Brief of the Scheme

Subject Application of Portable Gas Evacuation Compressor

Application Reducing Venting of Natural Gas During Pipeline Repair /

Maintenance at various locations including remote sites as a
common facility
Equipment Portable Gas Compressor (Driven by Gas)
Cost of Equipment 24 Crore delivered
Manufacturer /Technology M/s LMF , Austria (Patented by M/s LMF)
Evacuation Capacity 6000 SCMH, Discharge Pressure 60 /80 Bar, Suction 5 to 60
Bar
Envisaged Gas Savings Approx. 4 MMSCM for entire GAIL (Estimated 9.7 MMSCM
may get vented through current year due to maintenance activities)
Envisaged Cost Savings in ₹12 Crores per year carried on for 10 years (Assuming 4
MMSCM per year @ 33.Rs per SCM)
Gas Venting
Simple Payback 18 to 24 Months
CO2 Emission Reduction 7 to 8 Lac Tons over 10 Years.
(With GWP of 25 for Methane)
Sustainability Benefits Significant positive impact on Net Zero GAIL Targets
Safety Fire Hazards During Open Venting shall get reduced
No.Of Units purchased Since 30 Units
2018 (Out Side India) (France, Russia, Germany, Romania etc.)

Compiled and Prepared by

For GAIL Vijaipur P/L department

Gorthi SSRV Vara Prasad
GM (O&M – P/L)
GAIL – Vijaipur.
 Report on Requirement of Pipeline Evacuation Compressor
(As part of Economic Pipeline Maintenance and Initiative towards Net Zero Emissions.)

1. Introduction
GAIL (India) limited is operating nearly 14,500 KM of Natural Gas Pipelines in India. The Pipeline
sizes vary from as low as 4 Inch to as high as 48 Inch. The Pipeline Networks are also operated at
different pressures. Some times during Pipeline Maintenance, GAIL is required to vent the Natural
Gas at higher pressures which releases lot of precious natural gas into atmosphere. The Venting
operations result in not only economic loss to GAIL but also increase the carbon footprint of GAIL
in the form of Methane Emissions. GAIL is continuously striving to put in place required
processes/equipment for reducing the emissions and also maintenance venting. This Discussion
paper focusses on the Present Requirement of Gas Venting in HVJ Network, associated economic
costs, the increase in Carbon Foot Print arising out of the Gas Venting operations, latest available
technology in minimizing the Economic loss and reducing the Carbon Foot Print and a way forward
approach for adopting such technology including Cost Benefit analysis.

2. Venting Scenario in GAIL

Being in Natural Gas Transmission and Operations, GAIL is required to vent Natural Gas as part of
the operations. The Summary of Venting operations over the last three years is as under.(Data
provided by NGMC)

