Switzerland NGV Update – end 2011

The Swiss Gas Industry Association (erdgas.ch) has reported the number of natural gas vehicles in Switzerland rose to 10,300 in 2011 (up from 9,600 in 2010 according to NGV Global 2010 statistics).

The gas station network in Switzerland now includes 132 stations. Also recorded was an increased sales of natural gas and biogas as fuel – the equivalent of approximately 22.5 million gallons of gasoline, of which biogas (biomethane) amounted to a 21% share.

Across the nation natural gas/biogas at refuelling stations is about 30 percent cheaper than gasoline.

Most of Switzerland’s natural gas comes from Western Europe. The imported natural gas is delivered to approximately two thirds of EU countries and Norway. Almost a quarter comes from development areas in Russia and the rest from various other regions. About half of Switzerland’s supply is purchased under long-term supply agreements with major suppliers in Germany, the Netherlands, France and Italy. These also operate large underground storage facilities. The rest is sourced from contracts with short to very short maturities. There are no contracts with Russian suppliers.

Swissgas is the main importer. Together with German and Austrian partners it is active in the Norwegian natural gas production.

Source: gasorama

Brazil – Country Profile

NGV Industry History

The search for alternative fuels in Brazil was first initiated in the 1940’s, becoming more intensive in the early 1970s, when the country faced the impact of the first oil shock. At that time, limited data was available on oil and gas reserves in the country, and Brazil start producing automotive fuel in large scale, from biomass. Today, the gasoline sold in every fuelling station in the country is oxygenated with 25% sugar cane ethanol.

Natural gas was first used as a fuel in light vehicles in 1996. This was a result of a new law that extends this application, previously authorized only to metropolitan buses, to all type of vehicles. Starting slowly, the natural gas vehicle (NGV) industry has progressed to a point where close to 1 million vehicles are on Brazil’s roads, a remarkable number in only 9 years. Most of these vehicles are aftermarket converted taxicabs or commercial medium duty vehicles.


In some large metropolitan areas, like Sao Paulo or Rio de Janeiro, the government has been planning to promote programs to displace diesel with natural gas in the city buses. Strategies are being developed to resolve issues such as technology, price differentials to diesel engines and fuel, taxation, and operating and maintenance practices used today, to make natural gas attractive to fleet operators. This is a niche that is expected to grow significantly in coming years.

Another interesting project in discussion, to be developed in the south cone of South America are the ‘Blue Corridors’. When implemented, this will interconnect some cities such as Rio de Janeiro and Sao Paulo, with Buenos Aires (Argentina), Montevideo (Uruguay), and Santiago (Chile). These corridors are routes where natural gas is or would be available to fuel NGVs and enhance existing conditions to improve export-import transactions and political integration among nations in that region.

Current Status

  • 1,577,373 million NGVs (July 2008)
  • 1633 stations in most of the key cities (July 2008)
  • NGV penetration is close to 5% of the light national vehicles fleet
  • Government support to displace diesel from metropolitan buses

Fuel Supply

As at 2005, Brazilian natural gas proven reserves was 316 billions cu.m and new discoveries are estimated to be 419 billion cu.m. The projected demand for 2010 has been estimated as 100 million cu.m/day, assuming the country would be capable to import 30 million cu.m/day from Bolivia. The recent political crises in Bolivia has generated some concerns, requiring a review of existing efforts and investments on the Brazilian side, to eliminate the possibility of a potential shortage in the future. Total consumption is 39 million cu.m/day. NGVs consumption represents 13% of this total.

The production and transportation of natural gas in the country is handled by Petrobras, and delivered at city gates to different gas companies in every state, which has the responsibility of distributing the fuel to their customers, including thermal generating plants, industrial customers, residential customers, fueling stations, etc.

In 2008, natural gas consumption for the transportation industry in Brazil is in the range of 6.7 to 6.9 million cubic meters per day.

