Feasibility Report CNG Filling Station

Stylish
Project for CNG filling station installation at

the
book District Pishin Saturday, July 23, 2011
ACKNOWLEDGEMENT
cover
En route to
Mr. Rahim
Mangel
page
(E)11, Mohammad
Ayaz Khan(E) 15,
Waseem Akram
By Mohammad
Shahzad(E) 48
Imran (E)04,
Sulaman
Institute of Management
Sciences University of
Balochistan Quetta Group
Assignment (session 2009-2011)
Feasibility Study of installing CNG filling Station at the District Pishin (Group
assignment)
July 22, 2011
I owe a great many thanks to a great many

people who helped and supported me during the
writing of this Project.
My deepest thanks to my Friends who Guide

me of the assignment for guiding and correcting
various documents of mine with attention and
care
I express my thanks to THE FACULTY OF
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF BALUCHISTAN Specially my
teacher MR. Rahim Mangel for providing the
interactive task.
By Mohammed Ayaz Khan (E) 15,Waseem Akram (E)11 Mohammad Imran(E)4 ,Sulaman
Shahzad (E)48 Institute of Management Sciences University of Balochistan Quetta.
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July 22, 2011
TABLE OF CONTENTS
ACKNOWLEDGEMENT .............................................................................1
TABLE OF CONTENTS .............................................................................3
INTRODUCTION.......................................................................................8
MARKET ANALYSIS.................................................................................8
INTRODUCTION AND PROMOTION OF NEWLY DEVELOPED GAS KITS FOR
RICKSHAW IN PISHIN DISTRICT................................................................9
MARKET SUPPLY.....................................................................................9
EXISTING SUPPLY...................................................................................9
MARKET DEMAND...................................................................................9
DEMAND FOR CURRENT CONSUMPTION .................................................10
THE DEMAND FOR CNG FUEL=12900 CUBIC METER/DAY................................................... 10
FUTURE DEMAND..................................................................................10
DEMAND PROJECTIONS FOR VEHICLES ON CNG (IN PISHIN DISTRICT)..............................................11
CNG POLICY..........................................................................................11
THE GOVERNMENT OF PAKISTAN HAS OFFERED NUMBER OF INCENTIVES FOR ENCOURAGING THE USE OF CNG IN
THE COUNTRY SOME OF THESE ARE SUMMARIZED BELOW:..............................................................11
TECHNICAL ANALYSIS...........................................................................12
MATERIAL INPUTS:......................................................................................................... 12
LAND:....................................................................................................................... 12
INFRASTRUCTURE:..........................................................................................................13
BUILDING:.................................................................................................................. 13
MACHINERY AND EQUIPMENT:............................................................................................14
Gas Compressor.................................................................................................14
Electric control panel ........................................................................................14
Storage cascade ............................................................................................... 14
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Priority panel for Vehicle priority .......................................................................15
CNG Dispenser high flow dual hose .................................................................15
SUPPLIERS..................................................................................................................15
STORES AND SPARES......................................................................................................16
FURNITURE AND FIXTURE..................................................................................................16
MANPOWER REQUIREMENT................................................................................................16
Human Resource Requirement..........................................................................17
COMPRESSION PROCESS................................................................................................... 17
ENVIRONMENTAL/ECOLOGICAL..............................................................18
ANALYSIS.............................................................................................18
ECOLOGICAL/ENVIRONMENTAL ANALYSIS.............................................................18
ECONOMIC ANALYSIS............................................................................19
ECONOMIC ANALYSIS.............................................................................................19
Employment Opportunity...................................................................................20
Contribution to GDP...........................................................................................20
Tax benefit......................................................................................................... 20
Foreign exchange.............................................................................................. 20
PROCEDURE FOR OBTAINING THE LECENSE OF.......................................20

“CNG” STATION....................................................................................20
REGULATION, LICENSES AND INCENTIVES...............................................21
LICENSE.................................................................................................................22
CERTIFICATE (BY HDIP)...........................................................................................22
NOC'S..................................................................................................................... 22
INCENTIVES...........................................................................................................23
Custom duty.......................................................................................................23
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REGULATORY REQUIREMENTS...............................................................................23
Quality certificate...............................................................................................23
List of Equipments.............................................................................................23
Income tax on the import of CNG equipment.....................................................23
Income tax......................................................................................................... 23
ANNEXURE...........................................................................................24
COST OF THE PROJECT & FINANCIAL PLAN.............................................................................24
Cost of the Project..............................................................................................24
Financial plan.....................................................................................................24
COST OF BUILDING........................................................................................................25
LIST OF EQUIPMENTS FOR CNG FILLING STATION.......................................................................25
SALES ESTIMATE (REVENUE).............................................................................................26
SALES ESTIMATE (REVENUE): WORKING................................................................................26
REVENUE: WORKING...................................................................................................... 27
COST OF GOODS SOLD...................................................................................................28
RATE OF GAS CONSUMED;...............................................................................................29
WAGES AND SALARIES..................................................................................................... 29
POWER (ELECTRICITY CONSUMED)........................................................................................30
Fixed charges.....................................................................................................30
Variable charges................................................................................................30
STORES AND SPARES.......................................................................................................31
REPAIRS AND MAINTENANCE...............................................................................................31
OTHER MANUFACTURING OVERHEAD...................................................................................... 32
DEPRECIATION.............................................................................................................. 32
1. MACHINERY and building...............................................................................32

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2. Furniture and fixture............................................................................................................. 32
GENERAL ADMINISTRATIVE AND SELLING EXPENSES....................................................................32
WORKING CAPITAL ESTIMATES......................................................................33
ESTIMATES OF FINANCIAL EXPENSE............................................................34
PROJECTED INCOME STATEMENT...........................................................................34
PROJECTED CASH FLOW STATEMENT....................................................................35
PROJECTED BALANCE SHEET.................................................................................36
Current Assets................................................................................................... 37
Current liabilities................................................................................................37
Long term liabilities................................................................................................................... 37
Equity........................................................................................................................................ 37
BREAK EVEN ANALYSIS..........................................................................................38
RATIO ANALYSIS ..............................................................................................39
Profitability ratio................................................................................................ 39
Gross profit margin = Gross profit / Sales * 100........................................................................ 39
Operating profit margin = Operating profit / Sales * 100...........................................................40
................................................................................................................................................ 40
Net profit margin = Net profit / Sales * 100............................................................................... 40
Return on equity ratio = Net profit / Equity * 100...................................................................... 40
Return on investment ratio = Net profit / Investment * 100...................................................... 40
NET PRESENT VALUE (NPV)............................................................................................41
PROFITABILITY INDEX......................................................................................................41
PAYBACK PERIOD WITHOUT DISCOUNTING...........................................................42
PAYBACK PERIOD WITH DISCOUNTING..................................................................42
REFERENCES .......................................................................................44
INDEXES ..............................................................................................45
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EXECUTIVE SUMMARY
T he people of Pishin district belongs mainly to low income/ earning society which cannot
afford high price petroleum product that’s why CNG is a cheaper source of fuel for them.
Natural gas is a natural resource of energy, commonly used in residential, commercial and
industrial sector. It is one of the most valuable natural resources abundantly available in our
country. Compressed Natural Gas (CNG) is produced when the natural gas is compressed into
cylinders to be used as a fuel in the automobiles
Due to the efforts made by the Government and comparatively low prices of gas, more
then 2000000 have already been converted to operate on Compressed Natural Gas (CNG)
fueling system all over Pakistan .there are more then, 2941 CNG station operating in the
country and there is a need to set up more CNG station to meet the growing demand for it. As a
part of its policy government has made great efforts to promote the use of CNG in Pishin District
as well.
At present, there is no CNG station in Pishin district. There are about more then
200vehicles, which have been converted to CNG fueling system in Pishin District, and a large
number of vehicles are being converted these vehicle. It has been projected that the total
number of CNG fuel vehicles will be increased up to 1000 by the end of next five years.
The demand for CNG fuel=12900 cubic meter/day

