Commercial PNG FAQ
It is absolutely safe to use PNG as a fuel for commercial applications. The Metering skid installed in your premise has an In- built safety system, which ensures tripping of regulator, in case of over pressure (Choking) or under pressure (leakage). Moreover, Natural Gas is lighter than air, and therefore in case of any accidental leakage it disperses easily in air. Natural Gas also has the narrowest flammability range of 5-15% which makes it difficult to catch fire in an event of leakage.
The supply is absolutely regular. The pipeline distribution network is an “on-line” supply system that consists of safety valves and regulators that control and monitor the gas supply and pressure, and assist in identifying system faults and ensures un- interrupted supply at requisite pressure.
- Can this gas be stored? Can natural gas be supplied through cascades because your pipeline is not laid in the area where my commercial unit is situated?
No,the NG can not be stored. NG is supplied only through pipelines. Supply of NG through cascades is only for automobiles. IOAGPL has laid pipeline network in all major demand centers of the city and is in position to cater to all major demand in the city. However, in case in certain areas if the pipelines are not present, the same shall be constructed based on the demand in a short span of time.
Subject to availability of pipelines in any area, the connection can be provided within 3 months. For using gas, customer also need to make modifications in plant & arrange for internal pipeline from downstream of meter till the gas consumption points which requires this much time for completion.
No statutory compliance or government approval is required for obtaining NG connection or usage of Natural Gas as there is no storage of gas within the plant premise. In fact, NG as a fuel is being widely promoted by the Government because of environmental concerns.
IOAGPL neither supplies burners nor does it set up internal pipeline within the customer’s premise. However, IOAGPL provides a list of various NG based equipment suppliers and pipeline contractors for customers’ reference.
Your diesel genset can also be converted to operate on gas. You may get in touch with either your genset supplier or specific agencies that are in the job of converting DG sets to gas gensets. However it has been the experience that such conversion is not very efficient and hence it may be advisable to purchase new gas based generating set. It is therefore advisable that you inform us at our Customer Care Office or call up on Customer Care Help-desk clearly mentioning the period for which the gas is not going to be used.
IOAGPL encourages use of gas in pantry / canteen of any industrial unit. For this a separate contract and separate smaller meter is installed. The price of gas shall be considered in commercial type of usage
As per the regulations notified by Petroleum and Natural Gas Regulatory Board (PNGRB), it is responsibility of the gas distribution company to provide MRS and accordingly MRS shall be supplied by IOAGPL only.
MRS installed at your premise have a long lead time (typically 8~10 weeks) and therefore it is essential to take appropriate care of the MRS and maintain the gas flow / consumption as advised by IOAGPL. However, in case MRS warrants replacements, IOAGPL maintains certain inventory of MRSs from which the MRS can be replaced in a short time, subject to availability.
- What will happen if gas supply is stopped? If the gas supply is disrupted on your end, what will be the liability of IOAGPL?
IOAGPL makes best possible endeavors to provide its consumers with uninterrupted supply of gas. In case of interruption in gas supply for any reasons, our trained technical team shall restore the gas supply at the earliest. In case of any disruption of gas supply, IOAGPL shall have no liability.
The customers will have to get the internal pipeline and conversion of burner done through IOAGPL’s approved contractor at their own cost. Time taken for this depends upon the length of the internal pipeline to be installed and type of burners required at your plant. Typically, it takes 3-5 weeks for any commercial unit to complete its process of laying internal pipeline and convert its equipments to gas. The pipeline also needs to be tested as per the technical specification provided by IOAGPL.
Yes, you need to inform us for any addition, expansion, removal or maintenance of your equipment(s) for safety reasons. Moreover, increased gas flow in your plant can also damage the MRS which can result in production losses and levy of penalties..
Regulations stipulate “non-discriminatory” treatment of all customers and hence AGL offers standard contract to all its customers. There is therefore no scope for negotiation in the contract
Regulations stipulate “non-discriminatory” treatment of all customers and hence IOAGPL offers standard contract to all its customers. There is therefore no scope for negotiation in the contract
Billing is done every fortnight based on the meter readings taken by authorized IOAGPL staff. Payment for the bills needs to be made within the time period mentioned in the agreement.
IOAGPL charges Rs 500.00 as an annual maintenance charges.
The price of PNG is related to several factors like exchange rate, crude oil prices, transmission tariff, taxes, etc. and hence may vary. Prices, if need to be revised, are generally revised at the start of a billing cycle by giving advance intimation to customers. It remains IOAGPL’s endeavor to keep price revisions to minimum.
All gas companies are guided by the regulations notified by Petroleum & Natural Gas Regulatory Board (PNGRB). IOAGPL’s pricing policy therefore shall confirm at all times to these regulations.
- Is there any excise component in the gas price? My usage for gas is in other than manufacturing process also, is there any set off in VAT both for the manufacturing process and for other purposes like usage in pantry?
NG does not attract any Excise Duty. Price offered to you is exclusive of VAT and surcharge. As per the current VAT rules, in case gas is used as a feedstock, set-off is available on the VAT paid on gas. For concessional VAT rate on NG or any other tax concessions, if applicable, you may kindly refer the matter to your tax advisor.
Contract signed between us provides for the procedures of not accepting the gas in the event you find that the NG supplied by us does not meet the specifications. However, in case any such gas is used by you, IOAGPL shall raise the invoices for the same and you shall be obliged to pay for the same.