Why CNG for Bangladesh ?
• Bangladesh has a large amount of stranded gas. Most analysis recommends CNG as a major downstream use for this gas.
• CNG use could save Bangladesh significant amounts in foreign exchange. World Bank estimates savings of Tk. 4crore (Tk.1crore=Tk.100,00,000.00, 1US$=Tk.70.00) per station per year which is twice that of the investment cost.
• Maintaining air quality in metropolises like Dhaka has become the nation's top most priority. CNG could cater to that need and make significant cross saving in the health sector and reduce public hazard.
• World Bank recently estimated that about Tk.117crore per year can be saved in health costs in Dhaka city alone on account of PM reduction. This does not include mortality estimates.
• Cost of CNG is attractive could offer significant consumer savings to the average consumer.
• The government has an aggressive policy to ensure that engine power is converted from oil based fuel to CNG. From the health and environment perspective CNG is a much better combustible than oil based fuels. This supports the efforts of improving life conditions in this heavily over-populated part of the world. Legal measures force the change over to CNG as for example taxis in the larger cities have been mandatory converted to CNG.
• At the same time the government department Bangladesh Road Transport Corporation (BRTC) has imported dedicated CNG passenger busses to increase the utilization of natural gas. Besides the government initiatives, private entrepreneurs are also importing CNG dedicated passenger busses as the operating cost is very attractive (70 percent less than gasoline).
Market approach A specific approach should be followed depending on the local circumstances. In the locations where a gas distribution network is available the best approach is to add fast fill CNG units to already existing petrol pump stations on the main highways and in and around the larger cities. Also new locations with dedicated fast fill CNG outlets should be foreseen in busy metropolis areas. The market does not recognize individual slow fill solutions as viable because the relative cost of a slow fill unit seems too costly and mostly consumers or SME size enterprises do not dispose of sufficient space to apply these concepts. Typical areas to undertake sales efforts for the proposition of fast fill CNG units are Dhaka and its suburban surroundings, Chittagong , Sylhet, Comilla and the station owners on highways between these conglomerates.
In the locations not disposing of gas a distribution network a mother-daughter configuration should be offered. Some daughter station configuration could be equipped with slow fill units although the relative intensive use of available vehicles and the high density of vehicles make this concept less attractive.
A typical CNG station is equipped with a double hose dispenser with two double nozzles and would serve between 300–500 cars in 16 hours station access time.
It is estimated that per year 200 CNG stations should be built.
Influencing factors
The following factors will influence the pace in which CNG stations are required.
Gas distribution pipelines are not available to the whole country. Only 30-35 percent area is covered by the gas distribution network. Gradually a further extension is foreseen.
In the coming twelve months a further delivery capacity from one of the two gas fields in exploration will start to operate. This is quite urgent as gas stations observe a reduced gas pressure at peak hours.
The economic development in Bangladesh is comparatively slow also due to political instability, a higher illiteracy rate and overpopulation. At the same time natural disasters are hampering developments
Government permission must be obtained to operate a CNG filling station. It takes a lot of effort to obtain permission for private entrepreneurs.
Also the safety of CNG stations requires a lot of attention. Every CNG refilling station must have a certificate from the government explosive department of Bangladesh to ensure full proof safety.
The addition of CNG fuelling equipment to the existing petrol filling stations is problematic, because a large part of them are not having disposition over enough ground space to accommodate a safe CNG compressor, dispenser and high pressure gas storage installation.
Regarding safety standards a consistent policy is not available. All kinds of standards are used.
Possibilities
The government has allocated much important road side commercial land required for the implementation of CNG refueling stations on a lease basis at a reduced rate. Specific locations are Dhaka, Narayanganj, Manikganj, Moulvibazar, Feni, Dhaka-Sylhet highway and Chittagong . Also railway plots are allocated in Dhaka and Chittagong .
The Government package for CNG consists further of :
• free of charge registration and enlisting;
• assistance and cooperation to obtain bank loans;
• necessary information;
• training for manpower engaged in running the station;
• assistance in site selection and taking lease of government land;
• quick gas, water and electricity connections at CNG stations
• duty free import of CNG equipment and kits.
Although CNG equipment suppliers are limited in the world, all known suppliers are active in this market and most of them have already secured a position. All are competing with low price equipment either stripped to minimum, questionable configurations, refurbished equipment, subsidized installations or assembled in low cost countries.
The suppliers are focusing on a best price proposition by compromising technical quality solutions and safety as much as possible.
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