Summary of Natural Gas Venting Volumes in NG Pipeline Networks

Plant Quantity of NG Vented in SCM
Sl.No Plant Name Region
Code 2019-20 2020-21 2021-22
1 3011 Hazira 28,21,121.02 49,98,706.97 44,83,396.00
2 3012 Vaghodia 11,94,402.61 11,24,550.08 12,17,872.57
3 3013 Jhabua 1,33,327.33 3,36,376.49 1,77,049.94
4 3014 Khera 1,90,822.16 38,849.85 2,20,355.70
HVJ
5 3015 Vijaipur 40,40,163.28 25,92,502.05 30,64,580.86
Region
6 3016 Auraiya 26,76,104.92 18,83,994.71 15,02,704.48
7 3025 Kailaras 5,03,369.44 5,19,401.97 5,79,748.17
8 3026 Chainsa 3,76,471.00 5,91,264.95 5,97,158.03
9 3018 NCR 1,60,319.40 185700.109 4,26,161.31
Total Venting in HVJ Region 1,20,96,101.16 1,22,71,347.18 1,22,69,027.06
10 3110 NG Trans - Baroda 10,15,593.05 31,97,457.91 6,96,529.36
11 3120 NG Trans- Mumbai 9,71,473.69 63,963.30 85,313.39
NG
12 3130 NG Trans - Rajamundhry 4,960.42 1,35,772.54 11,82,657.50
Transmis
13 3140 NG Trans - Pudicherry 1,010.00 10,387.00 1,456.00
sion
14 3170 NG Trans- Bengaluru 70,786.71 43,619.03 42,852.99
15 3180 NG Trans- Kochi 54,800.00 2,74,555.99 14,87,487.16
Total Venting in NG Transmission (Other than HVJ) 21,18,623.87 37,25,755.77 34,96,296.40
16 3017 13,995.25 28,164.01 486.995
17 3176 1,865.02 3,819.01 7,212.99
Total Venting of NG over the last 3 Years 1,42,30,585.30 1,60,29,085.97 1,57,73,023.45
 From the above summary, it is observed that the venting of Natural Gas in HVJ region comprises
Compressor Stations and Pipeline Network as well, which is nearly 12 MMSCM/Year on average,
whereas in NG Transmission Network it is 2 to 3.7 MMSCM/Year. Hence it can safely be presumed
that an average of 2 MMSCM Gas is vented in Other Pipeline Installations on yearly basis and with
the same logic, the HVJ Pipeline Venting could also be pegged at 2 MMSCM / Year.

3. Present Requirement of Venting as part of Pipeline Maintenance.

As part of Safety, Integrity and Maintenance Requirements of the HVJ Pipeline Network the
following Major Maintenance Jobs are required to be executed / already executed in the year 2022-
23.
• Pipeline Maintenance Job at Agra Region (Completed.)
• Pipeline Maintenance Job at Dibiyapur Region. (Completed)
• Pipeline Hookup for Mandola RIVER HDD (Completed)
• Rectification of DUPL P/L Owing to Third Party Damages. (Completed)
• Pig Barrel Valve Replacement Job for 36 Inch HVJ Line.
• Rerouting Job for HVJ & VKPL-1 Lines.
• Spool Installation at Batavdapar SV Station for HVJ
• Repair of 36 Inch HVJ Line at Hazira

During the Pipeline Maintenance jobs, the gas at Higher Pressure is allowed to be drawn by
consumers till a level of pressure is reached and where further reduction / drawl from consumers is
no longer possible. The Gas is vented from this pressure till the pipeline is completely evacuated.
The Quantity of Natural Gas that is required to be vented in 10 Major Pipeline Maintenance
Operations is envisaged as under.

Venting Calculation for Pipeline Repair Jobs

Residual Acceptable
Sl.No. Description of Maintenance Job P/L Section to be Vented Length Diameter Pressure Volume
Pressure Venting
1 Agra - Firojabad 34.9 8 35 39612.45652 5 33954
2 Pipeline Maintenance Job in Agra Region Bajhera - Agra 52.5 10 45 119709.9219 5 106409
3 Agra - Firojabad 34 10 48 82694.85396 5 74081
4 Pipeline Maintenance at Dibiyapur Aonla - Piproula (From Piproula to SV10) 48 24 41 574388.7268 5 504341
5 Repair for Third Party Damage DUPL From Hazira 25 30 36 410434.0178 5 353429
6 Repair for DUPL P/L at Mandola River Crossing
Bet.SV6 & SV7 24.275 30 73 808133.1802 5 752782
7 Valve Replacement for HVJ Line Hazira - Vaghodia-Jhagadia 161 36 32 3383289.696 5 2854651
8 Rerouting of 18 Inch HVJ Line -1 Bapcha - Attru 46.1 18 54 408693.7776 5 370852
9 Rerouting of VKPL-1 Bapcha - Attru 46.1 18 61 461672.6006 5 423831
10 Spool Piece at Batavdapar Kotra - Bapcha 13.1 18 54 116136.4097 5 105383
11 Repair for HVJ Line at Chainage 47 7.3 36 88 421860.5009 5 397891
12 Yearly Venting at Vijaipur (2021-22) 2960458 5 2960458
97,87,084 89,38,061

From the above, it is clear that the total Gas that is required to be vented is 9.7 MMSCM for the
above referred maintenance activities alone in the year 2022-23.

