GIFT OF THE NATURE

Nature is really kind as the country is bestowed with enormous natural resources.
It is the management distribution of these resources which can produce results and
redress the sufferings of the people at the hands of poverty, ignorance and
diseases.

Besides having huge gas reserves enough for the next 25 years, new fields are also
being discovered within the country. The rapid change on the front energy sector
signifies the leading role of the natural gas in the economy of Pakistan. Besides
developing the local resources, efforts are underway to import gas from
Turkmenistan which is country having one of the largest gas reserves in the world.

The project of cross-border gas pipeline is pending for over a decade. Despite
keen interest of the international consortiums in this project, it was not
possible to materialize due to political disturbances in Afghanistan which is a
corridor of passing through this cross border pipeline. However, the improved
conditions in Afghanistan and presence of international forces in that country are
reassuring and hopefully this project would come up on the ground shortly.

Recently, Alan Larson, US under Secretary of State for Economic and Agriculture
Affairs, has assured of US support for the Pak-Turkmenistan-Afghanistan pipeline
project. It is worth mentioning that when this project was initiated during Nawaz
government, cost of this pipeline project was estimated at $2 billion which has
now escalated to over $3 billion.

An agreement in this regard has already gone into the final shape for laying
cross-border pipeline from Turkmenistan to Pakistan is likely to be signed in near
future.

Recently, heads of the state of Turkmenistan, Turkey and Pakistan have already
held meeting on this project and now an agreement which spade work is believed to
have been done will be signed shortly.
These three countries will be forming a consortium and then carry out a pre-
feasibility study of the project for which financial assistance is being provided
by Asian Development Bank. The feasibility report will take at least 6 months for
completion.

In order to carry out the feasibility study, the government has instituted a
company headed by the chief of Sui Southern Gas Company (SSGC). This company has
been given the task to for laying a transitional Gas Pipeline to import gas either
from Qatar, Iran or Turkmenistan.

Although Pakistan is in a comfortable position as far as the proven reserves of

the natural gas are concerned which can meet the future demand of natural gas for
next 25 years. However, the increasing demands for gas as a substitute for fuel
oil, it is estimated that the country may be facing a shortfall in production of
natural gas after 6-7 years. In order to face that challenge it is pertinent to
take care of the future demands. As the experts feel that the import of gas from
Turkmenistan will serve the purpose as it may be cheaper even of the locally
produced gas on one hand while it would also help growth of economic activity if
the import gas is used for onward export to the adjacent countries especially to
India. Currently, Pakistan has gas reserve worth 25 trillion cubic feet which can
meet gas requirement for next 25 years. Besides laying the cross border gas
pipeline, Pakistan will also have to develop its own resources and more efforts on
off-shore and on-shore exploration of gas and the oil within Pakistan. It may be
mentioned that country's largest gas reserves estimated over 9 trillion cubic feet
at the time of discovery in early 50's are now depleting sharply and almost three
fourth of the reserves have already been consumed over the years. However, nature
is kind to Pakistan as more huge reserves are discovered in the province of Sindh
which would be off-setting the effects in case of complete depletion of the Sui
reserves.

World Wide Extraction of GAS

The world's proven natural gas reserve estimates is put at 135, 000 billion cubic
metres (bcm), equivalent to about 56 years of production at the current
utilization rate. The proven gas reserves have been growing at an estimated 5%
over the past two decades with no sign of decline. In the context of world energy
demand, it is estimated that supply would not be constrained by lack of primary
energy sources. Gas is expected to play a significant role in this scenario.

The distribution of natural gas reserves is not even throughout the world. Two
regions, the FSU and the Middle East have 70% of total gas reserves. With about 8%
of the World's population living in these areas, major gas transportation and
trade in liquefied natural gas has increased over time. Although gas reserves in
the Asia-Pacific is sufficient to meet current demand for the next 70 years, these
resources are not near many of the high demand growth areas such as Japan, Korea
and Taiwan. This factor has facilitated the growth of LNG trade in the region. Gas
demand is projected to grow in absolute terms from 220 billion cubic feet per day
(bcfd) in 1994 to about 310 bcfd in 2010. The environmental and thermal efficiency
advantages of gas over other competing fuel sources make it a fuel of choice.
Power generation is projected to be the fastest growing sector consuming natural
gas in all regions of the world.

International gas trade is projected to reach 700 billion cubic meters (bcm) by
the year 2000, more than double the current 300 bcm per year. The greatest source
of demand growth is expected to be in the developing countries. New markets in the
Middle East and South East Asia could increase consumption by an additional 150
bcm annually by the year 2000.

In 1970, less than 5 billion cubic feet per day (bcf/d) or about 5% of the gas
produced crossed international borders. Presently, the volume of gas traded has
increased significantly eight-fold and is projected to double by the year 2010
when about 22% of total production is expected to cross international borders.
Currently, about three-quarters of international trade are transported by
pipeline. On the other hand, about a quarter of gas traded internationally is in
the form of LNG.

An evolving scenario among international gas companies is that these firms are
also pursuing a strategy of vertical integration of activities in the gas chain
and moving aggressively to develop gas reserves outside North America. They are
also becoming active in LNG projects and interested in power generation projects.
Shell is currently involved in Nigeria's LNG project as a technical partner,
holding 25.6% of equity.

World Wide Facts and Figures of consumption of GAS and other Energy Sources 1999-
2003

Consumption of Primary Energy - World

Consumption figures in Million Tones Oil Equivalent / annum
1999 % of Total 2003 % of Total
Oil - Total 3469 40.5 3637 37.3
Oil – Auto Fuel (estimate) 2068 24.1 2179 22.4
Natural Gas - Total 2065 24.1 2332 23.9
Natural Gas – Auto Fuel (estimate) 103 1.2 117 1.2
Coal 2160 25.2 2578 26.5
Nuclear 652 7.6 599 6.2
Hydro-electric 227 2.6 595 6.1
Total 8572 100.0 9741 100.0
Source: BP Statistical Review of World Energy 2004

Consumption of Auto Fuels – World

Consumption figures in MTOE
Petroleum Fuel 1995 1999 2003 8 year
CAGR %

Liquid Auto Fuels (estimate) 1855 (94.6%) 2068

(94.7%) 2179
(94.2%) 2.05
Natural Gas – Auto Fuel (estimate) 96
(4.9%) 103 (4.7%) 117
(5.1%) 2.5
Auto-LPG 9
(0.5%) 13 (0.6%) 16 (0.7%) 7.5
Total –Auto Fuels 1960 2184 2312 2.1
Source: BP Statistical Review of World Energy 2004

International Experience of alternate fuels

• CNG
– Use of CNG as auto-fuel is still a small Percentage of the total use of Natural
gas
(2-3% of total natural gas)
– USA, Argentina, Italy, Canada, Pakistan,
Brazil, Venezuela, Russia, Japan,
Germany, Australia is the major consumers of CNG as auto fuel.
International Experience of alternate fuels (2/3)
• CNG: driven by large indigenous availability
– Argentina: Large price difference provided by fuel tax structure (indirect
support by Govt.)
– Columbia & Egypt: CNG price maintained at less than half the price of gasoline.
– New Zealand: Financial incentive by Govt. for vehicle conversion kits and
refueling stations along with accelerated depreciation.
– Pakistan: Government promoted CNG conversion as total conversion of gasoline
vehicles and buses (about 7lac) expected to consume only 4.25% of country’s
production.
International Experience of alternate fuels (3/3)
• Auto-LPG
– Use of LPG as auto-fuel is 7.6% of total world-wide LPG use (0.7% of total auto
fuels)
– South Korea, Japan, Italy, Mexico,
Australia, Turkey and Poland being major users constituting over 2/3rd of World-
wide
Consumption.

Resources of Natural Gas in Pakistan

1 Adhi
2 Bhangali
3 Bhit
4 Dakhani
5 Daru
6 Dhodak
7 Dhurnal
8 Hassan
9 Kadanwari
10 Kandkot
11 Loti
12 Mazarani
13 Meyal / Dhulian
14 Miano
15 Missakiswal
16 Nandpur Panjpir
17 Pariwali
18 Pindori
19 Pirkoh
20 Qadirpur
21 Sadkal
22 Sara / Suri
23 Sari Hundi
24 Sawan
25 Sui
26 Turkwal
27 UCH
28 Zamzama SNGPL
29 Zamzama SSGCL
Zamzama SSGCL
30 Zamzama Wapda/Guddu
31 Badin Compressions
32 Badin Non-Golarchi Non-Associated
33 Ratana
34 Mari
35 Rehmat
36 Manzalai
37 Chanda
Khipro Block
38 Niamat Basal-1 & Siraj South-1
40 Bilal North - 1 & Bilal - 1
Mirpurkhas Block
42 Kauser Deep-1, Usman, Umar & Ali-1
43 Ahmad-1 (effective Dec 05, 2006)
44 Badin Deep fields
45 Badin-II, Badin-II Revised, Badin-III
(Head of Agreement)
46 Badar
47 Makori
Description
At the end of 2003 Pakistan had proved reserves totalling 26.5 trillion cubic feet
and produced 21.1 billion cubic metres and consumed the same amount, (BP Stats,
2004).
The Dhodak Field, with an estimated 620 Bcf of proven gas reserves and 30 million
barrels of condensate, is located in the Central Indus Basin approximately 15
kilometres north of our Saked Koh Block. In April 2005, 30% of the current Safed
Koh Block concession area, as selected by the working interest holders, will be
surrendered to the Pakistan Government under mandatory concession relinquishment
provisions.