The project will cost about 15,270000 in winch an amount of 4,000,000 rupees at
the rate of Rs.500 per square feet lease payment has been paid for land, the total cost of construction of
the building is estimated at Rs 3,631000, and installation of the machinery will cost 9,710000, furniture
and fixture cost 391000, and an amount of 2462000 of subsidy.
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INTRODUCTION
N atural gas is a natural resource of energy, commonly used in residential, commercial and
industrial sector. It is one of the most valuable natural resources abundantly available in our
country. Compressed Natural Gas (CNG) is produced when the natural gas is compressed into
cylinders to be used as a fuel in the automobiles
CNG-powered vehicles uses natural gas – the same fuel that is used by stoves, water heaters and
clothes dryers—stored in cylinders at pressures of 2,000 to 3,500 pounds per square inch
CNG has been used as an automobile fuel since 1940, and over the years, the technology has been
modified and refined. In the recent years, the usage if CNG as an automobile fuel has significantly
increased because of its low cost and environment friendly nature.
The people of Pakistan have been using the petroleum as fuel in their automobiles, thus spending a
large amount of foreign exchange on import of petroleum products. Because there are abandoned
supplies of natural gas in Pakistan, using natural gas to replace gasoline helps reduce our country’s
dependency on foreign petroleum.
In Pakistan, hydrocarbon development institute of Pakistan (HDIP) first established the use of CNG as
an automobile fuel in 1982. the market of this type of fuel, which is commonly available at much
cheaper price, is increasing because of continuous increase in petroleum prices. At present, about 270
CNG station are operational in different parts of the country to cater to the needs of the consumers.
MARKET ANALYSIS
One of the elements of Government petroleum policy is the commercial application of CNG
technology .It is reflected in the efforts made by the government for the installation of CNG station and
converting vehicles on CNG fueling system .Due to the efforts made by the Government and
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comparatively low prices of gas, more then 2000000 have already been converted to operate on
Compressed Natural Gas (CNG)fueling system all over Pakistan .there are more then ,2941 CNG station
operating in the country and there is a need to set up more CNG station to meet the growing demand for
it. As a part of its policy government has made great efforts to promote the use of CNG in Pishin District
as well.
INTRODUCTION AND PROMOTION OF NEWLY DEVELOPED

GAS KITS FOR RICKSHAW IN PISHIN DISTRICT
“Taraqee”Trust of Pishin District has undertaken to reduce green house emission leading to
global warning by introducing 40 CNG gas kits in two stroke rickshaws in Pishin District city through
the provision of credit to the rickshaws owner. The key stakeholders in this project are Rickshaw Drivers
Association, Pakistan Hydrocarbon Institute, Canadian International Development Agency and
Balochistan EPA.
MARKET SUPPLY
EXISTING SUPPLY
At present, there is no CNG station in Pishin district.
MARKET DEMAND
The people of Pishin district belongs mainly to low income/ earning society which cannot afford
high price petroleum product that’s why CNG is a cheaper source of fuel for them. There are about more
then 200vehicles, which have been converted to CNG fueling system in Pishin District, and a large
number of vehicles are being converted these vehicle. It has been projected that the total number of CNG
fuel vehicles will be increased up to 1000 by the end of next five years.
Due to the increasing prices of petroleum products, the trend of converting cars to CNG fueling
system has been on a raise. The government of Pakistan has taken certain concrete steps in order to
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promote the use of natural gas as a fuel substitute in the automobiles. There are kits available in the
market through which a petrol car can easily be converted into CNG fueling system. However, there were
a large number of people who were reluctant to convert their vehicles from petrol to gas due to safety
concerns. Recently, many car manufactures have started manufacturing the cars with built-in CNG
fueling system, e.g., Suzuki car manufacturing company. This change has led to enhancing the confidence
of the general public regarding the safety concerns, and now, more people are towards purchasing these
factory fitted CNG fueling system cars.
Considering the market trend and number of vehicles being converted into CNG fueling system there is
exist an opportunity for the new entrants to earn profits fueling by setting up new filling station to meet
the growing demand.
DEMAND FOR CURRENT CONSUMPTION
THE DEMAND FOR CNG FUEL=12900 CUBIC METER/DAY
It’s quite clear that there is demand of about 12900 cubic meter /day on average.
But this is not the end, there is an increasing trend of CNG fueling system, the demand for this
type of fuel will be increased by 300% within next five years and hence there a great opportunity for the
new entrants to earn profits by setting up new CNG filling station t meet the growing demand.
FUTURE DEMAND
The main factors for the rise in the demand for CNG fuel are
1) Increase in the prices of petroleum

2) Government support and policies
3) Promotion of vehicles with built –in CNG fueling system
Based on the above criteria the Demand projecti0ns are given in the following table:
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DEMAND PROJECTIONS FOR VEHICLES ON CNG (IN PISHIN DISTRICT)
Year Number of Vehicles on CNG Percentage Increase
1 1000
2 1600 60%
3 2300 70%
4 3100 80%
5 4000 90%
The above-mentioned table indicates that the demand for CNG fuel is fast increasing .The
industry is growing and there is opportunity for the new entrants to setup new CNG station to meet the
growing demand.
CNG POLICY
THE GOVERNMENT OF PAKISTAN HAS OFFERED NUMBER OF INCENTIVES

FOR ENCOURAGING THE USE OF CNG IN THE COUNTRY SOME OF
THESE ARE SUMMARIZED BELOW:
• Strong Government commitment to promote usage of CNG

