Bolivian government said CNG stations are profitable and called for more investments

“The initial investment for the construction of a CNG filling station can reach USD 385,000 including the purchase of the lot; however, the regulation provides the possibility of developing the activity using the legal entity of the land in rent and, as a result, the initial investment can involve up to USD 275,000 at best,” Arnez said.

According to information provided by the authority, the expected profits are high in the capital cities. It also has a gross margin of 1.02 Bs/m3 of CNG sold (total cost of 1m3 of GNV = 1.66 Bs), which allows payback rates surpassing 22% depending on the sale volumes achieved.

Since there are only four private CNG stations in the city of La Paz, the Ministry of Hydrocarbons and Energy together with the National Hydrocarbons Agency (ANH) and the Municipal Government of La Paz are trying to speed authorization procedures for construction of the refueling stations.

“This is a clear example of the combination of what we call a mixed economy, where the Government -under an aggressive and successful replacement of liquid fuel consumption- and the private investments in all its forms achieve a global benefit to the economy with a cheaper energy source,” Arnez concluded.

Source: Ministry of Hydrocarbons and Energy.