In March 2005 Rally Energy announced that initial testing of the Rodho No.3 re-
entry well in the Safed Koh Block has established the presence of natural gas
accumulations in the Cretaceous Lower Goru Sandstones. Rally Energy's Safed Koh
Block, covering 1,213 square kilometres, is located in the Province of Punjab,
immediately south of the Dhodak gas field, Pakistan's largest gas and condensate
producing field. Safed Koh gas production can be marketed through the existing Sui
Northern gas pipeline which passes within 12.5 kilometres of the Rodho No. 3
wellsite. Alternatively, the gas can be delivered to the Dhodak facilities
servicing the Dhodak Gas Field, a distance of approximately 15 kilometres.

Currently, natural gas supplies 49 percent of Pakistan’s energy needs. (See graph
below) According to the Oil and Gas Journal (OGJ), as of January 1, 2005, Pakistan
had 26.83 trillion cubic feet (Tcf) of proven natural gas reserves. In 2003, the
country produced around 0.84 Tcf. Consumption of natural gas during 2003 was at
0.84 Tcf, but consumption levels are expected to grow over the next few years.
Pakistan is looking to increase its gas production to support increasing
consumption. Currently, Pakistan ranks third in the world for use of natural gas
as a motor fuel, behind Brazil and Argentina. In addition, Pakistan hopes to make
gas the. Fuel of choice for future electric power generation projects.

Sector Organization

Pakistani natural gas producers include state-owned companies Pakistan Petroleum

Ltd. (PPL) and Oil and Gas Development Corporation (OGDCL), as well as BP, Eni,
OMV, and BHP. PPL accounts for one-third of the country’s Natural gas production.
The company has probable gas reserves of 6.9 Tcf and is capable of producing
around 953 million cubic feet per day (Mmcfd/d). Sui field, which had its gas
supply disrupted by militant attacks this past year, is by far PPL’s largest
producer at 650 Mmcfd/d, followed by the Adhi and Kandkhot (120 Mmcfd/d), Mari,
and Kandanwari fields. As part of its bold energy sector reform program, the
government is committed to privatizing a 51 percent stake of PPL

Exploration and Production

Development of new natural gas fields with the help of foreign investors is moving
forward in Pakistan. In the past few years, the country discovered seven new gas
fields. Pakistan’s government expects the development of these new fields to add
an additional 1 billion cubic feet per day (Bcf/d) to Pakistan's natural gas
production. Additional producing fields in Pakistan include Sawan at about 366
Mmcfd/d, Bhit at about 316 Mmcf/d, and Zamzama in Sindh province at about 248
Mmcfd/d. Zamzama may now be able to produce 380 Mmcf/d, following a new gas
discovery in January 2004. In addition, Pakistan gas production stands to increase
following a memorandum agreement with Gazprom, Russian. s state-owned oil and gas
giant. The agreement was reached this past October and will include the research
and development of future gas fields.

(http://archive.wn.com/2007/05/20/1400/pakistanenergy_old1/)

Massive gas shortfall forecast

Pakistan is likely to face major gas shortfall, starting with 778 MMCFD (million
cubic feet per day) by 2009 and rising to more than 11,000 MMCFD by 2025, with
continuously declining domestic supplies and growing economic needs.

Even with two gas pipeline projects and liquefied imports projected to materialize
in the second half of the next decade, the country would still suffer more than
4,000 MMCFD of gas shortage between 2018 and 2025. As a result, huge foreign
exchange would be required for oil imports to avoid an adverse impact on economic
growth.

These estimates were adopted by the government last month, under a pre-feasibility
report of the Iran-Pakistan-India (IPI) pipeline prepared by Price Waterhouse
Coopers and Hagler Bailly Pakistan on the basis of 6.5 per cent average economic
growth projected by the government. The government anticipates no domestic gas
discoveries in the next few years until fiscal 2010-11.

The country's gas demand this year
to 4,492 MMCFD in 2008 and further
total supplies at 3,666 MMCFD this
4,308 in 2010. This means that the
in the next two years and increase
stands at about 4,000 MMCFD and will increase
to 5,086 MMCFD in 2010. Compared with this,
year would raise to 4,184 MMCFD next year and
shortfall would range between 300 and 350 MMCFD
to 778 MMCFD in 2010.

Considering the fact that power sector will continue to be the largest gas
consumer, the shortfall in this area is likely to have multiple choking impacts on
the country's economic growth and increase the cost of production for almost every
sector.

The power sector's gas demand at about 1,500 MMCFD at present is expected to cross
5,500 MMCFD in 2025. This will be followed by fertilizer sector, general
industrial sector, residential sector, cement, CNG and commercial sectors.

The estimates suggest that the gas demand would maintain a steady pace of increase
every year to touch 6,763 MMCFD in 2015 but supplies would start slowing down.
After reaching a peak of 4,313 MMCFD, the gas supplies would come down to 3,670
MMCFD in 2015. This would mean that almost 50 per cent demand would remain unmet
and the overall shortfall would reach 3,089 MMCFD in 2015.

The supplies of two gas utilities – the SNGPL and the SSGCL -- would increase from
about 2,800 MMCFD at present to peak at 3,360 MMCFD in fiscal year 2010, but fall
drastically to about 2,000 MMCFD in 2015. New discoveries are expected from 2011
at an average of about 100 MMCFD per year to touch 1,450 MMCFD in 2025. By this
time, however, the supplies from twin Sui companies would reduce to a meager 380
MMCFD.

By the year 2025, the gas demand would touch 13,260 MMCFD because of a 6.5 per
cent annualized economic growth rate but at this stage domestic supplies would not
be more than 2,200 MMCFD, leaving a shortfall of a mammoth 11,100 MMCFD.

From another perspective, the gas shortfall would stand at 1.2 billion cubic feet
per day (BCFD) in 2011 and it would increase to 3.1 BCFD in 2015. The shortage
will double to 6.3 BCFD in 2020 and further rise to 11.1 BCFD in 2025.

The budding CNG sector which currently consumes about 140 MMCFD of gas would
maintain its nominal share to maximize at 700 MMCFD in 2025. This, however, is not
clear if the new initiative of providing CNG buses in all major cities has also
been accounted for in these projections.

The government is targeting to materialize the first phase of import of liquefied

natural gas (LNG) in 2011 to deliver about 526 MMCFD of gas but the shortage would
still persist to the tune to about 500 MMCFD. The second phase of LNG import is
projected to be completed by 2013 to deliver another 526 MMCFD of gas but the
shortfall would remain the same because of simultaneous increase in demand.

The government anticipates that first gas pipeline import project (IPI) would be
completed by 2015 to deliver about 2,230 MMCFD of gas. This would be followed by
another pipeline -- most probably from Turkmenistan -- in 2018 to provide another
3,350 MMCFD of gas. These three years (2018 to 2020) would be the only period in
the next 20 years when demand and supply would converge at about 8,500-9,000
MMCFD. But the deficit will again start rising at the rate of about 500 MMCFD per
year to touch 4,500 MMCFD in 2025.

The estimates suggest that if the country achieved economic growth rate of 7.5 per
cent, the supplies would never be able to meet demand and the shortfall would
cross 13,500 MMCFD in 2025. Even in case of 5.5 per cent economic growth rate, the
gas shortfall would remain and peak at 10,900 MMCFD in 2025.

http://www.dawn.com/2007/03/07/top8.htm

Growth of CNG industry in Pakistan

The government has given special preference to China for constructing / developing
major projects in Pakistan. In the last 5/6 years, FDIs have come in, in a
reasonable volume and remittances from overseas Pakistani’s have made the economic
situation much stronger.

Despite some political upheavals, Pakistan continues to grow stronger economically

and heavy public sector development programmes are creating many employment
opportunities which will certainly help towards alleviating poverty.

In this scenario, it is vital that ways are found to lessen the burden of import
of fuel oil. Out of total oil import bill during July to February 2007; the
petroleum products claimed $2.34 billion. The total crude oil import went up to
$2.36 billion during the same period. The oil analysts estimate that total oil and
petroleum import may increase up to $6 billion during the current financial year.

It is an appropriate time to develop cost-effective alternative sources of energy

in order that the present increasing oil import could be curtailed. The government
is anxious to find cheaper energy by employing indigenous resources.

An attempt is being made to make full use of compressed natural gas (CNG) in areas
where possible especially in transport. This may help in the coming years to
reduce the import of petroleum products. With this in mind, the use of CNG is
being actively promoted across the country. The government is offering various
incentives and concessions to those firms who are actively engaged in CNG
business. The full development of CNG industry will help to develop a stronger
energy base for Pakistan.
In 2000, Pak-Suzuki realized the enormous growth potential of CNG fitted cars in
Pakistan and went into producing factory fitted CNG vehicles. It is estimated that
presently, over 1.2 million vehicles are using natural gas as a vehicle fuel and
being served by over 1145 refueling stations in Pakistan.

