The Centre for High Technology (CHT), operating under the Ministry of Petroleum and Natural Gas (MoPNG), plays a pivotal role in monitoring the refinery and petrochemical sectors. It focuses on overseeing refineries and coordinating benchmarking studies on refineries and main transmission pipelines. In addition to these responsibilities, CHT is involved in energy transition initiatives, including the 2G ethanol and compressed biogas (CBG) schemes launched by the MoPNG, as well as the hydrogen scheme introduced by the Ministry of New and Renewable Energy. The centre also emphasises the importance of digitalisation and the reliability of digital systems, highlighting the critical need for maintaining and managing these systems effectively.
Benchmarking performance
Benchmarking is the process of assessing a company’s business procedures and execution measurements against the best practices of industries from different organisations. The CHT conducts the benchmarking pipeline exercise, where all pipelines are assessed against global pipeline entities. This is essential to gain competitive insight and track performance against global players. It is essential to ensure operational efficiency and evaluate marketplace performance to assess the competitiveness of the pipeline, compare its performance across other geographical areas (GAs) and conduct a performance gap analysis to identify best practices.
Benchmarking was conducted for a total of 41 pipelines in 2022, of which, 35 were liquid pipelines and six were gas pipelines. The benchmarking was based on different key performance indicators (KPIs). The study highlighted that Indian pipelines are implementing best practices in many areas. However, the efficient use of energy is an area that needs attention. Expenditure on maintenance and integrity management is lower compared to global players, which could adversely impact the long-term reliability and safety of pipelines. Lastly, pipeline utilisation has shown improvement; however, there is considerable scope for further improvement.
Benchmarking is a powerful tool for gaining insightful perspectives for achieving operational excellence in pipeline management. Thus, leveraging benchmarking practices can significantly enhance the overall performance of pipelines.
Pipeline performance parameters and key indicators
Pipelines are crucial for the city gas distribution (CGD) sector. They serve as the primary infrastructure for transporting oil and gas across varied distances, and are highly efficient and reliable means of transporting energy resources. They are a major source of transmission of oil and gas in India. The country boasts an extensive and strategically vital petroleum pipeline network that plays a pivotal role in meeting the nation’s energy demands. Regarding the crude oil pipeline, India has 10,938 km of crude oil pipeline with a capacity of 153.1 million metric tonnes per annum (mmtpa). The product pipeline covers a total length of 22,985 km with a capacity of 140.3 mmtpa. Meanwhile, the gas pipeline has a total operational length of 23,560 km, of which 5,630 km is under construction.
Key pipeline parameters are crucial for assessing system efficiency and encompass several dimensions. Energy consumption efficiency evaluates how effectively energy is used within the pipeline system. Operational costs and cost efficiency focus on minimising expenses through advanced technology and innovative practices. Adaptation and pipeline integrity ensure that the system can handle evolving demands and maintain structural reliability. Maintenance practices are essential for the longevity and smooth operation of pipelines, while throughput and capacity utilisation measure how well the system handles and utilises its full potential. Lastly, safety and environmental performance help assess the system’s adherence to safety protocols and its impact on the environment.
Additionally, KPIs related to cost and personnel are essential for evaluating the efficiency and financial health of an industry. These KPIs include various metrics such as cash expenditure, which encompasses operations and maintenance costs, general and administrative expenses, maintenance non-volume expenses, and operational expenditure. Reliability KPIs are vital for assessing operational dependability and safety. Key metrics include unplanned downtime, which tracks unexpected stoppages, spills and leaks for environmental safety, measurement loss for data accuracy, and safety KPIs for monitoring incidents and adherence to safety protocols. Energy KPIs, such as energy intensity index, measure the amount of energy consumed relative to production output, which are vital for optimising energy use and controlling operational costs. By closely monitoring these KPIs, organisations can effectively manage resources, control costs and enhance overall operational performance.
Advancements in the CGD sector
In the CGD sector, technology adoption has significantly advanced operational efficiency and safety. Key technologies include supervisory control and data acquisition/programmable logic controller systems for automated control, vehicle tracking systems for real-time monitoring, and smart pressure reduction modules to ensure precise pressure management. Further, artificial intelligence-based customer service apps, smart metering and leak detection systems improve system integrity and spatial analysis. Remote cathodic protection systems and enterprise resource planning systems, applications and products integrate with O&M management to enhance infrastructure longevity.
Multiple digital solutions are available and benchmarking is essential to determine the most suitable solution as per the requirement. The CGD sector is a key component for achieving the government’s target of a 15 per cent share of natural gas in the energy mix, being the second-largest consumer of natural gas in the country after the fertiliser sector. As the demand for natural gas increases, new regulations are being introduced, particularly concerning CBG. From 2025-26 onwards, the CGD sector will be required to blend 1 per cent CBG into its network, with this obligation increasing to 5 per cent by 2028-29. An investment of about Rs 375 billion will be needed to set up 750 CBG plants by 2028-29. Moreover, high-capacity CBG plants, which are currently under development, need to be connected to the CGD network via pipelines, as they cannot be operated solely with cascades.
To support this integration, the MoPNG has issued guidelines for the development of pipeline infrastructure for injecting CBG into the CGD network. Under these guidelines, any CGD entity or CBG producer can lay pipelines to connect CBG plants to the CGD network. The guidelines require a minimum of 50 per cent take-or-pay supply agreement or intake clause between the CGD entities and CBG producers. For eligibility, the CBG plant must have a minimum capacity of 2 tonnes per day and at least 25 per cent physical progress. Notably, oil marketing companies are excluded from financial benefits under this scheme. The scheme offers substantial financial assistance of Rs 9.94 billion, with up to Rs 287.5 million for a 75 km steel pipeline and Rs 1.5 million for a medium density polyethylene pipeline. CBG quantities will be in addition to the gas allocated under the Pradhan Mantri Domestic Gas scheme.
While the current focus is on integrating renewable gas into distribution networks rather than transmission networks, global trends show that biomethane is increasingly being connected to distribution grids, with 58 per cent of biomethane produced in the European Union being integrated this way. Therefore, adopting digitalisation and innovative solutions is crucial to optimise the cost and efficiency of injecting CBG into the CGD network in India.
Challenges and the way forward
There are several challenges in integrating CBG into the CGD network. These include infrastructure compatibility issues, such as fluctuations in gas production and pressure, which can affect operational stability. In addition, quality control is a concern, with the Bureau of Indian Standards revising standards to ensure that CBG meets the 95 per cent methane requirement under IS 16087. Despite these challenges, CBG offers various advantages, including its use in both compressed natural gas and piped natural gas (PNG) distribution. While CBG is currently transported in cascades at 250 bars, transportation using pipelines is more economical and sustainable. This transition will support the expansion of the PNG network in cities. Going forward, around 200 new high-capacity CBG plants are expected to be under construction in India by 2025-26, which will enhance the capacity and efficiency of CBG integration into the CGD network.
In India, 55 CGD entities operate under exclusivity agreements, limiting competition. The refinery sector benefits from centralised performance assessments through the Centre for Science and Technology using tools like the mature business network index and the energy intensity index. However, CGD entities lack a similar evaluation system. This underscores the need for a unified framework to ensure consistent performance and efficiency across the sector.
Based on remarks and presentation by Lav Kumar, Additional Director, Centre for High Technology, MoPNG, at a recent India Infrastructure conference