CNG Event: 20th March 2008

FUELLING PAKISTAN 2008

Fuelling Pakistan 2008 has underlined one important thing to all the CNG operators: PAKISTAN is still one of the best CNG markets. In fact as underlined by the Governor of Punjat, here with GET Sales Manager Mr. Ugo Uberti Foppa, during his speech to present the Punjat and Pakistan market in the gala dinner organized by DAWN - the CNG sector will be implemented in the next years, with the construction of new pipelines. The DAWN fair infact has been boicotted by some of the maior producers and their direct importers as a complaint because of the usual cuts of the gas suppling in the main Pakistan pipeline. These stops caused big problems to the CNG station owners and as a result to the final users. But at the end the fair saw toushands of visitors (mainly owners of CNG stations) and a lot of final users interested in the development of new technologies applied to CNG. Pakistan is ranked as the number one consumer of CNG in Asia and globally it is ranked number three, after Argentina and Brazil. Pakistan produces approximately 3,876 million cubic feet of natural gas per day and disposes of an excellent distribution network as well as the infrastructure required to maximise the use of CNG and LPG. CNG has attracted 70 billion rupees worth of investment. The Government of Pakistan has exempted all CNG imports from duties and is encouraging the setting up of manufacturing facilities in Pakistan for CNG kits, CNG dispensers and CNG cylinders. CNG in Pakistan 3 Key Areas of Growth Automobiles Public transport in Pakistan has been a traditionally weak area, with the result that anybody who can just about afford to own a car will do so. In recent years, consumer financing options have seen the number of cars plying the roads of Pakistan multiply exponentially. However, with rising oil prices, a new generation of motorists are turning to CNG as a fuel alternative. As a result on average 29,167 cars are converting to CNG every month and over 1.4 million CNG cars are plying the roads in Pakistan, a 100% increase compared to the 700,000 CNG cars registered in 2005. This is just the tip of the iceberg. Today, 99% of all CNG cars are retro-fitted, thus leaving a huge market for the manufacturing of dedicated CNG cars. It is expected that in five years’ time, the market share for original equipment manufacturers (OEMs) will account for 20 to 30% of all CNG vehicles. Public Transport The increasing number of cars on the road has brought with it its own set of problems, not least among them traffic congestion. The Government is pursuing a policy aimed at converting all public transport buses, taxis and rickshaws (three wheelers) to CNG and LPG. The Government has banned the use of diesel in public transport vehicles and is providing subsidies to transporters to encourage them to convert to CNG buses and rickshaws. The Government is actively encouraging private enterprises to set up CNG bus manufacturing plants. Refuelling Stations Starting out with just 423 refuelling stations in 2003, the number has increased by 243% to reach 1,450 stations in 2007. Pakistan today has the highest number of CNG refueling stations in Asia. Government incentives include the following measures: Loans on easy terms to start up a CNG station. Availability of land in industrial areas at below prevailing market prices. Reducing the cost and time required to acquire a licence. Priority gas connections to CNG stations. Deregulating gas prices. Tax and import duty exemption on machinery and equipment used for CNG fuelling and conversion purposes. GET Worldwide: CNG Engineering Consultancy - CNG Reciprocating Compressor