It is good to know that now Pakistan ranks 3rd in the CNG industry of the world.
The CNG industry of Pakistan is set to grow further in the years to come. At this
juncture we would also like to define CNG and its main components for the benefits
of our readers and the people in general. CNG is compressed natural gas and is
considered the fuel of the future. It is gaseous fuel consisting of mixture of
hydrocarbons mainly methane (85 to 90 per cent). Low pressure natural gas is
compressed to 200-250 kg to enhance the storage capacity in a seamless steel
cylinder. Use of CNG as an alternative automobile fuel is rapidly increasing
worldwide due to its economic advantage and air-pollution free ingredients.

Cylinders are a very important component in CNG operation. CNG cylinders are
available in different types and weight, and various types of metals and alloys.
The most widely manufactured CNG cylinders are all steel cylinders.

There are about six million vehicles running on CNG all over the world. Pakistan
alone has over one million natural gas vehicles (NGVs). Asian countries like
China, Iran, India and Bangladesh are developing their CNG industry by creating
infrastructure for new gas pipelines and CNG stations.

Pak-Shell is participating in the growth of CNG industry in Pakistan. Shell has

opened a good number of ‘Shell CNG gas stations’ in Karachi and there are plans
for many more stations to be made operative soon. This will include CNG stations
in nearly all the provinces in Pakistan.

It is heartening to note that the Punjab Small Industries Corporation has started
a new loan scheme for bus owners who intend to convert their diesel vehicles to
CNG system. The loan is payable within three years. The corporation has created a
revaluing fund of Rs20 million for this project.

The central development working party has approved the project for converting
public transport to CNG in the next five years. The project covers all major
cities of Pakistan. It is expected that this scheme will have a positive impact on
air pollution.

Pakistan is looking forward to finalizing arrangements with Iran for supply of gas
through pipeline and this may be extended to India too. This is an ambitious
project which is going to help the three partners in the deal.
It is also good news that the government of Ukraine has assured to boost energy
cooperation with Pakistan. The concept of cost-effective economy, if properly
introduced and implemented, would ultimately raise the potential for stronger ion-
inflationary economy” in the country.

We may finally conclude that CNG is a revolutionary concept as an alternative

source of energy in Pakistan. The government has to create awareness to further
improve CNG industry in Pakistan.

(http://jang.com.pk/thenews/may2007-weekly/busrev-21-05-2007/p5.htm)

OGRA

The Oil and Gas Regulatory Authority (Ogra) has reportedly expressed its inability
to control furnace fuel prices on legal and technical grounds. Wapda believes it
could offer a solution to the ever increasing power rates if issue of oil pricing
is resolved.

The Ogra, it is said, had no powers under the law to regulate the oil marketing
companies (OMCs) or review the pricing of furnace oil as the government had
empowered the OMCs to fix its rates on the basis of international prices
independently.

Ogra, it is believed would take over the subject of oil pricing at a later stage
through amendments in certain clauses of Ogra Ordinance 2002. But in the existing
set-up, it had no jurisdiction over the oil pricing mechanism. It is reported that
Wapda had written a letter to Ogra chairman to keep a check on furnace oil pricing
by the oil companies through a proper regulatory framework in view of the fact
that the about 50 per cent furnace oil production is local. Ogra has also asked
wapda if it could help expedite the process of amendment in the ogra ordinance to
broaden the regulatory jurisdiction of Ogra.

Government Policy & Support

The Government is taking major steps to promote CNG by exempting all taxes and
duties for the machinery and equipment used for CNG refueling and conversion. The
Government is also supporting importers to set up manufacturing facilities in
Pakistan to produce CNG kits, CNG Dispensers and CNG Cylinders locally. The
Government has planned to grant license for setting up compressor factories in
Pakistan, thus allowing users to save its precious foreign exchange.

A few months back the Government also issued directives requiring conversion of
all official vehicles to CNG. In this regard the Government is planning to set up
more and more CNG refueling stations by tendering in different cities.

Different CNG associations are also working in Pakistan for betterment of CNG.
They have asked the Government to give incentives in the form of providing
separate higher flow or larger diameter pipelines to refueling stations and to
facilitate in obtaining ‘No Objection Certificates' (NOC's) and licenses from
different Government organizations.

Future Prospects

In short, the CNG industry has a wide potential in Pakistan; Pakistan being the
natural gas producer and having an excellent distribution network is well geared
to use this resource to its maximum potential, in terms of protecting its
environment, saving its precious foreign exchange, and offering economical fuel to
its population.

* HDIP = Hydrocarbon Development Institute of Pakistan, an autonomous body of the

Ministry of Petroleum & Natural Resources, Pakistan

(http://www.iangv.org/content/view/73/98/)

Difference between LPG, LNG & CNG

Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG) and Compressed Natural
Gas (CNG) are fossil derived fuels and therefore release, one way or another,
sequestered greenhouse gases into the atmosphere.

As vehicle fuels, they are suitable for use in the two dominant internal
combustion engine technologies; spark ignition and compression ignition. Although
capable of working in either type of engine there are practical factors which
limit their applications to one rather than the other. Broadly speaking LPG is
compatible with petrol (gasoline) engines and LNG and CNG with heavy diesel
vehicles.

Their main claims to fame are that they produce much less tailpipe pollution and
can be significantly cheaper per mile to run especially in the UK where users can
benefit from government grants, reduced excise duties and other charges. Many
vehicles using these gases are dual fuel (aka bi-fuel) and there is a reasonable
structure of filling stations, particularly for LPG; as a result they are
practical and are 'here and now'.

Liquefied Petroleum Gas is a fuel which can power cars, buses and Lorries, however
due to factors discussed below, and other alternative fuels being available, LPG
is best suited to light vehicles such as cars and small vans which normally run on
petrol. Our estimate of energy density* is 65% compared to diesel and about 75%
compared to petrol (gasoline).

Typically the gas is predominantly propane (C3H8) with some butane (C4H10) derived
mainly from oil refineries (also North Sea gas, in the UK). We give the chemical
formulae because it is the ratio of carbon to hydrogen which is important; the
smaller the ratio of C to H, the better for the environment. It follows that
methane (CH4) is a better gas in this respect but only if fully burnt!

The gas is liquefied by moderate compression at normal temperatures and is stored

in appropriate tanks and cylinders. The liquefaction is necessary to provide a
reduction in volume and produce acceptable energy densities. In general this
moderate, well tried, process gives it portability and makes it a fuel with a
myriad of applications but the main application discussed here is as a fuel for
motor vehicles.

LPG vehicles need to be purpose built or they can be converted. It seems that
conversions are only practically applicable to petrol vehicles, not diesel because
diesel engines need significant modification for this particular gas. Normally
they are Bi-fuel which means that they can be run on either LPG or petrol at the
flick of a switch, even while motoring.
The most notable difference between LPG and petrol or diesel, for cars and vans,
is the cost of fuel. As a rough guide, in the UK, the cost per gallon is halved
compared to petrol, because the government has reduced the duty by a very
substantial amount. In addition to this concession, DETR grants are also available
to carry out conversions but they only apply to vehicles less than five years old:
grants for cars and light vans were about £700 to £800 in 2004. We also noted in
January 2005 that LPG vehicles, eligible for grants, (amongst other low exhaust-
polluters) should qualify for 100% exemption from the London Congestion charge.

From a local environmental point of view LPG is cleaner than petrol and also
diesel, although it is still a fossil fuel and thus its use, as a whole,
contributes to global pollution and climate change. At the vehicle exhaust there
are less CO, hydrocarbons, nitrous oxides and particulates emitted and it deposits
less sulphur in the engine.

Liquefied Natural Gas fuel (LNG) is produced from a mixture of raw components but
is predominantly methane and is compatible with diesel technology, subject to the
necessary modifications. Since the composition of methane is CH4, Natural Gas
Vehicles (NGVs) are burning fuel with a relatively low carbon to hydrogen ratio.
Our estimate of energy density is 60% compared to diesel.
LNG cannot be converted to a liquid by pressure alone but must be cooled to a very
low temperature (lower than -160°C), a process which removes some impurities such
as sulphur and water.
The LNG must be stored and transported permanently at around this temperature and
this is accomplished by super insulation in a pressurized, double tank system,
similar in principle to a thermos flask, together with a venting system to take
away vapour. The storage pressure of about 8 bar (8 x atmospheric) is not regarded
as very high but because of the insulation requirements the tanks are large, the
fuel is only suited to large, heavy diesel vehicles such as trucks, buses and
HGVs.

Although the energy density is about 60% compared to diesel the fuel costs are
much lower and LNG should give lower running costs. Vehicle excise duties and road
tax in the UK are reduced for natural gas vehicles and they are exempt from the
London Congestion Charge. The Energy Saving Trust incorporates Power shift and
Transport Action Cleanup both of which offer fleet operators a range of financial
assistance packages.

When compared to diesel, NGVs are quieter and local emissions of pollutants are
much reduced but of course the main drawback, global pollution associated with the
burning of fossil fuels, still remains.

Compressed Natural Gas (CNG) is, as its name suggests, the close relative of LNG
and as a natural gas it has the same basic characteristics. However, because it is
not liquefied it has a lower energy density and is stored at very high pressures;
about 200 bar. Our estimate of energy density is 25% compared to diesel or 42%
compared to LNG.

