11. After getting awareness of LNG (Liquefied Natural Gas) are you interested in using
10.4 CONCLUSION
Figure 10-3Research Methodology by CR Kothari (HYPOTHESIS TESTING OF MEANS) Page No.: 197
The Zcal is 1.906078111
and Ztab is 1.96 at 5% level of significance.
As we can see that Ztab > Zcal , we “Do NOT REJECT THE HYPOTHESIS”
i.e. LNG IN CYLINDERS IS FEASIBLE.
using 120 LPG commercial cylinders & for their expansion of Powder Coating plant the demand is 15 tonne of gas per month to carry out their operations. So, this shows that there is a greater scope of LNG in cylinders use as an alternative fuel to the LPG gas.
The customers who were using LPG were mainly concerned about the price of LNG at which it will be delivered to them. The cost of the cylinder is very high in the range of 1600$ to 2000$ excluding port charges. So, the customers were concerned about the price of LNG and Cryogenic cylinders which they are going to use in future. So, in context to this problem, company has decided to provide the LNG at the rate 20% less than the price of the commercial cylinder due to which the customer can afford the LNG in cylinders at reasonable prices.
Price of the LNG cylinder is quite high as compared to the price of the LPG cylinder. So, this was the major concern for the customers so the company has already planned a solution for this problem. Company will provide the cylinders to the customers & in return will ask the security of Rs 25,000 to 30,000 per customer for the 230L cylinder which is equal to 6 LPG cylinder of 14.2 kg. As the customer use to pay the security of Rs 2000-3000 in case of domestic LPG cylinder & even much more in case of LPG commercial cylinder. So, it will not be an issue for the customer to pay this much security for the LNG cylinders at the starting as its going to add much value to their system & efficiency will also be increased along with other benefits too.
In case of LPG there was a concern of leftover gas up to 10% in the cylinder. In winters it can increase up to 15%. So, it is a loss to the LPG customers. But in case of LNG there is no leftover of gas in the cylinder. This point has also influenced the LPG customers a lot to think about LNG as an alternative.
Day by day, the number of accidents in LPG cylinders are increasing due to leakages, mishandling etc. So, the customers were very much concerned about the safety of the plant &
man-power. Loss of human life is considered as the biggest loss as compared to the loss of the property & money. As the LNG is much safer than LPG because of its less density on leakage, it dissipates very rapidly into air whereas LPG settles down at the bottom, so chances of accidents are more.
All the agro- based industries were using coal as a fuel for their boiler. All of them were
the residual disposal was the one of the another problem which they were facing. So, looking at the special qualities of LNG, they all were ready to use LNG in place of Coal.
Coal handling & storage was one of the another problem they were facing. They were bearing the transportation cost for the procurement of coal from their vendors. In case of LNG, there is no transportation cost, as JEL is going to provide the LNG at their door step &
the LNG is free from pollution too.
The only matter of concern related to the coal & LNG was the price of the respective fuels.
There was a large gap between the price of LNG & coal. But, if we talk about the calorific value & usability of LNG, then the amount of LNG required to generate the same amount of heat will be less.
Wood procured by all the agro-based industry was not of good quality. The wood they were receiving was wet wood sometimes. So, the calorific value was low for wet wood. This leads to increase in consumption of wood & which was not economical. Procurement of wood in large quantity was also becoming a problem for them. So, wood based customers were also influenced to switch to LNG.
One of the most important factor which became the matter of concern was the price of LNG at which it will be delivered to the customers at their doorstep. This needs to be economical, else this price factor can disturb the feasibility of LNG in that particular area.
All the agro-based customers were concerned about the conversion cost of switching from coal
& wood to Gas-Based System. They were ready to switch, provided that cost of conversion is within their limits. As per their information, the boiler provided to them by the companies named Thermax Industries Ltd, Baroda & Heatex Industries Ltd., Surat are IBR (Indian Boiler Regulation) Certified. All the industries demanded that if these companies will supply the gas – based boiler to them, then it is immediately acceptable by them & definitely they will switch to the LNG.
We have targeted the Thermax Industries Ltd & Heatex Industries Ltd in order to know the conversion cost to switch to gas-based system. The response obtained from them was not satisfactory. Managing Director of the company had a discussion with a boiler specialist,
according to him the gas-based system will not be feasible & efficient due to several factors like low price of wood, high price of gas etc.
As the use of LNG in cylinders is a totally new concept, so few of the customers were concerned about the factor that whether LNG is used earlier in the country or not. They were concerned about the feasibility & the viability of the project.
After carrying out the hypothesis testing, that whether LNG is feasible or not in case of LPG, hypothesis is accepted i.e. LNG is feasible for the targeted area.
After carrying out the hypothesis testing, that whether LNG is feasible or not in case of Wood &
Coal, hypothesis is accepted i.e. LNG is not feasible for the targeted area.