitution of India. This implies that only the central government can make laws and take decisions in the gas energy department. This leads to clashes in land acquisition at the local level, further delaying gas projects. Obtaining permission to lay the pipelines is only one of the hurdles, following which safety issues of the workers become a major concern given the explosive nature of natural gas, including accidents due to human error and technical fault.
• Apart from the impact on human beings, drilling to explore gas can have major repercussions on the marine habitat. Marine life is already suffering due to excessive oil drilling and oil spills, added to which exploring natural gas can further deteriorate their habitat. We have often heard that Whales lose their way due to disturbance in the communication frequency and land up getting stranded. The fish and coral present on the immediate offshore are also declining. One of the primary causes of these disasters is excessive human interference due to drilling and exploration.

Government efforts for Natural Gas Grid

• Cabinet Committee on Economic Affairs has approved the ‘Natural Gas Marketing’ reform in November 2020.
• Recently, an investment of 70,000 crores is being made along the east coast. Further, the Ministry of petroleum and natural gas has released a draft city gas distribution pipeline. It may be adopted by City Gas Distribution (CGD) Network.
• Reduced road tax and VAT will also be offered to vehicles running on natural gas.
• All these are proactive measures, taking us a step ahead in the right direction towards a gas-based economy.

One Nation One Gas Grid

• The Indian Power system for planning and operational purposes is divided into five regional grids.
• One Nation, One Gas Grid refers to the integration of these regional grids thus establishing a National Grid for providing energy produced by natural gas to various stakeholders like the central government, the state governments, the public and the private sectors.
• The initiative of the Indian government will help meet its target of reaching 15% natural gas in its energy basket mix by 2030 which is currently at 6.2-6.5% whereas the global average is 23-24%.
• With one nation and one gas grid, the energy produced from natural gas will be supplied to the whole country via a single source.
• It will help in improving the regional imbalance of gas availability as currently the natural gas is only in limited pockets of the country.
• One nation, one gas grid which will help emerge India as a gas based economy.
• The import dependency of natural gas in India has reached to 53%. In order to reduce this high percentage, the government is taking measures to diversify the energy mix of India.

Other Schemes

• North East Gas Grid Project
• Pradhan Mantri Urja Ganga Project
• Hydrocarbon Vision 2030 for Northeast India
• Ujjwala Scheme, which has already benefitted 8 crore households, will be extended to cover 1 crore more beneficiaries.
• 100 more districts will be being added to the City Gas Distribution Network in the next three years.
• A Gas pipeline project will be taken up in the Union Territory of Jammu and Kashmir.
• An Independent Gas Transport System Operator will be set up for facilitation and coordination of booking of common carrier capacity in all-natural gas pipelines on a non-discriminatory open access basis.

Way Forward and Conclusion

• Despite these ventures, a lot is left to be achieved. The central government can start by connecting gas sources to gas consumption domains.
• The gas lines are presently distributed unevenly across the country, leading to uncertainty of a smooth supply of gas.
• India will also have to invest in technology that facilitates deeper drilling, and engage in large-scale import tie-ups till domestic pipelines are fully functional.
• It’s a common idiom, that the proof of the pudding is in the eating. We are yet to see tangible outcomes from this energy source, which is still in its nascent stage.
• To reap the benefits, Natural Gas has to be a viable source of energy, and India needs to balance affordability, access, energy security, and environmental sustainability. This must be accompanied by developing requisite infrastructure in the form of terminals, stations, and pipelines.