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Prefeasibility Report for Palghar Spur Line for Transportation of Natural Gas in Thane Geographical Area of Gujarat Gas Limited

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Prefeasibility Report for Palghar Spur Line for Transportation of Natural Gas in Thane Geographical Area of Gujarat Gas Limited Prefeasibility Report for Palghar spur line for transportation of Natural gas in Thane Geographical area of Gujarat Gas Limited 1. Executive Summary Gujarat Gas Limited (“GGL”/ “the Company”) (Formerly known as GSPC Distribution Networks Limited) is a company that was incorporated on February 21, 2012 with the objects as specified in the Memorandum of Association. The Board of Directors at its meeting dated 24th February 2014, granted its "in-principle" approval to the consolidation by way of amalgamation of erstwhile GSPC Gas Company Limited ("GSPC Gas"), erstwhile Gujarat Gas Company Limited ("GGCL"), erstwhile Gujarat Gas Financial Services Limited ("GFSL") and erstwhile Gujarat Gas Trading Company Limited ("GTCL") with Gujarat Gas Limited ["the Company" (Formerly known as GSPC Distribution Networks Limited)] through a High Court approved Composite Scheme of Amalgamation and Arrangement (“Scheme”). The Board at its meeting held on 21st April 2014 approved the Scheme of Amalgamation and Arrangement. The aforesaid Scheme of Amalgamation and Arrangement was sanctioned by the Honorable High Court of Gujarat (“HC Order”) at Ahmedabad vide common oral order dated March 30, 2015 with the Appointed Date of April 01, 2013. The certified copy of the order was received by the company on April 18, 2015 and filed with the Registrar of Companies (“RoC”) at Ahmedabad on May 14, 2015. The said Composite Scheme of Amalgamation and Arrangement became effective on May 14, 2015 with an Appointed Date of April 01, 2013 and subsequently the Company’s name was changed from GSPC Distribution Networks Limited to Gujarat Gas Limited with effect from May 15, 2015. Proposed pipeline alignment runs through several talukas of Maharastra state. A. Palghar Spurline Ch. RL Particulars Village Taluka District State (Km) (m) Take-off Point 0/00 8 Boisar Palghar Palghar Maharashtra Terminal Point 18/627/38 11 Palghar Palghar Palghar Maharashtra B. Palghar Connectivity Ch. RL Particulars Village Taluka District State (Km) (m) Take-off Point 0/00 6.66 Boisar Palghar Palghar Maharashtra Terminal Point 0/632.37 5.61 Boisar Palghar Palghar Maharashtra 2. Introduction of the Project / Background Information (i) Identification of project and project proponent. In case of mining project, a copy of mining lease / letter of intent should be given Thane District forms a part of North Konkan Region which lies between the Sahyadri hills in the east and the Arabian Sea in the West. It has coastal line of about 113 Kms. It lies Between 18°42' and 20°20' North latitudes and 72°45' to 73°48' East longitudes in eastern part of the state Its East-West spread is maximum at the South which is about 100 Kms. The North-south length is approximately 140 Kms. The district has triangular shape. Pune and Ahmednagar districts lie on the East. Nashik district on the East and North-East, Gujarat and Centrally administrated areas of Dadra and Nagar Haveli lie on the North, Arabian Sea forms the North West boundary; while Mumbai and Sub-Urban Mumbai Lie on the South. The history of Thane and many important old trade centre in the district such as Sopara, Kalyan and Vasai, shows that from before the Christian era the creeks, forests and hills of the district were traversed by important trade-routes passing through the important ghats of Sahyadris such as Thal Pass, Malsej Pass, Nana Pass, Bor Pass, Shirghat Pass, etc. But the condition of transport and Communications upto the middle of the 19th century was far from satisfactory. By the end of the last century navigation through coastal sea and creeks was much more important than inland transport, and was mainly through the Vasai, Dahanu and Thane creeks, and Ulhas and Vaitarna rivers. The objective of the primary research was to understand the present fuel consumption patterns in four segments across the GA. The objective of the secondary research was to find out the growth of all the segments in our study region. As Indian economy is growing it is necessary to see how energy demand will grow in this phase. Natural gas could possibly become significant portion of the future fuel mix in India. However, there is still great uncertainty surrounding the size of this potential market and therefore its impact on the gas trade. It is inferred that Thane district (excluding area already authorized) has mostly industrial demand followed by commercial and domestic spread in the GA. However, there is a good demand for transport linked CNG business. Technical Assessment includes technical design in line with the specifications as mentioned in T4S (Technical Specification and Safety Standards) published by PNGRB and ANSI-B-31.8. The diagram below depicts three major activities of Natural Gas Industry and their key market player. The Ministry of Petroleum and Natural Gas (MOPNG) regulates