Refuelling Infrastructure

Brazil is a recent arrival in the natural gas arena. This was partially due to the fact that a great portion – 44% – of country’s primary energy requirements comes from renewable sources, mainly hydroelectric. Second, for a long time the known gas reserves of the country were located in the Amazon region, very far from the consumption market. Just recently, with the help of new developed technologies applied to deep ocean exploration, it has become possible to identify large gas reserves, close to the consumption points. As a result of that, the natural gas distribution network is still in construction in a large portion of the country. NGV fuelling stations have been a powerful feasibility instrument to justify the construction of pipelines in areas that otherwise may not have been viable.

In the last two years, where a pipeline is not available, a “mother-daughter” system has been developed, which is operational in several areas within a radius of 150-200 km from a pipeline source. Right now, there is an LNG plant under construction in the Southeast region, planned to start-up next year, which will be of great help in hauling liquid natural gas to remote locations.

The country today has more than sixteen hundred stations spread throughout most key cities. Most of these facilities are multiple fuel filling stations, where the natural gas has arrived later. However, space availability and other constraints mean that this is not always possible.

Vehicle Availability

The majority of global automakers have industrial plants in the country. Their total capacity has been disclosed as three million vehicles per year. Sales last year were close to two million internally, plus some exports.

The big successes today are ‘flex-fuel’ cars. These units are different models re-designed to run with gasoline or ethanol, or a mix of both in any proportion, using a single fuel tank. In April (2005), the industry sold approximately 50,000 flex-fuel vehicles in Brazil. The technology to make vehicles capable of running with a third fuel, natural gas, is available, as developed by Bosch and Magnetti-Marelli, called tri-fuel. The picture shows a tri-fuel VW Polo 1.0. However, OEMs are concentrated in producing the flex-fuels, which are sold at the same price as a regular gasoline vehicle, while the tri-fuel vehicles are more expensive.

Quality, safety and fuel availability are key issues in customer’s decision to utilize natural gas in their vehicles, and this favors the OEMs products.

Industry Regulators and Current Standards

Aftermarket conversions are subject to two sets of regulations. The first is related to the quality and safety, issued by Inmetro, and the other is the environmental set of rules applied to NGVs, issued by Ibama . Both Inmetro and Ibama are government entities with responsibilities in those areas. A recent report from Ibama has demonstrated the environmental benefits of the aftermarket converted NGVs in comparison with a 2004 gasoline engine.

Local Associations

IBP (Instituto Brasileiro de Petróleo, Gás e Biocombustíveis) : The Brazilian Institute of Oil and Gas is a private non-profit organizations, founded on November 21, 1957, which today has over 200 member companies, and focuses on promoting the development of national industry oil, gas and biofuels, seeking a competitive, sustainable, ethical and socially responsible industry.


US Federal Incentives

The following summary of US Federal Incentives is current as a Sept 2006.

New Federal Tax Incentives Favor Market Growth

NGVAmerica’s refers to the new federal tax incentives signed into law last August (2005) as a “three-legged stool” comprising vehicle tax credits, motor fuel excise tax credits and station tax credits. The incentives include:

Federal Alternative Fuel Vehicle Tax Credits
Federal Motor Fuels Excise Tax Credits
Fueling Station Equipment Tax Credit

Federal Alternative Fuel Vehicle Tax Credits

Under a provision of the Energy Policy Act of 2005, buyers of a new dedicated alternative fueled vehicle placed in service after December 31, 2005 are eligible for a tax credit of 50 percent of the incremental cost of the vehicle, with an additional 30 percent “bonus” credit for vehicles meeting the most stringent applicable EPA or California Air Resources Board (CARB) emission standard. If the buyer of the vehicle is a tax-exempt entity, such as a school district, transit agency or municipality, the tax credit may transfer to the seller of the vehicle. The amount of pass-through tax credit is a negotiating point between the buyer and seller to be reflected in a lower purchase price.

