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Iran’s CNG consumption increases

Oil&Gas Materials 7 February 2011 16:54 (UTC +04:00)

Azerbaijan, Baku, Feb. 5 /Trend, A.Yusifzade /

Forty seven days passing implementation of the targeted subsidies bill, daily CNG consumption has increased by one million cubic meters on average reaching 14 million cubic meters per day even though it had fallen by two million cubic meters per day over the first seven days of the implementation of the law, Shana reported quoting the managing director of the National Iranian Oil Products Distribution Company (NIOPDC), Farid Ameri as saying.

According to Ameri, after the implementation of the targeted subsidies law gasoline is being offered based on a two tier system, $0, 38 and $0, 67 per liter for rationed and free gasoline respectively, CNG consumption, $0, 29 per cubic foot, is yet more economical in comparison to gasoline.

"While the process is underway by the authorized centers more that 4 thousand vehicles have been equipped with CNG burning systems by auto makers", Ameri said.

In connection with the CNG supply following the implementation of the targeted subsidies law, Amiri stated that CNG is not included in the rationing plan yet and there is no limitation in regard to the product supply.

By launching new 82 compressed natural gas (CNG) stations, total number of CNG stations will rise to 1.625 shortly.

While over the year 2005 daily CNG consumption stood at 800,000 cubic feet, the figure increased to 9.8 million cubic meters during the year 2010 and to 14 million liters now.

Under the Fifth Five Year Development Plan, Iran is going to assign the first rank in CNG consumption and the number of related stations in the world up to the year 2015.

According to NIOPDC officials, while 35 percent of the CNG parts are being produced domestically there are plans to achieve self sufficiency in this regard not only in order to meet domestic needs but also to export the services. 

The targeted subsidy plan, which was launched in Dec. 19, 2010, aims to gradually remove all subsidies over a five-year period and instead give families cash handouts as compensation.

The plan eliminates subsidies on gasoline, natural gas, electricity and food.

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