These two factors are a big disadvantage for CNG. Storage and vehicle tanks have
to be robust and heavy because of the high pressure requirement. The space taken
up on the vehicles by the tanks is significantly more than twice that for LNG
tanks (or the range is much less than half) because of the lower energy
density.Because it is Natural Gas it attracts financial incentives similar to LNG
(details should be checked individually).

LNG is much more portable because CNG depots need to be supplied by pipeline and
need compressors on site. LNG sites require much less capital investment and are
more expensive to run.

It certainly seems that CNG is the poor relative of LNG but we can see evidence
that it is used for heavy transport in the UK, on a limited number of prescribed
highways. Liquefied Compressed Natural Gas (LCNG). This seems to be a marketing
feature so that LNG refueling stations have the ability to dispense two fuels, LNG
and CNG at the same location. LNG can be pressurized and vaporized to give LCNG.

LNG, CNG and LPG are quite different substances. The following table gives a
general outline of the main features of these.

LPG CNG LNG

Name Liquefied Petroleum Gas Compressed Natural Gas Liquefied Natural Gas
Constituents butane + propane mostly methane mostly methane
Storage phase and pressure liquid under pressure gas at high pressure liquid
not pressurised1
Storage temperature room temperature room temperature -160°C
Vapour density
at air temperature vapour heavier than air vapour lighter than air vapour
lighter than air3
end uses fuel, refrigerant, propellant Fuel fuel
Notes
1. LNG tanks are designed to operate at a slight positive pressure.
2. CNG is sometimes stored at cool temperatures, typically down to around -30°C.
3. Methane is lighter than air at temperatures above about -100°C.
4. LPG is widely used in domestic and industrial applications. LPG is transported
by road tanker, and by rail, ship and pipeline. Domestic examples include bottles
used on a BBQ or caravan.

Major Companies in Pakistan

SNGPL was incorporated in 1963 as a private limited company and was converted to a
public company in 1964. SNGPL is the largest gas transmission and distribution
company (2.5 million customers) in Pakistan, with a franchise area comprising the
provinces of Punjab and North West Frontier Province (NWFP). The company received
a 30 year license from OGRA beginning March 25, 2002 to carry on the regulated
activities of transmission, distribution and sale of natural gas in the provinces
of Punjab and NWFP. This license gives exclusive right to SNGPL to distribute and
sell natural gas to its existing customers who contracted with it on or before
30,June 2005.

The SNGPL transmission system extends from Sui in Balochistan to Peshawar in NWFP
comprising 6,121 kms of high - pressure pipeline ranging from 6 inch to 36 inch in
diameter. The distribution activities covering 728 towns along with adjoining
villages in Punjab & NWFP are organized through 8 regional offices. The company
sold 537,086 million cubic feet (MMCF) of gas in FY 2004-2005 to over 2.5 million
industrial, commercial and domestic customers in these regions through a
distribution network of over 42,192 km.

SNGPL has an authorized capital of Rs. 15,000 million. The Government and
Government controlled institutions shareholding is 54% as of January 2004 with the
remaining 46% held by the private sector. Presently, SNGPL’s Board has 14 members
drawn both from public and private sectors.

http://www.privatisation.gov.pk/oilgas/SNGPL.htm

Customer Base
SNGPL’s customer profile is as follows:
By Number (as at 30 June 2005)
Domestic 2,437,541
Commercial 41,358
Industrial (inc. power and bulk supply) 3,271
Total 2,482,170
By Sales Volume (for 2004-05 in MMCF)
Domestic and Commercial 132,553 equivalent to 363 MMcfd
Industrial (inc. power) 404,533 equivalent to 1,108 MMcfd

Compressed Natural Gas (CNG)

Operation of CNG Stations

HDIP has pioneered the use of environment friendly Compressed Natural Gas (CNG)
in road Transport as an economically viable inter-fuel import substitution in
petroleum sector. The commercial application of CNG technology now forms an
important element of Government’s petroleum policy. HDIP’s CNG stations at Karachi
and Islamabad, besides converting vehicles on CNG and dispensing CNG fuel, are
developing indigenous technology in the field and monitor the performance of CNG
technology in the country. The CNG stations of HDIP at Lahore and Quetta are also
operational. HDIP’s CNG stations also act as Advanced Fuel Resource Centres to
advise the Government on safety and regulatory aspects and to conduct inspection,
training and human resource development.

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 CNG use

Liberal policy to provide license for CNG retailing
Deregulated market consumer price of CNG
Natural gas tariff for CNG linked to petrol
Priority of natural gas connection to CNG stations
Exemption of import duty and sales tax till the year 2002 on import of
machinery and equipment, CNG kits and cylinders.

This has provided a boost to the industry and so far, more than 800,000 vehicles
have been converted to CNG and 740 CNG stations are operational while another 200
are under construction in different parts of the country (As on June 30, 2005).
According to International Association for Natural GAS vehicles (IANGV)
statistics, Pakistan is ranked at no.3 in the CNG using countries after Argentina
and Brazil.

CNG Consultancy Services

HDIP is promoting and offering consultancy services to the private sector which
include the whole range of activities like formation of company, selection of
sites, legal formalities, design of stations, specifications and sizing of
equipment, selection of equipment, selection of contractor, training of manpower,
commissioning and supervision, etc., depending upon the clients needs. HDIP with
approval of the Ministry has developed the following procedure for establishment
of CNG Stations.

PROCEDURE FOR ESTABLISHMENT OF CNG STATION

1. Formation of a company and its registrtion as joint stock / private limited /

partnership or proprietorship entity.
2. Select a consultant for project assistance if required
3. Registration of CNG Company with Oil and Gas Regulatory Authority (OGRA)
4. Selection of location for suitable site for CNG Station;
a. in close vicinity to natural gas pipeline
b. access to petrol vehicles in reasonable numbers
5. Selection of CNG Station equipment.
6. Completion of legal formalities for establishment of CNG Station with under
mentioned departments:
a. District Authority for Civil construction approval.
b. Department of Explosive in the Ministry of Industries for location of CNG
equipment
c. Approval for utilities, natural gas / electricity and water from relevant
authorities.
7. Award of contract for:
a. Civil Construction
b. Purchase of CNG Station & Vehicle conversion equipment
8. Hiring of technical manpower and providing on the job training at some
established CNG entity / HDIP
9. Installation of CNG Station equipment
10. Purchase of tools for CNG kit installation
11. Start-up of CNG Station and installation of CNG kits in vehicles.

(http://www.hdip.com.pk/hydrocarFSUB.htm)

APPROVED CNG KITS

Sr. CNG Kit Brand/Make Sr. CNG Kit Brand/Make

1 Landi Renzo Italy/Brazil 15 Impco USA
2 Tartarini Italy 16 Salusatri Argentina
3 Landi Auto Gas Italy 17 Oyrsa Argentina
4 Lovato Italy 18 ConverTech USA & Argentina
5 Lo Gas srl Italy 19 Sprint Gas Kit Argentina
6 Emme Gas Italy 20 Tomasetto Achille Argentina
7 Blue Runner Italy 21 Tomasetto Lovato Model TL02 Argentina
8 Bedini Italy 22 Hoffman TLD model 119 Argentina
9 BRC Italy 23 GN group Argentina
10 Zavoli Italy 24 Gas Petro Argentina model Madness
11 OMVL Italy 25 Visa GNC Bvard Argentina Model 0001
12 Bi Gas Italy 26 Palmeg Argentina
13 Auto Gas srl Model MT 132 Italy 27 Zoni model No. XVVIII China
14 Voltra CNG Kit Turkey 28 Shahab Auto gas Iran

How Does CNG works?

How does LPG works?

OIL AND GAS REGULATORY AUTHORITY

************
Islamabad, the 2nd March, 2007
N O T I F I C A T I O N
S.R.O. (I)/2007.- In exercise of the powers conferred by sub-section (3) of
Section 8
of Oil and Gas Regulatory Authority Ordinance, 2002 (XVII of 2002), the Authority,
in
Super-session of its notification No. S.R.O.685(I)/2006, dated 30th June, 2006 and
S.R.O.850(I)/2006, dated 21st August, 2006, is pleased to notify the sale prices
and minimum charges specified in schedule below, for the purposes of the said
Ordinance, in respect of natural gas sold by the following companies to various
categories of their retail consumers with effect from 1st February, 2007, namely:-
SCHEDULE
(1) Sui Northern Gas Pipelines Limited
(2) Sui Southern Gas Company Limited
I. Domestic Consumers:
(i) For domestic consumers, including residential colonies, mosques, churches,
temples, madrassas, other religious places and hostels attached thereto,
Government and semi-Government offices and hospitals, Government guest
houses, Armed Forces messes, langars, universities, colleges, schools and Private
Educational Institutions, orphanages and other charitable institutions.
S no. Slab Cubic metres per month Rs. per MMBTU
(1) (2) (3) (4)
1. First Up to 50 78.38
2. Second Over 50 up to 100 82.07
3. Third Over 100 up to 200 149.40
4. Fourth Over 200 up to 300 239.01
5. Fifth All Over 300 310.92
Minimum charge: Rs. 105.72 per month

(ii) For hostels and residential colonies to whom gas is supplied through bulk
meters.
Sale price: Rs. 149.40 per MMBTU
Minimum charge: Rs. 503.77 per month