Based on the Venting Volumes in other NG Networks till date and also envisaged Maintenance jobs
in HVJ Network alone for the year 2022-23 as mentioned above, it is envisaged that the yearly
Natural Gas Venting Volumes in GAIL’s Pipelines could be more than 4 MMSCM. (Base value of
2 Million in other P/L Network in 2019-20 and 2 Million for HVJ Network was considered.)

4. Cost Implication and Impact on Emissions. (For the HVJ Region only.)
The Cost implication of venting nearly 9.7 MMSCM of Precious Natural Gas for planned
maintenance jobs alone in 2022-23 is envisaged to be Rs.32.33 Crores (@ 10$/MMBTU &
1$=₹82.6). The Corresponding CO2 Emissions due to gas venting are 1,83,730 Tons of CO2.
 Hence it is established that a suitable Mechanism is required to be put in place which saves lot of
Natural Gas and also helps in reducing the CO2 Foot Print of GAIL as an organization.

5. Genesis of the Concept for Savings in Gas Venting.

5.1 The genesis of Concept for saving the Gas Venting in Pipeline Repair Jobs has emerged
considering the huge Gas Venting Volumes in Barrel Valve Replacement Job in HVJ Region
Network. Though, the Gas Venting was a regular maintenance requirement in Pipeline
Operations, owing to non-availability of suitable equipment / methodology, the saving of gas
venting was not given a serious consideration earlier.

5.2 As GAIL Operates nearly 14,500 KM of Natural Gas Pipelines, it is considered prudent to plan
and put in place a Mechanism which can be shifted to various locations on Pan-India Basis for
our maintenance / repair activities and minimize the venting volumes during Pipeline repair /
Maintenance Jobs.

5.3 As calculated above, when the Repair Jobs in the HVJ region alone are listed, the envisaged Gas
Venting Volumes were identified as 9.67 MMSCM for HVJ Region alone in the year 2022-23 for
the planned repair / maintenance jobs and when the Venting Requirements for Entire GAIL
Pipeline Maintenance / Rectification jobs are considered, this venting volume could still be huge.

5.4 GAIL as a responsible Maharatna PSU, is required to conserve the precious Energy Sources as
part of responsible business entity and also to fulfil its obligations towards net zero emission
targets as outlined.

6. Alternatives Explored For Minimizing the Gas Venting

6.1 Rental Compressors

6.1.1 Initially, it was considered to hire a compressor on rental basis for gas evacuation. However
there are very Limited, in-fact one or two vendors only, who are supplying rental Natural Gas
compressors on Hiring, which makes the option un-practicable in view of our Procurement
Procedures and Guidelines.

6.1.2 It was further observed that Rental Compressors may not be available in-time for our planned
maintenance / rectification actions and dependency on the hiring contractor may hamper our
planned maintenance activities.

6.1.3 Mobilization of the rental compressors to GAIL locations on Pan-India Basis is a point of
concern and in most of the times, there could be delays in mobilizing the equipment to the sites.
Further, It was found that the Rental Costs are also exorbitantly high.
6.2 Fixed Frame Compressors
6.2.1 The Requirement of Mobile Evacuation Compressor was taken-up with M/s KPCL. After close
follow-up, M/s KPCL Team submitted their offer for fixed frame Evacuation Compressors.
However the Flow and Pressure Parameters offered were a compromise only owing to the Sizing
of Compressors. Further, it was also observed that the Cost of Fixed Frame Compressors which
could be used at only one location is only 35% lesser than the Mobile Compressors Available
in the overseas markets. (Not meeting our entire requirements). Considering our Pipeline
Operations over a length of 14,500 KM on PAN India Basis, Fixed Frame Evacuation
Compressor utility is found to be very low.

