Feasibility Report Cng Filling Station

Stylish book cover page

ACKNOWLEDGEMENT

Project for CNG filling station installation at the District Pishin Saturday, July 23, 2011

By Mohammad Ayaz Khan(E) 15, Waseem

Akram (E)11, Mohammad Imran

(E)04, Sulaman Shahzad(E) 48

En route to Mr. Rahim Mangel

Institute of Management Sciences University of Balochistan Quetta Group Assignment

Feasibility Study of installing CNG filling Station at the District Pishin (Group assignment)

July 22, 2011

I owe a great many thanks to a great many people who helped and supported me during the writing of this Project.

My deepest thanks to my Friends who Guide me of the assignment for guiding and correcting various documents of mine with attention and care

I express my thanks to THE FACULTY OF INSTITUTE OF MANAGEMENT SCIENCES UNIVERSITY OF BALUCHISTAN Specially my teacher MR. Rahim Mangel for providing the interactive task.

By Mohammed Ayaz Khan (E) 15,Waseem Akram (E)11 Mohammad Imran(E)4 ,Sulaman Shahzad (E)48 Institute of Management Sciences University of Balochistan Quetta.

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TABLE OF CONTENTS

ACKNOWLEDGEMENT......................................................................................................................................... 2

TABLE OF CONTENTS........................................................................................................................................... 3

EXECUTIVE SUMMARY........................................................................................................................................ 7

INTRODUCTION.................................................................................................................................................. 8

MARKET ANALYSIS.............................................................................................................................................. 8

INTRODUCTION AND PROMOTION OF NEWLY DEVELOPED GAS KITS FOR RICKSHAW IN PISHIN DISTRICT............9

MARKET SUPPLY................................................................................................................................................. 9

EXISTING SUPPLY................................................................................................................................................ 9

MARKET DEMAND.............................................................................................................................................. 9

DEMAND FOR CURRENT CONSUMPTION........................................................................................................... 10

THE DEMAND FOR CNG FUEL=12900 CUBIC METER/DAY......................................................................................10

FUTURE DEMAND............................................................................................................................................. 10

DEMAND PROJECTIONS FOR VEHICLES ON CNG (IN PISHIN DISTRICT)...................................................................................10

CNG POLICY...................................................................................................................................................... 11

THE GOVERNMENT OF PAKISTAN HAS OFFERED NUMBER OF INCENTIVES FOR ENCOURAGING THE USE OF CNG IN THE COUNTRY SOME OF THESE ARE SUMMARIZED BELOW:....................................................................................11

TECHNICAL ANALYSIS........................................................................................................................................ 12

MATERIAL INPUTS:.....................................................................................................................................................12

LAND:......................................................................................................................................................................12

SITE SELECTION..........................................................................................................................................................12

INFRASTRUCTURE:......................................................................................................................................................13

BUILDING:................................................................................................................................................................ 13

MACHINERY AND EQUIPMENT:.....................................................................................................................................14

Gas Compressor.................................................................................................................................................14

Electric control panel.........................................................................................................................................14


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Storage cascade................................................................................................................................................14

Priority panel for Vehicle priority.......................................................................................................................15

CNG Dispenser high flow dual hose...................................................................................................................15

SUPPLIERS.................................................................................................................................................................15

STORES AND SPARES...................................................................................................................................................16

FURNITURE AND FIXTURE.............................................................................................................................................16

MANPOWER REQUIREMENT.........................................................................................................................................16

Human Resource Requirement..........................................................................................................................17

COMPRESSION PROCESS...............................................................................................................................................17

ENVIRONMENTAL/ECOLOGICAL........................................................................................................................ 18

ANALYSIS.......................................................................................................................................................... 18

ECOLOGICAL/ENVIRONMENTAL ANALYSIS............................................................................................................18

ECONOMIC ANALYSIS........................................................................................................................................ 19

ECONOMIC ANALYSIS............................................................................................................................................19

Employment Opportunity..................................................................................................................................20

Contribution to GDP..........................................................................................................................................20

Tax benefit.........................................................................................................................................................20

Foreign exchange..............................................................................................................................................20

PROCEDURE FOR OBTAINING THE LECENSE OF..................................................................................................20

“CNG” STATION................................................................................................................................................ 20

REGULATION, LICENSES AND INCENTIVES.......................................................................................................... 21

LICENSE..................................................................................................................................................................22

CERTIFICATE (BY HDIP)...........................................................................................................................................22

NOC'S.....................................................................................................................................................................22

INCENTIVES............................................................................................................................................................23

Custom duty......................................................................................................................................................23


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REGULATORY REQUIREMENTS..............................................................................................................................23

Quality certificate..............................................................................................................................................23

List of Equipments.............................................................................................................................................23

Income tax on the import of CNG equipment....................................................................................................23

Income tax.........................................................................................................................................................23

ANNEXURE........................................................................................................................................................ 24

COST OF THE PROJECT & FINANCIAL PLAN......................................................................................................................24

Cost of the Project.............................................................................................................................................24

Financial plan....................................................................................................................................................24

COST OF BUILDING.....................................................................................................................................................25

LIST OF EQUIPMENTS FOR CNG FILLING STATION..............................................................................................................25

SALES ESTIMATE (REVENUE).........................................................................................................................................26

SALES ESTIMATE (REVENUE): WORKING.........................................................................................................................26

REVENUE: WORKING..................................................................................................................................................27

COST OF GOODS SOLD................................................................................................................................................28

RATE OF GAS CONSUMED;...........................................................................................................................................29

WAGES AND SALARIES.................................................................................................................................................29

POWER (ELECTRICITY CONSUMED).................................................................................................................................30

Fixed charges.....................................................................................................................................................30

Variable charges................................................................................................................................................30

STORES AND SPARES...................................................................................................................................................31

REPAIRS AND MAINTENANCE.........................................................................................................................................31

OTHER MANUFACTURING OVERHEAD..............................................................................................................................32

DEPRECIATION...........................................................................................................................................................32

1. MACHINERY and building..............................................................................................................................32


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2. Furniture and fixture...............................................................................................................................................................................32

GENERAL ADMINISTRATIVE AND SELLING EXPENSES..........................................................................................................33

WORKING CAPITAL ESTIMATES.............................................................................................................................33

ESTIMATES OF FINANCIAL EXPENSE......................................................................................................................34

PROJECTED INCOME STATEMENT..........................................................................................................................35

PROJECTED CASH FLOW STATEMENT....................................................................................................................36

PROJECTED BALANCE SHEET..................................................................................................................................37

Current Assets...................................................................................................................................................37

Current liabilities...............................................................................................................................................37

Long term liabilities.....................................................................................................................................................................................38

Equity..........................................................................................................................................................................................................38

BREAK EVEN ANALYSIS..........................................................................................................................................38

