Annual Report - 2005-06 - GAIL (India)

LPG MARKETING
PIPELINE INTEGRITY MANAGEMENT
LIQUID HYDROCARBONS
The total Liquid Hydrocarbon Production
during 2005-2006 is 13,25,703 MTs. The
total product mix includes 10,42,219 MTs of
LPG, 1,73,920 MTs of Propane, 53,346 MTs of
Pentane and 56,218 MTs of Special Boiling
Point Solvent (SBPS) for the year 2005-2006.
LPG TRANSMISSION
In the LPG transmission business, your
Company has transported 2.23 MMT LPG
in current fiscal year as compared to 2.14
MMT in 2004-2005 which represents an
increase of 4% as compared to the previous
year.
GAILTEL
During the year, GAILTEL expanded its
optical fibre cable network in the southern
part of the country to the extent of 4,000
kms. in the states of Karnataka, Andhra
Pradesh, Tamilnadu and Kerala. As a part of
the expansion plan, more than 500 kms of
optic fibre network has also been added in
the states of Uttar Pradesh and Uttaranchal.
As a result of these measures, your
Company’s optic fibre network has grown
from 8,500 kms. to more than 13,000 kms.
EXPLORATION AND PRODUCTION
(E&P)
In line with your Company’s Gas Sourcing
strategy, E&P activities continued to remain
in focus during the year. Your Company
tasted the success in the E&P business, as
commercial production of crude oil started
in September 2005 from the Cambay Block
in Gujarat, where your Company holds 50%
participating interest.
In January 2006, the authorization for direct
marketing of LPG, which was granted in
February 2005, has been kept in abeyance by the
Government of India. Your Company has requested
the MoP&NG for an early review of its decision so
that GAIL could take further necessary action to
commence LPG marketing.
BUSINESS INITIATIVES
GAS TRANSMISSION
NATIONAL GAS MANAGEMENT CENTRE
Your Company has established a World Class
National Gas Management Center (NGMC) this year
with an objective of round- the-clock monitoring
& control of all transmission assets of the Company
from a single location.
NGMC deals with GAIL’s natural gas transportation
and LPG transmission business throughout India in
which live data is available at a centralized location
for monitoring of pipeline and delivery conditions
of all major customers’ terminals.
GUJ
JLPL
DVPL
MAH
NCR
NGMC
AP
TN
UP
VSPL
* Map not to scale
The NGMC would help your Company
to manage the complexities of
Demand-Supply variations in gas
supplies efficiently and in real time,
involving Multiple Sources, Multiple
Delivery Terminals with Different Gas
Specifications and Variable prices in an
Integrated Gas Grid.
MCC
RGMC
NGMC
TRIPURA
The NGMC will be connected to
and supported by Regional Gas
Management Centers (RGMCs). The
RGMCs are equipped to carry out
round-the-clock monitoring and
regulation of quantity & quality of Gas,
control the operational and safety
aspects of pipelines in the region and
provide remote access to customer
terminals with capability to remotely
configure, regulate and monitor flow
rates and volumes of gas supplied to
major consumers.
‘Where there is MONITORING, there can
be CONTROL’ - is the Motto of our O&M
activities.
The state of the art monitoring
capabilities through Satellite
linked communication network
and Supervisory Control and Data
Acquisition (SCADA) with:
• 24x7 monitoring of major assets,
operations and associated
customer facilities.
• 7 exclusive Regional Gas
Management Centers (RGMC) for
monitoring, control and real time
data logging.
• Master Control Centers (MCC) for
three cross country.
• National Gas Management Centre
(NGMC) for connecting all control
centers at one place for centralized
monitoring and management
decision making.
Your Company has given highest importance to the
implementation of pipeline integrity management
this year. In 2005-2006, your Company has
conducted Intelligent pigging of major pipeline
asset base (HVJ & GREP). Your Company has also
conducted the coating integrity survey in all
major pipelines by international reputed agencies.
Both the studies indicate that the gas pipelines
are healthy and well protected against external
corrosion. Further, the cleaning pigging operation
has also been undertaken and this has resulted in
improvement of pipeline efficiency and cleaner gas
supply to customers.
Your Company is committed to the pipeline
integrity management activities so as to maintain
and improve transmission efficiency as well as in
enhancing health and life of pipeline systems.
METERING AUDIT
In the present gas market, where pipelines are
being used by various shippers and customers
for gas of different specifications, your Company
recognizes the need to enhance and ensure
transparency and confidence level among our
valued customers. For this purpose your Company
is conducting third party audit of metering units
by an internationally reputed external agency. This
audit has already been started and is expected to
be completed by August 2006.
CITY GAS
DEVELOPMENT OF RETAIL GAS
SOLUTION
Keeping in view the complexities of the
retail gas business and expected growth of
this business segment in the near future,
your Company has entered into a Solution
Collaboration Agreement (SCA) with Infosys
Technologies Limited for developing a
retail gas software solution.
CNG INSTITUTE
Leveraging on the opportunities to
integrate CNG related activities and impart
CNG sector specific training, your Company
is setting up a CNG Institute at NOIDA.
The Institute will be engaged in training,
vendor development and research and
development activities in the area of CNG.
PETROCHEMICALS
This year, your Company has enhanced its
ethylene production capacity from 300,000
TPA to 400,000 TPA by addition of new
cracker furnace of 100,000 TPA capacity.
Simultaneously, the polymer capacity is
being increased by setting up a new HDPE
Unit of 100,000 TPA.
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