₦airaland Forum

In my past articles, I did an analysis of value derived from converting your vehicle to LPG.

A lot of people pointed out that the government incentive is based on CNG, not LPG. So, ....today, we will be taking a closer look at the CNG option as prescribed in recent government policies. There is still a lot of confusion about it - this analysis will attempt to establish clarity in grey areas and also demonstrate, using available information and data, the viability and feasibility of this new policy. So, without further ado, here we go:

Unlike LPG which is Propane/Butane, CNG means Compressed Natural Gas and is mainly comprised of a composition made of Methane. To make this analysis easy to understand, we will use Petrol as the yardstick and basis of comparison, since petrol is a well understood quantum. We are going to look at four areas of impact.


1) Comparative Cost

2) Availability / Access

3) Investment Required + ROI

4) Practicality

1) Comparative Cost
To eliminate the comparative differences in energy efficiency and varying units of measurement in fuel types, I have decided to approach this from the perspective of energy density. This approach allows an equitable and constant value returned regardless of what type of fuel is addressed. The standard unit of measuring energy density across board is the "Megajoule" (MJ).


Price of Petrol = N925 / Litre

Price of CNG = N230 / scm

Energy in 1 scm of CNG = 40MJ

Energy in 1 Litre of petrol = 34.2MJ


From the above data, we can deduce the following:

1 scm (cubic metre) of CNG = 1.169 litres of petrol

Therefore, using a typical example of a full tank (60 Litres):

- With Petrol; 60L of fuel will cost N55,500 (@ N925/L)

- With CNG; Equivalent energy amount will require 60/1.169 = 51.33 scm of CNG. Approximate it to 52 scm of CNG. Therefore 52 scm of CNG will cost N11,960 (@ N230/scm).

CNG presents excellent value. As far as cost goes, there is no comparison. CNG will save you over N43,000 every time you fill up your tank! This is a very significant amount that needs no further pontification.

2) Availability or Access to Fuel Type
NIPCO is the strategic partner of FGN in the retail of CNG. Presently, Benin city in Edo state can be considered the CNG capital of Nigeria. Benin city was used as NIPCO test pilot for the CNG program and as such, Edo has 15 CNG filling stations spread all over the cities. Attempts are being made to expand similar service to Lagos, however to the best of my knowledge, right now Lagos only has 6 filling stations with the biggest one being located in Ibafo (along Lagos-Ibadan expressway). Abuja also has 6 new filling stations. Ibadan in Oyo state has one filling station. The rest of the nation will have to wait until such a time as Tinubu remembers them! I discovered the one serving Lekki peninsula is in Awoyaya - 40 minutes drive for me! As far as accessibility, I will give it a "E" mark at this point. Nevertheless, there is hope things will keep improving. Truth is, except for those within close proximity to these filling stations and those living in Benin city, CNG is not yet a viable alternative.

3) Required Investment + ROI
I have called up to six different installers spanning across three states. The quoted cost of installation varies wildly. I have had quotes as high as >>> CONTINUE READING 👇

https://www.naijalpg.com.ng/2024/09/cng-conversion-projected-cost-and.html

Hmmmm. Good analysis 👍

BrosG007:
In my past articles, I did an analysis of value derived from converting your vehicle to LPG.

A lot of people pointed out that the government incentive is based on CNG, not LPG. So, ....today, we will be taking a closer look at the CNG option as prescribed in recent government policies. There is still a lot of confusion about it - this analysis will attempt to establish clarity in grey areas and also demonstrate, using available information and data, the viability and feasibility of this new policy. So, without further ado, here we go:

Unlike LPG which is Propane/Butane, CNG means Compressed Natural Gas and is mainly comprised of a composition made of Methane. To make this analysis easy to understand, we will use Petrol as the yardstick and basis of comparison, since petrol is a well understood quantum. We are going to look at four areas of impact.


1) Comparative Cost

2) Availability / Access

3) Investment Required + ROI

4) Practicality

1) Comparative Cost
To eliminate the comparative differences in energy efficiency and varying units of measurement in fuel types, I have decided to approach this from the perspective of energy density. This approach allows an equitable and constant value returned regardless of what type of fuel is addressed. The standard unit of measuring energy density across board is the "Megajoule" (MJ).


Price of Petrol = N925 / Litre

Price of CNG = N230 / scm

Energy in 1 scm of CNG = 40MJ

Energy in 1 Litre of petrol = 34.2MJ


From the above data, we can deduce the following:

1 scm (cubic metre) of CNG = 1.169 litres of petrol

Therefore, using a typical example of a full tank (60 Litres):

- With Petrol; 60L of fuel will cost N55,500 (@ N925/L)

- With CNG; Equivalent energy amount will require 60/1.169 = 51.33 scm of CNG. Approximate it to 52 scm of CNG. Therefore 52 scm of CNG will cost N11,960 (@ N230/scm).

