Feasibility Study Of Compressed Natural Gas (cng) Application In Oil And Gas Operations

Abstract

This study conducted for Imaginea Energy takes the form of a high level assessment of the energy, environmental and economic impacts of making a clean fuel switch away from diesel/gasoline and propane to locally sourced Compressed Natural Gas (CNG). Given the affordability and abundance of natural gas in Canada, this study assesses whether a clean fuel switch is worth making. This study is conducted through the help of CNG industry professionals, guidance from Imaginea Energy and references from several literature reviews that shed light on the application of CNG. There are three proposed alternatives in this study from which a recommendation will be made. The three alternatives include Alternative 1: Status Quo, Alternative 2: Switch to CNG with Vendor and Alternative 3: Switch to CNG without Vendor. While Alternative 2 and 3 have the lowest GHG emissions, Alternative 3 was the recommended alternative given its reduction in energy intensity as well as a shorter payback period. It should be noted that this recommendation was made within the context of this study, which had several limitations as well as assumptions. As such, a more micro-level assessment should be conducted in order to strengthen this study’s recommendation.