The amount of the available tax credit is based on four gross vehicle weight rating (GVWR) groupings that have total incremental cost caps ranging from a $5000 for light duty vehicles (up to 8,500 lbs.) to $40,000 for heavy duty vehicles (more than 26,000 lbs.). For example, a dedicated natural gas-powered light-duty pick-up that meets a lesser EPA emission standard could qualify for up to $2,500, while a Honda Civic GX, which meets CARB’s more stringent SULEV standard, could qualify for up to $4,000 in federal tax credits. Heavy-duty natural gas powered vehicles with GVWR over 26,000 pounds, such as a transit bus or utility crew truck, could qualify for up to $32,000 if the engine meets the strictest emission standard in place for heavy-duty engines.

Federal Motor Fuels Excise Tax Credits

Natural gas’ historical cost advantage over gasoline and diesel fuel will improve substantially due to the new federal motor fuels excise tax credit contained in the Energy Policy Act of 2005. Beginning October 1, 2006, the federal government will pay the seller of vehicular alternative fuel 50 cents per gallon of LNG or gasoline-gallon-equivalent (gge) of CNG. For CNG, the motor fuels excise tax credit is not generated until the gas is compressed for vehicular use.

While one highway bill provision provides this new tax credit, another provision raises the CNG federal tax from its current 6 cents per gge to 18.3 cents per gge, making it equivalent to the federal tax paid per gallon of gasoline, and it also raises the LNG tax from 11.9 to 24.3 cents per gallon, making it equivalent to the federal tax paid per gallon of diesel fuel. For private companies like investor-owned utilities, the net difference after the “rebate” is about 38 cents per gge of CNG and nearly 64 cents per dge of LNG.

NGVAmerica is still awaiting IRS guidance on the fuel credit including how it defines the word “seller.” The highway bill’s language is clear that a fleet operator who buys natural gas and compresses it for use in his/her own fleet is considered the “seller” of the fuel, even though no monetary transaction has taken place. Less clear, however, are cases where the purchase of natural gas and the ownership, operation and maintenance of fueling equipment is shared between the end-use fleet operator and a fuel service provider, such as a utility or independent fuel supplier.

Fueling Station Equipment Tax Credit

The third leg of the stool, is the energy bill provision that allows for an income tax credit equal to 30 percent of the cost of any qualified alternative fuel vehicle refueling property used in a trade or business and placed into service after December 31, 2005. The credit is capped at a maximum of $30,000 “per property” per year. As with the vehicle purchase tax credit, the fueling infrastructure tax credit can be taken by the equipment seller if the purchaser is a tax-exempt entity. The same provision repeals an existing $100,000 tax deduction for fueling stations. The new measure remains in effect until December 31, 2009.

The legislation also permits carrying forward of tax credits if the total allowable credit exceeds the taxable entity’s tax liability for that year. As of late-June when this article was written, final IRS guidance was still being developed. Of particular interest is whether the IRS will define individual pieces of equipment as “property” as it does in regulations pertaining to depreciable assets, thus allowing multiple pieces of “property” per fueling station, or if it will take a more restrictive interpretation and define “property” as the entire refueling facility.

The provision also includes a 30 percent credit for home refueling appliances with a maximum credit of $1,000.

Iran – Natural Gas Vehicle Country Report Update Sept 06

Based on the 121st article of the third national program of economical, social and cultural development of the country, the Iranian Fuel Conservation Organization (IFCO), a subsidiary of National Iranian Oil Company (NIOC), was established in 2000, aiming to manage the fuel consumption in different sectors through the review and survey of consumption trends and executing conservation projects nationwide.

Establishing compressed natural gas (CNG) infrastructure and the promotion of natural gas vehicles (NGV’s) are among the main missions of IFCO.

NGV programs:

CNG projects were started in 1975 with the conversion of 1200 taxis and private passenger cars in Shiraz city as a pilot project.

These are the main strategies of IFCO for bi-fuel vehicles:
– Retrofit conversion as a short term method for existing cars.
– OEM production of bi- fuel vehicles as a medium term measure.
– Design and production of CNG base OEM vehicles as a long term method

A comprehensive project for creating infrastructure and developing CNG in Iran was started by IFCO in 2001 with some separate activities in parallel, as described below:
– Conversion retrofit vehicles to CNG
– OEM CNG vehicles manufacturing
– Legislation of national directives and regulations
– Construction of CNG fueling stations.


