Digitalisation has become critical in today’s business landscape, especially within the city gas distribution (CGD) sector, where operational efficiency, customer service and cost management are paramount. Leveraging technology is no longer optional, it is crucial for survival and growth in the oil and gas industry. The benefits of digital technology in CGD include improved operational efficiency through real-time data analytics, enhanced safety through predictive maintenance and streamlined customer interactions via smart metering and automated billing systems. These advancements not only reduce operational costs but also enable companies to respond swiftly to market demands, ultimately leading to a more sustainable and competitive business model. At a recent industry conference, Bhaskar Jha, general manager, Avantika Gas Limited, shared his views on the digitalisation of the CGD network and emerging technologies. Edited excerpts…
Emerging technology trends
Technologies play a vital role in the digital transformation of the oil and gas sector. Innovations such as internet of things (IoT), big data, cloud computing, blockchain, artificial intelligence (AI) and machine learning are reshaping how companies operate. For instance, AI can transition maintenance strategies from reactive to predictive, enhancing reliability and reducing downtime. New solutions for real-time, remote control and predictive maintenance can significantly increase the life and operating efficiency of CGD utility assets. Implementing business intelligence tools, such as SAP S/4HANA, allows organisations to not only manage transactions but also gather insights that inform
strategic decisions.
The four key pillars underpinning this digital transformation include a strong focus on customer needs, enhancing operational efficiency, optimising costs and ensuring real-time monitoring of assets. Customers, while they may not prioritise the type of gas they use, expect seamless service. Businesses operating within the narrow margins of 8-10 per cent must strive to improve efficiency and reduce costs to remain profitable. Additionally, with extensive underground assets such as pipelines and meters, effective monitoring is essential to prevent losses and ensure safety.
In the gas sector, robotic solutions enable the safe handling of toxic and hydrocarbon materials during maintenance and shutdowns, significantly enhancing safety and efficiency in hazardous environments. Robotic crawlers can also access difficult areas, inspecting inaccessible pipes and recording pipeline interiors with video cameras. By leveraging these innovations, companies can improve safety, optimise operations and enhance overall productivity. Additionally, powerful analytical tools provide vital insights into trends and predictions, supporting strategic and operational decision-making. These technologies facilitate rapid leak detection in pipelines with high accuracy, leading to reduced data processing times, lower detection costs and improved sensing reliability. Automatic ultrasonic testing eliminates radiation hazards associated with traditional methods of inspecting pipeline girth welds.
Technology solutions deployed by Avantika Gas
The integration of digital technologies is evident across four main areas – network planning, operations and maintenance (O&M), asset management and customer engagement. For network planning, advanced technologies assist in determining optimal pipeline locations and expansion strategies. In O&M, digital tools such as satellite technology, geographic information systems (GIS) and supervisory control and data acquisition (SCADA) play a crucial role in monitoring pipelines prone to rust, rat bites and unauthorised digging, ultimately improving safety and operational reliability. Customer engagement benefits significantly from intelligent dispensers and smart metering systems, which streamline processes and enhance billing accuracy. Smart meters reduce ghost connections and provide real-time consumption data without needing a field visit.
GIS plays a vital role in enhancing network planning and business strategies. For instance, Avantika Gas has implemented a robust GIS framework to effectively manage its underground assets, recognising the importance of this technology in mitigating risks associated with unauthorised digging and potential gas leaks. This system visualises the entire network, integrating critical data such as line sizes and customer demographics, allowing field engineers to quickly identify asset locations during emergencies. This capability enables prompt corrective actions to minimise potential losses. To further support decision-making, Avantika Gas utilises GIS for feasibility and cost-benefit analysis when bidding for new projects. Geographic data is analysed to assess potential customer bases, optimal pipeline routes and the feasibility of establishing new CNG stations. Additionally, the creation of time series land use/land cover maps, derived from historical satellite imagery and classified using advanced deep learning algorithms, allows the company to monitor urban expansion and analyse infrastructure development trends. This analysis includes calculations of area-wise pipeline density, customer density per km of pipeline, population density and revenue per sq km, along with hotspot analysis, to identify underutilised and overburdened pipelines. Moreover, GIS is crucial for identifying the closest facilities, such as fire stations and hospitals, to contact in case of hazards or emergencies within the gas network. It facilitates route optimisation for liquefied carbon dioxide vehicles (daughter stations) to filling stations, significantly reducing travel costs and time. By determining the optimal locations for new CNG stations while considering the existing network, GIS ensures that service demands are effectively met.