RATIO ANALYSIS.....................................................................................................................................................40

Profitability ratio...............................................................................................................................................40

Gross profit margin = Gross profit / Sales * 100.........................................................................................................................................40

Operating profit margin = Operating profit / Sales * 100...........................................................................................................................40

Net profit margin = Net profit / Sales * 100...............................................................................................................................................40

Return on equity ratio = Net profit / Equity * 100......................................................................................................................................41

Return on investment ratio = Net profit / Investment * 100.....................................................................................................................41

NET PRESENT VALUE (NPV)........................................................................................................................................41

PROFITABILITY INDEX...................................................................................................................................................42

PAYBACK PERIOD WITHOUT DISCOUNTING..........................................................................................................42

PAYBACK PERIOD WITH DISCOUNTING.................................................................................................................43

REFERENCES...................................................................................................................................................... 44

Indexes.......................................................................................................................................................................45


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EXECUTIVE SUMMARY

he people of Pishin district belongs mainly to low income/ earning society which cannot

afford high price petroleum product that’s why CNG is a cheaper source of fuel for them.

Natural gas is a natural resource of energy, commonly used in residential, commercial and

industrial sector. It is one of the most valuable natural resources abundantly available in our

country. Compressed Natural Gas (CNG) is produced when the natural gas is compressed into

cylinders to be used as a fuel in the automobiles

T

Due to the efforts made by the Government and comparatively low prices of gas, more

then 2000000 have already been converted to operate on Compressed Natural Gas (CNG)

fueling system all over Pakistan .there are more then, 2941 CNG station operating in the

country and there is a need to set up more CNG station to meet the growing demand for it. As a

part of its policy government has made great efforts to promote the use of CNG in Pishin District

as well.

At present, there is no CNG station in Pishin district. There are about more then

200vehicles, which have been converted to CNG fueling system in Pishin District, and a large

number of vehicles are being converted these vehicle. It has been projected that the total

number of CNG fuel vehicles will be increased up to 1000 by the end of next five years.

The demand for CNG fuel=12900 cubic meter/day The project will cost about 15,270000 in winch an amount of 4,000,000 rupees at the rate

of Rs.500 per square feet lease payment has been paid for land, the total cost of construction of the building is estimated at Rs 3,631000, and installation of the machinery will cost 9,710000, furniture and fixture cost 391000, and an amount of 2462000 of subsidy.


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INTRODUCTION

atural gas is a natural resource of energy, commonly used in residential, commercial and

industrial sector. It is one of the most valuable natural resources abundantly available in our

country. Compressed Natural Gas (CNG) is produced when the natural gas is compressed into

cylinders to be used as a fuel in the automobiles

N

CNG-powered vehicles uses natural gas – the same fuel that is used by stoves, water heaters and

clothes dryers—stored in cylinders at pressures of 2,000 to 3,500 pounds per square inch

CNG has been used as an automobile fuel since 1940, and over the years, the technology has been

modified and refined. In the recent years, the usage if CNG as an automobile fuel has significantly

increased because of its low cost and environment friendly nature.

The people of Pakistan have been using the petroleum as fuel in their automobiles, thus spending a

large amount of foreign exchange on import of petroleum products. Because there are abandoned

supplies of natural gas in Pakistan, using natural gas to replace gasoline helps reduce our country’s

dependency on foreign petroleum.

In Pakistan, hydrocarbon development institute of Pakistan (HDIP) first established the use of CNG as

an automobile fuel in 1982. the market of this type of fuel, which is commonly available at much

cheaper price, is increasing because of continuous increase in petroleum prices. At present, about 270

CNG station are operational in different parts of the country to cater to the needs of the consumers.

MARKET ANALYSIS

One of the elements of Government petroleum policy is the commercial application of CNG

technology .It is reflected in the efforts made by the government for the installation of CNG station and

converting vehicles on CNG fueling system .Due to the efforts made by the Government and

comparatively low prices of gas, more then 2000000 have already been converted to operate on

Compressed Natural Gas (CNG)fueling system all over Pakistan .there are more then ,2941 CNG station


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operating in the country and there is a need to set up more CNG station to meet the growing demand for

it. As a part of its policy government has made great efforts to promote the use of CNG in Pishin District

as well.

INTRODUCTION AND PROMOTION OF NEWLY DEVELOPED GAS KITS FOR RICKSHAW IN PISHIN DISTRICT

“Taraqee”Trust of Pishin District has undertaken to reduce green house emission leading to

global warning by introducing 40 CNG gas kits in two stroke rickshaws in Pishin District city through the

provision of credit to the rickshaws owner. The key stakeholders in this project are Rickshaw Drivers

Association, Pakistan Hydrocarbon Institute, Canadian International Development Agency and

Balochistan EPA.

MARKET SUPPLY

EXISTING SUPPLY

At present, there is no CNG station in Pishin district.

MARKET DEMAND

The people of Pishin district belongs mainly to low income/ earning society which cannot afford

high price petroleum product that’s why CNG is a cheaper source of fuel for them. There are about more

then 200vehicles, which have been converted to CNG fueling system in Pishin District, and a large

number of vehicles are being converted these vehicle. It has been projected that the total number of CNG

fuel vehicles will be increased up to 1000 by the end of next five years.

Due to the increasing prices of petroleum products, the trend of converting cars to CNG fueling

system has been on a raise. The government of Pakistan has taken certain concrete steps in order to

promote the use of natural gas as a fuel substitute in the automobiles. There are kits available in the

market through which a petrol car can easily be converted into CNG fueling system. However, there were


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a large number of people who were reluctant to convert their vehicles from petrol to gas due to safety

concerns. Recently, many car manufactures have started manufacturing the cars with built-in CNG

fueling system, e.g., Suzuki car manufacturing company. This change has led to enhancing the confidence

of the general public regarding the safety concerns, and now, more people are towards purchasing these

factory fitted CNG fueling system cars.

Considering the market trend and number of vehicles being converted into CNG fueling system there is

exist an opportunity for the new entrants to earn profits fueling by setting up new filling station to meet

the growing demand.

DEMAND FOR CURRENT CONSUMPTION

THE DEMAND FOR CNG FUEL=12900 CUBIC METER/DAY

It’s quite clear that there is demand of about 12900 cubic meter /day on average.

But this is not the end, there is an increasing trend of CNG fueling system, the demand for this

type of fuel will be increased by 300% within next five years and hence there a great opportunity for the

new entrants to earn profits by setting up new CNG filling station t meet the growing demand.