The following outlines some of the main measures taken relating to infrastructure development.

Iranian CNG Station

CNG stations: Existing large natural gas resources and pipeline networks that cover more than 560 cities and 3226 villages form the basis for the location of CNG stations in the country.

Up to Sep 2006, 326 CNG stations have been constructed and are in service while more than 432 stations are under construction by the government and private sectors. The total capacity of the service stations is more than 10,000,000 m3/day (6.000.000 m3/day is in service and more than 4.000.000 m3/day is ready for operation)

Public relations: Safety aspects and the promotion of natural gas vehicles have been addressed through many educational films produced and broadcast on TV and radio channels. Brochures including safety requirements for use natural gas as vehicles fuel, specification of natural gas, etc, have also been issued. In several national and international fairs, IFCO has also raised awareness about natural gas vehicles.

Regulations and standards: International standards (ISO Standards), European Regulations and standards of countries with historical background on CNG such as Italy, Argentina and New Zealand have been used for different activities related to CNG in both vehicles (light and heavy duty) and refueling stations since the beginning of the project in Iran. Also some important regulations regarding NGV’s and CNG refueling stations have been issued by IFCO.

After a short interval the national standards based on ISO standards were issued for CNG vehicles and their components (ISIRI 5636 and ISIRI 5764), and at present the country is switching CNG vehicle components standards from ISO standards to European regulation R110 and first edition of national NGV’s standards (ISIRI 7598) has been recently published based on R110 regulation.

A national standard of CNG stations was published in 2005 with code no. ISIRI 7829 based on the Argentina (GE-N1-118), United States (NFPA 52), and New Zealand (NZS 5425 Part 2) standards and considering Iran’s climate and geographical circumstances.

Supporting related research: IFCO supports a number of research projects related to CNG engine performance (dedicated, Bi-fuel, Dual-fuel engines), fuel conservation projects, natural gas vehicle durability, emissions and other associated topics such as the identification of natural gas treatment as a vehicle fuel, gas composition effects on engine performance, etc. CNG based engines and native NGVs have been developed by country research centers and car manufacturers.

Localization of CNG components and equipment production: Transferring technology from abroad and the localization of CNG kit components, cylinders and CNG stations equipments are some of the strategies of IFCO. Construction of a CNG cylinder production factory with a nominal capacity of 120 thousands cylinders per year in different dimensions has been completed and now supplies a portion of the country’s requirements according to present international standards. Another CNG cylinder production factory is under construction in Esfahan with more than 200 thousands cylinders per year. Other CNG cylinder production factories are also being planned. Local compressor manufacturing companies are producing major parts of CNG station equipments with the co-operation of foreign companies.

CNG Companies (Conversion & Refueling station equipments)

CNG kit manufacturer and conversion

-Electro fan (tel:+98-21-228418844/22865892,3), Contact Sepideh Mirshahreza, Email – [email protected]
-Shahab Gaz sooz (tel:0098-251-2936466) www.shahabautogas.com
-Sasad (tel:0098-21-22953799)
-Pad Alayandeh (tel:0098-21-88745519)

Refueling station equipments:

-Parts compressor (partner with Intermech Ltd) \n [email protected]
-Chagalesh (partner with Nuovo Pignone) \n [email protected]
-Tamkar gas (partner with GreenField)

Cylinder manufacturer

-Satak Co. (tel:0098-21 88726501)
-Pars MCS (tel:0098-21 22031854-58)

Conversion workshops: More than 107 conversion centers have been equipped and certified in 37 cities countrywide. Local car manufacturers that produce CNG vehicles have equipped their existing after sale services network to service NGV products and related regular inspection. Identity information and specifications of NGV’s are being entered in audit software for tracking periodic audit and inspections.

Training: Personnel of conversion workshops, inspection centers, after sale services and CNG stations, inspectors, operators and all technical staffs who work directly with CNG, have passed related training courses and have been certified for particular activities. The general public have also been informed on safety issues through many reports, presentations and demonstrations about CNG and NGVs.