II. Commercial Consumers:

All establishments registered as commercial units with local authorities or
dealing
in consumer items for direct commercial sale like cafes, bakeries, milk-shops, tea
stalls, canteens, barber shops, laundries, tandours, places of entertainment like
cinemas, clubs, theaters and private offices, clinics, maternity homes, etc.
Sale price: Rs. 268.23 per MMBTU
Minimum charge: Rs. 1,266.24 per month
III. Ice Factories:
Sale price: Rs. 268.23 per MMBTU
Minimum charge: Rs. 1,266.24 per month
IV. Industrial Consumers :
All consumers engaged in the processing of industrial raw material into value
added finished products irrespective of the volume of gas consumed including
hotel industry but excluding such industries for which a separate rate has been
prescribed.
Sale price: Rs. 238.38 per MMBTU
Minimum charge: Rs. 8,038.03 per month

V. Captive Power:
Sale price: Rs. 238.38 per MMBTU
Minimum charge: Rs. 8,038.03 per month
VI. Compressed Natural Gas (CNG) Stations:
Sale price: Rs. 264.87 per MMBTU
Minimum charge: Rs. 8,931.26 per month
VII. Cement Industry:
Sale price: Rs. 305.15 per MMBTU
Minimum charge: Rs. 10,289.48 per month

VIII. Fertilizer Factories:

(i) Pak American Fertilizer Limited, Daudkhel:
Sale price: (a) Rs. 36.77 per MMBTU for gas
Used as feed-stock; and

(b) Rs. 238.38 per MMBTU for gas used as fuel for generation of electricity
and steam and for usage in housing
colonies.

(ii) Dawood Hercules Chemicals Limited, Chichoki Mallian, Sheikhupura

District:
Sale price: (a) Rs. 91.52 per MMBTU for gas used
as feed-stock; and
(b) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing
colonies.
(iii) Pak Arab Fertilizer Limited, Multan:
Sale price: (a) Rs. 91.52 per MMBTU for gas used
as feed-stock; and
(b) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing
colonies.
(iv) Pak China Fertilizer Limited, Haripur:
Sale price: (a) Rs. 97.11 per MMBTU for gas used
as feed-stock; and
(b) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing colonies.
(v) Hazara Phosphate Fertilizer Plant, Haripur:
Sale price: (a) Rs. 97.11 per MMBTU for gas used
as feed-stock; and
Minimum charge: Rs. 8,038.03 per month

(vi) Fauji Fertilizer Bin Qasim Limited:

Sale price: (a) Rs. 36.77 per MMBTU for gas used
as feed-stock subject to a maximum
of 52,250 MMBTU per day; and
(b) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing
colonies.
Power Stations (WAPDA’s and KESC’s Power Stations):
(i) WAPDA’s and KESC’s Power Stations and other electricity utility
companies excluding WAPDA’s Natural Gas Turbine Power Station,
Nishatabad, Faisalabad.
Sale price: Rs. 238.38 per MMBTU
Minimum charge: Rs. 8,038.03 per month

(ii) WAPDA’s Gas Turbine Power Station, Nishatabad, Faisalabad

Sale price:
(a) Commodity charge Rs. 238.38 per MMBTU
(b) Fixed charge: Rs. 975,000 per month
(iii) Liberty Power Limited’s Gas Turbine Power Plant (Phase 1) at Dharki
Sale price: Rs. 467.52 per MMBTU.
Minimum charge: Rs. 13,856 per month

(3) Mari Gas Company Limited:

(i) ENGRO Chemical Pakistan Limited:
Sale price: (a) Rs. 90.22 per MMBTU for gas used
as feed-stock; and
(b) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing
colonies.
Minimum Charge: As per Gas Sale Purchase Agreement
between ENGRO Chemical Pakistan
Limited and Mari Gas Company
Limited.
(ii) Fauji Fertilizer Company Limited, Goth Machhi, District Rahim Yar Khan and
Fauji Fertilizer Company Limited, Mirpur Mathelo, District Ghotki:
Sale price: (i) Rs. 90.22 per MMBTU for gas used
as feed-stock; and
(ii) Rs. 238.38 per MMBTU for gas used
as fuel for generation of electricity
and steam and for usage in housing
colonies.
Minimum Charge: As per Gas Sale Purchase Agreement
between Fauji Fertilizer Company Limited
and Mari Gas Company Limited.

OIL AND GAS REGULATORY AUTHORITY

******************
Islamabad, the 2nd March, 2007
N O T I F I C A T I O N
S.R.O. (I)/2007.- In exercise of the powers conferred by sub-section (3) of
Section 8 of Oil and Gas Regulatory Authority Ordinance, 2002 (XVII of 2002), the
Authority, in super-session of its notification No.S.R.O.688(I)/2006, dated 30th
June,
2006, is pleased to notify the following sale prices and minimum charges specified
in
column (3) of the table below, for the purposes of the said Ordinance, in respect
of
natural gas sold by the Pakistan Petroleum Limited and Mari Gas Company Limited to
WAPDA’s Gas Turbine Power Station, Guddu, with effect from 1st February, 2007,
namely:-
S. No Description Rs. per MMBTU

(1) (2) (3)

1. (i) Sale Price: 230.28
Kandhkot
(ii)Minimum charge As per Gas Sale Purchase
Agreement between WAPDA
and Pakistan Petroleum
Limited.
2.
Mari
(i) Sale Price: 223.96
(ii)Minimum charge As per Gas Sale Purchase
Agreement between WAPDA
and Mari Gas Company
Limited.

[File No. OGRA-10-3(8)/2007]

Feasibility Report

Purpose of the document

The objective of the pre-feasibility study is primarily to facilitate potential

entrepreneurs to facilitate investment and provide an overview about CNG Filling
Station business. The
Project pre-feasibility may form the basis of an important investment decision and
in order to serve this objective, the document covers various aspects of the
business concept
Development, start-up, production, marketing, and finance and business management.
The document also provides sectoral information, brief on government policies and
International scenario, which have some bearing on the project itself.
This particular pre-feasibility is regarding “CNG Filling Station” which comes
under
“Petroleum” sector.

Key Success Factors

Following factors are the key in making this project profitable:

• Location of the project will play a vital role in the successful running of the
CNG
station. The daily turnover of the cars largely depends on this important factor.

• Selection of proper equipment is another key for carrying out the successful
operations
of the proposed project.

Opportunities

The proposed project would have a number of competitive advantages:

• The project will provide cheaper fuel to its customers compared to the petroleum
products which are already on the higher side.

• Government has exempted the imposition of sales tax and custom duties on the
import
of CNG kits and CNG plant and equipment,

• HDIP, a non-profitable organization working under the umbrella of Ministry of

Petroleum and Natural Resources, provides consultancy services to the interested
parties for setting up the CNG filling stations.

Threats

The proposed project will be facing the following threat:

• Market saturation over a longer period of time due to a large number of entrants

• Threat of increase in the prices of the natural gas by the government

PROJECT PROFILE

Opportunity Rationale

Due to the environment friendly nature 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. HDIP has pioneered the use of
environment friendly CNG in road transport as an economically viable fuel, which
can
substitute the imported petroleum products.

Project Brief

The business of CNG filling station has marked its place in the country through
growth
during the last few years. This growth has opened up new opportunities and more
CNG
filling stations are being setup all over Pakistan. The prime reason for this is
the low cost of the fuel. Along with that, CNG fuel is less hazardous to the
environment as compared to the traditional petroleum fuel.

Introduction to CNG

Natural Gas is one of the most valuable natural resources abundantly available in
our
country. The people of Pakistan have been using the petroleum products as a fuel
in their
automobiles, thus spending a huge amount of foreign exchange on import of
petroleum
products. Moreover, the Government of Pakistan has taken certain concrete steps in
order
to promote the use of natural gas as a fuel substitute in the automobiles. Due to
the efforts
made by the Government and comparatively low prices of gas, more than 600,000*
vehicles have already been converted to operate on Compressed Natural Gas (CNG)
fueling system all over Pakistan.

Due to high cost of petroleum products, lots of vehicles are switching over to
CNG. At
present, there are more than 1300 CNG stations operating in the Country and this
number is insufficient to meet the rising demand of CNG in the coming years.

The total project cost for setting up the CNG filling stations has been estimated
at Rs.31.13 million. It includes land, building, CNG equipment and machinery,
spares, along with the preliminary expenses and working capital. Compressed
Natural Gas (CNG) is produced when the natural gas is compressed into cylinders to
be used as a fuel in the automobiles. The compressed natural gas 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 of CNG as an automobile fuel
has significantly increased because of its low cost and environment friendly
nature.

Project Cost

The cost of project has been estimated as Rs.31.13 million including land, civil
works,
CNG equipment and office equipment. Preliminary expenses and gas security charges
are
estimated at Rs.0.82 million and Rs.1.8 million respectively. The CNG equipment
comprises of gas compressor, dual hose dispenser, electric control panel, and
storage
cascades/cylinders.

