The face of a society reflects the source of energy it uses. Accelerated pace of growth cannot be at the cost of the environment. As the wisdom to preserve nature finds importance in the ingredients of economic growth, the policy makers should catalyse the pace of natural gas usage. The advantage with natural gas is that it combines the best of both worlds. Its high thermal content and relatively clean combustion traits compare well with coal and crude oil derivatives.
Natural gas is also benign to the environment. The emissions of CO produced during combustion of natural gas are 80 percent less compared to coal. The contribution of natural gas in emission of SOX and particulates is almost negligible when compared with other fuels. “The adoption of natural gas as an energy source, as a result, will not only decrease the emission level, but also increase the plant efficiency due to clean burning characteristics. Higher the efficiency means greater the conservation of energy and thus lesser environmental impacts,” says InfralineEnergy’s report “Natural Gas Market in Gujarat: Assessing the Progress and Prospects”. The report analyses the entire gas value chain within Gujarat in a bid to help businesses understand the underlying dynamics of a thriving gas market.
Gujarat is the only state, which has operational state level gas grid in India with natural gas pipeline network spanning 2300 kms. The state also has four city gas distribution (CGD) companies supplying compressed natural gas (CNG) and piped natural gas (PNG) to over 12 cities across the state. Besides this, Gujarat remains the only state in India which has successfully implemented gas distribution business at the village level.
The use of natural gas brings an additional source of revenue from protecting the environment. It has been estimated that Gujarat’s gas grid has reduced approximately 17 million tonnes of carbon emissions, which accounts for nearly 42 percent of total Certified Emission Reductions (CER) generated in India. The state is producing around 25 million CERs per year with a potential to grow up to 50 million CERs per year in the next few years.
The tangible benefits are also visible. Energy consumption accounts for nearly 30-35 percent of the total manufacturing costs of a ceramic unit. The ceramic industry depends on grid electricity, natural gas, charcoal, lignite and diesel. The supply of natural gas by GSPC Gas has revived the ceramic business in the Morbi region. Over 40 percent of the ceramic units in Morbi region use natural gas as a clean fuel while the rest continue with coal and bio-waste. Though the price of natural gas is more than coal, the natural gas has found favour with a number of SMEs such as ceramic and textiles industries within Gujarat. The reason, the return on investment is high. The natural gas provides high thermal value and less emission, which results in good quality of products.
The availability of natural gas in the villages of Gujarat has recharged the rural economy. Charotar Gas Sahakari Mandal Limited (CGSML), India’s sole village gas distribution company, supplies natural gas to 11 villages in Anand district. Founded in 1999 as a cooperative sector initiative, it distributes gas to villages which would not be covered by other city gas distribution companies operating within the city’s municipal limits. CGSML distributes piped gas to 11,000 domestic customers, about 100 industrial and 250 commercial customers. One of its biggest customers is Gujarat Co-operative Milk Marketing Federation Ltd., more known, by its brand Amul.
Natural gas is also benign to the environment. The emissions of CO produced during combustion of natural gas are 80 percent less compared to coal. The contribution of natural gas in emission of SOX and particulates is almost negligible when compared with other fuels. “The adoption of natural gas as an energy source, as a result, will not only decrease the emission level, but also increase the plant efficiency due to clean burning characteristics. Higher the efficiency means greater the conservation of energy and thus lesser environmental impacts,” says InfralineEnergy’s report “Natural Gas Market in Gujarat: Assessing the Progress and Prospects”. The report analyses the entire gas value chain within Gujarat in a bid to help businesses understand the underlying dynamics of a thriving gas market.
Gujarat is the only state, which has operational state level gas grid in India with natural gas pipeline network spanning 2300 kms. The state also has four city gas distribution (CGD) companies supplying compressed natural gas (CNG) and piped natural gas (PNG) to over 12 cities across the state. Besides this, Gujarat remains the only state in India which has successfully implemented gas distribution business at the village level.
The use of natural gas brings an additional source of revenue from protecting the environment. It has been estimated that Gujarat’s gas grid has reduced approximately 17 million tonnes of carbon emissions, which accounts for nearly 42 percent of total Certified Emission Reductions (CER) generated in India. The state is producing around 25 million CERs per year with a potential to grow up to 50 million CERs per year in the next few years.
The tangible benefits are also visible. Energy consumption accounts for nearly 30-35 percent of the total manufacturing costs of a ceramic unit. The ceramic industry depends on grid electricity, natural gas, charcoal, lignite and diesel. The supply of natural gas by GSPC Gas has revived the ceramic business in the Morbi region. Over 40 percent of the ceramic units in Morbi region use natural gas as a clean fuel while the rest continue with coal and bio-waste. Though the price of natural gas is more than coal, the natural gas has found favour with a number of SMEs such as ceramic and textiles industries within Gujarat. The reason, the return on investment is high. The natural gas provides high thermal value and less emission, which results in good quality of products.
The availability of natural gas in the villages of Gujarat has recharged the rural economy. Charotar Gas Sahakari Mandal Limited (CGSML), India’s sole village gas distribution company, supplies natural gas to 11 villages in Anand district. Founded in 1999 as a cooperative sector initiative, it distributes gas to villages which would not be covered by other city gas distribution companies operating within the city’s municipal limits. CGSML distributes piped gas to 11,000 domestic customers, about 100 industrial and 250 commercial customers. One of its biggest customers is Gujarat Co-operative Milk Marketing Federation Ltd., more known, by its brand Amul.
The future of natural gas seems bright with the discovery of shale gas. The major basins in the country have been identified as shale rich. However, the inadequacy of technology to drill and to extract the gas hampers its growth. “The use of natural gas has the potential to reduce the country’s oil import bill and save the environment too,” says an energy expert.
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