the entire value chain of the oil sector, including exploration and production (E&P), refining, supply, and marketing. Brief description of nature of the project. M/s. Gujarat Gas Limited, Gandhinagar proposes to set up Natural Gas (PNG Network) within different cities of Gujarat State and also in Palghar District of Maharashtra State to supply Natural Gas (PNG) for various industrial, commercial & residential consumers within and around city. GGL proposes to lay Palghar Spurline which will originate from Dahanu Spurline Option - I (TP 21) and terminates at Village Palghar at Ch. 18/627.38 Km in the District of Palghar of Maharashtra State. Details of Take-off and Terminal A. Palghar Spurline : 18/627.38 km Ch. RL Particulars Village Taluka District State (Km) (m) Take-off Point 0/00 8 Boisar Palghar Palghar Maharashtra Terminal Point 18/627/38 11 Palghar Palghar Palghar Maharashtra B. Palghar Connectivity : 0/632.37 km Ch. RL Particulars Village Taluka District State (Km) (m) Take-off Point 0/00 6.66 Boisar Palghar Palghar Maharashtra Terminal Point 0/632.37 5.61 Boisar Palghar Palghar Maharashtra Salient feature of the project Palghar Spurline & Palghar Connectivity (Pipeline Palghar Spurline: Length 18.627Km, Dia 8” length and Dia) Palghar Connectivity: Length 0.632Km, Dia 8” Total pipeline length: Approx. 19.1Km Design pressure 49 bar Operating Pressure 42 bar Maximum Inlet & Outlet Pressure Inlet Range (42 to 25 bar) & Outlet Pressure 19 bar Inlet & Outlet Temperature 0 Deg. C to 65 Deg. C (Design) Operating Temperature 0 to 55 Deg. C Schedule of construction and completion Completion within 1 year from date of permission Applicable standard and code ASME B 31.8 Labour requirement During project execution only Energy requirement and source number of DG sets No stationery/permanent DG sets required on with capacity in KVA pipeline Company Environment Policy, Safety Policy and GGL policy in practice Health Policy No. of SV / IP / RT Stations along the pipeline No SV stations, only underground valves at every 3 kms stretch of pipeline Capacity of each station, discharge pressure and NA temperature & facilities provided / proposed Terminal / Station / IP Pipeline & Instrumentation logical diagram Schematic diagram is attached herewith as (P&ID’s), design criteria and operation philosophy Attachment 1. The pipeline system is designed as per PNGRB T4S guideline for City Gas Distribution and ASME B 31.8 Coast of project Rs. 11,100 per meter Capacity 1.29 in MMSCMD Details of SV/IP/DT Station along the pipeline NA routes Details of Population Density Index 4100 /Sq KM Information about Water consumption: Domestic & NA Industrial (Processing/boiler/cooling/washing/other/Rain Water Harvesting?) and waste water disposal system Capex Outlay of Boisar-Palghar Section 13,84,99,375(INR) TSDF Membership NA CRZ Area 6.336Km Eco Sensitive Area National Park Nil Sanctuaries area Nil Coral Reefs Nil Mangroves Approx. 0.888Km (ii) Need for the project and its importance to the country and or region. As a consequence of the rapid rate of industrialization in India, need of fuel is increasing at an equally rapid rate and the supply-demand gap is widening and there is a need to take there is a need to take steps must be taken to address this issue. Overland transport of fuels by trucks is uneconomical, unsafe, and is a contributor to environmental degradation in terms of the fuel consumed and pollutants released by vehicles in transit and by accidents and spillages (common on Indian roads). Pipelines are internationally recognized as the preferred alternative for transport of fuels from the point of view of safety, economy and relative environmentally viable. The qualities of underground pipelines that make them desirable from these angles are that they are buried underground (at a minimum depth of 1-1.2m), and are controlled by SCADA systems which allow continuous monitoring and rapid closure of valves, etc., and that they are routed to avoid human settlements and ecologically sensitive areas. (iii) Demand - Supply Gap. Natural gas is a colorless, odorless, naturally occurring gaseous mixture of hydrocarbon compounds. Natural gas is used in a variety of applications, such as feedstock in fertilizer in the petrochemical industry and as fuel in the power generation manufacturing of steel, textile, ceramic, glass and other industrial products. As a fuel, natural gas competes with a range of alternative products such as coal and lignite as well as petroleum products such as liquefied petroleum gas, naphtha, high speed diesel, light diesel oil and fuel oil. However, due to lower fuel operating costs and better combustion characteristics, natural gas has distinct economic advantages over other sources of energy. In addition, natural gas has substantial environmental advantages over other energy sources, due to lower emissions. Worldwide, the percentage of global primary energy consumption of natural gas increased from 19% in 1980 to 24% in 2002. High growth in demand of natural gas is expected to occur in developing countries at a rate of 3.9% per year between 2001 and 2025.
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