Project Title

Chittagong CNG Service Station Ltd

Location of the project

Hathazari, Chittagong

Major Project Component

Design, Procurement & Installation CNG filling station equipment.

Information about project

Work Breakdown Structure

Information about CNG

• CNG is the natural gas in compressed form and the main composition is methane gas CH4 approximately 94%. In addition to this, it usually includes ethane, propane and butane, long-chain hydrocarbons, water, hydrogen sulphide (H2S) as well as inert gases such as carbon dioxide (CO2) and nitrogen (N2).

History of CNG

• After World War I Muselini in 1914 had ordered for alternate fuel as such Italy is forefront in CNG technology and they are the pioneer of CNG technology. New Zealand, Argentina, Pakistan have started using the CNG as alternate fuel for automotive long before that is why many gas standard & code frame by New Zealand.

History of CNG in Bangladesh

• It was 1982 when price of fuel oils jumped in the international market. In that year Bangladesh had to spend 80 percent of its total export earnings for importing fuel oils. In Chittagong BGSL supplying gas from Sangu and Bakherabad gas fields and having 94.50% of Methane and density around 0.566. The moisture and other impurities coming along with the gas affect the performance of machines

Advantage of CNG over fossil fuel

• CNG being cleanest fuel it has advantage over petrol and diesel fuel. The engine exhaust of a CNG vehicle has certain advantages over petrol such as there is no lead, lower nitrous oxides (NO2) and no organic gas emission like carbon monoxide (black smoke). Being the cleanest fuel it eliminates frequent vehicle maintenance and increases engine oil change intervals

Uses of CNGResidential use (Cooking, Heating, Air conditioning etc)

Commercial use (Food Service, hotel, healthcare facilities)

Industrial use (Paper, Metal, chemical manufactures etc)

Power generation

Fertilizer (Ammonia- Nitrogen Fertilizer)

Alternative fuel to Gasoline (Compressed Natural Gas)

Aviation fuel

 Safety Features

CNG storage cylinders are stronger than petrol tanks since it has been tested at 5,200 psi pressure and is made of fire resistant chromium and molybdenum seamless metal structure and fire & bullet proof. CNG has a specific gravity of 0.587 i.e. lighter than air, if it leaks, it rises up and dissolves in the atmosphere, while petrol will puddle on the ground exposing itself to the danger of catching fire

Present Situation

there are a lot of refilling stations but not enough CNG-run vehicles. Out of 19,000 CNG vehicles 10,000 are three-wheelers, 3,000 taxicabs and 6,000 government and private cars. The number of CNG-run buses is below 100. Pump owners said the vehicles they feed each day are not enough to make their business profitable. Moreover, some other refilling stations are getting ready to provide service shortly.

What's Next

“We'll not wait anymore, we've decided that the RPGCL workshop will convert the government vehicles. The semi-government and autonomous bodies will be allowed to convert their vehicles at private workshops,” said former State Minister for Energy and Mineral Resources

Increased Power and Thermal Efficiency

The excellent knock-resistance property of CNG allows use of a higher compression ratio for increased power output and fuel

economy, compared to petrol. The energy content per kg of CNG is very similar to that of petroleum-based fuels, but it has lower energy content per unit of volume. At these high compression

ratios, natural gas-fuelled engines have higher thermal efficiencies than those fuelled by gasoline. CNG has a higher

octane number than petrol and it is therefore possible for CNG engines to operate at a higher compression ratio than petrol

engines without knocking.

Cost comparison

Product Price / Liter TK. Avg. Km/ Liter Cost / Km Tk

100 Octane 79 10 7.9

Petrol 82 9 9.11

CNG (1 m3=1.10L)

25 11 2.27

Economy of the CNG use

Cost per Liter Gasoline CNG Savings

Cost of 8 Liter/day

464 62 402

Monthly consumption

13,920 1,860 12,060

Yearly consumption 167,040 22,320 144,720

How People Get Attracted

Price

Campaign

Social contribution

Environment friendly

Gas Sector Description

• Gas Transmission Company Limited (GTCL), • Bangladesh Petroleum Exploration Company Limited

(BAPEX)• the Titas Gas Transmission and Distribution Company Limited

(TGTDCL)• the Jalalabad Gas Transmission and Distribution System

Limited (JGTDSL)• Sylhet Gas Fields Company Limited (SGFL)• the Bakhrabad Gas Fields Company Limited (BGFCL)

