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Post -Subsidy Alternative Fuels in Nigeria, a CNG / LPG Autogas Cost and Efficiency Comparison with Petrol

Dharmattan Gas and Power Ltd., has researched the comparison between Propane LPG and Compressed Natural Gas (CNG) for the purpose of potential use in Nigeria. The company’s findings are captured below:

Propane auto gas (LPG) and compressed natural gas (CNG) are two alternative fuels that can power vehicles with lower emissions and lower fuel costs than gasoline or diesel. However, there are some differences between them that may affect the total cost of ownership and operation as described below.

  1. Initial cost of the vehicle and the fueling infrastructure.

Propane auto gas vehicles are typically cheaper to purchase and convert than CNG vehicles, and they can use existing gasoline tanks and fuel lines with minor modifications. CNG vehicles require more expensive tanks and fuel lines that can withstand high pressure, and they may need additional engine modifications. Propane auto gas fueling stations are also more widely available and cheaper to install than CNG stations, which require compressors and storage tanks.

  1. Fuel efficiency and performance of the vehicle.

Propane auto gas has a higher energy density than CNG, which means it can deliver more power and range per unit of fuel. Propane auto gas vehicles also have similar performance to gasoline vehicles, while CNG vehicles may experience a slight loss of power and acceleration. However, CNG has a lower carbon content than propane auto gas, which means it produces less greenhouse gas emissions per mile.

  1. Maintenance and safety of the vehicle and the fueling system.

Propane autogas and CNG are both cleaner burning fuels than gasoline or diesel, which means they can reduce engine wear and tear and extend the life of the vehicle.

Propane autogas and CNG are both cleaner burning fuels than gasoline or diesel, which means they can reduce engine wear and tear and extend the life of the vehicle.


The primary technical aspect of the proposed conversion is to note that there are two types of conversion kits namely: the VENTURI kit and the SEQUENTIAL kit.

Differences between the Venturi kit and Sequential kit for CNG and Propane Conversion


  1. Tank
  2. Filler
  3. Injectors
  4. Valves
  5. Hoses and Pipes
  6. Mixer
  7. Converter

Manuel Fuel Selector Switch or ECU






Gasoline Gallon Equivalent (GGE)

It is a unit of measurement used to compare the energy content of alternative fuels to that of a gallon of gasoline. It represents the amount of energy contained in a fuel that is equivalent to the energy contained in one gallon of gasoline.

1GGE = 1Galllon = 125,000 BTU


Developing a single CNG filling station costs approximately 6 times the cost of a single Propane Autogas (LPG) station Converting a vehicle from petrol/diesel to CNG costs 1.3 times the cost of converting to Propane Autogas(LPG) LPG filling infrastructure currently exists in many petrol stations for the sale of cooking gas, unlike CNG filling infrastructure that currently exist in only a handful of locations nationwide.

Co-locating LPG filling infrastructure with existing petrol stations is already widely practiced making its adoption for vehicle fueling relatively seamless.

CNG price per energy unit is slightly higher than current petrol price, Propane price is higher, while petrol price is expected to be higher after removal of subsidy, assuming a price similar to diesel of N700/litre

Nigeria Struggles for Self Sufficiency in Domestic LPG Production

ANOH’s planned output is lower than widely anticipated

Nigeria is booking a growing number of “proposals” for construction of Liquefied Petroleum Gas (LPG) production plants.

But the expected increase in local output is far behind the anticipated surge in consumption of the product.

Investments in domestic production of LPG do not match those set aside for storage, terminals and distribution, according to findings by Africa Oil+Gas Report.

There are claims that Nigeria had the fastest growing LPG sector in the world with a projected LPG market size of $10Billion, as the annual per capita consumption of LPG had risen from 1.8kilogramme (kg) in 2015 to 5kg in 2021.

Although NLNG Ltd, the dominant local producer of LPG, announced that it would commit all of its LPG output for 2022 to the domestic market, there’s a chance that the so called 100% would not match the volume the company sold to the Nigerian market in 2021, because the company is receiving far less volume of feedstock gas in 2022 than it received in 2021, in part because of drop in crude oil output, whose associated gas it converts to its products.

Here’s a list of other local producers, their volumes as well as ongoing projects.


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