FUTURE DEMAND

The main factors for the rise in the demand for CNG fuel are

1) Increase in the prices of petroleum

2) Government support and policies

3) Promotion of vehicles with built –in CNG fueling system

Based on the above criteria the Demand projecti0ns are given in the following table:

DEMAND PROJECTIONS FOR VEHICLES ON CNG (IN PISHIN DISTRICT)


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Year Number of Vehicles on CNG Percentage Increase

1 1000

2 1600 60%

3 2300 70%

4 3100 80%

5 4000 90%

The above-mentioned table indicates that the demand for CNG fuel is fast increasing .The

industry is growing and there is opportunity for the new entrants to setup new CNG station to meet the

growing demand.

CNG POLICY

THE GOVERNMENT OF PAKISTAN HAS OFFERED NUMBER OF INCENTIVES

FOR ENCOURAGING THE USE OF CNG IN THE COUNTRY SOME OF THESE

ARE SUMMARIZED BELOW:

Strong Government commitment to promote usage of CNG

Liberal policy of providing for CNG retailing

Deregulated market price of CNG (for the consumers)

Priority of providing natural gas connection to CNG station

Relaxation of import duty and sales tax on import of machinery and equipment ,CNG kits

cylinders

This has provided a boost to the industry, and so far, more then 2000000 vehicles have been

converted to CNG and 2941 CNG stations are operational. Another 320 stations are under construction in

different parts of the country .According to inter national Associations for Natural Gas Vehicles (IANGV)

statistics Pakistan is ranked third in the CNG –using countries after Argentina and Italy.


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TECHNICAL ANALYSIS

All the prerequisites for successful commissioning of the project is available in the city:

In this section it will be clarified and justified that all the prerequisites required for the successful commissioning of the project regarding Raw material, Infrastructure, Land, Building, Equipment, Personnel, etc are available in the city.

MATERIAL INPUTS:

There are two main inputs required for CNG filling station, one is natural gas and other is electricity. We are required to obtain both in the connections from the relevant authorities i.e. WAPDA and sui southern gas company (SSGC).

According too the government’s policy CNG filling stations will be given the priority of providing natural gas connection.CNG ranks relatively high in convenience and availability. Pishin District’s extensive network of natural gas pipelines can deliver the fuel directly to many sites where compressors are installed by the local utility.

LAND:

The minimum land requirements for installing CNG filling station is from 6000 to 9000 square feet. It must have at least 75 feet front opening.

In case of our project we have already acquired land for the purpose of installing CNG filling station on lease from the 12th crop. The covered area of the land acquired is 8000 square feet, which will be having 75 square feet front opening.

An amount of 4,000,000 rupees at the rate of Rs.500 per square feet lease payment has been paid to the private property.

SITE SELECTION:

The site selected for the filling station is opposite to the district law curt Pishin at the Band road Pishin. The covered area of the acquired land as stated earlier is 8000 square feet. The site offers an ideal location for the filling station; as it is a commercial area and the residents of the whole city will have a very easy access to the station.


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INFRASTRUCTURE:

The project highly depends upon the availability of the infrastructure facilities; because the material inputs required as mentioned earlier are, natural gas and electricity.

The site chosen for setting up the CNG Fuel station enjoys infrastructure facilities and possesses all the pre-requisites for the smooth operation of the Project i.e. Water, Power, road etc.

BUILDING:

There are certain civil works required to be carried out at the proposed location. The civil works would be carried out on an area of 2250 square feet. The rest of the area will be floored with tuff tiles. Civil work includes the following:

Office Control Room Compressor and Cascade/Cylinder Storage Room Shed for Dispenser Toilet/Washroom1. Underground Gas Piping Flooring

The total cost of construction is estimated at Rs 1.5 million. Details for the said cost are as follows:

Construction cost (Amount in Rupees)

Description Type of Construction

Covered Area(sq. ft)

Cost per Sq.ft.(Rs.)

Cost(Rs.)

Office with washroom

RCC 436 475 207,100

Control room RCC 144 475 68,400Compressor & Cylinder storage room

RCC 1400 475 665,000

Shed Canopy Lump sum 200,000Underground _ _ - 300,000


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gas pipingFlooring _ About 6,000 50 300,000Contingencies _ _ _ 90,000Total cost 3,630,500

Explosive department has laid down certain specifications for the compressor and

cascade/cylinders storage room, which are as follows:

1. Minimum one-meter distance is required between wall and Compressor.

2. Minimum distance of one meter should be kept between Compressor and

Cascade/cylinders.

3. Fire related walls (with RCC structure) must be used in the compressor and Cylinders

storage room.

4. Roof of the compressor and storage room should not be of permanent nature. Corrugated

asbestos might be used to prevent the compressor and Cylinders from heat.

MACHINERY AND EQUIPMENT:

The following equipment is required for a CNG filling station:

GAS COMPRESSOR

The purpose of compressor is to compress the gas enabling it to discharge the gas for refueling. This compressor requires an input pressure of 10 PSIG (pounds per square inch gauge) from the main gas supply with the outlet pressure of 3,600 PSIG. With this discharge pressure, the equipment can refuel 50 vehicles per hour.

ELECTRIC CONTROL PANEL

Electric control panel is required to operate the gas compressor. This panel will be mounted in the control room.

STORAGE CASCADE

Storage cascade/cylinders are used to store the natural gas.


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PRIORITY PANEL FOR VEHICLE PRIORITY

During rush hours, the compressor is directly connected to the dispenser, by passing the storage cascade/cylinders with the help of priority panel, facilitating the refueling of vehicles at a faster rate.

CNG DISPENSER HIGH FLOW DUAL HOSE

Gas is filled in to the vehicles with the help of dispenser. This dual hose dispenser is capable of handling two vehicles at a time.

ALL the CNG filling station equipment is foreign manufactured and imported on the specific requirement of the sponsor by the authorized agent. At present the countries that manufacture CNG filling station equipment rate, New Zealand, Italy, Canada and England.

We have selected a Canadian origin compressor viz, Gemini Compressor H302, Jordaire Model J-H320 295-100E. This equipment is selected because of its low electricity consumption and higher outlet pressure.

The total capacity of the selected equipment is 424m3/hr with a total power load of 200 KW.

The equipment will be delivered within 12 to16 weeks from the receipt of purchase order and initial payment. The details of this equipment and accessories are available in Annexure 1.2.

SUPPLIERS

The central board of revenue (CBR) has specified the list of compressors, storage cylinders vehicle cylinders, CNG machinery & equipment and conversion kits in SRO 38(1)/98. In the case of our project the order for the machinery will be placed to the supplier at Lahore, which will b supplied to us from Karachi port directly to our destination.

The list of some local agents dealing in the specific equipment and machinery is given below:

Supplier’s name Address Contact No.NationalEngineers

90-Bank Square Market,Model Town,Lahore.

Phone: 042-583353, 5837026Fax: [email protected]

Correct Xpress(Pvt) Ltd.

