Technical and economic evaluation of the use of CNG as potential public transport fuel in Nigeria

Abstract

The need to develop alternative automobile fuel other than petrol and diesel in Nigeria is based on the rising cost, environmental pollution, and perennial scarcity of petrol, diesel, etc. Technical analysis of the introduction of compressed natural gas vehicles as a means of public transportation in Nigeria is conducted in this work. Port Harcourt – Onitsha expressway, a major interstate route in Nigeria is used as a case for analysis. 400 compressed natural gas vehicles are estimated to ply the route daily, which makes the total energy requirement per day to be 3856 gasoline gallon equivalent/day. It is recommended from the refueling stations design that five refueling stations with an average dispensing rate of 800 gasoline gallon equivalent/day are installed along the route to take care of the total requirement of 3856 gasoline gallon equivalent/day. Compressor duty analyses are conducted using Hysys, a process simulation software to determine the energy required by the compressors to boost the pressure of the gas from 14.70 psia at the sales point to 3600 psia which is the outlet pressure of the stations. From the analyses using economic indicators, the project is also found to be economically viable. It has a very high net present value of $2.27 million, short pay-out of 4.24 years, internal rate of return of 14.42% and profit per dollar investment after seven years of 0.72. The entire results indicate that adopting compressed natural gas vehicles for public transportation in at least the major interstate routes in Nigeria, will help to reduce the transportation problems encountered in Nigeria due to the pressure on gasoline and diesel. Keywords: Compressed natural gas, Economic analysis, Vehicles, Stations, Net present value, Transportation