Friday, April 13, 2012

Compressed Natural Gas for Power Generation in Nigeria

By Abimbola Shode

The erratic nature of electricity supplyfrom the Power Holding Company of Nigeria (PHCN)has created the need for industrial and large scale consumers of electricity to resort to self-generation, utilizing natural gas or liquid fuels, to augment power supply. Natural gas is composed mainly of methane (CH4)and has some attractive properties – it is a cleaner, safer, cheaper and more reliable alternative to conventional fuels like diesel, petrol and LPFO, especially for industrial and commercial users. 

Compressed Natural Gas (“CNG”) is made by compressing natural gas to less than 1% of the volume it occupies at standard atmospheric pressure. CNG can be stored in steel or composite containers at a pressure of 200–248 bar (2900–3600 psi), usually in cylindrical vessels for storage and transportation over short/medium distances (10km to 100km on average). 
Why CNG for power-generation? 

CNG provides a platform for meeting the gas supply needsof a captive power plant utilizing natural gaswhere the cost of connecting to a pipeline network is not economical. This may be based on the customers’ volume requirements or the distance from the gas pipeline grid. 

CNG Value Chain 
CNG is produced from natural gas. The typical value chain of processes that underlie the conversion of pipeline natural gas to CNG is shown below: 

1. Sourcing of natural gas from the pipeline - A new spur line is constructed to connect the CNG plant location to the existing gas pipeline via the shortest route. 

2. Mother Station - Natural gas supply (post filtration and metering) is then fed into dryers to remove any form of moisture from it. The gas is thereafter fed to the compressor. The compressor serves mainly to increase the pressure from the pipeline pressure to the desired pressure for CNG, in this case from 7-19 barg to 200-300barg). 

3. Transportation and Storage - After the compression, the compressed gas is ready for dispensing directly to the tube trailers for transfer to the customers. When no trailers are available to load, the compressed gas shall be stored in steel cylinders, arranged in crates. These crates can be loaded directly on trailers subsequently.These trailers are then attached to truck-heads and driven to customer locations. 

4. Gas fired power plant - Upon arrival at the customer location, the CNG trailer will be attached to a pressure reduction and metering station where the pressure would be reduced before it is then fed to the Gas fired plant for power generation. 

Figure 3: CNG value chain 

Power Generation using Natural Gas 
Power generation using natural gas can be done with gas turbines or gas engines. Gas engines are preferred to gas turbines for smaller scale captive power generation because they are less expensive and more efficient. Gas engines require longer service intervals, maintenance-friendly engine design, and low fuel consumption. 

 Gas turbines are however useful when dealing with power generation on a scale ranging from 11MW and above. Gas turbines offer high reliability, operational flexibility and reduced emissions.For captive power generation; mono-fuel, bi-fuelor multi-fuel engine configurations are recommended depending on the requirements of the user. 

Mono-Fuel Engine 
The mono-fuel engine uses natural gas as its only fuel source. It is therefore able to be optimized for natural gas operation and the lowest emission results.The reduced wear and tear and reduction in maintenance and fuel costs are most significant with mono-fuel engine configurations. The major disadvantage of this engine configuration however is there is no provision for back-up in event of gas outages. There is also the added comfort of dealing with only one type of fuel. 

GE Jenbacher 320 GS – 1,063KW (Single-fuel) 
Bi-Fuel Engine
Bi-fuel natural gas engines are designed to run on a mixture of natural gas and a liquid fuel. The primary fuel is natural gas but they are designed to operate with the liquid fuel as a ‘pilot’ ignition source. These engines can also operate on 100% liquid fuel but not on 100% natural gas. The major advantage of having bi-fuel engine configuration is the ability to switch to a liquid fuel in the event of gas outages. 

GE Jenbacher 320 GS – 1,063KW (Single-fuel) 
Multi-Fuel Engine
Multi-fuel engine configuration involves the use of an engine that can run on gas and at least two other liquid fuels such as LPFO and Diesel. For any captive power solution, a multi-engine configuration is preferred to allow for load management, optimization of fuel consumption and protection against total shutdown in the event of the failure of an engine. Multiple engines running can be synchronized to give the desired output. A multi-engine configuration also makes scaling up easier when demand increases. Furthermore, both engine types can be used for cogeneration, which involves capturing waste heat for use in heating or cooling purposes. Cogeneration enhances efficiency and hence leads to increased savings on fuel costs. 