Suite # 14, 2nd Floor,Resham plaza,Chandni Chowk,Rawalpindi

Phone: 051-4844189Fax: [email protected]

ARM Gas P.O.Box 114 Phone: 042-6366950-51,


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mailto:[email protected]



July 22, 2011

Ventures Rasul Building60 Sharah-e-Quaid-e-Azam,Lahore

6366948Fax: 042-6369756, [email protected]

Hurricane Compressors

8 Hong Kong Plaza,Satellite Town,Rawalpindi.


Techno men GasVentures (Pvt)Ltd.

H # 3B, St # 16,F-8/3,Islamabad

Phone: 051-2856996-8Fax: [email protected]

Rix Pakistan (Pvt)Ltd.

37-A,Chaklala Scheme 2,Tipu Road,Rawalpindi.


STORES AND SPARES

The whole equipment required for setting up a CNG filling station is imported. Therefore, it is required to build an inventory of necessary spare parts to meet the unforeseen circumstances such as breakdown or any other fault in any part or equipment. For this purpose, a stock of necessary spare parts worth $8,000, which is equivalent to 484,000 rupees will be imported along with other equipment to maintain a minimum level of spare parts for the 1st year of operation.

FURNITURE AND FIXTURE

Furniture and fixtures mainly include tables, chairs, sofas, fans & lights, carpe, curtains and fire extinguishers. It is estimated that the furniture and fixture of Rs.85, 000 would be purchased.

Some office equipment is also required for the proposed project. A provision of Rs. 100,000 has been made for acquiring the required office equipment. The details of office equipment are annexed in Annexure______________

MANPOWER REQUIREMENT

Manpower requirement for the CNG filling station includes manager, cashier, dispenser, operators, accountant, watchman and sweeper. There is not at all any problem to get the required staff, with the specific requirements, from the area. The total staff strength would be 15 persons

for the two shifts. The basic salaries of the staff year one are as follows:


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HUMAN RESOURCE REQUIREMENT

Designation No. Of Employees for two shifts

Basic Salary per month (Rs.)

Total salary per year (Rs.)

Manager 1 10,000 120,000

Accountant 1 7,000 84,000

Cashier 2 4,000 96,000

Dispenser 4 2,000 96,000

Operators 2 2,500 60,000

Mechanic 1 3,000 36,000

Helper 1 2,000 24,000

Watchman 2 2,000 48,000

Sweeper 1 1,500 18,000

Total 15 582,000

The details of the Wages and Salaries for the first five years that includes increments and fringe benefits for are given Annexure # 3.2

COMPRESSION PROCESS

Natural gas is a natural resource of energy, commonly used in residential, commercial and industrial sector. It is one of the most valuable natural resources abundantly available in our country. Compressed natural gas is produced when the natural gas is compressed into cylinders to be used as a fuel in the automobiles.

The compression process of CNG at CNG station is a multi steps process, it compress the natural gas to 3600 per square inches (PSI) from 8 PSI.


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The machinery, which is used, for the compression of the natural gas is fully automatic and has two main parts/ compressor.

1. Screw compressor

2. Main compressor

The screw compressor, compress the natural gas to 75 PSI from 8 PSI. for screw compressor to work or to start compression minimum pressure of 8 PSI is require, which is provided by the main gas pipeline by the supplies of GAS (SSGC). After the gas is compressed to 75 PSI than it is send to radiator for cooling and than to filter for the filtering. After the filtering the compressed gas is transfer to the main compressor.

The main compressor is consisted of four sub compressor which compress the gas at different PSI. the first sub compressor of the main compressor receive the compressed gas at 75 PSI form the screw compressor it compress this 75 PSI to 220 PSI and than transfer it the next sub compressor which compress this 220 PSI to 480 PSI, this than transfer to the next sub compressor which compress it to 1200 PSI, which is transfer to next compressor which compress it to 3600 PSI.

This compressed gas of 3600 PSI is than send to radiator for cooling and than to filter for filtering before storage. After the cooling and filtering the compressed gas is transfer to the storage cylinders from where is filled in the automobiles. Automobiles are filled at 2900 PSI when the presser of stored gas decline and reach to 2900 PSI the machine or compressor starts automatically again and the entire process is repeated again and when presser reaches to 3600 PSI than it stop automatically again.

ENVIRONMENTAL/ECOLOGICAL

ANALYSIS

ECOLOGICAL/ENVIRONMENTAL ANALYSIS

CNG is not hazardous to the environment as is the case with the traditional petroleum fuel. It is highly of environment friendly nature. This is one of the main reasons that its demand is continuously increasing and the Government is supporting it.


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Due to the environment friendly and low cost of natural gas, Hydrocarbon Development Institute of Pakistan (HDIP) has recognized the need and necessity to promote the use of CNG as a fuel in automobiles.

Pishin city is one the most polluted cities of the country, it is almost because of the unburned carbon practices in the atmosphere that is discharge as a result of the combustion process of the petroleum products inside the vehicles. CNG is highly composed of methane gas (i-e 90%) which is a non flammable gas and thus does not discharge unburned carbon in the atmosphere.

The promotion of the CNG fueling projects will be a step towards the fight against pollution.

ECONOMIC ANALYSIS

ECONOMIC ANALYSIS

Natural gas is one of the most valuable natural resources abundantly available in our

country. With promotion of CNG fuel industry the dependency of the government on petroleum

products will be decreased. It will be a great support to the Pakistan’s economy, as it will help to

minimize the impact of petroleum products.

Hydrocarbon development institute of Pakistan has pioneered the use of environment

friendly CNG in road transport as an economically viable fuel, which can substitute the imported

petroleum products.

Moreover with the petroleum of less costly fuel the people will start switching from use

of Iranian petrol towards the CNG.as the demand of Iranian petrol has decreased the trend of

smuggling and illegally supplying Iranian petrol will be reduced and hence the economic burden

is relaxed from that aspect too.

With the start of this project our economy will be supported in a number of ways, a few

of them are discussed as under.


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EMPLOYMENT OPPORTUNITY

The project will provide employment opportunity to the people of Pishin District city, as

it needs a number of people to work for it, from the construction to the successful operation of

the business.

CONTRIBUTION TO GDP

The input materials, natural gas and electricity, will be utilized and will be converted to

the compressed natural gas. The value added to the input materials will be an addition to the

GDP of Pakistan.

TAX BENEFIT

The proposed project will benefit the government of Pakistan in the form of a number of

tax collections, such as, tax imposed on the income of a business, on the income of the

employees on the import of the CNG equipment, etc.

FOREIGN EXCHANGE

The people of Pakistan have been using the petroleum products such as fuel in their

automobiles, thus spending a huge amount of foreign exchange on import of petroleum products.

The proposed project will help to reduce our country’s dependence on foreign petroleum.

Because there are abundant supplies of natural gas in Pakistan, using natural gas to replace

gasoline will be more economic to the country and will help us to save foreign exchange.

