Minister of Trade and Industry Tarek Kabil, together with Minister of Petroleum and Mineral Resources Tarek al-Molla, attended the signing of a contract worth EGP 20 million between the SME Development Authority and the Egyptian International Gas Technology Co. (Gastec) as the first phase of the “Towards Natural Gas” initiative. The project aims at converting 10,000 cars to natural gas and financing 50 car oil traders, with a total funding of EGP 100 million over two phases.
“The ministry is keen on financing projects and initiatives aiming to reduce pollution, especially amid Egypt’s orientation towards using natural gas as a main source of energy,” Kabil said during the signing ceremony.
The project, he added, is planned to save the government around EGP 500 million annually (i.e. EGP 45 million per month), and will be implemented by Natural Gas Vehicles Co. (Car Gas) and Gastec, both affiliated to the petroleum ministry, in addition to a number of foreign companies. The minister further pointed out that the deal comes as a continuation of contracts signed by the parties concerned in 2011 to convert cars to work on bi-fuel technology.
Moreover, Al-Molla emphasized that the agreement aims at improving the added value of Egyptian gas, and will save up 40% of the unit cost of petroleum, noting that the cost of car conversion to natural gas is around EGP 8,000 – 13,000.
Source: Ministry of Trade and Industry of Egypt