6.3 Mobile Pipeline Evacuation Compressors

6.3.1 As GAIL Is operating nearly 14,500 KM of Natural Gas Pipelines, and Venting of Pipelines is
a regular maintenance requirement for Evacuating the Pipelines Safely, the option of Mobile
Evacuation Compressors was explored.

6.3.2 It has emerged that the Pipeline Operators abroad are using Mobile Evacuation Compressors for
Natural Gas Pipelines, where as the same is yet to be implemented in GAIL. It is understood
that though the Evacuation Compressors were put in to use in 2009, off-late since 2018, the
utility of the pipeline evacuation compressors has increased in significant numbers owing to
global scenario in Natural Gas Supplies.

6.3.3 M/s KPCL was approached for providing /custom designing a Mobile Evacuation Compressor
for GAIL requirements. After close follow-up a Highest Level (MD of KPCL was contacted.) ,
M/s KPCL Team have presented their product range at GAIL-Vijaipur on 08.12.2022 and have
also shared their design features of Proposed Mobile Evacuation Compressor. However it was
observed that the Mobile Compressor offered by M/s KPCL is of very small size and is not
suitable for GAIL’s Pipeline Evacuation Requirements as the Evacuation Time is very very high
running into several months.
6.3.4 The Mobile Evacuation Compressor requirement was also taken up with European Vendors and
M/s LMF Compressors has offered their Patented Evacuation Compressor Solution vide their
mail dated 20.12.2022. M/s LMF Compressors have also suggested different layouts for
Evacuation Compressors which need to be deliberated in view of our Flow and Pressure
Requirements. Owing to the Sizing and affordable Mobility Considerations, the Compressor is
envisaged to evacuate the Pipelines upto a pressure of 5 Kg/Cm2.

6.3.5 The Envisaged Cost of a Mobile Evacuation Compressor is approximately Rs.24 Crores
(Excluding Taxes). It has emerged that M/s LMF have developed their Patented Technology for
Pipeline Evacuation which can switch the cylinders of the compressor to first 1 stage (means all
cylinders are in parallel), and after reaching a dedicated pressure ratio one cylinder automatically
goes to a 2nd stage, which allows best performance.

6.3.6 The system offered by M/s LMF allows a guaranteed suction pressure of min. 1 / 12
to the discharge pressure. For example if the Discharge Pressure is 80 bar, the Pipeline can be
evacuated upto 80 / 12 = 6,6 bar.We can go even a little bit lower, but this is depending on the
gas inlet temperature, ambient temperature, gas composition and the resulting cylinder end
temperature.

7. Available Technology For Minimizing the Venting Loss & CO2 Emissions
7.1 GAIL Operates nearly 14,500 KM Of Natural Gas Pipelines and considering the fact that the
above cost implication and CO2 emissions result only from HVJ region comprising nearly 35%
of GAIL’s Pipeline Network, the actual venting costs and emissions for Entire GAIL Could be
very high. Hence it is very much prudent to put in place suitable technology / equipment for
minimizing the venting volumes thereby carrying out the Maintenance Operations Economically
and also reducing the Carbon Foot Print.

7.2 While Going through the available literature on public domain, It has emerged that the Portable
Evacuation Compressors are being used for minimizing the Maintenance Venting and as part of
Net Zero Emissions in European Countries.. A Pipeline Mobile Evacuation Compressor is being
used in Russia, Germany, Italy and France since 2009 and the Usage of Mobile Evacuation
Compressors for Natural Gas is gaining momentum as part of net zero emissions as well in
European Countries. For a Developing Country Like India, Usage of a Mobile Pipeline
Evacuation Compressor is not only a cost beneficial option but also helps in achieving our targets
towards Net Zero Emissions by reducing the overall Carbon Foot print.

Figure 1
7.3 Cost Benefit Analysis
Assumptions
7.3.1 From the Above Major Jobs Identified at Sl.No.2, the activities at 7,8 & 9 are envisaged to be
requiring long term planning for execution. These Three Activities involve a Gas Venting of
3.64 MMSCM.

