Q: Is it safe to use PNG as an industrial fuel?

A: It is absolutely safe to use PNG as a fuel for industrial applications. The Meter & Regulating Station (MRS) installed at 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 Natural Gas be stored? Can it be supplied through cascades because the pipeline is not laid in the area where my industrial unit is situated?

A: No, 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 if the pipelines aren’t available yet, the same shall be laid based on the demand as soon as possible.

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

A: Subject to availability of pipelines in any area, the connection shall be provided within 3 months. 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 any statutory compliances or government approval required to obtain the natural gas connection?

A: No, there aren’t any statutory compliances or government approvals required for obtaining or using PNG as it does not require storage of gas within the plant premise. In fact, natural gas as a fuel is being widely promoted by the Government as it doesn’t harm the environment.

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 one use the industrial PNG in the pantry of the industrial unit?

A: IOAGPL encourages use of gas in pantry / canteen of any industrial unit. For this a separate contract and separate smaller meter is installed. The price of gas shall also be different for such usage i.e. as per prevalent Commercial tariff card.

Q: Can any industrial unit procure the 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. This is subject to availability.

Q: What will happen if gas supply is stopped? If the gas supply is disrupted on 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: My fuel consumption is high but irregular; does your contract cover this aspect of consumption?

A: IOAGPL is currently offering two types of gas contracts –Minimum Guaranteed Off-take Obligation (MGO Contract) and other without any Minimum Guaranteed Off take Obligation (No-MGO Contract). No-MGO Contract is designed to take care of the irregular off-take of customers. Our commercial team would be pleased to advise you to plan your contract quantity and how to efficiently manage your contract.

Q: How much time will be taken by us for the installation (conversion of burners and internal pipeline laying)?

A: Time taken for conversion of burners and laying of internal pipeline depends upon the length of the internal pipeline to be installed and type of burners required at your plant. Typically, it takes 8-10 weeks for any industrial 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 specification provided by us.

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

A: Yes, you 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: What is the difference between MGO & NO-MGO Gas Sale Agreement (GSA)?

A: There are host of advantages associated with both MGO and NO-MGO GSA which can be chosen based on your requirement and consumption pattern. The major difference is however on grounds of price & billing criteria, which is as follows:

MGO and NO-MSO GSA are designed to address specific need of customers.

MGO GSA has basic gas price lower than that offered under NO-MGO GSA.

MGO contract involves guaranteed minimum offtake billing of 85% of DC on monthly basis. While No MGO contact does not have any obligation of any minimum billing. Also, in MGO contract the excess gas allowed is upto 110% on daily basis while in case of No MGO contract. Excess Aty is permitted at 110% of DCQ but is calculated on fortnightly basis (inlisted of daily basis). Price of gas under No MGO contract is higher than MGO contract.

Q: How do I decide my DCQ?

The DCQ for your unit can be arrived based on consumption of existing fuel consumption and estimated future requirement. It is recommended to do the DCQ finalization in based on your requirement based on prior

Q: How many times the revision in DCQ is allowed, both upward and downward?

A: IOAGPL allows revision of DCQ (upward or downward) any number of times. However, upward revision will be allowed only after confirmation from our technical team about the capacity of the installed MRS to withstand the increased flow. In case, the MRS is not able to take increased flow of gas, MRS will have to be replaced. IOAGPL shall be pleased to change the MRS on payment of differential cost from your end. Request for enhancement of DCQ shall be considered and accepted after receipt of the revised Security Instrument as per proposed DCQ and prevailing gas price at the time of request in accordance with the Gas Sales Agreement. Request for DCQ revision can be forwarded to us latest by 25th of the month and revision of DCQ will be affected only from the 1st of the succeeding month. Further details on the above are available in the contract management document which will be forwarded to you after signing of the contract.

Q: Is there any scope for contract negotiation?

A: IOAGPL offers standard contract to all its customers on “non-discriminatory” basis. This is also as per the regulations notified by Petroleum & Natural Gas Regulatory Board. Therefore, there is no scope for negotiation in the contract.

Q: What is the system of billing?

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

Q. Is there any annual maintenance charge?

A: There are no annual maintenance charges taken by IOAGPL.

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 price slab of Natural Gas as my consumption will be higher than other industrial units?

A: As per the regulations, notified by Petroleum & Natural Gas Regulatory Board (PNGRB), the price of gas has to be non-discriminatory and hence, price of gas for all industrial customers will be same respective GA. IOAGPL is currently offering two types of gas contracts –Minimum Guaranteed Off take Obligation (MGO Contract) and other without any Minimum Guaranteed Off take Obligation (No MGO Contract). Gas price for both types of contracts is different.

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

A: Natural Gas does not attract any excise duty. Price offered to you is exclusive of VAT and surcharge. For any concession on VAT or VAT set-off, kindly refer to VAT rules.

Q: If your gas does not meet 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.