Additionally, SCADA systems enhance monitoring capabilities by providing real-time data on critical parameters such as flow, pressure and temperature. This allows for centralised control, enabling rapid responses to issues and optimising resource allocation, especially during peak operational hours. Avantika Gas has recently implemented SCADA to bolster operational efficiency and real-time monitoring capabilities. This system allows the tracking of critical parameters such as flow, pressure and temperature across the infrastructure, providing centralised control over operations. For instance, SCADA enables the change of pricing at multiple stations with a single command, significantly streamlining processes. Furthermore, the integration of SCADA with GIS is a game changer, allowing for real-time monitoring of station status, identification of operational conditions, effective management of breakdowns, reduced gas losses and enhanced safety. With immediate access to data regarding station performance, responses to abnormalities can be swift, which helps optimise maintenance schedules and reduce downtime.
Moreover, SAP S/4 HANA systems have been built at Avantika Gas to provide real-time insights, so that information hidden within large and complex data sets can be accessed and business intelligence insights drawn upon. A SAP S/4 HANA system provides reporting tools, with real-time business analytics via FIROI Apps. These are the keys to better decision-making, enabling us to see trends, predict changes and automate processes, improving resource usage and vastly enhancing customer service.
Moving ahead, Avantika Gas is actively exploring IoT integrations to develop a more robust infrastructure capable of supporting real-time data collection and analysis. The application of artificial intelligence (AI) for predictive maintenance is also being considered, enabling the anticipation of issues before they escalate, thereby enhancing reliability.
Key challenges
There are several challenges associated with the digitalisation of distributing gas. For instance, data security is becoming a key concern, particularly in an era of rising cybercrime and fraud. Companies must ensure that robust cybersecurity measures are in place to protect sensitive customer information. Additionally, many CGD companies lack a cohesive digital strategy, leading to fragmented implementation of technologies such as customer relationship management systems and enterprise resource planning solutions. There is also a shortage of technical experts with deep knowledge of instrumentation and digital technologies, further complicating the adoption of new solutions. Resistance to change from employees can also hinder the adoption of digital solutions. Organisations must manage this change effectively to maximise the benefits of new technologies. Budget limitations are another obstacle, as the initial costs of implementing advanced systems can be high, although long-term savings and efficiencies often justify these investments. Further, interoperability issues can arise when new solutions do not seamlessly integrate with the existing oil and gas infrastructure leading to operational disruptions.
Future outlook
Going forward, the CGD sector anticipates a rise in the number of CNG stations, aiming for it to constitute 15 per cent of the energy basket in the coming years. The number of CNG stations is expected to reach 10,000 and domestic connections are projected to grow to 50 million by 2030.
In conclusion, the CGD sector stands at a critical juncture, where embracing digital technologies is essential for future success. As the share of natural gas in the country’s energy basket is expected to rise significantly, deploying digital solutions becomes increasingly critical. By prioritising customer service, operational efficiency and robust asset management, companies can enhance their competitiveness and contribute to a more sustainable energy future. Advanced information technology-operational technology convergence solutions will enable CGDs to monitor their critical assets in real time, ensuring safety and optimising costs while preventing issues such as gas leaks and product loss. The integration of tools such as GIS and SCADA will be pivotal in navigating the complexities of modern gas distribution and maximising revenue and profitability for CGD companies.