• Liberal policy of providing for CNG retailing
• Deregulated market price of CNG (for the consumers)
• Priority of providing natural gas connection to CNG station
• Relaxation of import duty and sales tax on import of machinery and equipment ,CNG kits
cylinders
This has provided a boost to the industry, and so far, more then 2000000 vehicles have been
converted to CNG and 2941 CNG stations are operational. Another 320 stations are under construction in
different parts of the country .According to inter national Associations for Natural Gas Vehicles (IANGV)
statistics Pakistan is ranked third in the CNG –using countries after Argentina and Italy.
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TECHNICAL ANALYSIS
All the prerequisites for successful commissioning of the project is available

in the city:
In this section it will be clarified and justified that all the prerequisites required for the successful
commissioning of the project regarding Raw material, Infrastructure, Land, Building, Equipment,
Personnel, etc are available in the city.
MATERIAL INPUTS:
There are two main inputs required for CNG filling station, one is natural gas and other is
electricity. We are required to obtain both in the connections from the relevant authorities i.e. WAPDA
and sui southern gas company (SSGC).
According too the government’s policy CNG filling stations will be given the priority of
providing natural gas connection.CNG ranks relatively high in convenience and availability. Pishin
District’s extensive network of natural gas pipelines can deliver the fuel directly to many sites where
compressors are installed by the local utility.
LAND:
The minimum land requirements for installing CNG filling station is from 6000 to 9000 square
feet. It must have at least 75 feet front opening.
In case of our project we have already acquired land for the purpose of installing CNG filling
station on lease from the 12th crop. The covered area of the land acquired is 8000 square feet, which will
be having 75 square feet front opening.
An amount of 4,000,000 rupees at the rate of Rs.500 per square feet lease payment has been paid
to the private property.
SITE SELECTION :
The site selected for the filling station is opposite to the district law curt Pishin at the Band road
Pishin. The covered area of the acquired land as stated earlier is 8000 square feet. The site offers an ideal
location for the filling station; as it is a commercial area and the residents of the whole city will have a
very easy access to the station.
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INFRASTRUCTURE:
The project highly depends upon the availability of the infrastructure facilities; because the
material inputs required as mentioned earlier are, natural gas and electricity.
The site chosen for setting up the CNG Fuel station enjoys infrastructure facilities and possesses
all the pre-requisites for the smooth operation of the Project i.e. Water, Power, road etc.
BUILDING:
There are certain civil works required to be carried out at the proposed location. The civil works
would be carried out on an area of 2250 square feet. The rest of the area will be floored with tuff tiles.
Civil work includes the following:
 Office
 Control Room
 Compressor and Cascade/Cylinder Storage Room
 Shed for Dispenser
 Toilet/Washroom
1. Underground Gas Piping
 Flooring
The total cost of construction is estimated at Rs 1.5 million. Details for the said cost are as follows:
Construction cost (Amount in Rupees)
Description Type of Covered Cost per Sq.ft. Cost(Rs.)

Construction Area(sq. ft) (Rs.)
Office with RCC 436 475 207,100
washroom
Control room RCC 144 475 68,400
Compressor & RCC 1400 475 665,000
Cylinder
storage room
Shed Canopy Lump sum 200,000
Underground _ _ - 300,000
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gas piping
Flooring _ About 6,000 50 300,000
Contingencies _ _ _ 90,000
Total cost 3,630,500
Explosive department has laid down certain specifications for the compressor and
cascade/cylinders storage room, which are as follows:
1. Minimum one-meter distance is required between wall and Compressor.

2. Minimum distance of one meter should be kept between Compressor and
Cascade/cylinders.
3. Fire related walls (with RCC structure) must be used in the compressor and Cylinders
storage room.
4. Roof of the compressor and storage room should not be of permanent nature. Corrugated
asbestos might be used to prevent the compressor and Cylinders from heat.
MACHINERY AND EQUIPMENT:
The following equipment is required for a CNG filling station:
GAS COMPRESSOR
The purpose of compressor is to compress the gas enabling it to discharge the gas for refueling.
This compressor requires an input pressure of 10 PSIG (pounds per square inch gauge) from the main gas
supply with the outlet pressure of 3,600 PSIG. With this discharge pressure, the equipment can refuel 50
vehicles per hour.
ELECTRIC CONTROL PANEL
Electric control panel is required to operate the gas compressor. This panel will be mounted in the
control room.
STORAGE CASCADE
Storage cascade/cylinders are used to store the natural gas.
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PRIORITY PANEL FOR VEHICLE PRIORITY
During rush hours, the compressor is directly connected to the dispenser, by passing the storage
cascade/cylinders with the help of priority panel, facilitating the refueling of vehicles at a faster rate.
CNG DISPENSER HIGH FLOW DUAL HOSE
Gas is filled in to the vehicles with the help of dispenser. This dual hose dispenser is capable of
handling two vehicles at a time.
ALL the CNG filling station equipment is foreign manufactured and imported on the specific
requirement of the sponsor by the authorized agent. At present the countries that manufacture CNG filling
station equipment rate, New Zealand, Italy, Canada and England.
We have selected a Canadian origin compressor viz, Gemini Compressor H302, Jordaire Model
J-H320 295-100E. This equipment is selected because of its low electricity consumption and higher outlet
pressure.
The total capacity of the selected equipment is 424m3/hr with a total power load of 200 KW.
The equipment will be delivered within 12 to16 weeks from the receipt of purchase order and
initial payment. The details of this equipment and accessories are available in Annexure 1.2.
SUPPLIERS
The central board of revenue (CBR) has specified the list of compressors, storage
cylinders vehicle cylinders, CNG machinery & equipment and conversion kits in SRO 38(1)/98.
In the case of our project the order for the machinery will be placed to the supplier at Lahore,
which will b supplied to us from Karachi port directly to our destination.
The list of some local agents dealing in the specific equipment and machinery is given below:
Supplier’s name Address Contact No.

National 90-Bank Square Market, Phone: 042-583353, 5837026
Engineers Model Town, Fax: 042-5839369
Lahore. nlenger@lhr.comsats.net.pk
Correct Xpress Suite # 14, 2nd Floor, Phone: 051-4844189
(Pvt) Ltd. Resham plaza, Fax: 051-4410872
Chandni Chowk, correct@isb.compol.com
Rawalpindi
ARM Gas P.O.Box 114 Phone: 042-6366950-51,
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Ventures Rasul Building 6366948