Technical Aspect

• CNG filling station: The CNG station will be designed to fill 800 - 1000 Vehicles per day of 16-18 hours of operation with an average intake of 10-15m3 of gas per vehicle. Huge numbers of green tri wheelers are also the potential customers whose average intake is 5 m3 apart from the taxicab, microbus and car

CNG station equipmentsNorwalk INC USA

Knox Western, USA

Ariel/Galileo, USA & Argentina

Compare UK

Bellis & Morcom

GE Cubagas Nuovo Pignone,Italy

Safe srl Italy

Secom, Italy

Details of the Machinery

• MODEL : ASPRO IODM 115-5-4R• COUNTRY OF ORIGIN : ARGENTINA• TYPE : HORIZONTAL BOXER• NO OF STAGES : 4+1• INLET PRESSURE RANGE : 0.5 – 1.1 BAR• POWER :145/183 Kw• SPEED : 800/900/1000 rpm• COOLING SYSTEM : AIR COOLED• DISPENSER : 2 MASS FLOW DISPENSER ( 2 HOSE EACH)• CONTROL PANEL: CONTROL PANEL WITH SOFT START• STORAGE SYSTEM : 1 STORAGE SYSTEM ( 2500 WL)

Marketing Aspect

• Bangladesh is one of the natural gas producing countries in South Asia having reserve of 22-24 TCF (Recoverable).

power, fertilizer

industrial

Transport Sector

and domestic sectors

policy package

Free registration/ permission for business enrolment.

Financial support through bank loans and leasing companies.

One stop service facility for gas, electricity, water, and municipal permit etc.

Technical assistance through RPGCL.

Lease of government's unused land on long term basis.

Duty free import facility for CNG stations, cylinders, kits and CNG dedicated vehicles.

CNG business is open for private sectors including international entrepreneurs.

Environmental Aspects

very low particulate emissions

low emission of airborne toxins

negligible SO2 emissions

less noisy operation, with less vibration and less odors than the equivalent diesel engines.

Economic Aspects

• the significantly lower exhaust emissions, especially of particulate matter (PM), one more major reason for switching to natural gas is to diversify energy sources, since worldwide natural gas reserves are more abundant than oil reserves. In 2000, the ratio of proven reserves to production of natural gas was estimated to be 62 years, and that of oil 38 years. A country that imports oil, but has an abundant supply of natural gas, may find it particularly attractive to consider natural gas as a transport fuel so as to reduce its oil import bills.

Investment CostCNG Station Capital Investment Capital Investment

Land 10,800,000.00

CNG Aspro Plant 30,395,000.00

Right of access from CDA & various auth 300,000.00

Site development 2,000,000.00

Building, shade & security lightings 3,000,000.00

Gas Connection & Security 2,600,000.00

Electricity Connection & Security 2,000,000.00

Others Including training & inspection etc 500,000.00

Consultancy & supervision charges 250,000.00

Tools and equipments etc 250,000.00

Furniture and other office equipments 500,000.00

Stand by Generator 5,200,000.00

Installation Charges 532,500.00

Insurance & others 250,000.00

Fund

INVESTOR 50%

BANK LOAN30%

Others 20%

CNG

Break Even Analysis

Contribution Margin p.u = Selling Price per unit – Variable Cost per unit

= 8.50 – 4.82 = 3.68

Break Even P.u = Total Fixed Cost/ Contribution Margin per unit

= 6,165,120/3.68 = 1,675,304 M3 i.e 44.00 %

Break Even Point (amount) = Total Fixed Cost/ Contribution Margin (CM) ratio

= 6,165,120/ 0.43 = 14,337,488.00

Limietation of project

lack of operational and maintenance skill

CNG equipment handling

investors having no ideas of highly sophisticated control system

Performance of the compressor is depends on the inlet pressure and gas temperature

Difficulty of Gas measurement

Recommendations

1 the operator should have through knowledge, comprehensive training and well conversant with the operational philosophy and logic.

2 the PDB power supply is uncertain and irritant it is recommended to opt for CNG engine driven compressor.

3 All the compressors are designed for ideal conditions and will never be able to deliver up-to its full capacity due to various reasons explained earlier

4 that some sort of set back in each and every machine developed either due to operational or equipment failure.

5 Gas leak detection is necessary to be included with order as it is not only requiring for safe operation but also economic point of gas loss