Chemical properties of the soil

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Diagram representing percentage of quantity sold in PNG

Knowing full well that Piped Natural Gas is the obvious choice for one to make, it would be just if one called PNG Positively Natural Gas!!

PNG has several distinctions to its credit- of being a pollution-free fuel, easily accessible minus storage troubles, and being available at very competitive rates, are just a few of them.

When one chooses PNG, one is making a wise decision. Why not enhance your comfort and improve your lifestyle for the years to come? Experience the versatility and performance of this reliable energy source. With PNG you don't need to make any choices, for its characteristics make it the best option for domestic and commercial purposes.

 Uninterrupted supply: The source of PNG supply in Delhi is the famous Hazira-Bijaipur-Jagdishpur (HBJ) pipeline of GAIL (India) Limited. PNG offers the convenience of ensuring continuous and adequate supply of PNG at all times, without any problems of storing gas in cylinders.

 Unmatched convenience: The domestic consumers have to take upon themselves the trying task of booking an LPG cylinder refill, time and again. And then starts the wait for the deliveryman to deliver the cylinder. Switching over to PNG renders this entire exercise unnecessary. PNG also eliminates the tedious routine of checking LPG refill cylinder for any suspected leakage, or it being underweight, at the time of delivery.

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Moreover, the user is spared the inconvenience of connecting and disconnecting the LPG cylinder when out of gas. Precious space, occupied by LPG cylinders is also saved.

 Safety: The combustible mixture of natural gas and air does not ignite if the mixture is leaner than 5% and richer than 15% of the air-fuel ratio required for ignition. This narrow inflammability range makes PNG one of the safest fuels in the world.

Safety Tips

Natural gas is lighter than air. Therefore, in case of a leak, it just rises and disperses into thin air given adequate ventilation. But LPG being heavier will settle at the bottom near the floor surface. A large quantity of LPG is stored in liquefied form in a cylinder. With PNG, it is safer since PNG installation inside your premises contains only a limited quantity of natural gas at low pressure i.e. 21 milibar (mbar). On leakage, LPG expands 250 times, which is not the case with PNG. Supply in PNG can be switched off through appliance valve (inside the kitchen) and isolation valve (outside kitchen premises), which fully cuts off the gas supply.

Economy with PNG

PNG has been positioned to be cheaper than alternative fuels being used via domestic LPG in case of House Hold, commercial LPG in case of Small Commercial and LPG Bulk & LDO in case of Large Commercial. This is besides the amount you save by avoiding underweight cylinders delivered to you.

 Billing: The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. A unique feature is that the user gets to pay only after consumption of gas. The domestic consumer pays the PNG bill only once in two months. The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the user‘s doorstep. List of collection centers/drop boxes.

 Customer support: Round-the-clock customer support is assured through 24 hrs toll free number 1800112535 and 64543592 backed by control rooms, which are manned by engineers and trained technicians. Thus complaints, if any, are promptly redressed.

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 A versatile fuel: Natural gas is being used predominantly as a versatile fuel in many major cities catering to domestic and commercial applications, as a cooking fuel, for water heating, space heating, air conditioning, etc.

 Environment friendly: Natural gas is one of the cleanest burning fossil fuels, and helps improve the quality of air, especially when used in place of other more polluting energy sources. Its combustion results in virtually no atmospheric emissions of sulphurdioxide (SO2), and far lower emissions of carbon monoxide (CO), reactive hydrocarbons and carbon dioxide, than combustion of other fossil fuels. In fact, when natural gas burns completely, it gives out carbon dioxide and water vapor. These are the very components that we give out while breathing!

Additional Benefits of PNG that the commercial consumers can avail

 No storage problems and stock accounting: PNG does not require any storage tank or storage space since it is supplied to you through pipelines. Also, the manpower and time that was earlier being used for ensuring minimum stock levels of LPG, HSD and LDO, can be used elsewhere. The other functions that accompany storing these fuels – monitoring stock levels, checking the quality and quantity of fuels received – have also been rendered unnecessary.

 Economy with PNG: PNG has been presently positioned to be cheaper than alternative fuels. For small commercials the pricing is indexed to 19 Kg LPG cylinders after adjusting for heat values. For Large Commercials, pricing is indexed to 90% LDO and 10% Bulk LPG again after adjusting for heat values. These savings are in addition to the amount you save by avoiding spillage & pilferage of alternative fuels.

 No daily liaisoning: The consumer is spared the task of liasioning with oil companies and coordinating with them for ensuring the daily supply of fuel, because PNG is supplied directly through pipes. The daily bills, settlements and reconciliation are also avoided as the consumer is billed once a month, and that too as per the meter reading.

 No spillage and pilferage: In case of spillage of fuels like HSD and LDO, there are liable to be immense product losses. Also, there are considerable chances of pilferage

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of these fuels. In case of PNG these losses are invariably done away with, for PNG is supplied through pipes.

 Billing - No up-front payment: The user is charged only for the amount of PNG used, and no pilferage is possible with PNG as the billing is done according to the meter. The commercial consumer pays on a monthly basis. Moreover, there are no minimum consumption charges, i.e., if there hasn‘t been any consumption, there shall not be any bill. The user pays the gas consumption charges based on the exact consumption reading provided by the meter installed at his premises. The bill is delivered at the user‘s doorstep.

 Lower maintenance cost: With PNG, soot or ash accumulation and greasy spillages

are absent from your appliance. Maintenance costs are, thus, driven down.

33 SWOT ANALYSIS OF IGL

Strengths:

 The Company has been given marketing exclusivity in NCT of Delhi for three years w.e.f. January 1, 2009.

 Dominant market position and first moves advantage in NCT of Delhi.

 Experienced sector leader as promoters.

 As per the Petroleum and Natural Gas Regulatory Board (PNGRB) regulations, IGL has network exclusivity up to December 2025 in the NCT area.

 IGL has continuously adopted the latest technology as a result of which the quality of its products has also improved.

 Lower debt in the books along with healthy return ratios gives confidence in the company‘s ability to raise debt for future expansion

 Another major strength of company can be that it helps in controlling pollution and hence supported by government.

Opportunities:

 CNG is replacing traditional fuels like petrol & diesel. CNG is about 33 Rs cheaper than Petrol and about 11 Rs cheaper than diesel.

 Introduction of Radio Taxis and high capacity buses running on CNG in Delhi along with increase in number of CNG variant models by car manufacturers presents a significant opportunity for the company

 Shift towards usage of PNG by industrial and commercial segment.

34 Weaknesses:

 Future expansion activities would be dependent on ability to secure additional gas supplies

 Competition from alternative fuel.

 Regulatory and economic changes.

 Dependence on single or few supplier/ customer

Threats:

 Competition from other players is possible after December 2011 as the company‘s marketing exclusivity is valid till December 2011 only.

 Alternative modes of transport like metro rail pose a threat.

 GAIL being one of the promoters of the company, IGL doesn‘t foresee any risk arising from dispute with them over supply of natural gas.

 Due to the recent growth in CNG vehicles, especially private cars, there is a need to add more CNG stations for which the timely availability of land from land owning agencies is a matter of concern.

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