PROCEDURE FOR OBTAINING THE LECENSE OF

“CNG” STATION

Three copies of prescribed application forms should be submitted with the following

documents. Application forms are available free of cost


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1. Status of applicant/applicants:-individual/joint ventures/registered company

2. In case of joint venture an attested copy of the document by the notary public or attested copy

of registration certificate in case of registered company.

3. Attested copy/copies of applicant/applicants ID card.

4. Local proof of ownership pf proposed land for CNG station.

5. Bank statement of the applicant clearly expressing financial stability for setting up CNG

station.

6. copy/copies of applicant/applicants national tax No certificate.

7. Proposed site plan of CNG station

8. Map of concerned area/city identifying the proposed site of the CNG station located in area.

9. Details of education, training and experience of the proposed technical staff.

10. Details of proposed security measures.

11. original bank receipts showing deposit of fee rs 25000 on prescribed form in favor of the

Federal ministry of petroleum and natural resources.

12. The authority letter of the person authorized for correspondence side office.

13. NOC from the concerned marketing company, if the cng station is proposed to setup at petrol

pumps otherwise a certificate that the station is not being set up for petrol pump.

Contact director or director general in case of non issuance of license after submission of

complete application in 15 days. For further information contact deputy director CNG.

REGULATION, LICENSES AND INCENTIVES

In this section a list of the licenses and NOC's that are required for the CNG filling

station are given. It has been applied for Land is expected to be granted by the concerned

authorities.


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LICENSE

Obtaining a license from ministry of petroleum and natural resources is a ore requisite for

setting up a CNG station. The cost associated with license is Rs 25000.

CERTIFICATE (BY HDIP)

After the installation of the required equipment for CNG filling station, HDIP will inspect

the working of the equipment, and once satisfier, will issue a certificate verifying that the

installed equipment is up to the required standard. Cost associated with this certification is Rs.

35000.

NOC'S

No objection certificate will be required from the following departments prior to the

commencement of business.

1. concerned development authority of the city

2. Traffic engineering and planning authority (TEPA)

3. Traffic police (SSP)

4. Department of civil defense.

5. National highway authority (NHA)

6. Central board of revenue (CBR)

7. Civil administration tehsil municipal administration (TMA)

8. Irrigation department

9. Forest department

10. Explosive department


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INCENTIVES

Sales tax

The import of CNG equipment is exempt from sales tax vide SRO No.38(1)/98 dated 21st

January till October 31,2002

CUSTOM DUTY

The CNG equipment is also exempted from custom duties as per the above referred SRO.

REGULATORY REQUIREMENTS

QUALITY CERTIFICATE

SRO 38(1) dated 21st January 1998 has been amended on April 11, 2002 and the quality

certificate from original manufacture has been mandatory. This certificate should state that the

equipment meets the safety standard as laid down in Pakistan CNG rule 1992. The designated

third party inspector’s witness this quality certificate .the cost of third party inspection is $500.

LIST OF EQUIPMENTS

The list of equipment and their various manufacturers has been mentioned in the same

amended SRO whose import is exempted from custom duty and sales tax.

INCOME TAX ON THE IMPORT OF CNG EQUIPMENT

Income tax, at rate of 6% is payable by the importer on the import of CNG equipment.

INCOME TAX

The income of the CNG station is not exempted from the income tax. The investor has to

pay tax on her/his income according to the nature of the business entity.


23


July 22, 2011

ANNEXURE

Annexure 1

COST OF THE PROJECT & FINANCIAL PLAN

COST OF THE PROJECT

(Rs in 000)

Cost already met

Cost to bet met

Total cost on

completionLand (including development registration cost)

4,000 - 4,000

Building/civil work - 3,541 3,541Contingencies - 90 90Total cost of building - 3,631 3,631Plant and Machinery (with Installation) - 9,680 9,680Loading/unloading charges - 30 30Total cost of machinery - 9,710 9,710Furniture and Fixture - 100 100Pre-operating expenses (3%) - 291 291Total cost of furniture and fixture - 391 391Total fixed cost 4,000 13,732 13,732Net working capital - 1,538 1,538Total cost of the project 4,000 15,270 15,270

FINANCIAL PLAN

The above cost of the project is proposed to be financed as below:

Fixed cost Net working capital

Total Means/sourc

esAlready met To be met


23


July 22, 2011

Long term finance- 9,710 - 9,710

Equity 4,000 4,022 1,538 9,560

Total 4,000 13,732 1,538 19,270

Annexure 1.1

COST OF BUILDING

Description Type of construction

Covered Area (sq.ft)

Cost per sq.ft (Rs.)

Cost (Rs.)

Office with washrooms RCC 436 475 207,100

Control room RCC 144 475 68,400

Compressor & Cylinder storage room

RCC 1400 475 665,000

Shed (90*40) Canopy Lump sum 2,000,000

Underground gas piping - - - 300,000

Flooring - About 6,000 50 300,000

Contingencies - - - 90,000

Total cost 3,630,500

Annexure 1.2

LIST OF EQUIPMENTS FOR CNG FILLING STATION

Description US $ Rs.H302 Jodair Natural Gas Comressor 105,900 6,406,950Remote mounted electrical control Included includedGas cover system Included includedFor upgrading up to 424 m3

One bank two line priority panel for buffer direct vehicle filling

2,652 158,813


23


July 22, 2011

Storage cascade, 28 cylinders single bank cascade 10,800 653,400Dispenser (D38 High flow dual hose two line sequencing) 28,140 1,702,470

9,103,133Income tax on the import of Machinery @6% 546,188Third party inspection 500 30,250Inland freight (Karachi port to destination) 30,000Total Cost of Machinery 150,965 9,709,570

Annexure 2

SALES ESTIMATE (REVENUE)

Revenue

Quantity of gas sale per Vehicle: 12.9 m3

( i.e., Quantity demanded per vehicle on average

Annual increase in the sales price of Gas: 2.5%

Year of operation Year 1 Year 2 Year 3 Year 4 Year 5

Capacity utilization 75% 80% 85% 90% 95%

Car wise capacity(# of cars filled/year) (000)

142 151 161 170 180

Selling pric (Rs. Per vehicle) 226 232 237 243 249

Sales value 30,290 35,032 38,157 41,310 44,820

Annexure 2.1

SALES ESTIMATE (REVENUE): WORKING

Total capacity =424m3/hour

=2,442,240m3/year


23


July 22, 2011

(Based on 16 hour working day and 360 days per annum)

The capacity of one cylinder on average = 12.9m3

Car wise capacity can be calculated as

Car wise capacity = 2, 442,240/12.9 = 189,231 (say 189,000) at 100% capacity

It means that 189 thousand cars will be filled per year if the project runs at its full capacity.

