CNG Use Expanding

EghtesadOnline: Domestic compressed natural gas consumption has reached 25 million cubic meters a day, indicating 31% rise compared to the 19 mcm/d before gasoline was rationed and pump prices increased in mid-November.

News ID: ۷۸۵۳۸۱

12 February 2020

State-run National Iranian Oil Products Distribution Company said on Nov. 14 midnight that subsidized gasoline would be sold for 13 cents a liter up to 60 liters per car per month. Additional purchases cost double. However, CNG prices have remained unchanged, Financial Tribune reported.

One cubic meter of CNG is sold for 4,600 rials (3.5 cents), at least three times cheaper than gasoline. A liter of subsidized gasoline costs 15,000 rials (13 cents) and non-subsidized fuel 30,000 rials (26 cents).

Of the 19 million vehicles in Iran, over 5 million have hybrid CNG engines, IRNA reported. This is while the share of CNG in total national fuel consumption is 20%.

More than $2.4 billion has been invested in the last decade to expand CNG use and contribute to the global effort to reduce Ian’s CO2 footprint.

Since the rationing of gasoline, more car owners are converting their vehicles into hybrid CNG engines.

Depending on car type and size of the CNG tank, owners are charged between $300 and $400 for the conversion. There are close to 250 conversion centers and more are planned.

Fifth in the World

Iran is 5th in global CNG consumption. There are over 2,500 CNG stations in the country. Boosting CNG share in the fuel basket can have multiple advantages, especially cutting demand gasoline demand and reducing air pollution.

The US, European Union, Russia and China daily use 75 mcm, 45 mcm, 40 mcm and 25 mcm of the fuel, respectively. An estimated 15 million CNG vehicles ply the roads in the world, of which 1.5 million are in Europe.

The NIOPDC’s gasoline output now is 115 million liters per day, of which 94 ml/d is used domestically and the rest (21 ml/d) is exported.

Last summer, the government started offering surplus gasoline on the energy bourse. Neighboring states are said to be the main buyers and officials in Tehran have said there are plans to find new markets.

Besides domestic buyers, foreign companies and dealers can approach the international ring of Iran Energy Exchange where fuel is offered.

Exporting gasoline via IRENEX comes after an official announcement that production had surpassed demand and Iran had become self-reliant in producing the fuel that has buyers in foreign markets.