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y Gas distribution is the process whereby gas is taken from the high pressure
transmission system and distributed through low pressure networks of pipes
to industrial complexes, offices and homes.

y There are eight gas distribution networks (GDNs), which each cover a
separate geographical region of Britain.

y The gas distribution sectors has undergone a major change. On 1 June 2005
National Grid Gas plc sold four of the eight GDNs to Scotia Gas
Networks (which owns Southern Gas Network and Scotland Gas
Network), Northern Gas Networks and Wales & West Utilities.
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y Security of supply

y Pipeline leakage

y Storage

y Meeting the standards directed by Regulating bodies

y Climate change

y Customer satisfaction
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y Gas is the largest proportion of the UK¶s primary energy supply, and gas-
fired power plants are the main method of power generation.


 


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y Gas-fired power plants are also the main method of power
generation, generating 38% of the UK¶s electricity requirement.
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y Total coverage of 275,000 km pipelines.

y Early 70¶s cast iron pipes used.

y After 70¶s Ductile iron pipes used.

y Recently Polyethylene (PE) pipes are using.

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y Pipelines using for distribution process operates at different pressure.

y High pressure (50-70 bar)

y Medium pressure (7-38 bar)

y Low pressure (up to 7 bar)

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y Corrosion

y Leakage

y Slow crack growth/ destruction of iron metal pipelines.

y The number of damaged gas pipes caused by construction activities went up

by one third during the recent years (2005-2007).
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y Replacement of iron pipe lines by polyethylene pipelines that are
engineered to resist the slow crack growth and provides decade of corrosion
free service.

y Cathodic protection.

y welding should meet international standards for structural integrity and

operational performance
y Use of high integrating cladding technology- polyethylene coating MDPE
and FBE.

y Regular testing of pipelines.

y Damages occurs due to third party can be decreases by good planning and
awareness of process causes.
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y Gas storage facilities can act as a buffer against surges in demand or
disruption of supply

y Gas is stored in three ways:

y as LNG;

y in salt cavities; and

y in depleted gas field onshore and offshore.

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y Current storage capacity is 3.3bcm equivalent to 14 days¶ supply at average
winter gas demand rates.

y The UK¶s gas market is based on a µjust-in-time¶ delivery system relying on

flexible supplies, or µswing capacity¶, from native gas fields to meet demand
peaks.

y largest gas storage reservoir is the Rough field, It provides over 80% of total
UK gas storage capacity at 2.8bcm.

y There is need of more storage points to cop up with the peak demand during
winter and in the event of prolonged gas disruption.
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y Gas supply is a licensed activity under the Gas Act.

y Regulating bodies

y Ofgem

y HSE

y Ofgem and HSE as being in top two comparable utilities for the delivering
of customer service, safety management and efficiency.

y Gas distribution network (GDN) and Independent gas transporters (IGT) are
regulated by Ofgem to protect consumers from potential abuse of monopoly
power.
y All GDNs are required to maintain a use of system charging methodology,

which must explain to customers.

y To ensure the appropriate level of service is delivered to the consumer,

Ofgem specify a number of quality of service out that GDN¶s must deliver.

y Guaranteed Standard of Performance (GSOP)

y Overall standard of performance (OSOP)

y Ofgem can impose financial penalties of up to 10% of the licensed entity¶s

turnover in the event of breach of licence conditions.

y HSE drew up the inspection plan to ensure the safety regulation are

adequate and being followed properly.



 
y Emission of gasses.

y Increment in green house effect.

y methane concentrations in the atmosphere have more than doubled

y leading to global warming.

y Ofgem embarked a £500 million fund for low carbon project to combat
climate change.


 
y The gas supply market in Great Britain is completely open to
competition, with customers able to choose freely the company from which
they buy their gas.

y Customer satisfaction

y Understand the customer requirement.

y Provide the excellent service.

y Collect customer feedback and seek to improve the customer satisfaction.

y Always give priorities to customer.

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