Long Term Program:
In approving the nation’s budget for the current year, Parliament gave special attention to the CNG industry and approved considerable subsidies for production of 280,000 OEM NGV’s by Iranian major car manufacturers and the conversion of 120,000 cars to CNG by available conversion workshops.
1. 20% of OEM CNG fueled vehicles are produced annually by Iran’s two biggest car manufacturers (Iran Khodro & SAIPA).
2. Conversion of 600,000 public and governmental cars to NGV.
3. 667,000 OEM CNG based vehicles and contributing a new production line of 410,000 OEM annual capacity at Iran Khodro.
4. Contributing to produce 6,000 OEM CNG based buses in 5 years.

China Country Report August 06

-More than 240,000 NGV’s
-Over 720 refuelling stations
-Energy security and greenhouse gas policies playing increasing role
-Comparatively low conversion costs
-Government initiated training programs and subsidies

China Natural Gas Vehicle Market Overview

1. Natural Gas Reserve in China and NGV numbers and types in China

China’s natural gas reserve is fairly abundant; the explored geological natural gas reserve in China is about 1520 billion cubic meters, while the expected resources reserve is about 38,000 billion cubic meters.*

The consumption of natural gas takes 2% of the total first energy consumption in China, showing the potential of natural gas industry. However, the infrastructure (the pipelines) is still not efficient to meet the demand from the east coast, which limited the further NGVs development, especially in the rich metropolitans such as Shanghai, Shenzhen and Guangzhou etc. A lot of cities use LPG as the alternative fuel for transportation, before they can obtain a reliable natural gas supply. In some western provinces full of natural gas reserves such as Sichuan, the development of NGV is very fast.

China built 3 LNG refueling stations in Beijing, Urumqi and Changsha, for the LNG transit buses demonstration projects.

The following diagram shows the gas refueling stations development by year 2005:








Source: China Alternative Fuel Vehicles www.cafv.com.cn

The main market for NGV in China is urban transit buses and taxis. Some other application of NGV started to rise, such as trailer truck for LNG transportation, and municipality refuse vehicles, but still at an early stage.

This shows the size of market segment of NGVs in China:







Source: China Alternative Fuel Vehicles www.cafv.com.cn

The LNG vehicles started to be used in the transit buses, mainly in Urumqi, Beijing and Changsha. The total volume of LNG buses in China is 120 units.

Among all the natural gas vehicles in China, most of the engines are at a lower end. Due fuel engines are popular due to unsecured natural gas supply especially in the winter seasons. Another part of NG engines are modified from gasoline engines, because of the very low cost – $600USD for taxies, and around $1000 for buses.

The modified CNG engines has shown a trend to be replaced by OEM engines, as most of the indicators are problematic such as safety, emission, fuel consumption etc. Vehicles with modified CNG engines are still taking a slight lead over the OEM NGVs in total number. The percentage of dedicated CNG vehicles takes a very small portion – about 5% of the total NGVs.

2. Government involvement and support to the NGV program

The government support and involvement to NGV industry and programs are from two levels, national government and municipal governments.

The national government taking the lead on this is called China National Clean Auto Leading Group (Leading Group), which is firstly established in year 1999, and under direction of mainly the National Development and Reform Commission (NDRC) and China Ministry of Science and Technology (MOST). This Clean Auto program’s mission is to encourage the application of clean vehicles (including NGV, hybrid, electric vehicles, ethanol etc.) in the 19 appointed key cities. The China Clean Auto Leading Group sets up targets and plays a role of supervising and evaluation of the results.

The Leading Group also sets up local offices in municipal governments to develop local clean auto programs and lower lever supervision. Those offices are always headed by the Vice Mayor, and set up within the local Development and Reform Commission, Environment Protection Bureau, or Science and Technology Bureau.

The Leading Group provides a little financial fund to OEMs to encourage them develop clean vehicles. But this fund is very limited, and always kept under 1 million RMB (equivalent to about 125 thousand US dollars). However, the Ministry of Science and Technology is investing in big amount through its 863 Plan on more advantageous technology development projects, such as Fuel Cell and Hybrid studies.