60 Sharah-e-Quaid-e-Azam, Fax: 042-6369756, 6361142
Lahore albario@brain.net.pk
Hurricane 8 Hong Kong Plaza, Phone: 051-4840078
Compressors Satellite Town, Fax: 051-4427426
Rawalpindi. Techcentric_pk@yahoo.com
Techno men Gas H # 3B, St # 16, Phone: 051-2856996-8
Ventures (Pvt) F-8/3, Fax: 051-2856995
Ltd. Islamabad T_gasventures@usa.net
Rix Pakistan (Pvt) 37-A, Phone: 051-5591160
Ltd. Chaklala Scheme 2, Fax: 051-5504414
Tipu Road, rix@rixpakistan.com
Rawalpindi.
STORES AND SPARES
The whole equipment required for setting up a CNG filling station is imported.
Therefore, it is required to build an inventory of necessary spare parts to meet the unforeseen
circumstances such as breakdown or any other fault in any part or equipment. For this purpose, a
stock of necessary spare parts worth $8,000, which is equivalent to 484,000 rupees will be
imported along with other equipment to maintain a minimum level of spare parts for the 1st year
of operation.
FURNITURE AND FIXTURE
Furniture and fixtures mainly include tables, chairs, sofas, fans & lights, carpe, curtains
and fire extinguishers. It is estimated that the furniture and fixture of Rs.85, 000 would be
purchased.
Some office equipment is also required for the proposed project. A provision of Rs.
100,000 has been made for acquiring the required office equipment. The details of office
equipment are annexed in Annexure______________
MANPOWER REQUIREMENT
Manpower requirement for the CNG filling station includes manager, cashier, dispenser,
operators, accountant, watchman and sweeper. There is not at all any problem to get the required
staff, with the specific requirements, from the area. The total staff strength would be 15 persons
for the two shifts. The basic salaries of the staff year one are as follows:
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HUMAN RESOURCE REQUIREMENT
Designation No. Of Employees Basic Salary per Total salary per

for two shifts month (Rs.) year (Rs.)
Manager 1 10,000 120,000
Accountant 1 7,000 84,000
Cashier 2 4,000 96,000
Dispenser 4 2,000 96,000
Operators 2 2,500 60,000
Mechanic 1 3,000 36,000
Helper 1 2,000 24,000
Watchman 2 2,000 48,000
Sweeper 1 1,500 18,000
Total 15 582,000
The details of the Wages and Salaries for the first five years that includes increments and
fringe benefits for are given Annexure # 3.2
COMPRESSION PROCESS
Natural gas is a natural resource of energy, commonly used in residential, commercial

and industrial sector. It is one of the most valuable natural resources abundantly available in our
country. Compressed natural gas is produced when the natural gas is compressed into cylinders
to be used as a fuel in the automobiles.
The compression process of CNG at CNG station is a multi steps process, it compress the
natural gas to 3600 per square inches (PSI) from 8 PSI.
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The machinery, which is used, for the compression of the natural gas is fully automatic and has
two main parts/ compressor.
1. Screw compressor
2. Main compressor
The screw compressor, compress the natural gas to 75 PSI from 8 PSI. for screw
compressor to work or to start compression minimum pressure of 8 PSI is require, which is
provided by the main gas pipeline by the supplies of GAS (SSGC). After the gas is compressed
to 75 PSI than it is send to radiator for cooling and than to filter for the filtering. After the
filtering the compressed gas is transfer to the main compressor.
The main compressor is consisted of four sub compressor which compress the gas at
different PSI. the first sub compressor of the main compressor receive the compressed gas at 75
PSI form the screw compressor it compress this 75 PSI to 220 PSI and than transfer it the next
sub compressor which compress this 220 PSI to 480 PSI, this than transfer to the next sub
compressor which compress it to 1200 PSI, which is transfer to next compressor which compress
it to 3600 PSI.
This compressed gas of 3600 PSI is than send to radiator for cooling and than to filter for
filtering before storage. After the cooling and filtering the compressed gas is transfer to the
storage cylinders from where is filled in the automobiles. Automobiles are filled at 2900 PSI
when the presser of stored gas decline and reach to 2900 PSI the machine or compressor starts
automatically again and the entire process is repeated again and when presser reaches to 3600
PSI than it stop automatically again.
ENVIRONMENTAL/ECOLOGICAL
ANALYSIS
ECOLOGICAL/ENVIRONMENTAL ANALYSIS
CNG is not hazardous to the environment as is the case with the traditional petroleum
fuel. It is highly of environment friendly nature. This is one of the main reasons that its demand
is continuously increasing and the Government is supporting it.
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Due to the environment friendly and low cost of natural gas, Hydrocarbon Development
Institute of Pakistan (HDIP) has recognized the need and necessity to promote the use of CNG as
a fuel in automobiles.
Pishin city is one the most polluted cities of the country, it is almost because of the
unburned carbon practices in the atmosphere that is discharge as a result of the combustion
process of the petroleum products inside the vehicles. CNG is highly composed of methane gas
(i-e 90%) which is a non flammable gas and thus does not discharge unburned carbon in the
atmosphere.
The promotion of the CNG fueling projects will be a step towards the fight against pollution.
ECONOMIC ANALYSIS
ECONOMIC ANALYSIS
Natural gas is one of the most valuable natural resources abundantly available in our
country. With promotion of CNG fuel industry the dependency of the government on petroleum
products will be decreased. It will be a great support to the Pakistan’s economy, as it will help to
minimize the impact of petroleum products.
Hydrocarbon development institute of Pakistan has pioneered the use of environment
friendly CNG in road transport as an economically viable fuel, which can substitute the imported
petroleum products.
Moreover with the petroleum of less costly fuel the people will start switching from use
of Iranian petrol towards the CNG.as the demand of Iranian petrol has decreased the trend of
smuggling and illegally supplying Iranian petrol will be reduced and hence the economic burden
is relaxed from that aspect too.
With the start of this project our economy will be supported in a number of ways, a few
of them are discussed as under.
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EMPLOYMENT OPPORTUNITY
The project will provide employment opportunity to the people of Pishin District city, as
it needs a number of people to work for it, from the construction to the successful operation of
the business.
CONTRIBUTION TO GDP
The input materials, natural gas and electricity, will be utilized and will be converted to
the compressed natural gas. The value added to the input materials will be an addition to the
GDP of Pakistan.
TAX BENEFIT
The proposed project will benefit the government of Pakistan in the form of a number of
tax collections, such as, tax imposed on the income of a business, on the income of the
employees on the import of the CNG equipment, etc.
FOREIGN EXCHANGE
The people of Pakistan have been using the petroleum products such as fuel in their
automobiles, thus spending a huge amount of foreign exchange on import of petroleum products.
The proposed project will help to reduce our country’s dependence on foreign petroleum.
Because there are abundant supplies of natural gas in Pakistan, using natural gas to replace
gasoline will be more economic to the country and will help us to save foreign exchange.
PROCEDURE FOR OBTAINING THE LECENSE OF
“CNG” STATION
Three copies of prescribed application forms should be submitted with the following
documents. Application forms are available free of cost
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1. Status of applicant/applicants:-individual/joint ventures/registered company

