The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) signed two agreements worth EGP 20 million with Car-Gas and Gastec to convert 4,000 diesel powered vehicles to CNG. The contracts come in the framework of the Towards Natural Gas initiative launched by MSMEDA and the Ministry of Petroleum, reported news agency MENAFN.
The initiative, which plans to convert 10,000 cars in total, aims to contribute to the national project for the conversion of vehicles to operate on dual fuel, enhance cooperation in strategic projects with social, economic and environmental dimensions, implement the state’s strategy to rationalize energy consumption, and decline reliance on liquid fuel.
In the past years, Gastec and Car-Gas have financed the conversion of vehicles to run on CNG in cooperation with MSMEDA through providing soft loans to car owners at low interest and extended repayment periods. The cars are being converted in the two companies’ branches and stations nationwide. So far, MSMEDA has funded the conversion of 30,500 units, including 25,500 transport vehicles and 5,000 passenger cars, with a total of EGP 152 million.
The cooperation between the two parties will be effective in facilitating the conversion process, reducing the cost of fuel consumption and the expenses of taxis and transport, as well as in spreading the use of natural gas for cars as more economical, safer, and cleaner source of energy.