CNG presents excellent value. As far as cost goes, there is no comparison. CNG will save you over N43,000 every time you fill up your tank! This is a very significant amount that needs no further pontification.

2) Availability or Access to Fuel Type
NIPCO is the strategic partner of FGN in the retail of CNG. Presently, Benin city in Edo state can be considered the CNG capital of Nigeria. Benin city was used as NIPCO test pilot for the CNG program and as such, Edo has 15 CNG filling stations spread all over the cities. Attempts are being made to expand similar service to Lagos, however to the best of my knowledge, right now Lagos only has 6 filling stations with the biggest one being located in Ibafo (along Lagos-Ibadan expressway). Abuja also has 6 new filling stations. Ibadan in Oyo state has one filling station. The rest of the nation will have to wait until such a time as Tinubu remembers them! I discovered the one serving Lekki peninsula is in Awoyaya - 40 minutes drive for me! As far as accessibility, I will give it a "E" mark at this point. Nevertheless, there is hope things will keep improving. Truth is, except for those within close proximity to these filling stations and those living in Benin city, CNG is not yet a viable alternative.

3) Required Investment + ROI
I have called up to six different installers spanning across three states. The quoted cost of installation varies wildly. I have had quotes as high as >>> CONTINUE READING 👇

https://www.naijalpg.com.ng/2024/09/cng-conversion-projected-cost-and.html

Correct!

Nice write up

Brilliant analysis more stations are still needed none in Cross River ,Rivers,one is in Akwa ibom (Oron).South East doest not have any as well.

BrosG007:
In my past articles, I did an analysis of value derived from converting your vehicle to LPG.

A lot of people pointed out that the government incentive is based on CNG, not LPG. So, ....today, we will be taking a closer look at the CNG option as prescribed in recent government policies. There is still a lot of confusion about it - this analysis will attempt to establish clarity in grey areas and also demonstrate, using available information and data, the viability and feasibility of this new policy. So, without further ado, here we go:

Unlike LPG which is Propane/Butane, CNG means Compressed Natural Gas and is mainly comprised of a composition made of Methane. To make this analysis easy to understand, we will use Petrol as the yardstick and basis of comparison, since petrol is a well understood quantum. We are going to look at four areas of impact.


1) Comparative Cost

2) Availability / Access

3) Investment Required + ROI

4) Practicality

1) Comparative Cost
To eliminate the comparative differences in energy efficiency and varying units of measurement in fuel types, I have decided to approach this from the perspective of energy density. This approach allows an equitable and constant value returned regardless of what type of fuel is addressed. The standard unit of measuring energy density across board is the "Megajoule" (MJ).


Price of Petrol = N925 / Litre

Price of CNG = N230 / scm

Energy in 1 scm of CNG = 40MJ

Energy in 1 Litre of petrol = 34.2MJ


From the above data, we can deduce the following:

1 scm (cubic metre) of CNG = 1.169 litres of petrol

Therefore, using a typical example of a full tank (60 Litres):

- With Petrol; 60L of fuel will cost N55,500 (@ N925/L)

- With CNG; Equivalent energy amount will require 60/1.169 = 51.33 scm of CNG. Approximate it to 52 scm of CNG. Therefore 52 scm of CNG will cost N11,960 (@ N230/scm).

CNG presents excellent value. As far as cost goes, there is no comparison. CNG will save you over N43,000 every time you fill up your tank! This is a very significant amount that needs no further pontification.

2) Availability or Access to Fuel Type
NIPCO is the strategic partner of FGN in the retail of CNG. Presently, Benin city in Edo state can be considered the CNG capital of Nigeria. Benin city was used as NIPCO test pilot for the CNG program and as such, Edo has 15 CNG filling stations spread all over the cities. Attempts are being made to expand similar service to Lagos, however to the best of my knowledge, right now Lagos only has 6 filling stations with the biggest one being located in Ibafo (along Lagos-Ibadan expressway). Abuja also has 6 new filling stations. Ibadan in Oyo state has one filling station. The rest of the nation will have to wait until such a time as Tinubu remembers them! I discovered the one serving Lekki peninsula is in Awoyaya - 40 minutes drive for me! As far as accessibility, I will give it a "E" mark at this point. Nevertheless, there is hope things will keep improving. Truth is, except for those within close proximity to these filling stations and those living in Benin city, CNG is not yet a viable alternative.

3) Required Investment + ROI
I have called up to six different installers spanning across three states. The quoted cost of installation varies wildly. I have had quotes as high as >>> CONTINUE READING 👇

https://www.naijalpg.com.ng/2024/09/cng-conversion-projected-cost-and.html

Bro, the current price of CNG has gone up and has narrowed the gain margin

What's the current price?.

And are you talking about the cost of conversion or cost of the gas?

