Ranchhodrai Yagnik for supporting me throughout the entire period for the successful completion of the project. The goal of the project is focused on creating a business model for LNG containers to replace LPG cylinders.
GENERAL DETAILS
DIFFERENT TYPE OF FUELS
PRIMARY FUELS
SECONDARY FUELS
COMBUSTION OF FUELS
EVOLUTION OF OIL & GAS
ORIGIN OF HYDROCARBONS
A hydrocarbon can be in gaseous or liquid form, depending on their molecular size and the temperature available there. It can be in liquid form, such as a dark and heavy liquid (crude oil), or it can be in the form of a light oil (motor gasoline).
WELL FLUID
API GRAVITY
SULFUR CONTENT
GENERAL INFORMATION
COMPOSITION OF NATURAL GAS
- METHANE
- ETHANE
- PROPANE
- BUTANE
It is used in the transport sector in the form of CNG. f) It is also used in the household sector for cooking, space heating, etc. It is extracted from the natural gas and used as a raw material in petrochemical products to produce ethylene.
NATURAL GAS
VARIOUS FORMS OF NATURAL GAS
PROCESS INVOLVED IN NATURAL GAS BUSINESS
HISTORY OF OIL & GAS INDUSTRY
In the beginning of the 20th century, there were some great discoveries in the world to sustain for a long time in this energy field. Everywhere in the world the sources of energy are depleting and this can create big problems for the world.
NATURAL GAS OVERVIEW
Natural gas is the main fuel and is widely accepted by several countries as it is a safe fuel compared to other fossil fuels. LNG's share of global gas trade fell slightly to 31.4%, and international natural gas trade accounted for 30.9% of global consumption.
GAS DEMAND AND SUPPLY SCENARIO – INDIA
DEMAND SIDE
SUPPLY SIDE
NATURAL GAS PROVED RESERVES
NATURAL GAS PRODUCTION
The US leads the world in natural gas production with 627.2 tonnes, followed by Russia, Iran, Qatar and Canada. India has an annual production of about 30.3 tonnes of natural gas in 2013, but it is expected to rise this year due to the discovery of a new gas reserve in the KG Basin by Reliance Industries Ltd.
NATURAL GAS CONSUMPTION
Although this much indigenous production is not enough to meet India's growing demand due to which LNG imports are increasing in India to meet some of its demand.
NATURAL GAS TRADE
INTRODUCTION TO THE MARKET
MODE OF TRADING
Other beneficial properties that make natural gas a superior fuel compared to oil and coal are its low carbon emissions and high calorific value. In the recent era, 70% of natural gas is transported through pipelines and the remaining 30% in the form of LNG.
DISTRIBUTION THROUGH PIPELINES
EXISTING PIPELINE INFRASTRUCTURE
The pipeline network design capacity in India is expected to reach 763 MMSCMD by the end of 2029-2030. The natural gas sector in India is on the verge of rapid growth due to increased demand for gas, increased exploration efforts, anticipated future LNG terminals, and the initiative taken by the government to develop the nationwide pipeline network. However, there is a greater need to provide a proactive environment to support the rapid development of gas infrastructure. This proactive enabling environment includes providing accurate price signals for investment and supportive government policies in the sector.
NATURAL GAS PIPELINE SHARE IN INDIA
GLOBALIZED LNG MARKET
EARLY LNG MARKET SCENARIO
At the time, there was a combination of lower demand and an oversaturation of LNG, which resulted in the development of liquidity for the man who took the benchmark gas price in the NW European market. Countries such as Japan, South Korea, Taiwan, India, China and Thailand have together accounted for the majority of global LNG imports since 1970. Asian LNG trading has been based on the Japanese Crude Cocktail (JCC) mechanism for the past 25 years. Since 2011, there have been regular complaints about rising LNG prices in the Pacific Basin. Since 2011, the Henery hub plus formula has been used to shine LNG import contracts.
