Local NGV market has begun 2015 with promising prospects as the Egyptian Minister of Petroleum Sherif Ismail has concluded a contract with the Social Fund for Development “SFD” (a state-owned fund established for financing manifold development enterprises) at a value of L.E 10 million (over US$ 1,300,000) to convert 2,000 vehicles to run on CNG. The credit provided by SFD will encourage customers to switch to NGVs through a 5-year loan with installments.
This deal is the 4th phase of a larger financing project with three phases previously concluded during the past years at a value of L.E 107 million leading to 21,500 units converted. Gas Tec, Egypt’s major NGV-related company, will be assigned for its long-standing experience in this field to convert the scheduled vehicles in this 4th phase in its affiliated conversion centers.
During 2014, 11,193 vehicles were converted to CNG and the fueling infrastructure was enhanced as 180 CNG stations are currently in service. Further stations are planned to be established this year, some of them in Upper Egypt where gas lines were extended years ago. “The rising rates of CNG adoption are an important indication of the increasing importance of its role in rationalizing liquid fuel consumption and alleviating the burden on state budget,” the Minister said.
On the other hand, Cairo City Governorate launched recently a new project, in cooperation with SFD and the Ministry of Environment, to replace 1,000 old microbuses dating back to 30 years ago with new units running on CNG, as part of the plans to develop the public transportation system in the capital, eliminating pollution rates and adopting clean energy in the new service vehicles.