Scribd
Upload
419 views9 pages

CNG Cost Breakdown and Pricing Analysis

This document outlines the components that make up the cost of compressed natural gas (CNG) for vehicles. It discusses the gas bill which includes the cost of the natural gas commodity and delivery fees, electric compression costs, maintenance costs, and capital costs associated with amortizing the cost of CNG station equipment over its lifespan. Based on average costs, it estimates that the subtotal for these components is $1.45-$1.80 per gas gallon equivalent (GGE) for sales to tax-exempt entities and $1.63-$1.98 per GGE for sales to taxable entities. The Midwest average CNG price according to the US DOE was $1.82-$2.03 per G

Uploaded by

Reno Saibih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
419 views9 pages

CNG Cost Breakdown and Pricing Analysis

This document outlines the components that make up the cost of compressed natural gas (CNG) for vehicles. It discusses the gas bill which includes the cost of the natural gas commodity and delivery fees, electric compression costs, maintenance costs, and capital costs associated with amortizing the cost of CNG station equipment over its lifespan. Based on average costs, it estimates that the subtotal for these components is $1.45-$1.80 per gas gallon equivalent (GGE) for sales to tax-exempt entities and $1.63-$1.98 per GGE for sales to taxable entities. The Midwest average CNG price according to the US DOE was $1.82-$2.03 per G

Uploaded by

Reno Saibih
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

86

Nationwide CNG Average Cost

*Source:

US DOE Quarterly
Price Report:
January 2013

Differential between gasoline/CNG as high as $2.50 in Spring 08

Components of CNG Cost


Gas Bill:
Unregulated / Market Priced Gas Commodity
Regulated local gas distribution company services

Compression
Electric motor KWH and KW OR engine driven units natural gas
use

Station Maintenance
Normal PM, scheduled replacement of parts, compressor rebuilds

Capital /equipment amortization


Amortized cost of equipment or cost of capital factored into GGE price

Federal, state and local excise fuel taxes (if


applicable)

Tax is paid by the fuel seller; tax status of buyer determines

Margin/Profit

Components of CNG Cost


Gas Bill: $.60-.65/GGE
Gas Commodity: ~$.40/GGE
(based on estimated average purchase price of
$3.20/MMBtu check with your utility representative for
actual tariffs in effect)
Pipeline/gas acquisition/marketer services + local gas
company city-gate-to-meter service : ~$0.20-.25/GGE

Components of CNG Cost


Gas Bill: $.60-.65/GGE (based on avg MMBtu cost of $3.20)

Electric compression costs


Gas delivered to the customer has to be compressed.
Most stations use electric motors although many larger stations
use natural gas engine-drive compressors (depends on local
regs).
Be sure to factor in both KWH consumption and KW demand
Estimated @ 1 fully-loaded KWh/GGE a bit less for larger
stations and more for small stations
Varies significantly from one utility area to the next
Natl range:$.04 -.30/KWH Rates vary: ~$.10/GGE

Components of CNG Cost


Gas Bill: $.60-.65GGE (based on avg MMBtu cost of
$3.20)
Electric compression costs:$.10/GGE

Maintenance--CNG stations require regular


preventative maintenance/ service and occasional
rebuilds of compressors and replacement of other parts.
Cost per GGE will vary based on total throughput
(generally, larger throughput = less cost/GGE due to
economies of scale)
Maintenance/Repair/Service: $.30-.65/GGE.: $.40/GGE*

Components of CNG Cost


Gas Bill: $.60-.65/GGE (based on avg MMBtu cost of $3.20)
Electric compression costs: $.10/GGE
Maintenance/Repair/Service: Assume average of $.40/GGE
Capital amortization of equipment: $.35-.65/GGE
Station cost divided by total GGE over life of equipment
Depreciation term will affect this cost (5 yrs,7 yrs,10 yrs,
10+?)
Cost of capital
Utilization factor (what % of capacity is actually utilized)
Ex: 20 veh. x 15 GGE/day x 5 days/wk = 1500 GGE/wk =~80,000 GGE/yr
80,000 GGE/year x 10 yrs = 800,000 GGE
If 100 scfm 20-post time-fill station cost is $400K, then $.50/GGE

Components of CNG Cost


Gas Bill: $.60-.65/GGE (based on average MMBtu cost of
$3.20)
Electric compression costs: $.10/GGE
Maintenance/Repair/Service: $.40/GGE
Capital amortization of equipment: $.35-.65/GGE
SUB-TOTAL:
$1.45 $1.80 (sales to tax exempt entities)
$1.633 $1.983 (sales to taxable entities)
(*Note: Currently not Ohio excise taxes on non-liquid fuels)

Midwest Average CNG Price


CNG (GGE/DGE) Midwest Average =

$1.82 - $2.03 (DOE Q1 2013)


Basis: $[Link] MCF @ city gate,
$.10 LDC transportation fee,
$.15kWh/gge compression,
$.25/gge maintenance,
$.35-.60/gge capital &
equipment amortization

You might also like