The pseudopotential in Shan and Chen-type multiphase models was investigated and modified based on a virial equation of state with newly proposed parameters. This modified pseudopotential was used in a lattice Boltzmann model and shown to be suitable for simulating sufficiently large gas-liquid density ratios with good numerical stability and only small spurious velocities. The spurious velocity was reduced by reducing the pseudo-sound speed by the use of suitable parameters. The multicomponent multiphase model based on this modified pseudopotential can be used in bubbly flow simulations. Bubble rise behavior was simulated using a 3D multicomponent and multiphase model with a high density ratio. The predicted terminal velocity and drag coefficient of a single bubble agreed well with those calculated from empirical correlations. The drag coefficient of bubbles in the homogenous regime decreased with increased gas holdup. A new relationship between the bubble drag coefficient and gas holdup in the homogenous regime was proposed. (C) 2010 Elsevier Ltd. All rights reserved.