Project Investment

Fixed Investment Rs. 30,750,140

Working Capital Rs. 377,390

Total Investment Rs. 31,127,530

The proposed pre-feasibility is based on the assumption of 50% debt and 50%
equity.
However this composition of debt and equity can be changed as per the requirement
of the investor. The project seems to be viable with the following returns on
investment.
Project Returns

Internal rate of return (project) 23.1%

Internal rate of return (equity) 45.1%
Net Present Value @ 20% Rs. 3,401,246
Payback period – based on cash inflows 4 years

Viable Economic Size

A minimum of 202 cars is required to be filled daily in order to operate at
breakeven.
Considering the market trends and number of vehicles being converted into CNG
fueling
system, initially the project would be able to attract and serve at-least 202
vehicles per day.

Proposed Capacity

The equipment for CNG filling station that has been considered for preparing this
feasibility study is of British origin. This equipment is relatively more
efficient and
effective of the all types of equipment available in the market. Various other
types of
equipment are also available at a lower price. The chosen equipment is capable of
refueling 50 vehicles per hour. Twin hose dispenser accompanies this equipment and
it handles refueling of two vehicles at a time.

Proposed Location

The proposed locations for the CNG Filling stations in Daska are as follows
• Gujranwala Road Daska
• Jinah Chowk Daska
• Gujranwala Road near Moor Galotian
The said project may also be established in commercial area of any other city.

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 license for CNG retailing
• Deregulated market price of CNG (for the consumers)
• Priority of providing natural gas connection to CNG stations
• Exemption of import duty and sales tax till June 2005 on import of machinery and
equipment, CNG kits and cylinders. This has provided a boost to the industry, and
so far, more than 1400,000 vehicles have been converted to CNG and 1450 CNG
stations are operational. According to International Association for Natural Gas
Vehicles (IANGV) statistics, Pakistan is ranked third in the CNG-using countries
after Argentina and Brazil.

CNG Consultancy Services

HDIP is also offering consultancy services to the investors, which include the
whole range of activities like formation of company, selection of site, legal
formalities, design of station, specifications of the equipment, selection of
equipment, selecting and appointing the contractor, training of manpower,
commissioning and supervision, etc.

MARKET ANALYSIS

The commercial application of CNG technology now forms an important element of

Government’s petroleum policy, which is reflected in the efforts made by the
government
for installing 1400 CNG stations in the country and converting 1400,000 vehicles
on CNG fueling system till February 2007.

Target Customers

The target customers for the proposed project would be the vehicles running on CNG
fuel.

Market Demand

At present there are more than 1400,000 vehicles, which have been converted to CNG
fuel, and a large number of vehicles are further being converted. Due to the
increasing prices of petroleum products, the trend of converting cars to CNG
fueling system has been on a rise. However, there exist a large number of people
who were reluctant to convert their vehicles from petrol to gas due to safety
concerns. Recently, many
car manufacturers have started manufacturing the cars with built-in CNG fueling
system.
This change has led to enhancing the confidence in the minds of the general public
regarding the safety concerns, and now, more people are inclined towards
purchasing these factory-fitted CNG fueling system cars.

Market Supply

Total number of CNG stations in Pakistan is only 1450, which is quite low for
meeting the growing demand of CNG. Apart from these 1450 CNG stations, many new
CNG stations are being setup across the country.

Industry Growth

There has been a tremendous growth in the CNG sector over the yeas. The total
number of vehicles on CNG was 100,000 and CNG filling stations was 150 at the end
of year 2000. The number of CNG vehicles and CNG filling stations has increased to
210,000 vehicles and 220 stations respectively 2003 and by the year 2007 they have
tremendously grown up to 1450 CNG Stations and 1400,000 CNG fitted vehicles. The
growth in terms of percentage is given in the following table:

Growth Percentage of Vehicles

Year 2007 2009 2015 Percentage Increase

No. Of Vehicles on CNG 1400,000 1800,000 9200000 33%
CNG Filling Stations 1450 1550 3000 40%

The above growth rates present an opportunity for the new entrants to earn profits
by
setting up new CNG filling stations to meet the growing demand.

REGULATIONS, LICENSES AND INCENTIVES

License
Obtaining a license from Ministry of Petroleum and Natural Resources is a pre-
requisite for setting-up the CNG station. The cost associated with this license is
Rs.25,000.

Certificate (by HDIP)

After the installation of the required equipment for CNG filling station, HDIP
will inspect
the working of the equipment, and once satisfied, will issue a certificate
verifying that the
installed equipment is up to the required standards. The cost associated with this
certification is Rs. 35,000.

NOCs

No Objection Certificate will be required from the following departments prior to

the
commencement of the business:
• Concerned development authority of the city (Sialkot Development Authority in
case of Sialkot)
• Traffic Engineering and Planning Authority (TEPA)
• Traffic Police (SSP)
• Department of Civil Defense
• National Highway Authority (NHA)
• Central Board of Revenue (CBR)
• Civil Administration-Tehsil Municipal Administration (TMA)
• Irrigation Department
• Forest Department
• Explosives Department
The cost associated for obtaining the above NOCs is estimated at Rs.100,000.

Incentives

Sales Tax
The import of CNG equipment is exempted from sales tax vide SRO No.38 (1)/98 dated
21st January 1998 till June, 2005.

Custom Duty
The CNG equipment is also exempted from the custom duties as per the above-
referred
SRO.

Regulatory Requirements

Quality Certificate

SRO.38 (1)/98 dated 21st January 1998 has been amended on April 11, 2002 and the
“Quality Certificate” from original manufacturer has been made mandatory. This
certificate should state that the equipment meets the safety standard as laid down
in Pakistan CNG Rules 1992. The designated third party inspector witnesses this
Quality Certificate. The cost of third party inspection is $500.

List of Equipment

The list of equipment and their various manufacturers has also 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 the rate of 6%, is payable by the importer on the import of CNG
equipment.
Income Tax
The income of the CNG filling station is not exempted from the income tax. The
investor
has to pay tax on his/her income according to the nature of the business entity.
The current project is being operated as a private limited company, so the income
tax is payable at the rate of 45%.

Project Cost

The details of the cost of project are as follows:

Item Rupees
Land (9,000 Sq. ft) 17,000,000
Building – Civil Works 1,700,000
CNG Equipment 8,732,100
Stores & Spares 513,040
Office Equipment 100,000
Furniture & Fixtures 85,000
Gas Security 1,800,000
Preliminary Expenses 820,000
Working Capital 377,390
Total 31,127,530

Project Financing

The total cost of the project is Rs.31.13 million including the working capital of
Rs.0.377
million. The sponsors of the project will contribute Rs.15.56 million and the bank
will finance the remaining amount of Rs.15.56 million.

Project Details

Location
For setting up a CNG filling station, location is the prime factor. As per the
requirements of the Government of Pakistan, the filling station must be situated
in a commercial area. CNG filling stations are not allowed to be installed in the
residential areas.

Land
A minimum of nine thousand (9000) square feet of land with at least 75 feet front
opening is required for installing CNG filling station. An amount of Rs.17 million
has been allocated for the acquisition of nine thousand square feet of commercial
land in Daska in the areas of Jinah Chowk Daska.

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
Underground Gas Piping and Power Cables
Flooring
The total cost of construction is estimated at Rs.1.7 million. Details for the
said cost are as follows:

Construction Cost (Amount in Rupees)

Description Cost per Sq. ft. Cost

Office, control room, compressor and
Cylinder storage room, shed and toilet/washroom 500 1,125,000
(2,250 sq.ft)
Underground gas piping - 200,000
Flooring (6,750sq.ft) 45 303,750
Contingencies - 71,250
Total Cost - 1,700,000

Explosives 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 walls and compressor.
2. Minimum distance of one meter should be kept between compressor and
cascade/cylinders.
3. Fire rated walls3 must be used in the compressor and cylinder storage room.
4. Roof of the compressor and storage room should not be of permanent nature4.

Material Inputs

There are two main inputs required for the CNG filling station, one is the natural
gas and
the other is electricity. The sponsor of the project is required to obtain both
the connections from the relevant authorities i.e. WAPDA and Sui Northern Gas
Pipelines Limited (SNGPL) or Sui Southern Gas Pipelines Limited (SSGPL). The cost
associated with obtaining the gas connection is Rs.75, 000/-. In addition to this,
a minimum security
deposit of Rs.1.8million is also required to be deposited with the concerned
authority.
Bank guarantee is also acceptable in case of gas security. An amount of Rs.0.35
million is
required for obtaining electricity connection. There is no security deposit
required for the
electricity connection.

CNG 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 8 or 15 PSIG5 from the
main gas
supply with the outlet pressure of 3,625 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 cascades/cylinders are used to store the natural gas.
• Priority Panel for Vehicle Priority
During rush hours, the compressor is directly connected to the dispenser,
bypassing the
storage cascades/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 into the vehicles with the help of dispenser. This dual hose
dispenser is
capable of handling two vehicles at a time.
There are various foreign manufacturers providing the CNG filling station
equipment. In
this pre-feasibility report, a British origin compressor6 has been selected. This
equipment is selected because of its low electricity consumption, higher outlet
pressure, low
maintenance, durable working, longer periods between overhauls and good market
repute
and presence. Different gas pressures are available in different areas of Pakistan
from the main gas supply line. The pressure of 15 PSIG is not easily available at
every location. Where the gas pressure of 15 PSIG is not available, in that
situation, the model with inlet pressure of 8 PSIG is used, which has been
manufactured to operate at a lower gas pressure. However, the consumption of
electricity increases. The total capacity of the selected equipment is 400M3/Hr
with a total power load of 93 KW.
All the CNG filling station equipment is foreign manufactured and imported on the
specific requirement of the sponsor by the authorized agent. Usually, the
equipment is delivered within 12 to 16 weeks from the receipt of purchase order
and initial payment. The details of this equipment and accessories are available
in Annexure # 1.1.1.

