INTER FEUL SUBSTITUTION

Compressed Natural Gas (CNG)

• Operation of CNG Stations: HDIP has pioneered the use of environment friendly Compressed Natural Gas (CNG) in road

  transport as an economically viable inter-fuel import substitution in petroleum sector. The commercial application of CNG technology now forms an important element of Government’s petroleum policy. HDIP’s CNG stations at Karachi and Islamabad, besides converting vehicles on CNG and dispensing CNG fuel, are developing indigenous technology in the field and monitor the performance of CNG technology in the country. The CNG stations of HDIP at Lahore and Quetta are also operational. HDIP’s CNG stations also act as Advanced Fuel Resource Centres to advise the Government on safety and regulatory aspects and to conduct inspection, training and human resource development.

• 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 CNG use

• Liberal policy to provide license for CNG retailing

• Deregulated market consumer price of CNG

• Natural gas tariff for CNG linked to petrol

• Priority of natural gas connection to CNG stations

• Exemption of import duty and sales tax till the year 2002 on import of machinery and equipment, CNG kits and cylinders.

This has provided a boost to the industry and so far, more than 800,000 vehicles have been converted to CNG and 740 CNG stations are operational while another 200 are under construction in different parts of the country (As on June 30, 2005). According to International Association for Natural GAS vehicles (IANGV) statistics, Pakistan is ranked at no.3 in the CNG using countries after Argentina and Brazil.

• CNG Consultancy Services: HDIP is promoting and offering consultancy services to the private sector which include the whole range of activities like formation of company, selection of sites, legal formalities, design of stations, specifications and sizing of equipment, selection of equipment, selection of contractor, training of manpower, commissioning and supervision, etc., depending upon the clients needs. HDIP with approval of the Ministry has developed the following procedure for establishment of CNG Stations.

PROCEDURE FOR ESTABLISHMENT OF CNG STATION

1. Formation of a company and its registrtion as joint stock / private limited / partnership or proprietorship entity.

2. Select a consultant for project assistance if required

3. Registration of CNG Company with Oil and Gas Regulatory Authority (OGRA)

4. Selection of location for suitable site for CNG Station;

1. in close vicinity to natural gas pipeline

2. access to petrol vehicles in reasonable numbers

5. Selection of CNG Station equipment.

6. Completion of legal formalities for establishment of CNG Station with under mentioned departments:

1. District Authority for Civil construction approval.

2. Department of Explosive in the Ministry of Industries for location of CNG equipment

3. Approval for utilities, natural gas / electricity and water from relevant authorities.

7. Award of contract for :

1. Civil Construction

2. Purchase of CNG Station & Vehicle conversion equipment

8. Hiring of technical manpower and providing on the job training at some established CNG entity / HDIP

9. Installation of CNG Station equipment

10. Purchase of tools for CNG kit installation

11. Start-up of CNG Station and installation of CNG kits in vehicles.

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