CNG News: 14th January 2009

Egyptian Government stimulates CNG conversions because of petrol’s prices.

Egypt has a growing fleet of roughly 100,000 vehicles that have been converted to run on cheap natural gas after the Egyptian government pushed for more reliance on greener energy. That number is expected to rise dramatically over the next few years - in a written statement to Reuters state-owned natural gas holding company Egas says it expects the number of natural gas vehicles in Egypt to rise sharply to 300,000 by mid-2012 as investors enter the market. They also expect the number of fuelling stations will more than treble in the same period to 390, and natural gas will be available up and down the populous Nile Valley and in the Sinai peninsula. Egas acknowledges the expectations are “ambitious”, but achievable if the growing demand for natural gas as a fuel continues and gas infrastructure rolls out. Drivers rushed to natural gas after a cut in petrol subsidies, with the number of conversions per month surging to several thousand, according to Egyptian conversion and refuelling firm, Cargas. Egypt has more gas than crude, with reserves of around 76 trillion cubic feet, making natural gas an attractive and somewhat greener alternative to petrol. According to the report, around 70 percent of Egyptians who have converted their vehicles are taxi drivers. Private consumers are also making the switch, converting fuel-hungry sport utility vehicles and luxury sedans as well as older, less fuel-efficient vehicles. Private cars now account for more than 17 percent of CNG vehicles.