Suppliers

The Central Board of Revenue (CBR) has specified the list of compressors, storage
cylinders, CNG vehicle cylinders, CNG machinery & equipment and conversion kits in
SRO 38(1)/98. For the convenience of investor, a list of some of the available
equipment
and machinery is given below:
Supplier’s Name Available Models
Rix Services, New Zealand 2JJS3G-178, FX-150, 3KX3G-40,
6W5G-150
Compare UK Ltd, UK Gazpack 36, Gazpack37
Norwalk Company Inc. USA C-75-3, C150-4, NQSV3
Sulzer Burckhardt Engg. Works Switzerland C40111S, C50214S
Hamworthy, Bellis & Morcom UK H430H-WL, H280H-WL, V130H-WL
Safe s.r.l Italy SW75SE-F1-EM, SW110SE-F1-EM,
SW110-F1-EM, SW132-F1-EM,
SW90F0, 35-EM
Hurricane, Grimmer Industries, USA CNG90, CNG 125, CNG250
Chengdu Jinxing Chemical Machinery and ZW-3.45/250JX, ZW-5.0/1-23, ZW-
Equiment Factory, China 5.52/0.5-250JX
Chonqing Air Gas Compressor Factory, China L-3.8/1-250, L-3/1-250, L-5/0.56-250,
L-2.9/0.56-250, L-4.65/0.56-250,
W3.8/0.56-250, W-3.8/1-250
Intermech Ltd. NewZealand RHINO PAR-75VE 4-8
RHINO PAR-1-DE 4-82
RHINO-PAR 150DE4-10
Unigas NewZealand Apollo VR-550
Compare Mahle GmbH, Germany 5409.2NG.EU
Sicom SRL , Italy 650.250.20-IFDE-23SE

Stores & 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 will be
imported along with other equipment to maintain a minimum level of spare parts.

Furniture and Fixtures

Furniture and fixtures mainly include tables, chairs, sofas, fans & lights,
carpet, curtains
and fire extinguishers. It is estimated that the furniture and fixtures of
Rs.85,000 would be purchased.

Office Equipment
Some office equipment is also required for the proposed project. A provision of
Rs.100,000 ha been made for acquiring the required office equipment.

Manpower Requirement
Manpower requirement for the CNG filling station includes manager, cashier,
dispenser,
operators, accountant, watchman and sweeper. The total staff strength would be 13
persons for the two shifts. The staff salaries for year one are as follows:

Human Resource Requirement

Designation No. of Salary per Total salary

Employees for per month per month (Rupees)
Two shifts
Manager 1 20,000 240,000
Deputy Manager 1 15,000 180,000
Accountant 1 6500 78,000
Cashier 2 10000 120,000
Dispenser 2 8000 96,000
Operator 6 15000 180,000
Security guard 2 6000 72,000
Sweeper 2 4000 48,000
Shop Keeper 4 10000 120000
Tyre shop 3 9000 108000
Work shop 2 15000 180000
(mechanic)
Total 14,22,000

BASIS FOR FINANCIAL PROJECTIONS

Inflation Rate

10% inflation rate has been considered while making the projections for cost of
sales,
Operational expenses and salaries. The prices for gas, electricity, operational
expenses and staff salaries are increased by 10% every year as a result of
inflation.
The selling price of gas has been increased by 5% every year.

Revenue Assumptions

No. of Cars
Based on the survey of some CNG stations in Sialkot, the number of cars assumed
for
revenue projections is as follows:

Detailed Projected Increase in Cars

Years No. Of Cars

1 202
2 303
3 363
4 435
5 522
The average number of cars in the first years is estimated at 202 cars per day,
starting from 120 cars per day in the first month and going up to 290 cars per day
in the 12th month.. In the second year, it has increased to 303 cars per day.
After second year, number of cars is increasing at a rate of 20% till fifth year
because the project would be in its growth stage. An increase of 15% has been
considered from sixth year, because at that time, the project would be at its
maturity stage.

Gas per Vehicle

Currently, the CNG cylinders with two different capacities are installed in the
CNG fitted
cars. One type of cylinder has a capacity of 40 kg and the other has a capacity of
50 kg.
Gas of 6.6 and 11.12 cubic meter can be filled in the cylinders of 40kg and 50kg
respectively. A weighted average of 9.31 cubic meters of gas per vehicle has been
taken for the revenue calculations.

Average Volume
Cylinder Type Volume Percentage Use
(Cubic meters)
40 kg 6.6 40%
50 kg 11.12 60%
Weighted Average Volume 9.31 cubic meters
Depreciation on Assets
Accounting Profit

Depreciation on the assets has been charged at the following rates for the
calculation of
accounting profits:

Depreciation Rates

Building 5%
CNG Plant & Equipment 10%
Office Equipment 10%
Furniture & Fixture 10%

Taxable Profit
For the purpose of calculating taxable profit, depreciation is calculated on the
rates as per
the Income Tax Law, which is as follows:

Tax Adjustments
Land 0%
Building 5%
CNG Plant & Equipment 10%
Office Equipment 10%
Furniture & Fixture 10%

First Year Allowance

Other than the normal depreciation allowances, first year allowance is also
provided on the newly installed CNG plant and equipment for the purpose of
providing benefit to the
entrepreneur. The first year allowance is calculated at 40% of written down value
of CNG plant and equipment.

Multiple Shift Allowance

In addition to normal depreciation and first year allowances, multiple shift

allowance is
also provided for the plant and machinery, which operates on double or triple
shift basis. In this proposed project, CNG plant will run on two-shift basis
during the whole year. So
multiple shift allowance is calculated and added to the depreciation of CNG plant
and
equipment for all the ten years. Multiple shift allowance has been taken as 66.6%
of the
normal depreciation allowance.

Amortization of Preliminary Expenses

Preliminary expenses amounting to Rs.895, 000/- will be amortized at the rate of
20% per
annum.

Working Capital
Working capital is calculated on the basis of following assumptions:

Accounts Receivables
Mostly, the sale of CNG is on cash basis. However, some CNG stations do offer a
credit
facility to reputable companies on agreed terms and conditions. Therefore,
receivables are estimated at 6% of the total sales amount.

Advances to Employees
Advances to employees are calculated on the basis of 30 days of both payroll and
staff
benefits.

Accrued Utilities and Power Expenses

Normally, it would take 20 days to deposit the utilities (electricity, water and
telephone)
bills. Therefore, utility expenses for 20 days have been taken as the basis for
working
capital computation.
Accounts Payable
Cost of gas and electricity for 20 days has been considered in calculating
accounts payable.

Sales Tax Payable

Every company is required to deposit the amount of sales tax collected from the
consumers, within 14 days. The same has been taken as the basis for calculating
the amount of sales tax payable.

Sales Tax

The sales tax levied by Government of Pakistan is charged to the customers at the
rate of
15% on the sale of gas. These funds are deposited after every 14 days in favor of
Government of Pakistan.

Ratio/Financial Analysis
The figures for the rate of return on investment and return on equity are averaged
for the
first five years to make it more reasonable.

Financial Analysis

Project Cost RS. Rs.

Asset

Land
CNG equipment
Civil work
Store & Spare parts
Office equipment
Furniture & Fixture
Stock on shopping store

Advance & security

Gas connection and security

Preliminary Expenses

Gas connection & installation charges

Electricity charges
Local expense
License from MOP
Registration of company
Inspection Fee(HDIP)
Other Approval(NOC)
Travel & conveyance
Other expense

Working capital

Total Assets
Total capital
Equity 100%
Debt 0%

Total Capital

6000000
14000000
4000000
800000
100000
130000
500000

200000

300000
100000
25000
85000
25000
85000
35000
30000

30,000,000

2,30,30000

1000000
2,74,25000
25,75,000

30,000,000

Sale forecasting for Akram CNG Filling Station

For the year 2006-2007

Description
Total number of Vehicles in target market
Total number of CNG vehicles
Direct competitors
Indirect competitors
Total number of competitors
Total number of vehicles we cannot attract
Total number of vehicles attract by us
Total number of vehicles (per day)

11
14

7,00,000
1,75,000

25
4,25,000
28,000
270

Per day sale:

Total number of vehicle * Price
 270 * 150
Sale per day = Rs. 40,500

Monthly sale:
Per day sale * number of a days in week
40500 * 30
= 12, 15,000

Annual sale:
Monthly sale * number of months
12, 15,000 * 12
= 1, 45, 80,000

Sales Forecasting for Pick ‘n’ Pay Shopping center

Descriptin

Total number of customers

Total numbers of customers in respective area
Customers that can be attract
Customer willing to buy
Share of competitor(60%)

No. of customers we facilitate (annually)

700000
350000
225000
125000
75000

50000

Annual Sale:

No. of customers * Average sale

50000 * 150

= Rs.75,00,000

Income statement

Akram CNG filling station and shopping center

For the year ended 2006-2007

Contents Rs. Rs.

