Introduction of Government’s CNG policy

and India’s CNG infrastructures and NGV

Diffusion25th November, 2014

New Delhi

Supreme Court Directives and Progress Made on Introduction of CNG in Polluted Cities

Supreme Court directive dated July 28, 1998

• Replacement of all pre 1990 autos & taxis with new vehicles on clean fuels by March 31, 2000.

• Augmentation of public transport to 10000 buses by April 1, 2001.

• Entire city bus fleet to be steadily converted to single fuel mode on CNG by March 31, 2001.

• Indraprastha gas limited to expedite and expand from 9 to 80 CNG supply outlets by March 31, 2000.

Supreme Court directive dated April 5, 2002

Union of India to give priority to transport sector including private vehicles all over India with regard to allocation of CNG. This means that first natural gas will be allocated and made available for CNG to the transport sector in Delhi and in the other air polluted cities of India.

On August 19, 2003, Supreme Court again directed Government of India and concerned State Governments to draw up an action plan for introduction of alternative transport fuels in the cities of Ahmedabad, Kanpur, Sholapur, Lucknow, Bangalore, Chennai, Hyderabad, Mumbai and Kolkata.

Gas Utilization Policy• The large gap between demand and available supplies

prompted the government to develop a Gas Utilization Policy and to go back to administrative control over prices and over volumes to be allocated to end-consumers.

• Therefore, in 2008, the government introduced new guidelines called the Gas Utilization Policy, which effectively took away gas producers' rights to sell the gas they discover on the open market.

• These guidelines were applicable for five years and be reviewed afterwards.

Gas Utilization Policy (2)

• Currently, the rules of the General Policy for the gas market imply that gas will be allocated according to sectoral priorities set up by the government.

• This does not imply that the gas is “reserved”: if one customer is not in a position to take the gas, the next one on the list becomes eligible.

• As per reports, the Government will give city gas projects selling CNG to automobiles and piped cooking gas to households’ top-most priority for receipt of domestically produced gas.

Sectoral Snapshot• CGD infrastructure is available in 46 cities in India

• Delhi, Mumbai, Ahmedabad, Surat and Pune are some major cities covered by CGD infrastructure.

• India had 925 CNG stations at the end of March 2014

• Gujarat has the maximum number of stations: 326, followed by Delhi NCR with 295 stations

• Total numbers of Piped Natural Gas Consumers are 24.6 million while CNG serves a vehicle population of 1.97 million vehicles.

• Average sale of CNG in India is 6.5 MMSCMD.

CNG Infrastructure as on March 2014Plan to add 52 more cities by 2022

DelhiNoidaGreater NoidaGhaziabad

Delhi NCR

AhmedabadAnandAnkleshwarBharuchBanaskanthaBhavnagarDamanGandhinagarKhedaMehsanaMorbiNavsariPanchmahalPatanRajkotSabarkanthaSilvassaSuratSurendranagarVadodaraValsad

Gujarat

GuragaonFaridabadSonepatPanipat

Haryana

Kota

Rajasthan

MumbaiPuneThane

Maharashtra

Ernakulam

Kerala

Amritsar

Punjab

KanpurBareillyAgraMeerutLucknowMathuraShahjahanpur

Uttar Pradesh

Agartala

Tripura

Raigarh

Chattisgarh

VijaywadaHyderabadKakinadaRajahmundryRangareddyNalgondaKhammam

Andhra Pradesh

IndoreGwaliorDewasUjjainGuna

Madhya Pradesh

DamanDadar& Nagar-Haveli

Daman & Diu

Existing CNG infrastructure

Upcoming CNG infrastructure

Map not on scale

Natural gas pipelines in India as on December 2013

Nangal

Ludhiana

New Delhi

Bareilly

Jagdishpur

Phoolpur

Vijaipur

Kota

Mehsana

Assam regional P/L

Tripura regional P/LKuchh Bhuj

JamnagarSurat

Dahej

Hazira

Dabhol

Bangalore

Kakinada

Dadri

UranMumbai

Kochi

Kottanad

Mangalore

PatnaBarauni

Kolkata

Haldia

Durgapur

Paradip

Hisar

Srinagar

Jammu

Srikakulam

Nagapattinam

Ennore

Jodhpur

Bhilwara

Shahdol

GangavaramMallavaram

Pipavav

Mundra

A

B

C

D

E

F

P

G

Q

T

S

U

R

W

Y

X

VJ

K

L

Under construction gas pipelines

Planned LNG terminals

Existing gas pipelines

Proposed gas pipelines

Operational LNG terminals

Planned FSRU

N

Chainsa

H

I

OCNG infrastructure

Dhamra

Gas-based Petrochemical plants

Gas processing plants

Gandhar

Nagothane

Jaigarh

Auraiya

Chhara

Vaghodia

Lakwa

M

Natural gas infrastructure in India (as in Dec 2013)

Source: PNGRB, MoPNG, PPACNote: PNGRB has cancelled Reliance Gas Transportation Infrastructure Limited’s (RGTIL’s) four proposed pipelines so they are not included in the map

Digha

Chittorgarh

Existing pipelinesA HVJ- Hazira-Vijaipur-Jagdishpur (GAIL)B GREP -GAILC DUPL/DPPL – Dahej-Uran-Panvel (GAIL)D East-West PL (RGTIL)E VKPL – Vijaipur Kota (GAIL)F Dadri Nangal (GAIL)G Dabhol Bangalore (GAIL)H Dadri-Panipat (GAIL)I Hazira- Ankleshwara (GSPC)J Gujarat Regional Network (GSPC)K Assam Regional Network (AOC)L Tripura Regional Network (GAIL)M Mumbai Regional Network (GAIL)N Kakinada Regional Network (GAIL)O Cauvery Basin Network (GAIL)

Under Construction pipelinesP Chainsa-Jhajjhar-Hisar (GAIL)Q Kochi-Kottanad-Mangalore-Bangalore (GAIL)R Surat-Paradip (GAIL)S Mehsana-Bhatinda-Srinagar (GSPC)T Mallapuram-Bhilwara (GSPC)U Jagdishpur-Haldia (GAIL)V Shahdol- Phoolpur (RGPL)

Proposed pipelinesW Durgapur-KolkataX Kakinada-SrikakulamY Ennore Nagapattinum

Map labeling

Vehicle Population Running on CNG

The vehicles have grown at a CAGR of 30.8 % during 2002 to 2013.

94,671

3,75,591

8,74,091

10,37,320

18,23,927

-

100

200

300

400

500

600

700

800

900

1,000

-

2,00,000

4,00,000

6,00,000

8,00,000

10,00,000

12,00,000

14,00,000

16,00,000

18,00,000

20,00,000

2002 2007 2011 2012 2013

No. o

f CNG

Stati

ons

No. o

f Veh

icles

Cars LCV/HCV Autos Buses CNG infrastructure

Key Highlights for CNG Infrastructure during Q1 (Apr 14-Jun 14)

• The total number of CNG stations in the country added in Q1 2014-15 were 8 as compared to 18 in Q4 2013-14.

• CNG consumption during Q1 FY 2014-15 for around 1.7 million• IGL had the largest market share with 45% of total gas sales

volume followed by Gujarat Gas Company with 10% market share.

Growth in CNG infrastructure

Thank you.