Overview: CNG Fuel Station Setup

CNG stands for Compressed Natural Gas (CNG), which is a gaseous mixture of hydrocarbons containing roughly 80 to 90% methane. Compressed Natural Gas is compressed to a pressure of 200 to 250 kg/cm2 (to improve vehicle onboard storage in a cylinder) due to its low energy density. CNG is inflammable and lighter than air, and it is colorless, non-carcinogenic, and non-toxic. It's not a liquid fuel, and it is not the same as LPG (Liquefied Petroleum Gas), which is made up of liquid propane and butane.

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Compressed Natural Gas includes: 

• It is mostly comprised of Methane gas which is like gasoline, that generates engine power when mixed with air and fed into the engine's combustion chamber.
• When CNG enters the combustion chamber, it mixes with air, is ignited by a spark, and the explosion's energy propels the car forward.
• CNG is compressed to allow enough fuel to be stored in your vehicle to enhance driving range, similar to how gasoline is stored in a car's tank.
• Although natural gas can be used in automobiles as a liquid or a gas, the majority of vehicles use the gaseous form compressed to 3000 psi.

What is CNG Station?

It means the filing station where more than one dispensing unit is provided for the sale of natural gas. CNG Station contains CNG Mother Station, CNG Online Station, CNG Daughter Station, and CNG Daughter Booster Station, as detailed in the Gas Cylinder Rules, 2004. CNG Station activities include Compression, storage, handling, and transportation of CNG via cascades as may be obtained for marketing, sale, and dispensing of CNG.

Why CNG is better than Traditional petrol?

CNG is one of the most viable alternatives to traditional liquid fuels for vehicles.

CNG is one-fifth the cost of super gasoline, resulting in significant fuel expense savings.

Because CNG has no additives and burns cleanly, there are no by-products of combustion to contaminate your spark plugs or engine oil, it lowers maintenance expenditures.

Parts of the combustion chamber operate to high power for prolonged periods of time before needing to be serviced. The motor oil also stays clean, reducing engine wear and requiring fewer oil changes.

CNG is environment friendly and due to the higher octane rating, CNG engines are much quieter than Gasoline.

CNG fuel systems are also completely sealed, preventing spills and evaporation losses.

When compared to gasoline-powered vehicles, CNG generates fewer exhaust emissions, which reduces harmful emissions for instance carbon monoxides (CO), carbon dioxide (CO2), and nitrous oxide (N2O) by up to 95%.

Which Countries Produce the most Natural Gas?

Russia has the biggest natural gas reserves in the world.

How many CNG Fuel stations are in Uttar Pradesh?

According to Statist’s report for May 2021, there is 454 CNG Fuel station available in Uttar Pradesh.

Types of CNG Fuel Station

1. Mother CNG Station

The Mother CNG Station facility is a CNG station that is connected to an underground gas pipeline, has an online compressor, stationary cascade, dispensers, and has a mobile cascade filing facility.

2. Online CNG Station

It is connected to an underground gas pipeline, stationary cascade, online, compressor, and dispensers without mobile cascade filing facility is known as Online CNG Station Facility.

3. Daughter Booster CNG Station

Daughter Booster CNG Station is used where there is no subsurface gas pipeline and gas is supplied in a mobile cascade, compressed by a booster compressor, stored in a fixed cascade, and dispersed by dispensers.

4. Daughter CNG Station

The gas is delivered in a mobile cascade, stored in a permanent cascade, and dispensed by dispensers in the absence of a subterranean gas pipeline and booster compressor. This is referred to as a Daughter CNG Station.

5. L-CNG Station

L- CNG refers to the re-gasification of LNG using a vaporizer in a regulated system to fill a stationary cascade in compressed form for sale to automobiles as CNG.

Eligibility Conditions:

Applicant must have the following requirements:

• Must be an Indian citizen
• Minimum Qualification – Graduation.
• The minimum age required is 21 years.
• People like entrepreneurship skills along with safety knowledge are most preferable.

Land Requirement:

It will depend on the area where you want to open. There are the following points you need to note before opening a CNG Fuel station.

• In any given city, only City Gas Distribution (CGD) companies are permitted to construct and operate CNG Stations (say Geographical Area GA refers to in the language of this sector).
• Unlike Diesel/Petrol-based retail outlets it works in another way.
• Only the Authorized CGD Company of the Geographical area finalizes the area was to open the CNG station. There are 3 different ways of choices.

1. COCO retail outlet – Company Owned Company Operated, refers that Company will purchase land, Install the machine, and starts selling gas through its own employees.
2. CODO retail outlet – Company Owned Dealer Operated, means that Company will purchase land, install the types of machinery, and be ready to sell gas but through a third party (dealer) only. This is the system by which retail outlets of Oil Marketing Companies OMCs 9IOCL, BPCL, HPCL, etc.) Operate.
3. DODO –Dealer Owned Dealer Operated. Lands refer to a third party (dealer). The dealer will invest in major types of machinery and operates the outlet on day by day basis. This is how one OMCs mechanism operates.

• If we talk about point A, You can either rent your land to the CGD Company for a fixed monthly rent or a portion of the total amount of gas sold per fortnight/month as a commission.
• Point B is a very rare case in the CGD sector, which almost does not exist.
• In point C, it is only available with a few of the CGD. For instance, Gujarat Gas Company Limited, where you have the choice of a better share of profit by investing more.

The location where the person wishes to open a station must meet certain requirements. The site requirements are as follows:

• The land or plot must be free from any disputes.
• The applicant must own the land
• Must be located or well connected to the main roads and highways.
• It will be best when the CNG station will be near to transmission line of the company.
• The site is 700 square meters for light motor vehicles (LMVs) with a frontage of approximately 25 meters and 1500 square meters for transportation vehicles with a frontage of approximately 50 meters. Some businesses require land of at least 1600 square meters with a 35-meter frontage. As a result, consult the company's brochure, as dimension requirements may range from one company to another company.
• According to municipal and competent government bylaws, the plot must meet all standards.

Documents Required for CNG Pump Dealership 

• Aadhaar Card of the applicants
• Voter ID Card
• Application form of pump Dealership
• Bank account number
• Valid phone number
• Rent agreement where you want to open the pump.

Investment Required:

Applicants will need to invest around Rs. 75 lakh in order to open a CNG station. It covers the license charge as well as the cost of the pump. Installing a CNG gas production (CBG) facility costs around Rs 2.99 crore, but this does not include the license price. You'll need to pay Rs 25 lakh to put up an electric charging station, but that includes the license fee and the cost of the equipment. However, in addition to paying license costs, you must invest Rs 5 crore in an industrial High-speed Diesel Plant.

List of Companies that provides CNG Pump Dealership

• Gas Authority of India Limited (GAIL)
• Hindustan Petroleum Corporation (HPCL)
• Indraprastha Gas Limited (IGL)
• Mahanagar Gas Limited (MGL)
• Gujarat State Petroleum Corporation Limited (GSPC)
• Mahanagar Natural Gas Limited (MNGL)
• Indo- Bright Petroleum Private Limited (IBP)