7.3.2 While carrying out Cost Benefit analysis, In addition to the initial volume at Sl.No.5.3.1, A
Conservative Venting Volume of 2 MMSCM/ year for Entire GAIL NG Pipeline Network is
assumed in P/L Maintenance / Repair Jobs. (In fact, the maintenance jobs planned result in more
venting than 1 MMSCM). The Initial Volume Savings Considered in the First Year only.

7.3.3 An escalation in Savings@5% assumed in every year’s Venting Savings irrespective of

Exchange Rate variations.

7.3.4 Based on the above assumptions, all the Financial Factors are found to be positive and favorable
as under for the proposed investment in Portable Evacuation Compressor.
• Internal Rate of Return : 51.18%
• Net Present Value : +ve 6.86 Crores over 3 Years
• Simple Payback Period : 23 months (less than 2 years.)

Financial Parameters for the Proposed Pipeline Evacuatin Compressor.(Considering Cost of Capital @12%)

Notes For Financial Parameter Calculation

1.After First year 5% Escalation assumed every year in Gas Savings irrespective
Capital Cost of Pipeline Evacuation Compressor ( Including Maintenance Expenese over a period of 10 Years @ -₹ 24,00,00,000 of Exchange rate variations.
2.For NPV, 12% Discount Rate assumed.
3.Venting Volumes of 3.64 MMSCM were considered in the Initial Year for HVJ
Network only.(6000 KM Of NG Pipelines)
Savings in Gas Venting, First Year 3.64 MMSCM in HVJ Network & 4 MMSCM Every Year across
₹ 41,76,25,600 4.And in subsequent years, 2 MMSCM of Venting Volume Savings were
GAIL (Calculated over a Period of 10 Years) considered for entire GAIL Network. (14,500KM) . However the actual Venting
Volumes may be higher.
5.GWP of Methane Considered as 25.
6.Gas Savings in the initial year calculated in HVJ Network only, but subsequent
Life Cycle Considered 10 Years
savings considered for Entire GAIL.

Natural Gas Saved/Year (MMSCM) 3.64 4 4 4 4 4 4 4 4 4

O&M Expenses On Yearly Basis @ 45 Lacs /Year from
0 ₹ 45,00,000 ₹ 47,25,000 ₹ 49,61,250 ₹ 52,09,313 ₹ 54,69,778 ₹ 57,43,267 ₹ 60,30,430 ₹ 63,31,952 ₹ 66,48,549
Second Year Onwards, with 5% escalation every year.
Savings Achieved in Rupees (@10USD/MMBTU) &
₹ 12,02,65,600 ₹ 12,76,60,000 ₹ 12,74,35,000 ₹ 12,71,98,750 ₹ 12,69,50,688 ₹ 12,66,90,222 ₹ 12,64,16,733 ₹ 12,61,29,570 ₹ 12,58,28,048 ₹ 12,55,11,451
1USD=82.6,

IRR after
Calculating Net 51.18% -₹ 24,00,00,000 ₹ 12,02,65,600 ₹ 12,76,60,000 ₹ 12,74,35,000 ₹ 12,71,98,750 ₹ 12,69,50,688 ₹ 12,66,90,222 ₹ 12,64,16,733 ₹ 12,61,29,570 ₹ 12,58,28,048 ₹ 12,55,11,451
Savings

Positive 6.86
NPV @ 12%
Crores over 3 -₹ 24,00,00,000 ₹ 10,73,80,000 ₹ 10,55,04,132 ₹ 9,57,43,802 ₹ 8,08,37,105 ₹ 8,06,79,457 ₹ 7,18,87,434 ₹ 7,17,32,249 ₹ 7,15,69,305 ₹ 7,13,98,214 ₹ 7,12,18,568
Discount Factor
Years only.