Sales of CNG
Sale of departmental store
Total Sales
Less
Cost of sale
Purchases
Gross Profit
Less Operating expenses
Administration expense
Marketing Expense
Total Operating Expense
Operating profit

Financing Cost
Depreciation on
Building @ 5%
CNG Equipment @ 10%
Furniture & Fixture @10%
Office Equipment @ 10%
Amortization on Preliminary Expense @ 10%
Total Financing Expenses
Net Profit before Tax
Tax @ 15%
Net Profit after Tax 14580000
7500000

9525000
0

1564200
20000

200000
1400000
13000
10000
85500

1389345

22080000

9525000
12555000

1584200
10970800
1708500
9262300
1389345
7872955

Cash Flow Statement

Akram CNG filling station

(For the year ended 2006-2007)

Description Rs. Rs.

Net Profit

Cash flow from operating activities

Description:
Building @ 5%
CNG Equipment @ 10%
Furniture & Fixture @ 10%
Office Equipment @ 10%
Amortization on Preliminary Expenses

Cash generated from operating activities

Cash flow from Investing activities

Nil
Cash flow from financing activities

Cash outflow from dividend paid @ 20%

Cash used in Financing activities
Net cash flow during the year

200000
1400000
13000
10000
85500

(1574591)
1708500
9581455

(1574591)

8006864

Balance sheet for Akram CNG station

(For the Year ended of 2006-2007)

Liabilities Rs. Assets Rs.

Current Liabilities

Creditors
Utility bills payable
Sales tax payable

Long term Liabilities

Capital 30000000
+ Net Profit 7872955
37872955

- Retain Earning 4651921

33221664
33221664 CURRENT ASSETS

Accounts Receivable
Cash
Inventory in shopping store
Advance Salaries

FIXED ASSETS
Land
Building (after depreciation @ 5%)
Office Equipment (after depreciation @ 10%)
Furniture & Fixture (after depreciation @ 10%)
CNG Equipment (after depreciation @ 10%)
Store & Spares (after depreciation @ 10%)
Preliminary Expenses write off @ 20%

OTHER ASSETS
Security

874800
8006864
600000
400000

6000000

3600000

80000

104000

11200000

640000

716000

1000000
33221664

Shell CNG Filling Station

The shell CNG that is located in the area of satellite town on the Sialkot road is
running from the last 5 years. It considered the oldest CNG station of this area.
The owner and work force is well educated regarding their field of working. This
CNG station covers the area of 12 to 15km around it. The daily turn-over of cars
is approximately 250 to 300. The average filling is about 2200 kg per day and the
price per kg is 33.75. The daily generated revenue of CNG station is about 80,000.

Standards:
• The standardized pressure that set by the HDIP is 200 bars. The pressure
exceed than this limit will be dangerous.
• The storage that includes 40 cylinders can fill 12 to 15 cars with in 15 to
20 min’s on the standby position.
• Companies CNG are better than private companies CNG due to predefined rules
and standards.

Quality:
• The temperature of compressed chill gas is about 30 to 32 degree centigrade.
• The quality can be measured through checking the sound consistency of
pressure while filling in the vehicle.

Strength of CNG Station:

Location in Satellite town
Have human and capital to move with trends
Select shop is available
Company CNG

Weaknesses of CNG Station:

Single dispenser
Minimum capacity equipment
Lack of a Strategic Management System
Old equipment

Opportunities of CNG Station:

To open another CNG station
Increase the capacity of the equipment
Increase the number of dispensers
Move to LPG station
Demand of CNG increasing day by day

Threats of CNG:
Competitor may come
Government rules and regulations
Rapid change in the technology
Decrease the price of petrol
Government instability

Matrix Analysis

SWOT Analysis
Strength of CNG Station:
Location in Satellite town
Have human and capital to move with trends
Select shop is available
Company CNG

Weaknesses of CNG Station:

Single dispenser
Minimum capacity equipment
Lack of a Strategic Management System
Old equipment

Opportunities of CNG Station:

To open another CNG station
Increase the capacity of the equipment
 Increase the number of dispensers
Move to LPG station
Demand of CNG increasing day by day

Threats of CNG:
Competitor may come
Government rules and regulations
Rapid change in the technology
Decrease the price of petrol
Government instability

EFE Analysis (Shell CNG)

Opportunity Weight Rating Weighted Score

To open another CNG station 0.10
Increase the capacity of equipment
Increase the number of dispensers
Move to LPG station 0.05
Capture the increasing demand of CNG
Threat
Competitor may come 0.20
Governmental rules and regulations
Rapid change in technology 0.05
Decrease in the prices of petrol
Governmental instability 0.10
2 0.20
0.15 3 0.45
0.15 4 0.60
2 0.10
0.05 2 0.10
4 0.80
0.10 2 0.20
3 0.15
0.05 2 0.10
4 0.40

Total 1.00 3.10

IFE Analysis (Shell CNG)

Strengths Weight Rating Weighted Score

Station located in Satellite Town 0.15 4 0.60
Have human and capital 0.10 3 0.30
Store is also available 0.10 4 0.40
Petrol pump is also available 0.10 3 0.30
Company CNG 0.05 3 0.15
Weaknesses
Single dispenser 0.20 4 0.80
Minimum capacity equipment 0.15 3 0.45
Lack of a Strategic Management System 0.05 3 0.15
Old equipment 0.05 4 0.20

Total 1.00 3.35

Competitive Profile Matrix

Iqra CNG Pak CNG

Critical Success Factors Weight Rating Score Rating
Score
Management 0.20 4 0.80 3 0.60
Financial Position 0.20 3 0.60 3 0.60
Customer Loyalty 0.10 3 0.30 4 0.40
Expansion 0.10 1 0.10 1 0.10
Market Share 0.10 2 0.20 3 0.30
Equipment 0.20 3 0.60 3 0.60
Gas Quality 0.10 2 0.20 4 0.40

Total 1.00 2.8 3.00

TOWS Matrix

Strengths Weaknesses
o Location
o Human & Capital
o Select Shop
o Petrol pump
o Company CNG o Single Dispenser
o Minimum Capacity
o Lack of Management
o Old Equipment
Opportunity
o Open another CNG Station
o Increase capacity
o Increase Dispenser
o Move to LPG
o Increased Demand SO
o Increase Capacity
o Increase Dispenser
o Provide Supply as Per Demand WO
o Open New CNG Station
o Purchase New Equipment
Threats
o Competitor may come
o Govt. rules & regulations
o Rapid change in Technology
o Decrease prices petrol
o Govt. Instability ST
o Bring New Technology
o Open New CNG Station WT
o Provide Better Services
o Focus Toward Petrol Pump

SPACE Matrix

Rating
Financial Strengths
Company have working capital 4.0
Company easily sale CNG equipment 3.0
Total 7.0
Competitor Advantages
Have select shop -4.0
Product quality is well -3.0
Customer Loyalty -3.0
Total -10
Environmental Instability
Political Instability -4.0
CNG installation is costly -3.0
Technology changing -3.0
Total -10
Industry Strength
Government support 4.0
Competition in the Market 4.0
GAS is easily available as raw material 3.0
Total 11

Conclusion:

FS average is 7/2 = 3.50

CA average is -10/3 = -3.33
ES average is -10/3 = -3.33
IS average is 11/3 = 3.6

X-axis = 3.6 + (-3.33) = +0.27

Y-axis = 3.50 + (-3.33) = +0.17

BCG Matrix

Revenue = 85000
Profit = 10000, 20%
RMS = 0.60
Industry Growth = +10%

Cows

Dogs

The Internal-External Matrix

IFE = 3.35
EFE = 3.10

2
3

5
6
7

8
9

Super Doper Matrix

QSPM Matrix
Strategic Alternatives
Market Development Product Development
Critical Success Factors Weight AS TAS AS
TAS

Opportunities
To open another CNG station 0.10 4 0.4
1 0.1
Increase the capacity of the equipment 0.15 3 0.45
4 0.6
Increase the number of dispensers 0.15 3 0.45
4 0.6
Move to LPG station 0.05 4 0.2
1 0.05
Demand of CNG increasing day by day 0.05 4 0.2
4 0.2

Threats
Competitor may come 0.20 4 0.8
4 0.8
Government rules and regulations 0.10 4 0.4
4 0.4
Rapid change in the technology 0.05 4 0.2
4 0.2
Decrease the price of petrol 0.05 3 0.15
2 0.1
Government instability 0.10 3 0.3
2 0.2

Weaknesses
Single dispenser 0.20 -
- 4 0.8
Minimum capacity equipment 0.15 - -
4 0.6
Lack of a Strategic Management System 0.05 4 0.2
4 0.2
Old equipment 0.05 3
0.15 4 0.2

Strengths
Location in Satellite town 0.15 1 0.15
4 0.6
human and capital to move with trends 0.10 4 0.4
4 0.4
Select shop is available 0.10 2 0.2
3 0.3
Petrol Pump is also available 0.10 - -
3 0.3
Company CNG 0.05 3 0.15
2 0.1
TOTAL
4.8 6.15

The high score shows that with present Strengths, Weaknesses, Threats and
Opportunities the Company should do Product Development on Shell CNG Sialkot Road
Gujranwala.