As the project cannot take a start from a 100% capacity therefore the capacity of the first year after having made a thorough analysis and visited the existing CNG station is projected as to be 75%. There will be a gradual increase in the capacity utilization of the proposed project.

The current rate or sales price pf the CNG fuel is Rs.17.51 (GST included)

Considering the inflation rate and market condition it is projected that there will be an increase of 2.5% annually in the price of CNG fuel, so the projected prices of CNG for the first five years are as follows:

REVENUE: WORKING

Year of operation Year1 Year 2 Year 3 Year 4 Year 5


Prices of CNG 17.51 17.95 18.39 18.86 19.33

Car wise capacity(# of cars filled/year)

142,000 151,000 161,000 170,000 180,000

No of vehicles filled/day 394 420 446 472 499


23


July 22, 2011

Annexure 3

COST OF GOODS SOLD

Consumption of Gas per vehicle 12.9 Cubic Meter

Rate of Gas Rs 7.35/cubic Meter

Rate of Electricity: fixed: Rs.381.11/kw/month

Variable: Rs. 5.25/kw/month

Annual increase in the prices of Gas 5%

(Rs. In 000)



Gas consumed (in Rs.) 13,465 15,202 16,546 17,884 19,428

Wages & Salaries 781 820 861 904 9494

Factory overheads

Power (electricity consumed) 4,088 4,315 4,542 4,768 4,995

Stores and spares 484 514 545 575 605

Repairs and Maintenance 133 200 267 267 267

Depreciation 631 631 631 631 631

Other Manufacturing overheads 321 350 322 413 448

Total factory overheads 6,388 6,777 7,112 7,500 7,834

Total Cost of Goods sold 20,634 22,799 24,519 26,288 28,211


23


July 22, 2011

Annexure 3.1

RATE OF GAS CONSUMED;

(Rs in 000)

Year of operation Year 1 Year 2 Year 3 Year 4 Year 5Capacity utilization 75% 80% 85% 90% 95%

Car wise capacity (000) 142 151 161 179 180

Gas consumed (in m3) 1,832 1,954 2,076 2,198 2,320

Rate of Gas/m3 7.35 7.72 8.11 8.52 8.95

Gas consumed (in Rs) 13,465 15,202 16,546 17,884 19,428

1. Gas consumed = total capacity * capacity utilization * rate

Annexure 3.2

WAGES AND SALARIES

Designation No of employees for two shifts

Salary per month (Rs)

Total salary per year

Manager 1 9,000 108,000Accountant 1 6,000 72,000Cashier 2 4,000 96,000Dispenser 4 2,000 96,000Operator 2 2,500 60,000Mechanic 1 3,000 36,000Helper 1 2,000 24,000Watchman 2 2,000 48,000Sweeper 1 1,500 18,000Total 15 558,000

i.e., 558


23


July 22, 2011

(Rs in 000)

Year of operation 1st year 2nd year 3rd year 4th year 5th year

Basic salary 558 558 586 615 646

Increments @ 5% - 28 29 31 32

Total basic salary 558 586 615 646 678

Fringe benefits @40% 223 234 246 258 271

Total wages and salary 781 820 861 904 949

Annexure 3.3

POWER (ELECTRICITY CONSUMED)

Connected load = 150kw

FIXED CHARGES

Rate = Rs.381.11/kw/month

Charges = 381.11*150

=57,176 per month

57,176*12= 685,998 per year (i.e. 686)

VARIABLE CHARGES

Rate =5.25/kw/hour

Charges =5.25*150*16*360

=4,536,000

(i.e., 4,536) at 100% capacit


23


July 22, 2011

(Rs. In 000)Year of operation Year 1 Year 2 Year 3 Year 4 Year 5Capacity utilization 75% 80% 85% 90% 95%

Fixed cost 686 686 686 686 686

Variable cost 3,402 3,629 3,856 4,082 4,309

Total cost 4,088 4,315 4,542 4,768 4,995

Annexure 3.4

STORES AND SPARES

The whole equipment required for setting up CNG filling station is imported. Therefore, it is required to build an inventory of necessary spare parts to meet the unforeseen circumstances such as a breakdown or any other fault in any part or equipment. For the purpose, a stock of necessary spare parts worth $8,000 which is equivalent to 484,000 rupees will be imported along with other equipment to maintain a minimum level of spare parts for the 1st year of operation. The amount of stores and spaces for the next four years as per requirement are shown below:

Current dollar exchange rate = 60.5 rupees

(Rs. And $ in 000)Year of operation Year 1 Year 2 Year 3 Year 4 Year 5


Stores and spares ( in $) 8 8.5 9 9.5 10

(in Rs) 484 514 542 575 605

Annexure 3.5

REPAIRS AND MAINTENANCE

(Rs. In 000)Year of operation Year 1 Year 2 Year 3 Year 4 Year

51% 1.5% 2% 2% 2%

Machinery (9,710) 97 146 194 194 194


23


July 22, 2011

Building (3,631) 36 54 73 73 73

133 200 267 267 267

OTHER MANUFACTURING OVERHEAD

Other manufacturing overhead are estimated to be equal to 1% of sales.

(Rs. In 000)Year of operation Year 1 Year 2 Year 3 Year 4 Year 5

Sales values 32,092 35,032 38,157 41,310 44,820

321 350 322 413 448

Annexure 3.6

DEPRECIATION

1. MACHINERY AND BUILDING

(Rs.in 000)Cost Estimated life Rate amount

Machinery 9,710 20 yrs 5% 486Building 3,631 25 yrs 4% 145Total 631

2. FURNITURE AND FIXTURE

Cost Estimated life Rate AmountFurniture and fixture

100 10 yrs 10% 10

(Rs. In 000)

Annexure 4


23


July 22, 2011

GENERAL ADMINISTRATIVE AND SELLING EXPENSES

(Rs. In 000)Year of operation Year 1 Year 2 Year 3 Year 4 Year 5

Printing and stationary 20 20 25 25 30

Postage and telegram 15 20 20 25 25

Insurance 10 10 10 10 10

Travelling expenses 10 10 15 15 20

Depreciation(Furniture & fixture)* 10 10 10 10 10

Telephone expenses 50 50 55 55 60

Total 115 120 135 140 155

*refer to annexure 3.6

WORKING CAPITAL ESTIMATES

Tied – up period

Year 1 Year 2 Year 3 Year 4 Year 5

Capacity utilization

days 75% 80% 85% 90% 95%

CURRENT ASSETS

Cash Lump sum 30 30 40 40 50

Raw Material 30 1200 1200 1200 1200 1200

Stores and Spares __ __ __ __ __

Debtors 30 2674 2919 3180 3443 3735

3904 4149 4420 4683 4985

CURRENT LIABILITIES


23


July 22, 2011

Creditors

(30% of raw material)

360 360 360 360 360

Accruals

(5% of sales)

