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Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV development in China The blue cor ridors in Asia Japan Emission reduction with NGV

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Page 1: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

Volume 1 • #5 • Number 5 • June 2006

Analysis of NGVdevelopment in China

The bluecorridors

in Asia

JapanEmission reduction

with NGV

Page 2: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911
Page 3: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911
Page 4: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

June 2006

2

Summary

Korea300-14, Changchon-Ri, Namsan-Myun,

Chuncheon-Si, Kangwon-Do, 200-911 KOREA

Tel : +82-33-260-3400Fax: +82-33-261-9184

E-mail: [email protected]

ItalyVicolo Gonzaga 13

46045 Marmirolo (Mn), Italia. Tel.: +39 0376 294055

[email protected] • www.thegvr.com

ArgentinaUspallata 711, CP 1268, Argentina

Tel./Fax: +54 11 4307-4559 / 5201 / 4300-6137 E-mail: [email protected]

www.prensavehicular.com

The NetherlandsHolland Office Center • Kruisweg 813 - A

2132 NG Hoofddorp - NederlandTel. +31 23 554 3059 • Fax: +31 23 557 9065

[email protected] • www.thegvr.com

BrazilAv. Nossa Senhora de Copacabana, 500 • sala912. Cep: 22.020-000 • Rio de Janeiro • RJ.

Tel: +55 21 2255-0830 / 2236-4210 e [email protected]

[email protected]

Asian NGV Communications is a publication ofNGV Communications Group, publishing houseand fairs-conferences organizer: www.ngvgroup.comIn Europe, we print The Gas Vehicles Report,GVR, and www.ngvguide.com, the InternationalNGV Guide. In Argentina, the Group publishes PrensaVehicular, Argentine CNG Guide, maps, books andbrochures while in Brazil, Folha do GNV, BrazilianNGV Guide, maps and posters, among others. More info: www.ngvgroup.comThe signed articles are exclusive responsibility ofthe authors, as well as advertising companies andagencies are responsible for the published ads.

Asian NGV Communications ismember of the ANGVA

(Asia Pacific NGV Association)

22 Iran is to achieve 8-10% ofthe world's gas trade

28

Next destination:ExpoGNV 2006

30Big NGV bus investment in NewSouth Wales, Australia

23

24 Worldwide interest in theAsian NGV market

32

Philippines government’s planto buy CNG buses

26 StatisticsAsia figures

33

Copies distributionWe print and mail to 26countries about 3.000 copiesaddressed to governmental related offices, OEM and Oil &Gas companies, associations,related NGV industries, refuelling stations, workshops andsuppliers, according the followinglist (some figures rounded):

Armenia: 0.3%Australia: 4.1%Azerbaijan: 0.2%Bangladesh: 5.0%Brunei Darussalam: 0.1%China: 7.9%Egypt: 1.9%

India: 9.5%Indonesia: 1.6%Iran: 5.0%Israel: 1.1%Japan: 10.2%Korea: 7.5%Malaysia: 6.6%Myanmar: 0.1%New Zealand: 2.7%Pakistan: 3.7%Philippines: 3.6%Russia: 7.3%Singapore: 3.1%Sri Lanka: 0.1%Taiwan: 0.2%Thailand: 5.5%Turkey: 10.5%United Arab Emirates: 2.1%

Vietnam: 0.1%

In addition, the magazine issent to 14.800 more readers in94 countries by e-mail (.pdf)and is also online in www.ngvgroup.comIf your NGV business is inAsia, advertise with us.

Asian NGV Communications300-14, Changchon-Ri,Namsan-Myun, Chuncheon-Si,Kangwon-Do,200-911 KOREATel : +82-33-260-3419Fax: +82-33-261-9184e-mail: [email protected]

Japan… Emissionreduction with NGVs

As of the end of March 2006, thereare about 28,000 NGVs in Japan, aswell as 310 natural gas refueling sta-tions—29 of which are desig-nated for service fleet andbus operators exclusively.

There are three main...16

SWOT Analysis of NGVDevelopment in China

China has an abundant source of natu-ral gas compared to other energy sour-ces. Until the end of 2004, it was repor-ted that China had a total natural gas re-serve of 47 trillion m3, with ...

18

Bluepathwaysfor agreenerworld

4

UAE goes to NGV

OEM NGV Price Advantage

Page 5: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911
Page 6: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

Asubstantial saving inenergy budget and areduction in healthca-

re costs. It is all possible with awider adoption of "green" vehi-cles and a more well-establishedrefuelling network. As Asiancountries recognise the needsto introduce NGVs and to havesufficient refuelling facilities atalmost the same time, they arenow (re-)focusing on expan-ding the existing network.

