FAQs

FAQs

FAQs for MMBTU

What is MMBTU ?

  • British Thermal Unit / BTU is traditional unit of Energy. MMBTU represents 1 Million BTU’s
  • BTU is the quantity of heat necessary to raise the temperature of one pound of water by one degree Fahrenheit from 58.5 to 59.5 degrees Fahrenheit under standard pressure of 30 inches of mercury at or near its point of maximum density.
  • One Btu equals 252 calories, (gram), 1055 joules or 0.293 watt hours.
  • BTU is widely used/accepted globally for measurement of energy of products including Natural Gas.
    1 BTU = 252 Calories
    1MMBTU = 252,000 Kilo Calories (Kcal)
    1MMBTU = 30.18 SCM @ NCV of 8,350 Kcal/SCM

Why MMBTU?

Petroleum & Natural Gas Regulatory Board, through its regulation " Authorising Entities to Lay, Build Operate and Expand City or Local Natural Gas Distribution Network Regulation, 2008” mandates – " The entity (CGD Company) shall publish and display the retail selling price of PNG for all categories of customers and also for the purpose of invoicing in Rs./MMBTU”.

Which are the other CGD companies who are invoicing in MMBTU?

In State of Gujarat, Gujarat Gas Co. Ltd. and Adani Gas Ltd. have started invoicing its customers in MMBTU.

When will MMBTU invoicing commence for commercial customers?

MMBTU invoicing has commenced from 25 Oct, 2013 for Commercial customers.

When will MMBTU invoicing commence for domestic customers?

SGL has started invoicing of domestic customers in MMBTU w.e.f. 1st April 2014

Will all customers of SGL be invoiced in MMBTU?

SGL has started Invoicing Industrial customers in MMBTU effective 1st Nov, 2013. SGL has started Invoicing Commercial customers in MMBTU effective 25th Oct, 2013. SGL has started Invoicing Domestic customers in MMBTU effective 1st Apr, 2014.

Will meter reading be taken in MMBTU? Do we need to replace meter?

No, meter reading will continue to happen in standard cubic meters and existing meter will not be replaced.

How shall MMBTU conversion be done for commercial segment?

MMBTU conversion shall be done based on the meter reading and Average of delivered Net Calorific Value (NCV) during the billing period.

Illustration :

  • Gas Consumed in a month (in SCM) – ‘q’ SCM (based on opening & closing meter reading and after applying pressure temperature corrections).
  • Average NCV during the months (Billing period / opening & closing meter reading dates) – ‘n’ Kcal/SCM
  • Total calories delivered on the day will be ‘c’ = q x n (SCM x Kcal x / SCM).
  • 1 MMBTU = 252,000 Kilo Calories (Kcal), hence for converting ‘c’ Kcal to
    MMBTU "Q” MMBTU = c / 252,000.
  • The quantity Q as arrived above will be in MMBTU.

How shall MMBTU conversion be done for domestic segment?

MMBTU conversion shall be done based on the meter reading and Average of Net Calorific Value (NCV) of past 6 months.

Illustration :

  • Gas Consumed bimonthly (in SCM) – ‘q’ SCM (based on opening & closing meter reading).
  • Average NCV of past 6 months of current billing cycle date (i.e. 1st April 14) that will be used for next 3 billing cycles and so on – ‘n’ Kcal/SCM
  • Total calories delivered on the day will be ‘c’ = q x n (SCM x Kcal x / SCM).
  • 1 MMBTU = 252,000 Kilo Calories (Kcal), hence for converting ‘c’ Kcal to
    MMBTU "Q” MMBTU = c / 252,000.
  • The quantity Q as arrived above will be in MMBTU.

What else shall change in MMBTU invoicing?

MMBTU invoice shall not have any other change, except for final invoice quantity calculated in MMBTU (as illustrated above) & Gas price in Rs./MMBTU.

How will Price be arrived in MMBTU for commercial segment?

Existing Price in Rs./SCM shall be converted to Rs./MMBTU considering 8,350 Kcal/SCM as base (contracted) NCV. The price henceforth shall be declared in Rs./MMBTU

How will Price be arrived in MMBTU for domestic segment?

Existing Price in Rs. /SCM shall be converted to Rs. /MMBTU considering NCV average of past six months.

Will MMBTU increase the Invoice amount?

No, MMBTU invoicing is introduced with an attempt to bring in uniformity between gas purchase & sales and to comply with PNGRB regulations. It shall not have any commercial impact or will not lead to increase in Invoice amount.

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