Support from NDRC is mainly represented by the control of gas price. The gas price in most part of China is still remaining at a low level, which helps to maintain a economic operation cost comparing with diesel and gasoline.

More substantial support to the NGV industry is always happening with municipal government. The municipality normally allocates their own finance according to the local emission standards, infrastructure need, and financial capability. A good example is Beijing. In order to meet the environment requirement of 2008 Olympics, Beijing municipality made big investment from its environment fund to subsidize the Public Transit every year since 1999. Till now, Beijing Public Transit owns a CNG fleet with the total number exceeding 2700.

Other support policy from municipal government include subsidize on the natural gas refueling station set up, and land allocation. For example, Xi’an has 27 natural gas stations in year 2004, but with government support, especially with a favored land use policy, Xi’an increased the total station number to 50 by end of year 2005. The fast increase of refueling stations in some western cities helped the further development of NGVs.

3. Standards and training

The National Clean Auto Leading Group is taking the lead to organize the set up of NGV regulations and standards. It decides the items (from gas supply, to refueling station) for standard, and allocates relevant institute or organizations to work out the standard. In term of the NGV standard, China Automotive Technology and Research Centre (CATARC) had worked out a full set of NGV standard, including LPG, CNG and LNG vehicles, fueling stations, gas system etc.

The Leading Group and its regional offices also set up training programs for R&D staff, fleet operators and fueling station administrators regularly on a regional basis. It also requires that every organization to conduct the internal training on safety, operation, and technology to their own employees.

United Arab Emirates Country Report August 06

-More than 250 NGV’s
-Over 4 refuelling stations
-CNG playing an increasing role throughout the region

Status of CNG in UAE
Currently there is one public CNG filling station in Abu Dhabi which is  installed on an existing liquid fuel forecourt. This station is owned by  Abu Dhabi National Oil Company (ADNOC) and has a capacity of  refueling approximately 200 vehicles/day. This station has been  operational since June 2005. At present there is one dedicated CNG  conversion center in the city of Abu Dhabi and currently approximately  50 vehicles have been converted, majority of which are taxies.

The government of Abu Dhabi has extensive plans to encourage the use  of Natural Gas as an alternative automotive fuel and the mandate to  expand the industry has been given to ADNOC, who intend to set up  another 10-12 CNG fueling stations during 2006. In this regard pre-  qualification of bidders is already been completed and the tenders are  supposed to be issued by June 2006.

In the emirate of Sharjah the state owned Sharjah Electricity and Water  Authority (SEWA) has set up a dedicated CNG fueling station for their  vehicles. The station was commissioned in March 2006 and currently  approximately 200 vehicles belonging to the SEWA fleet have been
converted to CNG and are using this refueling facility.

Bangladesh Country Report August 06

– More than 50,530 NGV’s
– 129 Refueling stations
– Energy security and greenhouse gas policies playing increasing role
– NGVs are directly contributing to protect foreign reserve funds of Bangladesh
– Growth rate of CNG conversion is more than 11 percent – from 11,700 in 2002 to 50,500 in 2005

Impact on air quality:

Dhaka has a significant level of air pollution due to particulate matter. In 2001, two-stroke three-wheeler baby taxis were identified as one of the major causes of air pollution by the different agencies and it was found that major portion of Hydrocarbon, Volatile Organic compound, Carbon monoxide and Particulate Matters were emitted due to use of excessive quantities of low quality lube oil. The Ministry of Communications, Government of Bangladesh decided to ban two stroke baby taxies from 1st December 2002. A new fleet of compressed natural gas (CNG) three-wheeler has introduced on January 2003. After the introduction of the CNG fleet, ambient air quality has improved in the Dhaka city.

Numbers & types of NGVs:

By March 2006, 50,530 various types of gasoline-powered vehicles were converted to CNG, – Cars/Jeeps/Microbuses/Three-Wheeler Auto Rickshaws/Taxi Cabs & Buses. The cost of conversion of per vehicle is on average US $583. Conversions diesel to CNG and gasoline to CNG are being undertaken though conversion from diesel to CNG is very expensive for the vehicle owners.

