Feasibility Report On How To Establish A Compressed Natural Gas Filling Station In Nigeria.

Compressed natural gas (CNG) is a fossil fuel substitute for gasoline (petrol), Diesel fuel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill (natural gas is lighter than air, and disperses quickly when released). CNG may also be mixed with biogas, produced from landfills or wastewater, which doesn’t increase the concentration of carbon in the atmosphere.

CNG is made by compressing natural gas (which is mainly composed of methane [CH4]), to less than 1% of the volume it occupies at standard atmospheric pressure. It is stored and distributed in hard containers at a pressure of 200–248 bar (2900–3600 psi), usually in cylindrical or spherical shapes.

In a bid to encourage cleaner fuels and add value to gas, The Nigerian government is promoting CNG and LPG as alternatives to conventional fuel (petrol & diesel). The GAS MASTER PLAN is evidence of Federal Government’s commitment to CNG. And with the fleet of other public transport, Trucks in the major cities of the country already running on CNG, and the future Natural Gas Vehicles (NGV), the demand for unlimited refueling stations across the nation rather imperative.

CNG as auto fuel would not only improve domestic consumption and utilization of gas but also reduces fuel subsidy on petrol majorly used as vehicular fuel in the country.

Already , Nigerian Independent Marketing Company (Nipco) Plc has launched Nigeria’s first compressed natural gas (CNG) in Benin City for vehicular and sundry application.

As plan for the 3rd licensing round that will ensure CNG availability kicks off, government plans to capture some major cities such as Warri-PH- Abeokuta – Oyo – Ota – Aba – Enugu – Ibadan – Lokoja Abuja- Calabar axis.

Advantage of CNG over PMS

* Compressed natural gas is the cleanest burning fuel operating today. This means less vehicle maintenance and longer engine life.
*CNG is 40% cost effective compare to PMS in Nigeria
*Some fleet operators have reduced maintenance costs by as much as 40% by converting their vehicles to CNG.
*CNG vehicles produce the fewest emissions of any motor fuel.
*This widens the opportunity for investors to play in the CNG/GAS subsector of Nigeria economy.

The report would enable investors to:

*Understand the CNG market
*Evaluate the strength, weakness, opportunity & strength
*Crucial factors for success in CNG refueling business
*Evaluate the start up cost
*Understand the legal requirements of starting CNG re-fuelling plant business in Nigeria.
* Human resource requirement for the project
* Financial Analysis for this project

Table of Contents

EXECUTIVE SUMMARY 1.0 Business Overview 1.1 Description of the Business 1.2 Vision and Mission Statement 1.3 Value Proposition 1.4 Critical Success Factor of the Business 1.5 Current Status of Business 1.6 Description of the Business Industry 1.7 Contribution to Local and National Economy 2. Marketing Plan 2.1 Description of the Products 2.2 Product Delivery 2.3 The Opportunity 2.4 Pricing Strategy 2.5 Target Market 2.6 Distribution and Delivery Strategy 2.7 Promotional Strategy 2.8 Competition 3. Production Plan 3.1 Description of the Location 3.2 Raw Materials 3.3 Production Equipment 3.4 Distribution Process 3.5 Legal Requirement 3.6 Production Cost 3.7 Stock Control Process 3.8 Pre-Operating Activities and Expenses 3.8.1 Operating Activities and Expenses 3.9 Project Implementation Schedule 4.0 Organizational and Management Plan 4.1 Ownership of the Business 4.2 Profile of the Promoters 4.3 Key Management Staff 4.3.2 Management Support Units 4.4 Details of Salary Schedule 5. Financial Plan 5.1 Financial Assumption 5.2 Start- up Capital Estimation 5.3 Source of Capital 5.4 Security of Loan 5.5 Loan Repayment Plan 5.6 Profit and Loss Analysis 5.7 Cash Flow Analysis 5.8 Viability Analysis 6.0 Business Risks and SWOT Analysis 6.1 Business Risks 6.2 SWOT Analysis

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