Lpg Vs Cng

LPG MARKET ANALYSIS: To meet the growing demand, the country’s dependence om imported energy products has increased by 5 percent during the last 4 years. The Pakistan energy book year 2008, released by Hydro Carbon Development Institute, showed that the shared on imported energy has risen to 35 percent in 2008 against 30 percent in 2004. The share of LPG in energy consumption has only 1.5 percent. The demand of LPG has increased by 14 percent in the last six years. Since the local production of LPG has progressed at the rate of just 9 percent, therefore arose the need to enhance imports to meet the domestic requirements. Source

02~03

03~04

04~05

05~06

06~07

07~08

149,657

154,903

192,533

344,875

370,804

363,03 6

18,000

35,000

40,492

24,779

65,590

23,765

372,701

415,302

452,508

582,628

648,572

601,59 2

4.24%

11.43%

8.96%

28.76%

11.32%

-7.24%

02~03

03~04

04~05

05~06

06~07

07~08

262,973

280,725

313,054

384,603

405,683

371,37 1

Commercial

52,493

56,506

103,231

164,418

190,721

192,60 4

Others

10,596

14,345

29,398

11,993

9,039

326,062

351,576

578,419

608,397

573,01 4

Field Plants Imports Total Annual Growth Rate (%)

LPG Consumption by Sector: Sector Domestic

Total

416,285

LPG Demand Projection: Year

FY09

FY10

FY11

FY12

FY13

Potential Demand

1,181

1,275

1,332

1,359

1,482

Market Consumptio n

656

700

671

971

1,080

Demand in Thousand Ton

LPG – A BETTER FUEL THAN CNG LPG Producers are suggesting the government to stop issuing CNG License for compresses natural gas (CNG) filling stations and instead LPG in domestic , commercial and automobile market. Although government has slowed down this process, there is a need to completely ban CNG license as natural gas reserves were depleting. Since the import of natural gas I very expensive and is not viable where as LPG can be imported within a short span of time. Instead of supplying natural gas to CNG stations, the government is planning to ensure the gas is provided to industrial sector. Which are generating revenues and producing export surplus for the country. Proving cheaper fuel will enable industries to complete international markets and boost their exports, resulting in generating more revenue for the country. In last winter, many industries had to shut down their plants due to nonsupply of natural gas. This non-supply of natural gas has resulted in closure of many power plants and industries. LPG and CNG are both viable fuels with varying levels of infrastructure. Following chart is showing the comparison between CNG and LPG because of which energy consultants are expecting more rapid growth of LPG sector as compared to CNG and now OGRA is on process of finalizing the commercial part of LPG atuo station.

Parameter s Emissions

CNG Average 70% lesser petrol/diesel

LPG Average 90% lesser than

petrol/diesel Power Volume of Fuel Tank Conversion Cost Safety

Dispensing

Reduces by about 20% as gas carburetors are often used Large tanks average 6 times that of petrol/diesel for same mileage: additional weight and eats up boot space Taxi/Car: PKR 25,000 ~ 45, 000 200 ~ 245 bar, high pressure can be a safety concern Requires special equipment. A compressor alone cost PKR 20 Million and a complete station could cost up to 30 Million

Almost same as petrol/diesel vehicles Same as petrol/diesel Taxi/Car: PKR 6,000 ~ 14, 000 5-7 bar, comparable to conventional fuel Average LPG station cost PKR 4.5 Million

Distribution & Transportatio n

Dependent on pipe line networks

Easily transported by road tanker equipment with PTO like liquid fuel

Network Development

Heavily dependent on SN pipe line networks, lead time is high

Easy to develop, lead time is 5-6 months

Initial investment in infrastructure

Average USD 250,000 and upwards for just a dispensing station with compressor of suitable capacity

Average USD 65, 000

Global Experience

5.0 Million Vehicles

10.0 Million Vehicles