The first importer of LNG was Great Britain and France in 1960. Since the end of 1970, Asia also dominated the trade in LNG globally.
LNG MARKET RECENT SCENARIO:-
LNG DEMAND SUPPLY SCENARIO
BENEFITS OF LNG
LNG is much and much safer compared to LPG as the density of LNG is less than the density of air but in case of LPG it is not. LNG is very suitable for operations and processes such as steam recovery, process operations, cooking purposes and heating purposes in the steel industry. In comparison with black products such as fuel oil, diesel, LPG, it is a very, very economical source of energy.
The cost of maintenance is reduced in the cost of LNG is much lower as it is a cleaner and greener fuel.
ENVIRONMENTAL BENEFITS & IMPACTS OF LNG
The consumption is less, i.e. to do the same amount of work compared to LPG and other fuel resources like coal and wood due to the fact that LNG has 14% high calorific value compared to LPG. LNG can be used in all types of combustion units, but minor modifications must be made. It is also planned to refill LNG containers of 450 L at customers' end using mobile fuel tank.
The company has already decided and identified the suppliers of LNG storage tanks, mobile fuel tanks and containers of 230L/450L for Dahod LNG hub and purchase orders will be placed after due approval from CcOE.
BUSINESS PLAN
JEL is setting up its very first LNG hub at Dahod for storage and distribution of liquefied natural gas. JEL intends to set up such 15 LNG hubs with all infrastructure initially in the state of Gujarat and Madhya Pradesh in the first phase and thereafter expand their activities in the neighboring states like Karnataka, Maharashtra, etc.
MANAGEMENT OF THE COMPANY
He has a rich experience of about 40 years in the petrochemical industry and is the former Managing Director of Gujarat State Fertilizers (Polymer Unit).
DISTRIBUTION PROCESS OF JEL FOR LNG CYLINDERS
MOVABLE LNG CYLINDERS
LNG FIXED CYLINDERS
KEY FEATURES OF SUPPLYING LNG BY MOBILE FUELER
ADVANTAGES OF UTILIZING LNG CONTAINERS OVER LPG
LNG AS THE FUEL OF CHOICE FOR NON-DOMESTIC SEGMENT
LNG, being lighter than air, easily disperses in the air, while LPG, being heavier, settles and is therefore a safety concern. LNG storage is atmospheric, while LPG storage is at a pressure of 4 kg/cm2, so more unsafe.
LPG CYLINDERS V/S LNG MICROBULK
CONVENIENCE
QUALITY
DISTRIBUTION OPTION
SOME MANDATORY APPROVALS
LNG REGULATIONS
It is a standard for the design, manufacture, inspection and testing of cryogenic vessels which are transportable vacuum insulated vessels of not more than 1000L volume.
SAFETY CONSIDERATION IN LNG PLANT
IMPORTANT SAFETY FEATURES OF PLANT
Storage of LNG: This is the first and foremost requirement to contain the LNG product. The LNG storage tank must be a full container in which the inner container is self-contained with material of construction. associated hazards such as fire.
Finally, LNG facility will be designed as required by regulations to maintain separation distances between the equipment's, provision of roads for vehicle movements, provision of.
SAFETY IN LNG CONTAINERS
CONTAINERS TRANSPORTATION
FIRE PROTECTION SYSTEM DESCRIPTION
INTRODUCTION
DESIGN STANDARDS AND CODES – FIRE PROTECTION & ALARM
LNG CYLINDERS
- CHART TANK CYLINDER SPECIFICATION
- INOXCVA TANK SPECIFICATION
- KEY FINDINGS FROM THE LUXI NEW ENERGY EQUIPMENT GROUP
- COMPARISON OF EURO CYLINDER & PERMA CYLINDER
- MICROBULK SYSTEMS ADVANTAGE
So from this we concluded that the design pressure of euro cylinder (micro bulk) is 350psi. Projected time to reach the pressure to 250psi (g) in case of micro bulk perma cylinder is 15.1 days. This shows that the design pressure of the microbulk perma-cylinder is 250psi or 17 bar.