From the total ± 2,800 refue-lling stations in this region, thepremises in the vertical line ofthe globe are lined up fromRussia and Central Asia to SouthEast Asia, and in the horizontalsection the net is stretchedfrom West to East Asia. The listbelow portrays a series of exis-ting refuelling facilities where a"Blue Pathway" of natural gasrefuelling stations is expectedto be lined up (see also a list ofNGV and fuelling station targetin this magazine).

The possible future pathwith existing refuellingpremises

Russia-West AsiaTo the west from Russia, the

210 fuelling chain is connectedto the ±190 West Asian stationsin Armenia (83),Turkey (6) andEgypt (99), while the govern-ment of United Arab Emirateswill start building 16 stationsthis year.Qatar government anti-

cipated they will issue plans on"green transportation" tar-get in the near future.

Central Asian RegionIn 2000, Uzbekistan

had 33 CNG refuellingstations and 32 morewere in plan and underconstruction, Tajikis-tan owned 53 sta-tions in 2005 whileAzerbaijan had threeof them in 2002.

South AsiaTo the East of Armenia, the

fuelling facilities continue tocountries with more than 100stations each such as Iran, Pa-kistan, India and Bangladesh.With about 1,200 stations inthis sub-region, 64% of thosewhich accounted for about 770fuelling stations are located inPakistan, 16% in India, and 10%both in Iran and Bangladesh.Most of the refuelling stationsin Bangladesh and India are pri-vately-owned.

East Asia-Russia-South East AsiaFrom Northern to Southern

parts of the region, it is expec-ted that in the future there willbe a massive unbroken line offuelling chain whereas in theEast and South East Asian, over900 current sites are operatingin several countries, startedfrom South Korea that links Rus-sia and Japan with China, Myan-mar (Burma), Thailand and Ma-laysia. Following the string cros-sing the ocean are the 150 fue-lling amenities in Singapore, In-donesia,Australia and New Zea-

land. Apartfrom this chain Tai-

wan and Philippines also havefew natural gas refuelling stationfacilities. Among these oceaniccountries, Australia is the onlyone which has more than 100stations.

The internal bluepathways

It is now already possible totravel with HD-NGVs through-out the whole South Korea.Thecountry has 16 primary areasub-divisions; 15 sub-divisions -except for Jeju province- havemore than 100 fuelling sites intotal, in which 35 cities are cov-ered. Japan also has a solid refu-elling facilities in Chubu,Kanto, Kinki, Chugoku, Shikokuprovinces. Thailand’s 15 yearsfuelling station plan coversGreat Bangkok (total of 372 sta-

June 2006

4

tions), East Thailand (43), NorthEast (114),West/South (99) andNorthern part (112). By 2020, itwould be possible to travelaround the country with NGVs.

With that kind of network, isit possible to travel in theregion with a natural gas vehi-cle and get enough fuel supplyalong the road? The answer is:not yet. Most of fuelling facili-ties are concentrated in somebig cities. We need to have asufficient number of these facil-ities to be widely spread (alongthe highways) in each countryto allow us travelling aroundAsia with NGVs. In general,160-200km is the mileage that aHeavy-Duty Vehicle (HDV)would cover before it needs tobe refuelled.A study in 2000 inGermany showed that in orderto attract enough Low-DutyVehicle customers, gas compa-nies need to lay refuelling sta-tions in a density of 5 km in cityarea, 10-15km in a larger urbanarea and 20-25 km in a ruralarea. The second issue is thetwo different types of fuellingconnectors/nozzles, NGV1 forLDVs and NGV2 for HDVs.Thispresents a challenge for driversof different NGVs to connectthe dispenser to their vehiclesin different stations.

To the left is the network thatwe are looking forward to hav-ing, to allow big savings, cleanerair to breathe and a greener plan-et to pass on to our offspring.

Blue pathways for a greener world

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June 2006

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June 2006

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June 2006

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mumkan rencana " transporthijau (bersih)" di masa de-pan.

Region Asia CentralDi tahun 2000, Uzbekistan

mempunyai 33 CNG tankstation yang mana 32 stasiuntambahan sedang direncana-kan adan dibagun. Tajikistanmempunyai 53 stasiun di2005, sedangkan Azerbaijanmemiliki 3 stasiun pada ta-hun 2002.