2. In case of joint venture an attested copy of the document by the notary public or attested copy
of registration certificate in case of registered company.
3. Attested copy/copies of applicant/applicants ID card.
4. Local proof of ownership pf proposed land for CNG station.
5. Bank statement of the applicant clearly expressing financial stability for setting up CNG
station.
6. copy/copies of applicant/applicants national tax No certificate.
7. Proposed site plan of CNG station
8. Map of concerned area/city identifying the proposed site of the CNG station located in area.
9. Details of education, training and experience of the proposed technical staff.
10. Details of proposed security measures.
11. original bank receipts showing deposit of fee rs 25000 on prescribed form in favor of the
Federal ministry of petroleum and natural resources.
12. The authority letter of the person authorized for correspondence side office.
13. NOC from the concerned marketing company, if the cng station is proposed to setup at petrol
pumps otherwise a certificate that the station is not being set up for petrol pump.
Contact director or director general in case of non issuance of license after submission of
complete application in 15 days. For further information contact deputy director CNG.
REGULATION, LICENSES AND INCENTIVES
In this section a list of the licenses and NOC's that are required for the CNG filling
station are given. It has been applied for Land is expected to be granted by the concerned
authorities.
23
assignment)
July 22, 2011
LICENSE
Obtaining a license from ministry of petroleum and natural resources is a ore requisite for
setting up a CNG station. The cost associated with license is Rs 25000.
CERTIFICATE (BY HDIP)
After the installation of the required equipment for CNG filling station, HDIP will inspect
the working of the equipment, and once satisfier, will issue a certificate verifying that the
installed equipment is up to the required standard. Cost associated with this certification is Rs.
35000.
NOC'S
No objection certificate will be required from the following departments prior to the
commencement of business.
1. concerned development authority of the city

2. Traffic engineering and planning authority (TEPA)
3. Traffic police (SSP)
4. Department of civil defense.
5. National highway authority (NHA)
6. Central board of revenue (CBR)
7. Civil administration tehsil municipal administration (TMA)
8. Irrigation department
9. Forest department
10. Explosive department
23
assignment)
July 22, 2011
INCENTIVES
Sales tax
The import of CNG equipment is exempt from sales tax vide SRO No.38(1)/98 dated 21st
January till October 31,2002
CUSTOM DUTY
The CNG equipment is also exempted from custom duties as per the above referred SRO.
REGULATORY REQUIREMENTS
QUALITY CERTIFICATE
SRO 38(1) dated 21st January 1998 has been amended on April 11, 2002 and the quality
certificate from original manufacture has been mandatory. This certificate should state that the
equipment meets the safety standard as laid down in Pakistan CNG rule 1992. The designated
third party inspector’s witness this quality certificate .the cost of third party inspection is $500.
LIST OF EQUIPMENTS
The list of equipment and their various manufacturers has been mentioned in the same
amended SRO whose import is exempted from custom duty and sales tax.
INCOME TAX ON THE IMPORT OF CNG EQUIPMENT
Income tax, at rate of 6% is payable by the importer on the import of CNG equipment.
INCOME TAX
The income of the CNG station is not exempted from the income tax. The investor has to
pay tax on her/his income according to the nature of the business entity.
23
assignment)
July 22, 2011
ANNEXURE
Annexure 1
COST OF THE PROJECT & FINANCIAL PLAN
COST OF THE PROJECT
(Rs in 000)
Cost already Cost to bet Total cost

met met on
completion
Land 4,000 - 4,000
(including development registration cost)
Building/civil work - 3,541 3,541
Contingencies - 90 90
Total cost of building - 3,631 3,631
Plant and Machinery (with Installation) - 9,680 9,680
Loading/unloading charges - 30 30
Total cost of machinery - 9,710 9,710
Furniture and Fixture - 100 100
Pre-operating expenses (3%) - 291 291
Total cost of furniture and fixture - 391 391
Total fixed cost 4,000 13,732 13,732
Net working capital - 1,538 1,538
Total cost of the project 4,000 15,270 15,270
FINANCIAL PLAN
The above cost of the project is proposed to be financed as below:
Fixed cost Net working Total

capital Means/source
Already met To be met s
23
assignment)
July 22, 2011
Long term finance

- 9,710 - 9,710
Equity
4,000 4,022 1,538 9,560
Total 4,000 13,732 1,538 19,270
Annexure 1.1
COST OF BUILDING
Description Type of Covered Cost per Cost

construction Area (sq.ft) sq.ft (Rs.) (Rs.)
Office with washrooms RCC 436 475 207,100
Control room RCC 144 475 68,400
Compressor & Cylinder RCC 1400 475 665,000
storage room
Shed (90*40) Canopy Lump sum 2,000,000
Underground gas piping - - - 300,000
Flooring - About 6,000 50 300,000
Contingencies - - - 90,000
Total cost 3,630,500
Annexure 1.2
LIST OF EQUIPMENTS FOR CNG FILLING STATION
Description US $ Rs.
H302 Jodair Natural Gas Comressor 105,900 6,406,950
Remote mounted electrical control Included included
Gas cover system Included included
For upgrading up to 424 m3
One bank two line priority panel for buffer direct vehicle 2,652 158,813
filling
Storage cascade, 28 cylinders single bank cascade 10,800 653,400
23
assignment)
July 22, 2011
Dispenser (D38 High flow dual hose two line sequencing) 28,140 1,702,470
9,103,133
Income tax on the import of Machinery @6% 546,188
Third party inspection 500 30,250
Inland freight (Karachi port to destination) 30,000
Total Cost of Machinery 150,965 9,709,570
Annexure 2
SALES ESTIMATE (REVENUE)
Revenue
Quantity of gas sale per Vehicle: 12.9 m3
( i.e., Quantity demanded per vehicle on average
Annual increase in the sales price of Gas: 2.5%
Year of operation Year 1 Year 2 Year 3 Year 4 Year 5

Capacity utilization 75% 80% 85% 90% 95%
Car wise capacity 142 151 161 170 180
(# of cars filled/year) (000)
Selling pric (Rs. Per vehicle) 226 232 237 243 249
Sales value 30,290 35,032 38,157 41,310 44,820
Annexure 2.1
SALES ESTIMATE (REVENUE): WORKING
Total capacity =424m3/hour
=2,442,240m3/year
23
assignment)
July 22, 2011
(Based on 16 hour working day and 360 days per annum)
The capacity of one cylinder on average = 12.9m3
Car wise capacity can be calculated as
Car wise capacity = 2, 442,240/12.9 = 189,231 (say 189,000) at 100% capacity
It means that 189 thousand cars will be filled per year if the project runs at its full
capacity.
As the project cannot take a start from a 100% capacity therefore the capacity of the first year
after having made a thorough analysis and visited the existing CNG station is projected as to be
75%. There will be a gradual increase in the capacity utilization of the proposed project.
The current rate or sales price pf the CNG fuel is Rs.17.51 (GST included)
Considering the inflation rate and market condition it is projected that there will be an increase
of 2.5% annually in the price of CNG fuel, so the projected prices of CNG for the first five years
are as follows:
REVENUE: WORKING
Year of operation Year1 Year 2 Year 3 Year 4 Year

5
Prices of CNG 17.51 17.95 18.39 18.86 19.33
Car wise capacity 142,00 151,00 161,00 170,00 180,00
(# of cars filled/year) 0 0 0 0 0
No of vehicles filled/day 394 420 446 472 499
Annexure 3
23
assignment)
July 22, 2011
COST OF GOODS SOLD
Consumption of Gas per vehicle 12.9 Cubic Meter
Rate of Gas Rs 7.35/cubic Meter
Rate of Electricity: fixed: Rs.381.11/kw/month
Variable: Rs. 5.25/kw/month
Annual increase in the prices of Gas 5%
(Rs. In 000)