Payback Period In
23 -₹ 24,00,00,000 ₹ 12,02,65,600 ₹ 12,76,60,000 ₹ 12,74,35,000 ₹ 12,71,98,750 ₹ 12,69,50,688 ₹ 12,66,90,222 ₹ 12,64,16,733 ₹ 12,61,29,570 ₹ 12,58,28,048 ₹ 12,55,11,451
Months

CO2 Emission
7,53,160
Reduction
Tonnes over 10 69,160 76,000 76,000 76,000 76,000 76,000 76,000 76,000 76,000 76,000
Potential in Metric
Years
Tonnes
7.4 Hook-up arrangements (The Tapping’s are required to be made as per site requirement.)
7.4.1 For SV Stations - When More than One Pipelines in Common RoU
The Suction of the Portable Evacuation Compressor shall be Connected at the SV Bypass
Section , Down Stream of the Plug Valve before the QOEC in the Pipeline that is required to be
vented. The Discharge Shall be Connected at the Down Stream of the Plug Valve in the By-Pass
Section of the other Pipeline. Alternately, Future Tap-OFF provisions shall also be used
wherever available for Suction / Discharge.

Figure 2

7.4.2 For SV Stations – When Only Single Pipeline in the RoU.

In Such case, required Tapping Arrangement can be made for both suction and Discharge on
the Downstream Interconnection of the SV By-pass Ball Valves. Alternately, Future Tap-OFF
provisions shall also be used wherever available for Suction / Discharge.

Figure 3
7.4.3 For IP Stations and Compressor Stations: It is envisaged that required hook-up arrangements
can be made using the Kicker Lines of the Pig Launcher Receivers at the Intermediate Pigging
Stations. At the Compressor Stations, it is envisaged that suitable tapping arrangements exist in
the form of future connections or already executed jobs.

8. Way Forward
8.1 GAIL Operates its pipelines across India and a Mobile Evacuation Compressor could be quite
useful, considering the huge cost savings a mobile evacuation compressor can achieve for entire
GAIL as the same unit can be used at several locations by advance planning and mobilizing the
unit to the required site.

8.2 Based on our Evacuation requirements for Major Trunk Lines, Mobile Evacuation Compressor is
considered to be the most suitable technical solution to minimize Gas Venting during Pipeline
Maintenance / Repair Jobs and also helps GAIL in achieving the targets for Net Zero Emissions.

8.3 As the Pipeline Mobile Evacuation Compressor is not being used in India and is being used in
European Countries only, M/s LMF Compressors may be requested for GAIL team’s visit to their
supplied installations so that GAIL can finalize our Flow / Pressure, Capacity and Layout
requirements.

8.4 In Line with Government of India’s Regulations, we may also parallelly process our request with
GOI authorities for GTE as the envisaged cost of Mobile Evacuation Compressor is less than
Rs.200 Crores.

9. Conclusion
GAIL operates nearly 14,500 KM of Natural Gas Pipelines. As the times pass-by, the Pipelines
require maintenance / repairs owing to the In-Line Inspection / Third Party Damages. Considering
the costs of Venting, the maintenance activities are differed sometimes waiting for the shutdown
period of the customers / other pipeline sections. A Mobile Evacuation Compressor facilitates
planning of our Pipeline Rectification actions without any delay and can solve all the pipeline
evacuation requirements to a larger extent by recovering the venting volumes of natural gas.

As the Financial parameters indicate, the procurement of Portable Evacuation Compressor is an

economically viable option even with a most conservative estimate of saving 4 MMSCM of Natural
gas savings over a period of next 10 years for Entire GAIL Pipeline Network where in Pipeline
Installations are aging and Venting Requirements would be on increasing trend.

Further, the Evacuation Compressor also serves the Twin Purpose of reducing the Methane
emissions by an amount of > 7,50,000 Tons over a period of 10 Years as part of GAIL’s Net Zero
Emission program as well. Hence procurement of a Portable Evacuation Compressor is need of the
hour and it is recommended to procure one Portable Evacuation Compressor for GAIL’s Pipeline
Network.