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City Gas Distribution Network of India

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  • Last Updated : 07 Nov, 2022
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City Gas Distribution (CGD) means any company that distributes natural gas through a pipeline to commercial, domestic, CNG consumer or industries. As the world is moving towards development, it is needed to save our natural resources and environment. In that case,   the role of natural gas in being clean and environmentally friendly is proliferating. City Gas Distribution (CGD) network passes through densely populated areas to reach a maximum number of customers. Although transporting natural gas through pipelines is reasonably safe.  

Background of City Gas Distribution:

  • In 1834, first time in India, gas was used as fuel for domestic lighting in Bombay by A.C.Wadia.
  • In 1857, in Kolkata, during Sepoy Mutiny, coal gas distribution had started by Oriental Gas Company LTD.
  • In 1962 Assam Gas Company LTD started to supply natural gas for commercial purposes.
  • In 1971, Vadodara become the first city in India where gas supply started for domestic purposes.
  • In the year 2002, honorable Supreme Court Judge Sri. M.C.Mehta stated to the central government to start the CGD project in India’s 16 most polluted cities.

Importance of City Gas Distribution:

  • We all know that Natural Gas is a clean fuel and almost eco-friendly. In India, it is used either for commercial purposes or domestic uses. The government of India putting a thrust to promote this sector to convert the country into a gas-based economy. In India, there is some basin that produces natural gas, such as the Krishna basin, Godavari basin, Assam basin,  Bombay High, and the Cauvery basin.
  • The government says that through this project, the government will supply natural gas uninterruptedly, which will help to boost our economy. Under this policy, the city’s domestic consumers will get first priority to get cheap gas for domestic use, the second priority will be given to the fertilizer production industries.

In India, there are many City Gas Distribution Companies. Some of them are:

  1. GAIL (INDIA) LIMITED at New Delhi
  2. PETRONET LNG LIMITED at New Delhi, Delhi
  3. GUJARAT GAS LIMITED at Ahmedabad in Gujarat(largest)
  4. INDRAPRASTHA GAS LIMITED in  New Delhi, Delhi
  5. RELIANCE PETRO MARKETING LIMITED at Navi Mumbai in Maharashtra
  6. GAIL GAS LIMITED at Noida in  Uttar Pradesh
  8. ADANI TOTAL GAS LIMITED(oldest private gas distribution company) etc.

Advantages of City Gas Distribution Network:

  • Methane is the main component in Natural gas. Methane is an eco-friendly gas and releases very low particulate matter in the environment.
  • Natural gas is almost 62% cheaper than petrol and 48 % cheaper than diesel. 
  • Through the CGD project, almost 200 lakh households will initially be connected to make the transportation cost cheaper.
  • It can also be used in the field of socio-economic development by using excessive fuel. 

Disadvantages of City Gas Distribution Network:

  • Although it is lighter than air and can spread quickly, significant damage can occur. It is very difficult to detect a leak if it begins to leak because of its colorless, odorless, and tasteless nature.  
  • Natural gas is lighter than air, yet no one can deny that it is highly flammable.
  •  We don’t have huge reserves of natural gas. Most of the natural gas used by us has to be bought from other countries Such as Russia, Iraq, Iran, Saudi Arabia, etc. Such continuous purchases can become a rather expensive proposition over time.
  • Though its volume is four times higher than that of petrol, it is more expensive to store and needs to be spent more money on additional storage.

Challenges of City Gas Distribution Network:

  • It is difficult to Build a consumer base for a long process especially when it is done manually. Inquiries must be tracked and responded to, appointments made for the installation, etc.
  • Most CGD organizations do not currently have the internal capacity to develop technology platforms that meet their specific needs. There is also a shortage of suitable technology. For the most part, departments are independent and therefore are not aware of each other’s work. This can lead to problems of transparency and negatively impact client relations.
  • To ensure that the increase in the consumer base reflects higher profit, invoice generation and payment collection must be accurate and timely. According to the manual work reading the meters and generating invoices has an elevated risk of error.

Regulatory Board for City Gas Distribution:

  • PNGRB (petroleum and natural gas regulatory board) is a statutory body. It is constituted under the parliamentary act PNGRD Act 2006. This board protects the interest of the consumer and promotes the competitive market. The board has also managed the processing, refining, transportation, storage, distribution, marketing, and selling of petroleum and petroleum products and natural gas.

Current Development of City Gas Distribution Networks:

  • Recently Government has decided to reduce the gas supply to the power sector to increase city’s gas distribution network. The decision may affect 10 power plants of 8000 MW capacity and some fertilizer units.
  • Singapore-based gas distribution company AG&P Pratham has decided to invest around Rs 18,000 crore in city gas distribution (CGD) over the next eight years.
  • Code ASME B13. 8 covers all the safety aspects and distribution procedures for gas transportation through the pipeline. The design, inspection, installation, and testing of gas pipelines are covered in this code.
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