Existing & projected growth rates:

The Government licensing authority the Rupantarito Prakitik Gas Company Limited [RPGCL] has given 76 licenses for CNG conversion workshops to private owners. Another 224 application for conversion workshop are being processed. Except for a few, major conversion workshops are under equipped and mechanics are not trained according to the conditions of the licensing authority. However, due to increasing fuel prices, more than 3500 vehicles are being converting to CNG annually. The annual registrations of vehicles in Dhaka city is approximately 32,000 and the projected growth rate of CNG conversion is more than 11 percent – from 11,700 in 2002 to 50,500 in 2005.

Number & type of refueling stations:

A total of 115 CNG refueling stations are in Bangladesh. Another 14 CNG refueling station opened in June 2006.


RPGCL established one CNG refueling station in 1998 as a model at Jowarshahara, Dhaka, financed by the Asian Development Bank, This station is the property of Bangladesh Government. The rest of the CNG refueling stations belong to private owners. The Government has given priorities and encouragement to set-up more private sector refueling stations for easy refueling of natural gas vehicles (NGVs). The Govt. has provided 22 commercial plots with very easy payment installments to private owners to set-up CNG refueling stations in Dhaka including downtown. CNG conversion & refueling stations owners have formed an association, the Bangladesh CNG Filling Station and Conversion Owners Association in the first part of 2006.

Government organizations:

The Rupantarito Prakitik Gas Company Limited [RPGCL] has a well-equipped CNG conversion workshop at Jowarshahara; which facilitates genuine kits and provides free services to the customers. The RPGCL is empowered to supervise converting workshops but due to a shortage of manpower; they are often unable to inspect or supervise at the appropriate time. Due to a lack of monitoring, some poor quality equipment, including cylinders, is imported by some workshop owners.

• Inspection and Maintenance (I/M) is needed to ensure that the emission control system on a motor vehicle is working correctly.
• New vehicles sold have to meet national emission standards, but emission profiles can only be maintained if the emission controls and engines are functioning properly.
• Through periodic checks and required repairs for vehicles that fail the test, I/M encourages proper CNG vehicle maintenance.

Vehicles that are poorly maintained or that have malfunctioning emission controls have high levels of emission in excess of standards. The percentage of dirty vehicles increases with age. Typically, 10 to 30 percent of vehicles cause the bulk of the problem.

Regulatory structure:


The Government is encouraging (but not mandating) private vehicle owners to convert their vehicles into CNG for environmental benefits and to save the foreign currency. But in a policy decision, all Govt. vehicles should be converted into CNG and already half of the fleet has been converted. Within a short time, all Govt vehicles will be converted.

Refueling Stations:

The Government has formed Bangladesh Energy Regulatory Commission with the support of USAID in 2005. The duties and responsibilities of the Commission are to supervise, monitor and make regulations on CNG safety and related issues.

Government & political support:

After the phase-out of two-stroke baby taxis from Dhaka city in 2003, the public suffered a great deal but realizing the environmental benefits, they supported the decision of the Government because they believe that natural gas is free from carcinogenic compounds and sulfur.

Government mandates:

Tax regime

The Government of Bangladesh has exempted all types of duty on imported cylinders and conversion kits to reduce the cost of conversion.

Saving of Foreign Currency:

The Government is importing crude and refined fuel from Middle East, Singapore and India, using one quarter of the country’s yearly national budget. Natural gas vehicles are saving foreign currency US $53.6 million per year and NGVs are directly contributing to protect foreign reserve funds of Bangladesh.

Major issues at present:

At present, the major issue related to CNG vehicles is safety. The RPGCL and Society for Urban Environmental Protection has taken initiatives to educate the users about safety measures and about the identify of genuine kits.


Akhtar Hossain Babu
General Secretary
Society for Urban Environmental Protection
16/13 Modhubagh, Moghbazar, Dhaka-1217. Phone-880-2-8355764,
E-Mail: [email protected]

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:


Four private companies:

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