1605 1752 1908 2066 2241

GST payable 30 401 438 477 516 560

2366 2550 2745 2942 3171

Net working capital

1538 1599 1675 1741 1817

ESTIMATES OF FINANCIAL EXPENSE

(Rs. in 000)


Mark up on long term financial

assistance 715 715 715 715 715

Mark up on short term financial

assistance ---- ---- ---- ---- ----

Total 715 715 715 715 715


23


July 22, 2011

PROJECTED INCOME STATEMENT

(Rs. in 000)


Sales 32,092 25,132 38,157 41,310 44,820

Cost of good sold 20,634 22,799 24,519 26,288 28,211

Gross Profit 11,458 12,233 13,638 15,022 16,609

General admin & selling expense

115 120 135 140 155

Operating profit 11,343 12,113 13,503 14,882 16,454

Financial expenses 715 715 715 715 715

Net profit before taxes (EBT)

10,628 11,398 12,788 14,167 15,739

Income tax ( @ 15%)

1,594 1,710 1,918 2,125 2,361

Net operating profit after tax

9,034 9,688 10,870 12,042 13,378

Withdrawals 100 100 100 100 100

Retained earnings 8,934 9,588 10,770 11,942 13,278

PROJECTED CASH FLOW STATEMENT

(Rs. in 000)


23


July 22, 2011

Year of operation End up const period

Year 1 Year 2 Year 3 Year 4 Year 5

Sources of funds

Operating profit ---- 11,343 12,113 13,503 14,882 16,454

Add: depreciation ---- 641 641 641 641 641

Total funds from operation

---- 11,984 12,754 14,144 15,523 17,095

Owners capital 9,560 ---- ---- ---- ---- ----

Long term financial assistance

9,710 ---- ---- ---- ---- ----

Short term borrowings

---- ---- ---- ---- ---- ----

Increase in creditors ---- 360 ---- ---- ---- ----

19,270 12,344 12,754 14,144 15,523 17,095

Application of funds

Investment in fixed assets

17,732 ---- ---- ---- ---- ----

Payment of long term financial

assistance

---- 1,686 1,686 1,686 1,686 1,686

With drawls ---- ---- 100 100 100 100

Increase in current assets

---- 3,904 245 271 263 305

Tax payments ---- 1,594 1,710 1,918 2,125 2,361

Total funds 17,732 7,184 3,741 3,975 4,174 4,452

Cash surplus 1,538 5,160 9,013 10,169 11,349 12,643

Cash at the beginning of the

year

---- 1,538 6,698 15,711 25,880 37,229


23


July 22, 2011

Cash at the end of the year

1,538 6,698 15,711 25,880 37,229 49,872

PROJECTED BALANCE SHEET

(Rs. in 000)Year of operation End up const

periodYear 1 Year 2 Year 3 Year 4 Year 5

Assets

CURRENT ASSETS

Cash 1,538 6,698 15,711 25,880 37,229 49,872

Stock ---- 1,200 1,200 1,200 1,200 1,200

Stores and Spares ---- ---- ---- ---- ---- ----

Debtors ---- 2,674 2,919 3,180 3,443 3,735

Total current assets

1,538 10,572 19,830 30,260 41,872 54,807

Net fixed assets 17,732 17,121 16,480 15,849 15,208 14,580

Total assets 19,270 27,693 36,310 46,109 57,080 69,387

Liabilities

CURRENT LIABILITIES

With drawls ---- 100 100 100 100 100

Creditors ---- 360 360 360 360 360

With drawls ---- ---- 100 100 100 100

Total current Liabilities

---- 460 460 460 460 460

LONG TERM LIABILITIES

Long term 16,860 15,174 13,488 11,802 10,116 8,430


23


July 22, 2011

financial assistance

Less mark up on long term financial

assistance7,150 6,435 5,720 5,005 4,290 3,575

Total long term liabilities

9,710 8,739 7,768 6,797 5,826 4,855

EQUITY

Equity 9,560 9,560 9,560 9,560 9,560 9,560

Retained earnings ---- 8,934 18,522 29,292 41,234 54,512

Total equity 9,569 18,494 28,082 38,852 50,794 64,072

Equity + Liability

19,270 27,693 36,310 46.109 57,080 69,387

BREAK EVEN ANALYSIS

(Rs. in 000)

Operational year 5 Distribution Ratio

Variable Fixed Total Fixed Variable

Raw Material 19428 ---- 19428 0% 100%

Wages and Salaries 474 475 949 50% 50%

Depreciation (Building & Machinery)

---- 631 631 100% 0%

Power 1998 2997 4995 60% 40%

Repairs and Maintenance 134 133 267 50% 50%

Stores and Spares 605 ---- 605 0% 100%

Manufacturing overheads 224 224 448 50% 50%


23


July 22, 2011

Amortization ---- 1686 1686 100% 0%

General & Admin expenses 77 78 155 50% 50%

22940 6224 29164

Total fixed cost = 6224

Variable cost = 22940

Break even in rupees = Fixed cost / (Selling value – variable cost / selling value)

= 6224 / (44820 – 22940 / 44820)

= 6224 * (44820 / 21880)

= 6224 * 2.05

= 12759

Break even in Units = Fixed cost / Contribution margin

= 6224 / 9.43

= 660

Margin of safety

= Sale at 100% capacity= 472085

Capacity utilization to achieve break even = Break even in rupees / Sale at 100% = 12759 / 472085 = 3%

Margin of safety = 100 – 3 = 97%


23


July 22, 2011

RATIO ANALYSIS

PROFITABILITY RATIO

GROSS PROFIT MARGIN = GROSS PROFIT / SALES * 100

Year 1 Year 2 Year 3 Year 4 Year5 11458 / 32092 12233 / 35032 13638 / 38157 15022 / 41310 16609 / 44820

= 35.70% 34.92% 35.74% 36.36% 37.06%

OPERATING PROFIT MARGIN = OPERATING PROFIT / SALES * 100

Year 1 Year 2 Year 3 Year 4 Year5

11343 / 32092 12113 / 35032 13503 / 38157 14882 / 41310 16464 / 44820

= 35.35% 34.58% 35.49% 36.03% 37.71%

NET PROFIT MARGIN = NET PROFIT / SALES * 100


9034 / 32092 9688 / 35032 10870 / 38157 12042 / 41310 13348 / 44820

= 28.15 % 27.65 % 28.49 % 29.15 % 29.85 %

RETURN ON EQUITY RATIO = NET PROFIT / EQUITY * 100



23


July 22, 2011

9034 / 18807 9688 / 23288 10870 / 33440 12042 / 44823 13348 / 57433

= 48.03% 41.60% 32.51% 26.69% 23.24%

RETURN ON INVESTMENT RATIO = NET PROFIT / INVESTMENT * 100


9034 / 27693 9688 / 36310 10870 / 46109 12042 / 57080 13348 / 69387

= 32.62% 26.68% 23.57% 21.10% 19.24%

NET PRESENT VALUE (NPV)