CivilianJTF:
Bro, the current price of CNG has gone up and has narrowed the gain margin

BrosG007:
In my past articles, I did an analysis of value derived from converting your vehicle to LPG.

A lot of people pointed out that the government incentive is based on CNG, not LPG. So, ....today, we will be taking a closer look at the CNG option as prescribed in recent government policies. There is still a lot of confusion about it - this analysis will attempt to establish clarity in grey areas and also demonstrate, using available information and data, the viability and feasibility of this new policy. So, without further ado, here we go:

Unlike LPG which is Propane/Butane, CNG means Compressed Natural Gas and is mainly comprised of a composition made of Methane. To make this analysis easy to understand, we will use Petrol as the yardstick and basis of comparison, since petrol is a well understood quantum. We are going to look at four areas of impact.


1) Comparative Cost

2) Availability / Access

3) Investment Required + ROI

4) Practicality

1) Comparative Cost
To eliminate the comparative differences in energy efficiency and varying units of measurement in fuel types, I have decided to approach this from the perspective of energy density. This approach allows an equitable and constant value returned regardless of what type of fuel is addressed. The standard unit of measuring energy density across board is the "Megajoule" (MJ).


Price of Petrol = N925 / Litre

Price of CNG = N230 / scm

Energy in 1 scm of CNG = 40MJ

Energy in 1 Litre of petrol = 34.2MJ


From the above data, we can deduce the following:

1 scm (cubic metre) of CNG = 1.169 litres of petrol

Therefore, using a typical example of a full tank (60 Litres):

- With Petrol; 60L of fuel will cost N55,500 (@ N925/L)

- With CNG; Equivalent energy amount will require 60/1.169 = 51.33 scm of CNG. Approximate it to 52 scm of CNG. Therefore 52 scm of CNG will cost N11,960 (@ N230/scm).

CNG presents excellent value. As far as cost goes, there is no comparison. CNG will save you over N43,000 every time you fill up your tank! This is a very significant amount that needs no further pontification.

2) Availability or Access to Fuel Type
NIPCO is the strategic partner of FGN in the retail of CNG. Presently, Benin city in Edo state can be considered the CNG capital of Nigeria. Benin city was used as NIPCO test pilot for the CNG program and as such, Edo has 15 CNG filling stations spread all over the cities. Attempts are being made to expand similar service to Lagos, however to the best of my knowledge, right now Lagos only has 6 filling stations with the biggest one being located in Ibafo (along Lagos-Ibadan expressway). Abuja also has 6 new filling stations. Ibadan in Oyo state has one filling station. The rest of the nation will have to wait until such a time as Tinubu remembers them! I discovered the one serving Lekki peninsula is in Awoyaya - 40 minutes drive for me! As far as accessibility, I will give it a "E" mark at this point. Nevertheless, there is hope things will keep improving. Truth is, except for those within close proximity to these filling stations and those living in Benin city, CNG is not yet a viable alternative.

3) Required Investment + ROI
I have called up to six different installers spanning across three states. The quoted cost of installation varies wildly. I have had quotes as high as >>> CONTINUE READING 👇

https://www.naijalpg.com.ng/2024/09/cng-conversion-projected-cost-and.html

You people should stop this analysis..

How much was a liter of fuel sold for before all this brouhaha?

Was it not around #160/l?

If we're buying today at #160/l who would be thinking CNG?

All this just to make us feel like we have a better option is a scam.

Soon, when we have enough people on CNG, I can bet it with you, another government would come, and tell us they have also been paying Subsidy on CNG and so therefore they can no longer again.

I read sometimes ago, that a litter of kerosene now sells above #2000/l like seriously who do us in Nigeria.

A kg of LPG gas now is also around #1300/kg

Like seriously this country is tiring..

CivilianJTF:
Bro, the current price of CNG has gone up and has narrowed the gain margin

My concern as well.
Greenville has dispensing outlets in Kaduna and Lafia but their price is almost double of what FG is announcing.

GCFR696:
My concern as well.
Greenville has dispensing outlets in Kaduna and Lafia but their price is almost double of what FG is announcing.

At Ikeja GRA now, it's 330naira per scm

oluseg2:
What's the current price?.

And are you talking about the cost of conversion or cost of the gas?

Not conversion. Cost per scm. It's 330naira at GRA ikeja

CivilianJTF:
Not conversion. Cost per scm. It's 330naira at GRA ikeja

I knew it that this CNG is another scam, just wait a little more, in coming months the price may jump to #500/scm

samintegrity:
I knew it that this CNG is another scam, just wait a little more, in coming months the price may jump to #500/scm

It may and it may not

CivilianJTF:
At Ikeja GRA now, it's 330naira per scm

Which of the feeling stations is selling at that price?

CivilianJTF:
At Ikeja GRA now, it's 330naira per scm

Where in Ikeja GRA?

Kindly share address