Q.1. Describe the salient features of a CGD network. Draw a sketch with various components.

Q.2. How is price fixing for the CNG & PNG done by MGL?
Q.3. What are the challenges in MGL business? What are the steps taken by MGL to manage the
challenge?
Q.4. What are MGL procedures for PNG supply for industrial customers and domestic customers?

Ans1. City Gate Distribution is hub in MGL that collects all the APM and Non APM gases(Reliquified
natural gas and natural gas) from Bombay High and Dahej Uran pipeline as a collective and blends the
Two. The salient feature are as follows-

 It ensures uninterrupted supply of PNG to the customers

 There is a filtration unit which ensures that any liquid or solid particle is not present in pipeline
using the differential pressure.
 A USM meter is installed at facility for checking the amount of gas transferred
 The gas received is put at 19 bar pressure for transportation using a Regulating Skid
 Flow control valves are present to maintain a flow of 1.5 lakh sscm/he
 Finally Gas chromatography is done to check the quality and density of gas so that appropriate
pricing can be done

Ans2. There are 3 pricing mechanism used

1. Administered Pricing Mechanisms-In this a pre determined price is set for all the processess
Namely exploring producing refining and marketing.A pre calculated return on investment is set
and raw material is procured at the same.Similarly for the final product a pre determined price is
set.
2. Non-APM pricing- As respects non-APM/free market gas, this could likewise be extensively sub
partitioned into two classes, to be specific, imported LNG and locally created gas from
JV fields. While the cost of LNG imported under term contracts is represented by the SPA
between the LNG vender and the purchaser, the spot cargoes are acquired on commonly
pleasant business terms. As respects JV gas, its evaluating is represented as far as the PSC
arrangements.
3. Impact pricing-In impact pricing the prices change according to the liquidity of market or we can
say they are hugely affected by the demand of the customers.As demand rises the prices rise
and vice versa.

Ans3. Although there are various challenges some of them are mentioned as follows

 Encroachment- Some of the local vendor and people occupy the sites of MGL and it
becomes difficult as they put Safety of pipeline at risk
  Traffic-There are emergency response van for any kind of problem that could happen
with the pipeline but Mumbai traffic makes it difficult for the Emergency response team
to reach place on time
 Digging by third parties-Third parties start digging the site where pipelines are laid
underground and put the safety at high risk
 Statutory licenses-It takes a lot of time to get license from the government.As it is a very
time consuming process it adds up to the cost of laying pipelines.
 Stealing- People at RO often try to run without paying .

Some of the measures taken are like Patrol bikes run along the pipeline in case the team
cannot reach the site on time so that the valves can be shut to minimize the risk.
Break down valves are installed at Dispenser so that even customers runs without
paying the gas pipe breakes without damaging dispenser ensuring safety.
SCADA system are installed throughout so that risk can be minimize led by taking
decisions in seconds.

Ans4.The process of supply of PNG to industry is as follows

 The gas is first purchased from Uran pipeline and Bombay High and is blended at CGS
 This gas is supplied at 200-250 bar to CNG and at 19 bar to DRS
 The DRS(District Regulations Station) acts as a metering point and receives gas at 19 bar
 Steel pipes are used till this point of time
 After that Pressure is reduced to 4 bar and supplied via Polyethylene pipes to Service
Regulation Station from where it is transported to Industry and commercials
 If any industry has separate requirements of high pressure then they are supplied PNG
separately.