Gas Network Services Limited 
Gas Network Services Limited, a subsidiary of Oando Gas & Power Limited is developing a Compressed Natural Gas (CNG) Mother-station (CMS). The facility will have an initial capacity of 150mmscm/d and be constructed on land acquired at Ilasamaja in the Isolo area of Lagos State. The facility is expected to commence operations in Q4 2012. The CMS will feed tube trailers for re-distribution to prospective captive power off-takers 
How do I get CNG for Power Generation? 
- Provide and prepare site for CNG storage (Jumbo trailers) 
- Construct internal piping for CNG delivery and off-take 
- Negotiate and Agree Commercial Terms (Natural Gas Sale and Purchase Agreement). 
- Execute Agreement 
- Project Execution and Delivery 

Contact Persons 
Should you require further clarifications on CNG for power generation, please feel free to contact: 

Tel: 0809 709 9504 


  1. This comment has been removed by the author.

  2. How readily available is CNG to consumers for both power generation and automobile usage?

  3. I would like to know more about CNG and important terms used...thanks

  4. It is quite interesting, given that Nigeria has a high deposit of natural gas, and our propensity for future growth. Don't forget also that gas is the future's fuel. Wish I could have more info.

  5. I really like reading through an article that will make people think.
    Also, thanks for allowing for me to comment!


  6. Dear Sir,

    We are Providers of all types of BG and MTN with the best workable procedures. Our BG ranges from MT799, MT760,(Both two way confirmation), MT103/23, MT103 (Both can be one way confirmation and two way confirmation) in USD and EUROS. Issuing Bank ranges from Top world 25 banks with face value ranging from 5M EUROS/USD to IB EUROS/USD

    Intermediaries/Consultants/Brokers are welcome to bring their clients and cases to our attention and in complete confidence we will work together for the benefits of all parties involve

    For further details contact us with the below information Thank you.

    Mr.Almutairi Abdulrazaq
    For further inquiries:
    Contact Email :
    Skype: broker.mutairi

  7. Interesting article! Even though, Nigeria have lots of natural resources for power generation, it is sad and bitter truth that Nigeria remains in the dark almost everyday!

  8. Sir

    We arrange Following Bank Instruments
    Letter of Credit ( LC)
    From Various Banks in Singapore / HongKong / Europe /USA
    Used For Import / Export Business and Trade Finance .
    Bank Guarantee ( BG )
    Fresh Cut
    Slightly Seasoned
    Stand By Letter of Credit ( SBLC )
    90DAYS / 180/ 365DAYS
    Mr Ronald Rajnesh Gounder
    Skype ID: grounesh.advisory

  9. We are direct providers of fresh cut bg, sblc, mtn, bonds and cds which we have specifically for lease. we do not have any broker chain in this offer or get involved in chauffer driven offers. you are at liberty to engage our leased instruments into trade programs as well as in other project(s) such as aviation, agriculture, petroleum, telecommunication, construction of dams, bridges and any other project(s) etc you can use these bank instruments for private placement platforms, commercial loan, business loans, credit lines and much more.

    For further details contact us with the below information....

    Contact : Mr. Wong Man
    Skype ID: reliablemandate

  10. I can deliver leased instruments to Organization or individuals, Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects with their preferred text verbiage as been approved by their bankers. We also proffer-sales option to interested buyers. Our terms and procedures are so flexible and workable by RWA clients. Our lease rate is (5.0 + 1)%+x%. X% IS Lessee broker's Commission and he determines his commission.If Interested kindly contact
    Thank you


  11. Dear Sir/Ma,

    We have direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease. Our bank instrument can be engaged in PPP Trading, Discounting, Signature Project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, Construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer neither do we get involved in chauffer driven offers. We deliver with time and precision as set forth in our agreement. Our terms and Conditions are reasonable, below is our instrument description.

    1. Instrument: Bank Guarantee (BG/SBLC)
    2. Total Face Value: Min of 1M Euro/USD (One Million Euro/USD) to Max of 5B Euro/USD (Five Billion Euro/USD).
    3. Issuing Bank: HSBC, London or Deutsche Bank Frankfurt or any Top 25 WEB
    4. Age: One Year, One Day
    5. Leasing Price: 5.0% of Face Value plus (0.5+X)% commission fees to brokers.
    6. Delivery: Bank to Bank SWIFT.
    7. Payment: MT-103.
    8. Hard Copy: Bonded Courier within 7 banking days.

    Brokers are welcome to bring their clients and are 100% protected. In complete confidence, we will work together for the benefits of all parties involved.All relevant business information will be provided upon request.

    If Interested kindly contact me via Email:~
    Skype ID: bgjan.farnholt
    Jan Jacob Farnholt

  12. We are broker firm in London-UK, we have direct Provider of BG/SBLC specifically for Lease, The provider is tested and trusted. We have been dealing with the company for the past 6years. Interested Agent/Lessee should contact us for directives.If you have need for corporate loans, international project funding, etc. or if you have a client who requires funding for his project or business we have all available.

    For further details contact us with the below information....

    Contact : Mr. Wong Man
    Skype ID: reliablemandate