NEW MODELS FOR

CNG STATIONS
DEVELOPMENT

Presentation by :
Shivnarayan Pareek
15 Annual Conference on
th

CITY GAS DISTRIBUTION IN INDIA

24,25 Feb 2020
 NEW MODELS FOR CNG STATION DEVELOPMENT

Natural Gas Economy

Natural gas is giving about 40 to 50% cost advantage over petrol and diesel, thus a net
forex saver for same amount of energy

India is the biggest emitter of greenhouse gases after the US and China. It
aims to achieve the emission reduction targets pledged at twenty-first session
of the Conference of the Parties (COP) in Paris. Promoting the use of natural
gas as alternative to petrol and diesel to achieve the emission reduction
targets

Natural gas comprises only about 6.2% of India’s primary energy mix, far
behind the global average of 24%. The government plans to increase this
share to 15%

City Gas Grids (CGD) and Automotive use of CNG are key drivers of natural
gas demand in addition to fertilizer, power, and steel sectors

India’s overall energy demand is expected to grow at 4.2% per year over the
next 25 years
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AVERAGE EMISSION VALUES OF DIFFERENT DIESEL AND CNG
ENGINE CONCEPTS (MEASURED IN THE 13-STEP TEST ACCORDING TO ECE-R49)

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VEHICLE RANKING FOR CNG CONVERSION

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NATURAL GAS SUPPLY CHAIN

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 NEW MODELS FOR CNG STATIONS - DODO

DODO MODEL FOR CNG STATIONS

 With increasing demand for CNG, Minister of Petroleum and Natural Gas &
Skill Development and Entrepreneurship Dharmendra Pradhan launched
the Dealer Owned Dealer Operated (DODO) model for setting up CNG
stations.
 Under the general guidelines for the scheme, the entire earmarked dealer
plot shall be developed exclusively for setting up of CNG station and allied
commercial activities at the discretion of City Gas Distribution (CGD)
activities. As more and more CNG stations open up, more than 10% of
them may be based on DODO model
 The commerce ministry’s department of industrial planning and promotion
(DIPP) is working on ways to expedite security and other approvals needed
from the Petroleum and Explosive Safety Organization (PESO) to set up
new CNG and LNG retail outlets. The government has begun talks with
commercial vehicle makers, through GAIL (India) Ltd, the country’s largest
gas distributor, to incentivize the development of such eco-friendly vehicles.

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NEW MODELS FOR CNG STATIONS - LCNG

LCNG (LIQUID TO COMPRESSED NATURAL GAS) STATIONS

• The volume of liquefied natural gas (LNG) is only around

1/600th of the volume of gaseous natural gas

• In terms of downstream gas market development, the L-CNG

concept offers a unique opportunity for all stakeholders as it
bypasses the need for a conventional gas pipeline and can
result in rapid development of LNG corridors along India's
Golden Quadrilateral, North-South corridor, East-West
corridor and National Highway network

• LCNG refueling systems provide forward distribution of

regasified CNG from liquid natural gas, this suits as LCNG
hub and spoke station

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NEW MODELS FOR CNG STATIONS

LCNG (LIQUID TO COMPRESSED NATURAL GAS) STATIONS

• Proof-of-concept is existing globally, players such as Chart
Industries, Cryostar, Inox, Vanzetti, etc. already operating
either in specific module or as package

• L-CNG offers a risk diversification since dispensing of CNG

or LNG is not only limited to four-wheelers and long-haul
transport but can also pretty much cover railways, waterways
and industrial consumption through hub-and-spoke model

• Interestingly, the Indian Railway Organization for Alternate

Fuels (IROAF) is spearheading diesel substitution technology
to push CNG and LNG as locomotive fuel. All the same, the
Inland Waterways Authority of India (IWAI) along with
Petronet LNG are targeting National Waterway - 1 (Ganga) for
launching LNG barges.
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NEW MODELS FOR CNG STATIONS - BIO CNG

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 NEW MODELS FOR CNG STATIONS DEVELOPMENT

OPPORTUNITIES FOR BIO-METHANE

Bio-methane produced from organic residues is most environment
friendly option

Over 99% of road freight transportation and the majority of commercial

traffic on roads is fueled by diesel engines. Their dangerous exhaust
emissions were responsible for lots of negative headlines in the last few
years.

With the consequences for environment and climate largely known for
internal combustion engines, electric mobility is often emphasized. For
electric vehicles, particle emissions are simply removed from inner cities
but not from the atmosphere. The burden of pollution is simply shifted,
not decreased

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 NEW MODELS FOR CNG STATION DEVELOPMENT

FIRST AND SECOND GENERATION OF BIO FUELS

Biomass is typically composed of Carbohydrates, Starch, Lipids, Proteins
(grouped as polysaccharides), Cellulose, Hemi cellulose and Lignin.
Depending on the source of biomass, Bio Fuels are classified in different
generations.

First Generation Bio-Fuels

When bio fuel is derived from digestion of polysaccharides (sugar, starch,
vegetable oil or animal fats, and seeds or grains)

Second Generation Bio-Fuels

When Bio fuel is produced from digestion/processing of Cellulose, Hemi
cellulose (non-food crop and bio-degradable wastes)

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 NEW MODELS FOR CNG STATION DEVELOPMENT

CNG AND BIO-CNG

While in CNG, Methane co-exists with other heavier hydrocarbons

i.e. Ethane, Propane, Butane, Hexane
(the end application Stoichiometry – air fuel ratio is not adjusted)

Bio CNG has only Methane in it.

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 BEST OPTIONS FOR FUTURE ENERGY SECURITY

BIO-CNG

LCNG

CNG

SOLAR

ELECTRIC MOBILITY

HYDROGEN

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THANK YOU