Asia SelatanDi arah Timur dari Arme-

nia, fasilitas tank station di-lanjutkan ke negara-negarayang mempunyai lebih dari100 stasiuns/negara. Negara-negara tersebut adalah: Iran,Pakistan, India dan Bangla-desh. Sub-regio ini memilikisekitar 1.200 stasiun, 64%berlokasi di Pakistan (770stasiun), 16% di India, 10% diIran, dan 10% di Bangladesh.Sebagian besar dari fasilitasdi Bangladesh dan India di-miliki oleh sector privat.

Asia Timur-Rusia-Asia TimurDi masa depan, kita bias

mengharapkan eksistensi da-ri NG stasiun yang solid dantak terputus dari Utara keSelatan di region Asia. DiAsia Timur dan Tenggara, le-bih dari 900 stasiun berope-rasi di Korea Selatan, Rusiadan Jepang yang dihubung-kan dengan Cina, Myanmar(Burma), Thailand dan Ma-laysia. Di negara kepulauanseperti Singapore, Indone-sia, Australia dan New Zea-land, sekitar 150 beroperasisecara aktif. Selain itu, Tai-wan dan Philipina juga me-miliki beberapa fasilitasCNG stasiun. Dari negarane-gara kepulauan tersebut diatas, Australia adalah satusa-tunya negara dengan fasilitasNG stasiun melebihi 100unit.

Jalur biru internalPada saat ini, pemilik

NGVs sudah bisa melakukanperjalanan dengan Heavy-

Duty (HD) NGVs di seluruhKorea Selatan. Dari 16 sub-divisi, 15 sub-divisi telahmempunyai lebih dari 100fasilitas tank stasiun yangberlokasi di 35 kota. Thai-land telah mengumumkanrencana pengembangan fasi-litas CNG dan LNG (lique-fied natural gas) tank stasiundalam 15 tahun di Bangkok(total 372 stasiun), ThailandTimur (43), Barat Laut (114),Barat/Selatan (99) and Utara(112). Pada tahun 2020, kitadapat memngendarai NGVsdi seluruh Thailand. Jepangjuga mempunyai fasilitastank stasiun yang solid diprovinsi Chubu, Kanto, Kin-ki, Chugoku, dan Shikoku.

Dengan network semacamitu, apakah memungkinkanuntuk melakukan perjalanandi seleuruh Asia denganNGVs dan mendapatkan ba-han bakar yang cukup se-panjang perjalanan? Jawa-bannya adalah: belum me-mungkinkan. Sebagian besarlokasi dari fasilitas NG sta-siun ini dikonsentrasikan dikota-kota besar melulu. Kitamembutuhkan kuantitas sta-siun yang lebih besar dan le-bih tersebar di sepanjang ja-lan besar (highways) di tiapnegara di Asia. Pada umumn-ya, stasiun itu harus ditem-patkan dalam jarak 160-200km untuk memfasilitasHDV. Sebuah studi di Jermanmenunjukkan bahwa padajarak 5 km di area kota, 10-15km di pinggiran kota dan20-25 km di daerah pede-saan dibutuhkan satu tankstasiun untuk pengendaraLow Duty-Vehicle. Dengandensitas tank stasiun ini, kitadapat menarik consumer da-ri segment LDVs. Isyu keduaadalah perbedaan dari nozz-le do tank stasiun yang ber-beda untuk HDV (standardNGV2) dan LDV (standardNGV1). Hal ini menimbulkantantangan bagi pengendaraNGVs pada saat mengisi ba-han bakar di stasiun yangberbeda.

Jalur biru (Blue pathways) menuju kebumi yang lebih hijau

June 2006

10

Penghematan bujetenerji dan penguran-gan biaya kesehatan.

Semua ini dimungkinkandengan pengadopsian kenda-raan berbahan bakar "bersih"secara lebih luas beserta pen-gembangan fasilitas tank sta-siun. Negara-negara di Asiamenyadari bahwa NGV (ken-daraan berbahan bakar gasalam) harus dipromosikanbersamaan dengan penga-daan tank stasiun NG (natu-ral gas/gas alam) dalam jum-lah yang cukup, negara-nega-ra ini memfokuskan untukmengembangkan networkyang telah ada pada saat ini.

Pada saat ini, ada sekitar2.800 NG tank stasiun diAsia. Station-station ini berje-jer secara vertical dari Rusiadan regio Asia Central sampaiAsia Tenggara. Pada arah hori-zontal, network stasiun iniberjejer dari Asia Barat keAsia Timur. List di bawah ini

menggambarkan lokasi NGstation yang beroperasi padasaat ini, yang mana NGVs di-harapkan untuk dikendaraisecara kontinu dari satu ne-gara ke negara lain melalu Ja-lur Biru dari station gas alam(CNG/compressed naturalgas). Pada amajalah ini, kamijuga menyajikan target NGVsdan NG tank stasiun dari ber-bagai negara di Asia.

