Commercial PNG


Q: Is it safe to use PNG as a commercial fuel?

A: It is absolutely safe to use PNG as a fuel for commercial applications. The metering skid installed in your premise has an in-built safety system, which ensures tripping of regulator, in case of over pressure (choking) or under pressure (leakage). Moreover, natural gas is lighter than air, and therefore in case of any accidental leakage it disperses easily in air. Natural gas also has the narrowest flammability range of 5-15%, which makes it difficult to catch fire in an event of leakage.

Q: Is the supply of PNG regular?

A: PNG is supplied through a network of underground pipeline network. The same is monitored through well laid out system which ensures uninterruptable supplies to customers at all time.

Q: Can this gas be stored? Can natural gas be supplied through cascades because your pipeline is not laid in the area where my commercial unit is situated?

A: Natural gas cannot be stored. It is supplied only through pipelines. Supply of natural gas through cascades is only for automobiles. IOAGPL has laid pipeline network in all major demand centres of the city and is in position to cater to all major demand in the city. However, in case in certain areas where the pipelines hasn’t reached yet, the same shall be laid as soon as possible.

Q: What is the minimum time period to obtain gas connection?

A: Subject to availability of pipelines in the area, the connection may be provided latest within 3 months post signing of agreement to subject to readiness at the customer end. For consumption of natural gas, customer needs to make modifications in plant and make necessary arrangements for internal pipeline (from downstream of meter till the gas consumption points). The three months’ timelines takes these changes and modification into account.

Q: Are there any statutory compliances or government approvals required to obtain the natural gas connection?

A: There aren’t any statutory compliances or government approvals required for obtaining or using PNG as it does not invoice storage of gas within the plant premise. In fact, natural gas as a fuel is being widely encouraged by the Government of India.

Q: Does IOAGPL Ltd supply burners and install internal pipeline?

A: IOAGPL neither supplies burners nor does it set up internal pipeline within the customer’s premise. However, IOAGPL provides a list of various natural gas-based equipment suppliers and pipeline contractors for customers’ reference.

Q: I want to switch from Diesel Genset to Gas Genset? What are the options available?

A: Your diesel genset can be converted to operate on gas. You may get in touch with either your genset supplier or specific agencies that convert DG sets to gas gensets.

Q: Can any commercial unit procure the Metering & Regulating Skid (MRS) on their own?

A: As per the regulations notified by Petroleum and Natural Gas Regulatory Board (PNGRB), it is the responsibility of the gas distribution company to provide MRS and accordingly MRS shall be supplied by IOAGPL only.

Q: What is the estimated time to replace a faulty meter?

A: MRS installed at your premise have a long lead time (typically 8~10 weeks) and therefore it is essential to take appropriate care of the MRS and maintain the gas flow / consumption as advised by IOAGPL. However, in case MRS warrants replacements, IOAGPL maintains certain inventory of MRSs from which the MRS can be replaced in a short time.

Q: What will happen if gas supply is stopped? If the gas supply is disrupted at your end, what will be the liability of IOAGPL?

A: IOAGPL endeavours to provide its consumers with uninterrupted supply of gas. In a rare scenario, if there has been an interruption in gas supply for any reason, our trained technical team shall restore the gas supply at the earliest. In case of any disruption of gas supply, IOAGPL shall have no liability.

Q: How much time will an installation of internal pipeline and conversion of burners take?

A: The customers will have to get the internal pipeline and conversion of burner done through IOAGPL approved contractor at their own cost. Time taken for this depends upon the length of the internal pipeline to be installed, site condition and type of burners required at your plant. Typically, it takes 3-5 weeks for any commercial unit to complete its process of laying internal pipeline and convert its equipment to gas. The pipeline also needs to be tested as per the technical specifications followed at IOAGPL.

Q: I want to expand my operation after few months? Do I need to disclose it to you?

A: Yes, you will need to inform us for any addition, expansion, removal or maintenance of your equipment(s) for safety reasons. Moreover, increased gas flow in your plant can also damage the MRS which can result in production losses and levy of penalties. It is advised to immediately inform IOAGPL team so that we can assist you in expansion and necessary modifications.

Q: Is there any scope for contract negotiation?

A: Regulations stipulate “non-discriminatory” treatment of all customers and hence IOAGPL offers standard contract to all its customers. Therefore there is no scope for negotiation in the contract.

Q: How does the billing procedure work?

A: Billing is done every fortnight based on the meter readings taken by authorised IOAGPL staff. Payment for the bills need to be made within the time period mentioned in the Invoice.

Q: Is there any annual maintenance charge?

A: IOAGPL charges INR 500 as annual maintenance charges. The company at its own discretion may at any time decrease or increase the annual maintenance charges for all the customers.

Q: What is the frequency of price change in PNG?

A: The price of PNG is related to several factors like exchange rate, crude oil prices, transmission tariff, taxes, etc. and hence may vary. Prices, if need to be revised, are generally revised at the start of a billing cycle by giving advance intimation to customers. At IOAGPL, we endeavour to keep price revisions to minimum.

Q: Is there any excise component in the gas price? My usage for gas is in other than manufacturing process also, is there any set off in VAT both for the manufacturing process and for other purposes like usage in pantry?

A: PNG does not attract any Excise Duty. Price offered to you is exclusive of VAT and surcharge. For concessional VAT rate on PNG or any other tax concessions, if applicable, you may kindly refer the matter to your tax advisor.

Q: If your gas does not meet to the specifications, what is the procedure of rejecting it?

A: Contract signed between us provides for the procedures of not accepting the gas in the event you find that the PNG supplied by us does not meet the specifications. However, in case any such gas is used by you, IOAGPL shall raise the invoices for the same and you shall be obliged to pay for the same.