Gas consumed (in Rs.) 13,465 15,202 16,546 17,884 19,428
Wages & Salaries 781 820 861 904 9494
Factory overheads
Power (electricity consumed) 4,088 4,315 4,542 4,768 4,995
Stores and spares 484 514 545 575 605
Repairs and Maintenance 133 200 267 267 267
Depreciation 631 631 631 631 631
Other Manufacturing overheads 321 350 322 413 448
Total factory overheads 6,388 6,777 7,112 7,500 7,834
Total Cost of Goods sold 20,634 22,799 24,519 26,288 28,211
Annexure 3.1
23
assignment)
July 22, 2011
RATE OF GAS CONSUMED;
(Rs in 000)

Car wise capacity (000) 142 151 161 179 180
Gas consumed (in m3) 1,832 1,954 2,076 2,198 2,320
Rate of Gas/m3 7.35 7.72 8.11 8.52 8.95
Gas consumed (in Rs) 13,465 15,202 16,546 17,884 19,428
1. Gas consumed = total capacity * capacity utilization * rate
Annexure 3.2
WAGES AND SALARIES
Designation No of employees for Salary per month Total salary per

two shifts (Rs) year
Manager 1 9,000 108,000
Accountant 1 6,000 72,000
Cashier 2 4,000 96,000
Dispenser 4 2,000 96,000
Operator 2 2,500 60,000
Mechanic 1 3,000 36,000
Helper 1 2,000 24,000
Watchman 2 2,000 48,000
Sweeper 1 1,500 18,000
Total 15 558,000
i.e., 558
(Rs in 000)
Year of operation 1st year 2nd year 3rd year 4th year 5th
23
assignment)
July 22, 2011
year
Basic salary 558 558 586 615 646
Increments @ 5% - 28 29 31 32
Total basic salary 558 586 615 646 678
Fringe benefits @40% 223 234 246 258 271
Total wages and salary 781 820 861 904 949
Annexure 3.3
POWER (ELECTRICITY CONSUMED)
Connected load = 150kw
FIXED CHARGES
Rate = Rs.381.11/kw/month
Charges = 381.11*150
=57,176 per month
57,176*12= 685,998 per year (i.e. 686)
VARIABLE CHARGES
Rate =5.25/kw/hour
Charges =5.25*150*16*360
=4,536,000
(i.e., 4,536) at 100% capacit
(Rs. In 000)
23
assignment)
July 22, 2011

Fixed cost 686 686 686 686 686
Variable cost 3,402 3,629 3,856 4,082 4,309
Total cost 4,088 4,315 4,542 4,768 4,995
Annexure 3.4
STORES AND SPARES
The whole equipment required for setting up CNG filling station is imported. Therefore,
it is required to build an inventory of necessary spare parts to meet the unforeseen circumstances
such as a breakdown or any other fault in any part or equipment. For the purpose, a stock of
necessary spare parts worth $8,000 which is equivalent to 484,000 rupees will be imported along
with other equipment to maintain a minimum level of spare parts for the 1st year of operation.
The amount of stores and spaces for the next four years as per requirement are shown below:
Current dollar exchange rate = 60.5 rupees
(Rs. And $ in 000)

Stores and spares ( in $) 8 8.5 9 9.5 10
(in Rs) 484 514 542 575 605
Annexure 3.5
REPAIRS AND MAINTENANCE
(Rs. In 000)
1% 1.5% 2% 2% 2%
Machinery (9,710) 97 146 194 194 194
Building (3,631) 36 54 73 73 73
133 200 267 267 267
23
assignment)
July 22, 2011
OTHER MANUFACTURING OVERHEAD
Other manufacturing overhead are estimated to be equal to 1% of sales.
(Rs. In 000)
Sales values 32,092 35,032 38,157 41,310 44,820
321 350 322 413 448
Annexure 3.6
DEPRECIATION
1. MACHINERY AND BUILDING
(Rs.in 000)
2. FURNITURE AND FIXTURE

(Rs. In 000)
Cost Estimated life Rate amount

Machinery Cost
9,710 Estimated
20 yrs life Rate
5% Amount
486
Building and
Furniture 3,631
100 25
10yrs
yrs 4%
10% 14510
fixture
Total 631
Annexure 4
GENERAL ADMINISTRATIVE AND SELLING EXPENSES
(Rs. In 000)
Printing and stationary 20 20 25 25 30
23
assignment)
July 22, 2011
Postage and telegram 15 20 20 25 25

Insurance 10 10 10 10 10
Travelling expenses 10 10 15 15 20
Depreciation(Furniture & fixture)* 10 10 10 10 10
Telephone expenses 50 50 55 55 60
Total 115 120 135 140 155
*refer to annexure 3.6
WORKING CAPITAL ESTIMATES
Tied – up Year 1 Year 2 Year 3 Year 4 Year 5

period
Capacity days 75% 80% 85% 90% 95%

utilization
CURRENT ASSETS
Cash Lump sum 30 30 40 40 50
Raw Material 30 1200 1200 1200 1200 1200
Stores and Spares __ __ __ __ __
Debtors 30 2674 2919 3180 3443 3735
3904 4149 4420 4683 4985
CURRENT LIABILITIES
Creditors
(30% of raw 360 360 360 360 360

material)
Accruals 1605 1752 1908 2066 2241
23
assignment)
July 22, 2011
(5% of sales)
GST payable 30 401 438 477 516 560
2366 2550 2745 2942 3171
Net working 1538 1599 1675 1741 1817

capital
ESTIMATES OF FINANCIAL EXPENSE
(Rs. in 000)
Mark up on long
term financial
assistance 715 715 715 715 715
Mark up on short
term financial
assistance ---- ---- ---- ---- ----
Total 715 715 715 715 715
PROJECTED INCOME STATEMENT
(Rs. in 000)
23
assignment)
July 22, 2011
Sales 32,092 25,132 38,157 41,310 44,820
Cost of good sold 20,634 22,799 24,519 26,288 28,211
Gross Profit 11,458 12,233 13,638 15,022 16,609
General admin & 115 120 135 140 155

selling expense
Operating profit 11,343 12,113 13,503 14,882 16,454
Financial expenses 715 715 715 715 715
Net profit before 10,628 11,398 12,788 14,167 15,739

taxes (EBT)
Income tax 1,594 1,710 1,918 2,125 2,361

( @ 15%)
Net operating 9,034 9,688 10,870 12,042 13,378

profit after tax
Withdrawals 100 100 100 100 100
Retained earnings 8,934 9,588 10,770 11,942 13,278
PROJECTED CASH FLOW STATEMENT
(Rs. in 000)
Year of operation End up const Year 1 Year 2 Year 3 Year 4 Year 5
period
Sources of funds
Operating profit ---- 11,343 12,113 13,503 14,882 16,454
Add: depreciation ---- 641 641 641 641 641
23
assignment)
July 22, 2011
Total funds from ---- 11,984 12,754 14,144 15,523 17,095