Jalur biru di masadepan, dengan existingtank station

Rusia-Asia BaratSekitar 210 NG station di

Rusia dihubungkan dengan±190 NG station di Asia Ba-rat: Armenia (83), Turkey (6)dan Egypt (99). Sementaraitu, pemerintah dari UnitedArab Emirates akan memban-gun 16 stasiun pada tahunini. Pemerintah Qatar diha-rapkan akan segera mengu-

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Page 14: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

NGV and refuelling station targets*Total targeted NGVsand/or natural gasrefuelling stationspopulation (rounded up)and/or oil replacement.Those are calculatedbased on the currentnumbers plus theadditional targetedpopulation.

To see theaccomplishment rate ofthe plan, pleasecompare this list withour statistics at the lastpages of this magazine:"NGV and fuellingstation growth 2004-2005" and the currentexisting figures at"NGV statistics".

June 2006

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Current and future NGV projects June 2006

13

Project organiser: PTT Company LimitedCurrent NGV projects: 1. NGV for people using LDV personal vehicles subsidy forconversion cost (10,000 THB). 2. HDV Demo Pilot Project for subsidy conversion and retrofit cost (70%of total cost but not more than 400,000 THB per vehicle with total budget of 40 Million Baht)Near future NGV project: 1. Certification for Vehicle Conversion Workshops

Page 16: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

Korea & Japan mapsJune 2006

14

Natural gas refuellingnetwork in Japan

REGIONS (existing)Hokkaido 8Tohoku 5Kanto 123Tokai/Hokuriku (Chubu) 63Kinki 77Chugoku/Shikoku 15Kyushu 19

Total: 310 units

Example of possible fuelling route

Natural gas refuellingnetwork in South Korea

CITIES/PROVINCES (existing)Seoul 14Pusan 3Taegu 7Incheon 6Kwanju 3Taejon 4 (+1 LCNG)Ulsan 3Kyonggi-do 17Kangwon-do 2Chungcheonbuk-do 2Cungcheonnam-do 2Chollabuk-do 4Chollanam-do 3Kyongsangbuk 1 (+1 LCNG)Kyongsangnam 6

Additional station, not yet included in the map& list: 32 units

Total: 109 units

Example of possible fuelling route

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Japan… Emission reduction with NJune 2006

16

By: Kaori Shitara of Tokyo GasCompany

As of the end ofMarch 2006, thereare about 28,000

NGVs in Japan, as well as310 natural gas refuelingstations—29 of which aredesignated for servicefleet and bus operators ex-clusively.

There are three mainreasons of NGV promotionin Japan as follows. First,NGVs contribute to impro-ve air quality. In large ci-ties such as Tokyo and Osa-ka, air pollution from theexhaust gas of motor vehi-cles—in particular theemissions from diesel vehi-cles –has been severe. In2005, the government in-troduced an emission stan-dard on heavy duty dieselvehicles regarding nitro-gen oxide (2.0g/kWh) and particulate matter(0.027g/kWh); this emission standard is known as the moststringent standard in the world. In 2009, even more strin-gent emissions standard—0.7g/kWh for nitrogen oxideand 0.01g/kWh for particulate matter-will be issued. NGVsmeet the new emissions standard easily. In line with thisruling, the government launched a project "Model city pro-ject on CNG vehicles promotion" (see information on go-vernment subsidies below).

Moreover and second, since NGVs have 10-20% less CO2emissions than gasoline vehicles or diesel vehicles, thepropagation of NGVs should help Japan to achieve thegoal for CO2 emissions reduction created in the Kyoto Pro-tocol of June 2002. During the first commitment period,from 2008 to 2012, Japan has committed to reducinggreenhouse gases by 6% from the base year’s emissions.

Third, natural gas vehicles can be a key to reduce depen-

dence on oil. The National Energy Strategy, which was re-leased by the Ministry of Economy, Trade and Industry inMarch 2006, says Japan plans to reduce oil dependence inthe transport sector by 20% in 2030.We believe that NGVsare one of the most practical alternative vehicles.

