Egypt Country Report July 06

Egypt is considered the leading country in the NGV industry in middle east and Africa as it is ranked one of the first ten countries in the number of converted cars all around the world. There are 65,432 cars converted on the road now with 99 fueling stations and 22 conversion stations. Nine refueling station currently under construction and monthly gas sales average: 22.290 million m3, there are six companies working in this industry.

Two public companies:

1. NGVC
2. GASTECH.

Four private companies:

1. SHELL EXPRESS.
2. TOTAL EGYPT.
3. Arabia Gas.
4. Master Gas

Fuel prices are as the following:
Premium gasoline: 0.19 Euro/litre
Regular gasoline: 0.13 Euro/litre
Diesel: 0.08 Euro/liter
CNG: 0.06 Euro/m3

The Egyptian Government provides support for NGV programs through the following initiatives:-

1 – The Ministry of Petroleum was the catalyst that acted to begin the CNG commercialization process. They shared the industry’s vision that utilizing CNG as a transportation fuel would have a positive impact on Cairo’s air quality and improve the health of its people. In addition, the Petroleum Ministry recognized that establishing a new customer segment (transportation fuels) for Egypt’s abundant natural gas supply could promote domestic energy security and allow for the export of crude oil and refined petroleum products that would be displaced by the use of CNG.

2 – To stimulate the rate of CNG market development, the General Authority for Investment (GAFI) with the support of the Petroleum Ministry grants a five-year tax holiday to each approved CNG company. This greater profit contribution can then be reinvested to accelerate the number of available CNG fueling stations for our customers.

3 – After a long study made by the Petroleum Ministry during the first quarter of 2003, Egypt’s CNG industry implemented a new “Gas Card” system. All customers who have outstanding conversion loan balances, and all new financed conversion customers, will begin paying the gasoline price each time they fuel with the difference being credited against their receivables’ balance. This is more convenient for customers as it eliminates their need to make monthly payments. The new scheme will also not have any social impact in case the conversion for a specific segment is mandated through decrees. Some high fuel use customers will pay off their conversion loans from fuel savings in as little as six months.

4 – With Egypt expected to reach 100,000 converted vehicles by 2007, the Ministry of Petroleum is currently preparing the CNG Master Plan for the subsequent 20 years.

5 – By way of indirect support, the Egyptian government is currently studying increasing the price of gasoline in Egypt according to the increasing of oil prices globally. This step will encourage more people to convert their cars – especially the drivers and owners of transportation facilities – for avoiding the worst influence of this increasing against most activities in Egypt

6 – Traffic authorities in Egypt are also investigating a Ministry of Petroleum suggestion for enforcing taxi drivers in Cairo, Alexandria and tourism destinations and coasts to convert their cars into CNG when renewing their cars’ licenses.

The 10th biennial IANGV conference, to be held in Egypt on November 2006, will provide an ideal opportunity to see middle eastern developments first hand and to exchange information and exhibit CNG products.

More information www.ngv2006.com

 

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