Global gas demand is expected to increase by 24 per cent between 2020 and 2030, almost equalling the growth of the past decade (around 26 per cent). Asia is expected to be the key driver of global growth and will add about 350 bcm of gas demand by 2030. Meanwhile, the total demand for the city gas distribution (CGD) sector in India is expected to grow at a compound annual growth rate of 10.7 per cent to 85.6 mmscmd in 2030. Further, 4,346 compressed natural gas (CNG) stations are expected to be set up in 84 geographical areas (GAs) in the next decade.
The key business elements of the CGD sector in India are infrastructure, market base, capital expenditure on projects and competitive pricing of CNG and piped natural gas. These business elements depend on various factors that determine the success of a CGD entity. The critical success factors include extensive sector knowledge, technological advancements, standardised business procedures, efficient operations and cost competitiveness. All these factors are now being driven by the introduction of automation and instrumentation.
Asset automation in the CGD sector can take place across the value chain. Under the import and regasification segment, automation can be deployed to optimise the plant process and improve material and inventory management. In the transmission and distribution segment, asset automation can facilitate real-time monitoring, predictive asset management and intelligent pipeline operations. Further, in the retail segment, smart metering solutions can be introduced to improve the services being offered to customers.
Hence, the expansion of operations and increased competition has increased the dependence of the CGD sector on automation in the past few years. Initiatives to digitalise the CGD sector are being implemented, and this has led to increased investment in instrumentation in order to increase productivity and complete projects within defined budgets and timelines.
Digitalisation of the CGD business
The CGD sector in India needs to ensure efficiency in operations to reach the masses. In order to reduce the scope of errors resulting from manual operations, many CGD operators have implemented a range of initiatives to digitalise and automate processes. CGD companies are actively deploying prepaid smart gas meters in their respective GAs. These meters are equipped with ultra-low-power wide area network technology that provides end-to-end coverage in the city. Through these meters, readings are communicated directly to servers via radio frequency protocols. This has helped entities overcome some of the key limitations of locked premises, estimated/wrong billing, reversal of bills, and meter tampering. Another major issue that is addressed through automation of operations is collation of data from a large customer base. With the deployment of IT solutions, an accurate database can be created wherein more precise and real-time data can be reported. Data processing and analysis along with retrieval of records can be carried out efficiently.
Another innovative solution being introduced by CGD entities is the AMR walk-by system. The system uses radio frequency to record meter readings as and when the meter reader walks by a designated route near the meter. The meter then communicates the reading wirelessly to the handheld device carried by the meter reader. This device is further connected to a mobile phone through which the reading is transmitted to the central server.
GPS-enabled smartphones for meter reading are also being deployed extensively by CGD companies. These meter readers can update data on gas consumption by taking a picture of the meter through smart mobile phones, thereby capturing accurate readings. Another geospatial technology, the geographic information system is being used by various CGD operators to map the spread of assets across a wide area. With this solution, CGD operators can monitor the pipeline network and other assets on a real-time basis. This enables operators to manage and monitor the condition of pipelines, meters, CNG stations and other remotely located assets.
The way forward
Today, consumers are better informed and demand improved services from CGD operators, such as regular gas supply and faster grievance redressal. Consumers also expect operators to provide facilities such as faster removal of faults in gas supply, accurate billing systems and convenient payment options.
New metering technologies are being designed to meet consumer expectations, in addition to streamlining the operational performance of CGD operators. Going forward, operators are expected to adopt new metering technologies and switch to smart meters in order to serve their customers better. Further, geospatial technology is being introduced to provide precise GPS coordinates of the underground pipeline network and accurate detection of leakages in the system. w
Based on presentations by Kishor Bhojawala, Vice-President HSE & AI, and Tarun Sharma, Vice-President IT & ERP, Gujarat Gas; and Manu Puri, Associate Director, Accenture, at a recent India Infrastructure conference