Year Cash Flows Discount Factor (13.43)

PV

12345678910

11984125741414415523170951709517095170951709529669

0.8820.7780.6860.6050.5340.4710.4150.3660.3230.285

10569992397039391912980527094625755228456

Total 153846 77002Net present value = Present value of future cash flows-initial investmentNPV = 862-19270

= 57732

PROFITABILITY INDEX


23


July 22, 2011

Cash outflows = 19270

PV of future Cash inflows = 77002

Profitability Index = PV of future cash inflows/Cash out flows= 77002/19270= 3996

PAYBACK PERIOD WITHOUT DISCOUNTING

Years cash inflows cumulative cash flows0 19270 (b) -1 ( a) 11984 11984 ( c ) 2 12754 (d) 247383 14144 388824 15523 544055 17095 715006 17095 885957 17095 1056908 17095 1227859 17095 13988010 29669 169549

Payback period formula

a + (b – c)/ d

1 + (19270 – 11984) /12754

1 + 7286/12754

1 + 0.5712

1.5712years


23


July 22, 2011

PAYBACK PERIOD WITH DISCOUNTING

Years cash inflows cumulative cash inflows0 19270 ( b) -1 ( a) 10569 10569 (c )2 9923 ( d) 204923 9703 301954 9391 395865 9129 487156 8052 567677 7094 638618 6257 701189 5522 7564010 8456 84096

Pay back period

a +( b-c )/ d

1 + ( 19270 – 10569) / 9923

1 + 8701 / 9923

1 + 0.8768

1.8768


23


July 22, 2011

REFERENCES

1. http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/13- Jul-2011/CNG-price-linked-to-55-per-cent-of-petrols

2. http://thefinancialdaily.com/news/top-stories/different-cng-in-pakistan-68555.aspx

3. http://tribune.com.pk/story/208157/new-cng-pricing-formula-agreed-upon/

4. http://www.pakistannewsupdate.com/business/decision-time-ogra-admits-irregularities- in-relocation-of-cng-stations/

5. www. ogra .org.pk/images/data/downloads/1305195982.doc

6. gee-21.org/publications/Development-of-CNG-Industry-in-Pakistan.pdf

7. http://www.pakcng.com/cng-news/National/news.asp

8. tribune.com.pk/.../hydrocarbon-ogdc-completes-study-on-local-exp

9. http://www.cngnow.com/EN-US/Vehicles/AroundTheWorld/Pages/default.aspx

10. http://www.pikeresearch.com/research/natural-gas-vehicles

11. http://www.cnbc.com/id/40794709/Natural_Gas_Vehicles_On_The_Road_To_Acceptance

12. http://www.forbes.com/2008/07/30/natural-gas-cars-forbeslife-cx_jm_0730cars.html

13. http://www.cngstations.com/vehicles-on-cng-ngv/

14. http://www.cngpump.com/aboutCNG.php

15. http://www.lngworldnews.com/gazprom-promotes-natural-gas-vehicles-in-

16. http://baftechnologies.com/blog/natural-gas-vehicles-around-the-world/

17. http://www.worldcng.com/


23

http://www.worldcng.com/

http://baftechnologies.com/blog/natural-gas-vehicles-around-the-world/

http://www.lngworldnews.com/gazprom-promotes-natural-gas-vehicles-in-

http://www.cngpump.com/aboutCNG.php

http://www.cngstations.com/vehicles-on-cng-ngv/

http://www.forbes.com/2008/07/30/natural-gas-cars-forbeslife-cx_jm_0730cars.html

http://www.cnbc.com/id/40794709/Natural_Gas_Vehicles_On_The_Road_To_Acceptance

http://www.pikeresearch.com/research/natural-gas-vehicles

http://www.cngnow.com/EN-US/Vehicles/AroundTheWorld/Pages/default.aspx

http://www.pakcng.com/cng-news/National/news.asp

http://www.ogra.org.pk/images/data/downloads/1305195982.doc

http://www.pakistannewsupdate.com/business/decision-time-ogra-admits-irregularities-in-relocation-of-cng-stations/

http://www.pakistannewsupdate.com/business/decision-time-ogra-admits-irregularities-in-relocation-of-cng-stations/

http://tribune.com.pk/story/208157/new-cng-pricing-formula-agreed-upon/

http://thefinancialdaily.com/news/top-stories/different-cng-in-pakistan-68555.aspx

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/13-Jul-2011/CNG-price-linked-to-55-per-cent-of-petrols

http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Politics/13-Jul-2011/CNG-price-linked-to-55-per-cent-of-petrols


July 22, 2011

INDEXES

A

Acknowledgement · 2

application forms · 18

asbestos · 12

C

civil works · 11

CNG · 6

CNG station · 6

combustion process · 16

commercial · 7

commercial application of CNG technology · 7

commitment to promote usage of CNG · 10

compressor · 10

Control Room · 11

convenience and availability · 10

D

demand for CNG · 6

Demand for current consumption · 9

Deregulated market price · 10

Development Institute of Pakistan · 16

discharge the gas · 12

Dispenser · 11

E

ECONOMIC ANALYSIS · 17

encouraging the use of CNG · 10

Executive summary · 6

Existing Supply · 8

Explosive department · 12

F

facilities · 11

Fire related walls · 12

Flooring · 11

Forest department · 19

Future Demand · 9

G

Gas Piping · 11

green house emission · 8

growing demand · 9

I

ID card. · 18

increasing prices of petroleum products · 8


23


July 22, 2011

increasing trend of CNG fueling system · 9

increments · 15

industrial sector · 7

Infrastructure · 10

Introduction · 7

Introduction and promotion of newly developed gas kits for rickshaw in Pishin District · 8

J

joint venture · 18

Jordaire Model · 13

L

land requirements · 10

Liberal policy · 10

LICENSES · 19

M

Machinery and Equipment · 12

Main compressor · 16

Market Analysis · 7

Market Demand · 8

Market supply · 8

Material inputs · 10

ministry of petroleum · 19

N

national tax No certificate · 18

natural resource of energy · 6

No objection certificate · 19

O

opportunity for the new entrants · 9

P

prerequisites · 10

Priority panel for Vehicle priority · 13

Promotion of vehicles with built –in CNG fueling system · 9

R

Raw material · 10

refueling · 12

Relaxation of import duty · 10

S

safety concerns · 8

Screw compressor · 15

Site selection · 11

Storage Room · 11

T

traditional petroleum fuel · 16

V

viz, Gemini Compressor H302 · 13


23


July 22, 2011

W Wages and Salaries · 15


23

Documents

Feasibility Report Cng Filling Station