Industrial PNG FAQ
It is absolutely safe to use PNG as a fuel for industrial applications. The Meter & Regulating Station (MRS) 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 if there is a leakage it disperses easily in air. It also has the narrowest flammability range of 5-15% which makes it difficult to catch fire in case of leakage.
The supply is absolutely regular. The pipeline distribution network is an ‘on-line’ supply system that consists of safety valves and regulators that control and monitor the gas supply and pressure, and assist in identifying system faults and ensures uninterrupted supply at requisite pressure.
- 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
No, the Natural Gas cannot be stored; it is supplied only through pipelines. Its supply through cascades is only for automobiles. IOAGPL has laid pipeline network in all major demand centers of the city and is in position to cater to all demands. However, in certain areas if the pipelines are not present, it will be constructed based on the demand within a short span of time.
Subject to availability of pipelines in any area, the connection can be provided within 3 months. For using it in your premise, you also need to make modifications in plant & arrange for internal pipeline from downstream of meter till the gas consumption points which requires the above mentioned time for completion.
No statutory compliance or government approval is required for obtaining Natural Gas connection as there is no storage of gas within the plant premise. In fact, as a fuel, it is being widely promoted by the Government because of environmental concerns.
IOAGPL neither supplies burners nor does it lay internal pipeline within the customer’s premise. However, to facilitate you, IOAGPL provides the list of various Natural Gas based equipment suppliers and pipeline contractors for your reference.
Your Diesel Genset can also 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.
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 will also be different for such usage.
As per the regulations notified by Petroleum and Natural Gas Regulatory Board, it is responsibility of the gas distribution company to provide MRS and accordingly, it will be supplied by IOAGPL only.
MRS installed at your premise has a long lead time (typically 8-10 weeks) and therefore it is essential to take appropriate care of the MRS and maintain the gas consumption as advised by IOAGPL. However, in case MRS warrants replacements, IOAGPL maintains a certain inventory of MRSs from which it can be replaced in a short time, subject to the availability.
- What will happen if gas supply is stopped? If the gas supply is disrupted on your end, what will be the liability of IOAGPL?
IOAGPL makes the best possible endeavors to provide its consumers with uninterrupted supply of gas. In case of interruption in the supply for any reason, our trained technical team will restore the gas supply at the earliest. In case of any disruption of gas supply, IOAGPL will have no liability.
IOAGPL is currently offering two types of gas contracts – one with 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.
- How much time will be taken by us for the installation (conversion of burners & internal Pipeline laying)?
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 equipments to gas. The pipeline also needs to be tested as per the technical specification provided by us.
There are host of advantages associated with both MGO & NO MGO GSA which can be chosen based on your requirement and consumption pattern The major differentiator is however on grounds of Price & Billing Criteria, which is as follows: - MGO GSA has basic Gas price lower than that offered under No MGO GSA - Billing Criteria MGO GSA – Minimum billing criteria of 85% of the aggregate Daily Contracted Quantity (DCQ) quantity for month and Excess consumption allowed up to 110% of DCQ on daily basis No MGO GSA – No Minimum Billing criteria. Excess allowed up to 110% of aggregate DCQ for the fortnight.
Yes, you need to inform us for any addition, expansion, removal or maintenance of your equipment(s) due to safety reasons. Moreover, increased gas flow in your plant can also damage the MRS which can result in production losses and levy of penalties.
The DCQ for your unit can be arrived by the assistance from our Company representative based on your existing fuel consumption and estimated requirement. It is recommended to do the DCQ finalization in conjugation with contract type (MGO or No MGO). You may however revise the DCQ from time to time based on your requirement.
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 be required to be changed. AGL 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.
IOAGPL offers standard contract to all its customers. This is also as per the regulations notified by Petroleum & Natural Gas Regulatory Board. There is therefore no scope for negotiation in the contract.
Billing is done every fortnight based on the meter readings taken by authorized IOAGPL staff. Payment for the bills needs to be made within the time period mentioned in the Agreement.
There are no annual maintenance charge taken by IOAGPL.
The price of PNG is related to several factors like US exchange rate, crude price, 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. It always remains our endeavor to keep price revisions to minimum.
Gas price to any consumer is based on the regulations notified by Petroleum & Natural Gas Regulatory Board (PNGRB). Our pricing policy is also based on these regulations.
- Is there any price slab of Natural Gas as my consumption will be higher than other industrial units?
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 in Faridabad. IOAGPL is currently offering two types of gas contracts – one with 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.
- 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?
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 setoff, kindly refer to VAT rules.
Contract signed between us provides for the procedures of not accepting the gas in the event you find that the Natural Gas supplied by us does not meet the specifications. However, IOAGPL shall raise the invoices for the actual consumption of gas during this period.