Study of CNG station business model

Abstract

One of the main environmental issues of Bangladesh is high concentration of visible and non-visible pollutants emitted by vehicles in metropolitan Dhaka and other urban areas contributing to the country’s air pollution. Pollution free environment is a burning issue of a country. At present clean and pollution free fuel is widely adapted all over the world. CNG is a clean fuel and replacing the use of gasoline gradually. Bangladesh is introducing CNG fuel all over the country. Bangladesh oil, gas and Mineral Corporation (Petrobangla) first launched a pilot project on CNG in Bangladesh during the period 1981-1982. On the successful completion of another project during 1983-1985, a company named “Compressed Natural Gas Company Limited” was formed in 1987 as a subsidiary of Petrobangla. The name of the company was then changed to “Rupantarita Prakritik Gas Company limited” (RPGCL) in 1999. This company installed (four CNG Refueling stations and 1(one) vehicles conversion workshop in Dhaka City during the period of 1995-1997. The study has been untaken to determine total investment requirement of a standard CNG business model and to locate its suitable place with financial feasibility study and thereby to determine minimum CNG volume sale and minimum amount of land and investment requirement for both private land and leased land.