operation
Owners capital 9,560 ---- ---- ---- ---- ----
Long term financial 9,710 ---- ---- ---- ---- ----

assistance
Short term ---- ---- ---- ---- ---- ----

borrowings
Increase in creditors ---- 360 ---- ---- ---- ----
19,270 12,344 12,754 14,144 15,523 17,095
Application of funds
Investment in 17,732 ---- ---- ---- ---- ----

fixed assets
Payment of long ---- 1,686 1,686 1,686 1,686 1,686
term financial
assistance
With drawls ---- ---- 100 100 100 100
Increase in current ---- 3,904 245 271 263 305
assets
Tax payments ---- 1,594 1,710 1,918 2,125 2,361
Total funds 17,732 7,184 3,741 3,975 4,174 4,452
Cash surplus 1,538 5,160 9,013 10,169 11,349 12,643
Cash at the ---- 1,538 6,698 15,711 25,880 37,229
beginning of the
year
Cash at the end 1,538 6,698 15,711 25,880 37,229 49,872
of the year
PROJECTED BALANCE SHEET
(Rs. in 000)
23
assignment)
July 22, 2011
Year of operation End up const Year 1 Year 2 Year 3 Year 4 Year 5

period
Assets
CURRENT ASSETS
Cash 1,538 6,698 15,711 25,880 37,229 49,872
Stock ---- 1,200 1,200 1,200 1,200 1,200

Stores and Spares ---- ---- ---- ---- ---- ----
Debtors ---- 2,674 2,919 3,180 3,443 3,735
Total current 1,538 10,572 19,830 30,260 41,872 54,807
assets
Net fixed assets 17,732 17,121 16,480 15,849 15,208 14,580
Total assets 19,270 27,693 36,310 46,109 57,080 69,387
Liabilities
CURRENT LIABILITIES
With drawls ---- 100 100 100 100 100
Creditors ---- 360 360 360 360 360
With drawls ---- ---- 100 100 100 100

Total current ---- 460 460 460 460 460
Liabilities
LONG TERM LIABILITIES
Long term 16,860 15,174 13,488 11,802 10,116 8,430

financial
assistance
Less mark up on
long term financial 7,150 6,435 5,720 5,005 4,290 3,575
assistance
Total long term 9,710 8,739 7,768 6,797 5,826 4,855
liabilities
EQUITY
23
assignment)
July 22, 2011
Equity 9,560 9,560 9,560 9,560 9,560 9,560

Retained earnings ---- 8,934 18,522 29,292 41,234 54,512
Total equity 9,569 18,494 28,082 38,852 50,794 64,072
Equity 19,270 27,693 36,310 46.109 57,080 69,387
+ Liability
BREAK EVEN ANALYSIS
(Rs. in 000)
Operational year 5 Distribution Ratio
Variable Fixed Total Fixed Variable
Raw Material 19428 ---- 19428 0% 100%
Wages and Salaries 474 475 949 50% 50%
Depreciation (Building & ---- 631 631 100% 0%

Machinery)
Power 1998 2997 4995 60% 40%
Repairs and Maintenance 134 133 267 50% 50%
Stores and Spares 605 ---- 605 0% 100%
Manufacturing overheads 224 224 448 50% 50%
Amortization ---- 1686 1686 100% 0%
General & Admin expenses 77 78 155 50% 50%
22940 6224 29164
Total fixed cost = 6224

23
assignment)
July 22, 2011
Variable cost = 22940
Break even in rupees = Fixed cost / (Selling value – variable cost / selling value)
= 6224 / (44820 – 22940 / 44820)
= 6224 * (44820 / 21880)
= 6224 * 2.05
= 12759
Break even in Units = Fixed cost / Contribution margin

= 6224 / 9.43
= 660
Margin of safety
= Sale at 100% capacity

= 472085
Capacity utilization to achieve break even = Break even in rupees / Sale at 100%
= 12759 / 472085
= 3%
Margin of safety = 100 – 3

= 97%
RATIO ANALYSIS
PROFITABILITY RATIO
GROSS PROFIT MARGIN = GROSS PROFIT / SALES * 100
Year 1 Year 2 Year 3 Year 4 Year5
23
assignment)
July 22, 2011
11458 / 32092 12233 / 35032 13638 / 38157 15022 / 41310 16609 / 44820
= 35.70% 34.92% 35.74% 36.36% 37.06%
OPERATING PROFIT MARGIN = OPERATING PROFIT / SALES * 100
11343 / 32092 12113 / 35032 13503 / 38157 14882 / 41310 16464 / 44820
= 35.35% 34.58% 35.49% 36.03% 37.71%
NET PROFIT MARGIN = NET PROFIT / SALES * 100
9034 / 32092 9688 / 35032 10870 / 38157 12042 / 41310 13348 / 44820
= 28.15 % 27.65 % 28.49 % 29.15 % 29.85 %
RETURN ON EQUITY RATIO = NET PROFIT / EQUITY * 100
9034 / 18807 9688 / 23288 10870 / 33440 12042 / 44823 13348 / 57433
= 48.03% 41.60% 32.51% 26.69% 23.24%
RETURN ON INVESTMENT RATIO = NET PROFIT / INVESTMENT * 100
23
assignment)
July 22, 2011
9034 / 27693 9688 / 36310 10870 / 46109 12042 / 57080 13348 / 69387
= 32.62% 26.68% 23.57% 21.10% 19.24%
NET PRESENT VALUE (NPV)
Year Cash Flows Discount Factor PV

(13.43)
1 11984 0.882 10569
2 12574 0.778 9923
3 14144 0.686 9703
4 15523 0.605 9391
5 17095 0.534 9129
6 17095 0.471 8052
7 17095 0.415 7094
8 17095 0.366 6257
9 17095 0.323 5522
10 29669 0.285 8456
Total 153846 77002
Net present value = Present value of future cash flows-initial investment
NPV = 862-19270
= 57732
PROFITABILITY INDEX
Cash outflows = 19270
PV of future Cash inflows = 77002
Profitability Index = PV of future cash inflows/Cash out flows

= 77002/19270
= 3996
23
assignment)
July 22, 2011
PAYBACK PERIOD WITHOUT DISCOUNTING
Years cash inflows cumulative cash flows

0 19270 (b) -
1 ( a) 11984 11984 ( c )
2 12754 (d) 24738
3 14144 38882
4 15523 54405
5 17095 71500
6 17095 88595
7 17095 105690
8 17095 122785
9 17095 139880
10 29669 169549
Payback period formula
a + (b – c)/ d
1 + (19270 – 11984) /12754
1 + 7286/12754
1 + 0.5712
1.5712years
PAYBACK PERIOD WITH DISCOUNTING
Years cash inflows cumulative cash inflows

