Natural Gas : IndianOil

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Natural Gas

Drawing on its vast experience and carefully nurtured skill sets, IndianOil has made successful forays in diverse areas such as Natural Gas, Petrochemicals, Exploration & Production, Renewable Energy, etc.

Over the years, Natural Gas has emerged as the 'fuel of choice' across the world. It is steadily replacing traditional fossil fuels due to its environment friendly characteristics which help in meeting the stipulated automobile emission norms. Natural Gas has significant cost advantages over fuels such as Naphtha and commercial LPG. Demand for Natural Gas in India is primarily driven by the fertiliser and power sectors, which account for almost two-third of the country’s gas consumption.

Diesel

IndianOil has co-promoted Petronet LNG Limited (PLL) for setting up LNG (Liquefied Natural Gas) terminals at Dahej & Kochi. IndianOil has marketing rights for 30% quantity of the LNG procured by PLL from RasGas on long term basis at Dahej besides long term contract at Kochi. Demand for Natural gas in India is growing and cannot be met by the current indigenous production. Hence, IndianOil is in the process of sourcing more quantities of LNG to meet the increasing requirements.

Diesel

Within the gas business, City Gas Distribution (CGD) is a rapidly growing segment. Green Gas Ltd., IndianOil's joint venture with GAIL (India) Ltd., is already operational in Agra and Lucknow in the state of Uttar Pradesh and is further expanding to cater to the increased demand in various sectors. In an initiative to expand the CGD network, IndianOil has formed a consortium with M/s Adani Gas Ltd. to develop CGD networks on pan India basis.

In Gas Transmission business, IndianOil owns and operates Dadri-Panipat Pipeline. IndianOil has formed a consortium with GSPL and other OMC’s to build & operate Gas pipelines across the country.

In a major step to increase IndianOil’s presence in Natural Gas industry, Corporation is currently implementing 5 MMTPA LNG import Terminal at Ennore near Chennai which is targeted for completion during 2015-16.

IndianOil is in the process of procuring LNG from world market on long term as well as short term basis for meeting the Internal Consumption at our own Refineries and for Ennore LNG Terminal.

IndianOil has the capabilities to supply re-gassified LNG to customers presently located in the Northern and Western regions of India. With the expansion of the pipeline network in Southern region as well as other parts of the country, IndianOil can supply gas to customers located near those pipelines. As a committed supplier, IndianOil is completely responsible for delivery of gas to the customer’s premises. The transportation services of the company engaged in transportation of gas are hired to ensure deliveries. This model is used world over wherein multiple gas suppliers operate through one transportation system.

The “LNG at Doorstep” initiative involves making LNG available to the customers not connected by gas pipeline. Gas is transported through a cryogenic system, stored in a cryogenic holding tank at the target location and re-gassified on-site through vaporizers for use as fuel. The entire operation being concealed eliminates the possibility of adulteration and pilferage. Introduced in 2007, this initiative has been well received and is attracting more customers located away from the pipelines. IndianOil has in-house capabilities in the manufacturing of Cryogenic equipment at the “State of Art facility at Nasik” for the last three decades.

Major Highlights

Total sales of 2.305 million tonnes of R-LNG in 2010-11
R-LNG turnover grew by 34%.
IndianOil is expanding into City Gas Distribution.

IndianOil JV – Green Gas Limited granted authorisation for City Gas distribution in Agra and Lucknow
IndianOil - Adani consortium is the lowest bidder for Chandigarh & Allahabad in the second round of bidding invited by PNGRB

IndianOil is expanding into Gas Transmission business.

IndianOil owns and operates Dadri-Panipat Pipeline,
IndianOil in consortium has won bids for the following pipelines for which LOIs have been issued by PNGRB

Mallavaram – Bhilwara Pipeline (30 MMSCMD),
Mehasana - Bhatinda Pipeline (30 MMSCMD),
Bhatinda – Jammu - Srinagar Pipeline (15 MMSCMD)

The initiative of ‘LNG at Door Step’ has been well established and LNG is being supplied to number of customers not connected by pipeline safely and successfully.
Indian Oil is implementing 5 MMTPA Ennore LNG import terminal and it is targeted for completion during 2015-16.

Updated on November 01, 2011

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