This chart and data for comparison of MICROBULK Euro & Perma cylinder is taken from the website of Option Energy Pvt Ltd.
OBJECTIVE
HYPOTHESIS
I have considered the significance level at 5%, which implies that Ho will be rejected when the sampling outcome (ie, the observed evidence) has a probability of less than 0.05 of occurring if Ho is true.
DESIGN OF SAMPLING PLAN
SAMPLING
OBSERVATIONAL DESIGN
STATISTICAL
DESIGN OF QUESTIONNAIRE
ISSUES FACED
- AWARENESS
- KNOWLEDGE
- LIKING
- PREFERENCE
- CONVICTION
- PURCHASES
Today it is very important that the customer should know about the product and to know the product it is very important to advertise the product. But it does not always guarantee that the customer is aware of and is ready to consume/use the product. It is necessary to find out the characteristics of the products to be advertised so that the customers like them.
This should be an easy and simple step, otherwise the customer may come back to buy your product.
DATA ANALYSIS
Which FUEL do you use for your Production/Process?
How much quantity do you consume per month (in Kilograms)?
They were mainly concerned about the calorific value of the wood as it is quite low (3890kcal/kg) & in case of wet wood it was again reduced to 2220kcal/kg. 8% of the agricultural-based industries used more than 10 tons/month of wood for the boiler fuel. 75% of the targeted industries used 10 tons of coal per month coal as fuel for generating heat to carry out various operations in the industry.
42 of the target customers used LPG, indicating that the demand for LNG was very high compared to other fuels.
What is the cost per unit of the FUEL (in Rupees)?
The handling and storage of coal was one of the main problems the company faced. The unit cost of fuel lies mostly between the two ranges; one is between Rs 41-60 and. Jindal Energy Limited expects to provide LNG in cylinders priced 20% less than the commercial LPG cylinder price.
This therefore leads to less use of LNG compared to LPG to perform the same amount of work.
What is the monthly bill (in Rupees)?
They were very interested in using LNG as a fuel as it has a great efficiency and pollution-free fuel source. The monthly bill for 81% companies using LPG as their fuel source is less than Rs 75000. Mainly companies like Ashok Steel Ltd., Raj Steel Ltd., Dahod Steel, Powder Coating (Extension of Ashok Steel) were adding a lot to the demand of LPG and they were ready to use LNG when it would be economically available for them.
Is there any variation in your FUEL consumption (in Percentage)?
Since only three companies used coal along with other fuels to carry out their activities in the plant. As only three companies used the fuel oil, the variation was insignificant. 91% of companies targeted to use LPG as a fuel source have consumption variations in the range of 0-20%.
Is there any additional expenses you are bearing (in Rupees)?
What is your Credit Finance Facility?
This shows that there are liquid cash flows, which is very beneficial for the service provider. This question helps us gain knowledge about the payment method consumers are willing to accept, which in turn helps the service provider to plan accordingly.
What is the frequency of your FUEL booking (monthly)?
The coal users were very few and they also like to stockpile their fuel for future demand. The coal users were also ready to use LNG as it has many additional advantages over coal. They do not store additional cylinders or keep stock as it is not very safe to store it in their facility.
From the above graph, we see that 30% of users book four times a month, followed by 23%.
Do you feel safe with your present FUEL?
Are you aware of LNG (Liquefied Natural Gas)?
After getting awareness of LNG (Liquefied Natural Gas) are you interested in using
- TESTING OF HYPOTHESIS
- CONCLUSION
- PESO, VADODARA
- GIDC, Sayajiganj Baroda
The price of an LNG cylinder is quite high compared to the price of an LPG cylinder. The only concern with coal and LNG was the price of the respective fuels. One of the most important factors that became a concern was the price of LNG at which it will be delivered to customers at their doorstep.
As the use of LNG in cylinders is a completely new concept, so few of the customers were worried about the factor whether LNG is used earlier in the country or not.