0 19270 ( b) -
1 ( a) 10569 10569 (c )
2 9923 ( d) 20492
3 9703 30195
4 9391 39586
5 9129 48715
23
assignment)
July 22, 2011
6 8052 56767
7 7094 63861
8 6257 70118
9 5522 75640
10 8456 84096
Pay back period
a +( b-c )/ d
1 + ( 19270 – 10569) / 9923
1 + 8701 / 9923
1 + 0.8768
1.8768
23
assignment)
July 22, 2011
REFERENCES
1. http://www.nation.com.pk/pakistan-news-newspaper-daily-english-
online/Politics/13-Jul-2011/CNG-price-linked-to-55-per-cent-of-petrols
2. http://thefinancialdaily.com/news/top-stories/different-cng-in-pakistan-
68555.aspx
3. http://tribune.com.pk/story/208157/new-cng-pricing-formula-agreed-upon/
4. http://www.pakistannewsupdate.com/business/decision-time-ogra-admits-
irregularities-in-relocation-of-cng-stations/
5. www.ogra.org.pk/images/data/downloads/1305195982.doc
6. gee-21.org/publications/Development-of-CNG-Industry-in-Pakistan.pdf
7. http://www.pakcng.com/cng-news/National/news.asp
8. tribune.com.pk/.../hydrocarbon-ogdc-completes-study-on-local-exp
9. http://www.cngnow.com/EN-US/Vehicles/AroundTheWorld/Pages/default.aspx
10.http://www.pikeresearch.com/research/natural-gas-vehicles
11.http://www.cnbc.com/id/40794709/Natural_Gas_Vehicles_On_The_Road_To_Ac
ceptance
12.http://www.forbes.com/2008/07/30/natural-gas-cars-forbeslife-
cx_jm_0730cars.html
13.http://www.cngstations.com/vehicles-on-cng-ngv/
14.http://www.cngpump.com/aboutCNG.php
15.http://www.lngworldnews.com/gazprom-promotes-natural-gas-vehicles-in-
16.http://baftechnologies.com/blog/natural-gas-vehicles-around-the-world/
17.http://www.worldcng.com/
23
assignment)
July 22, 2011
INDEXES
A encouraging the use of CNG · 11
Acknowledgement · 1 Executive summary · 7
application forms · 20 Existing Supply · 9
asbestos · 14 Explosive department · 14
C F
civil works · 13 facilities · 13
CNG · 7 Fire related walls · 14
CNG station · 7 Flooring · 13
combustion process · 19 Forest department · 22
commercial · 8 Future Demand · 10
commercial application of CNG technology · 8 G

commitment to promote usage of CNG · 11 Gas Piping · 13
compressor · 12 green house emission · 9
Control Room · 13 growing demand · 11
convenience and availability · 12 I

D ID card. · 21
demand for CNG · 7 increasing prices of petroleum products · 9
Demand for current consumption · 10 increasing trend of CNG fueling system · 10
Deregulated market price · 11 increments · 17
Development Institute of Pakistan · 19 industrial sector · 8
discharge the gas · 14 Infrastructure · 12
Dispenser · 13 Introduction · 8
E Introduction and promotion of newly developed

gas kits for rickshaw in Pishin District · 9
ECONOMIC ANALYSIS · 19
J
23
assignment)
July 22, 2011
joint venture · 21 P
Jordaire Model · 15 prerequisites · 12
L Priority panel for Vehicle priority · 15
land requirements · 12 Promotion of vehicles with built –in CNG fueling

system · 10
Liberal policy · 11
R
LICENSES · 21
Raw material · 12
M
refueling · 14
Machinery and Equipment · 14
Relaxation of import duty · 11
Main compressor · 18
S
Market Analysis · 8
safety concerns · 10
Market Demand · 9
Screw compressor · 18
Market supply · 9
Site selection · 12
Material inputs · 12
Storage Room · 13
ministry of petroleum · 22
T
N
traditional petroleum fuel · 18
national tax No certificate · 21
V
natural resource of energy · 7
viz, Gemini Compressor H302 · 15
No objection certificate · 22
O W
Wages and Salaries · 17
opportunity for the new entrants · 11
23

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Project for CNG filling station installation at

July 22, 2011

I owe a great many thanks to a great many

My deepest thanks to my Friends who Guide

July 22, 2011

MACHINERY AND EQUIPMENT:............................................................................................14

Electric control panel ........................................................................................14

Storage cascade ............................................................................................... 14

July 22, 2011

Priority panel for Vehicle priority .......................................................................15

CNG Dispenser high flow dual hose .................................................................15

STORES AND SPARES......................................................................................................16

FURNITURE AND FIXTURE..................................................................................................16

Human Resource Requirement..........................................................................17

PROCEDURE FOR OBTAINING THE LECENSE OF.......................................20

CERTIFICATE (BY HDIP)...........................................................................................22

July 22, 2011

Income tax on the import of CNG equipment.....................................................23

Cost of the Project..............................................................................................24

LIST OF EQUIPMENTS FOR CNG FILLING STATION.......................................................................25

SALES ESTIMATE (REVENUE).............................................................................................26

SALES ESTIMATE (REVENUE): WORKING................................................................................26

COST OF GOODS SOLD...................................................................................................28

RATE OF GAS CONSUMED;...............................................................................................29

WAGES AND SALARIES..................................................................................................... 29

POWER (ELECTRICITY CONSUMED)........................................................................................30

STORES AND SPARES.......................................................................................................31

REPAIRS AND MAINTENANCE...............................................................................................31

OTHER MANUFACTURING OVERHEAD...................................................................................... 32

1. MACHINERY and building...............................................................................32

July 22, 2011

2. Furniture and fixture............................................................................................................. 32

GENERAL ADMINISTRATIVE AND SELLING EXPENSES....................................................................32

WORKING CAPITAL ESTIMATES......................................................................33

ESTIMATES OF FINANCIAL EXPENSE............................................................34

PROJECTED INCOME STATEMENT...........................................................................34

PROJECTED CASH FLOW STATEMENT....................................................................35

PROJECTED BALANCE SHEET.................................................................................36

BREAK EVEN ANALYSIS..........................................................................................38

RATIO ANALYSIS ..............................................................................................39

Operating profit margin = Operating profit / Sales * 100...........................................................40

Net profit margin = Net profit / Sales * 100............................................................................... 40

Return on equity ratio = Net profit / Equity * 100...................................................................... 40

Return on investment ratio = Net profit / Investment * 100...................................................... 40

NET PRESENT VALUE (NPV)............................................................................................41

PAYBACK PERIOD WITHOUT DISCOUNTING...........................................................42

PAYBACK PERIOD WITH DISCOUNTING..................................................................42

July 22, 2011

The demand for CNG fuel=12900 cubic meter/day

July 22, 2011

July 22, 2011

INTRODUCTION AND PROMOTION OF NEWLY DEVELOPED

At present, there is no CNG station in Pishin district.

July 22, 2011

DEMAND FOR CURRENT CONSUMPTION

THE DEMAND FOR CNG FUEL=12900 CUBIC METER/DAY