Considering the facts mentioned above, the national go-vernment is playing a key role in the promotion of naturalgas vehicles and CNG refueling stations.There is fiscal sup-port for introducing NGVs and natural gas refueling sta-tions into Japanese society. National subsidies cover halfthe price differential to a conventional vehicle towardspurchase of a natural gas vehicle (see more information inthe next chapter). By claiming subsidies from organiza-tions such as the Japan Trucking Association, as well as tho-se available from the government, there are cases in whichit is possible to purchase an NGV for roughly the same pri-ce as a diesel truck of the same type.A substantial propor-tion of the cost of building a refueling station can be alsomet from the subsidies: For constructing a public station,the amount of subsidies available is 80 million yen, whichis about $700,000 USD.

More government subsidy to increase NGV populationin Japan

• Current/future NGV activities/projects: "Model city pro-ject on CNG vehicles promotion"

• Location: Yokohama, Kawasaki, Saitama, Nishinomiya,Chubu International Airport

• Project administrator: Ministry of Land Infrastructureand Transport

• Project description:Cities, which have actively taken environmental measu-

res, have joined the project. In each area, a local govern-ment, gas companies, gas transport companies and the Dis-trict Transport Bureau have formed a council for planning

Diesel vehicles are almost non-existent in Japan sincethose have a bad reputation as polluting vehicles. In

the 90’s diesel cars accounted for more than 6% of the to-tal car sales and within 15 years, it experienced a rapid sa-les decline. Nowadays, there are only 1.800 diesel cars inthis country. That counts for 0,4% of the whole marketcomparing to 50% in Europe.Tatsuo Yoshida from MerrillLynch informed Business Week that diesel engine is refe-rred as rattling, smelly, dirty engines and that demand is al-most zero at this moment. On the other hand, luxury carsare popular in this country.

Japan commitment to clean air:"no" demand on "dirty" vehicles

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and developing strategies to effectively promote natural gasvehicles and refueling stations.

The national government also has been supporting theproject in some ways, such as prioritizing adoption of subsi-dies available to NGV users in the project areas, as well as bysimplifying application procedures for obtaining subsidies.The national government offers subsidies for purchasing orleasing NGVs.The subsidies are available not only for usersin the project areas, but also for those in other areas in Ja-pan.The amount of government subsidies available is about50% of the additional cost to purchase/lease a NGV.

Most of the time, in addition to the national government

subsidies, local governments have prepared financial incen-tives to NGV users; the amount and availability differs de-pending on the cities though.

For example, in the three years starting on 2005,Yokoha-ma city expects to introduce 227 NGVs; Kawasaki 52NGVs; Saitama 116 NGVs. The cities widely share the ef-fects of project with public, and advertise its innovativemeasures on environmental protection.

With a push from behind national policies concerningenergy security and the global warming problem, due tothe preexisting numbers of natural gas vehicles in Japan, itis expected that their success increase in popularity in co-ming years.

June 2006

17

NGVs

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June 2006

18

By Hou Fushen, General Director of Clean Vehicle ProductivityCenter, China (CVPC)

StrengthsChina has an abundant

source of natural gas compa-red to other energy sources.Until the end of 2004, it wasreported that China had a to-tal natural gas reserve of 47trillion m3, with 4.9 trillionm3 proved up and 2.2 trillionm3 being able to excavate.Currently, six natural gas re-source areas are being for-med, namely Sichuan Basin,Erduosi Basin, Chaidamu Ba-sin,Talimu Basin, East Sea Ba-sin and Qiongying Basin. Na-tural gas production in 2005was 50 billion m3. It is fore-cast that by the year 2010 and2020 , the number will chan-ge to 80 billion and 120 bi-llion respectively.

There is a long history forNGV development in China.As early as 1950s, there exis-ted low pressure natural gasvehicles with a rubber bagcontaining the gas and put onthe top of the vehicles. Natu-ral gas played a certain role inproviding the vehicle with al-ternative fuels, as China wassuffering from an oil supplyshortage.Starting from 1960s,China launched large scaleprojects on natural gas vehi-cles (mainly compressed na-tural gas vehicles), from R&D,to vehicle conversion and de-monstration. At the very be-ginning of 1990s, there werefleets of CNG vehicles run-ning on the road in SichuanProvince, etc. Since the midd-le of 1990s, NGV has been onthe track, many governmentagencies, businesses, acade-mies and universities joiningefforts to promote its deve-lopment. Most important, mo-re cities started to promotenatural gas vehicles by imple-menting various demonstra-tion projects according tospecific conditions. As a re-sult, over 50 years’ history hasaccumulated valuable expe-rience for China NGV in-dustry not only in manage-ment but also in application.

The technology of NGV inChina continues to enhance,and is helping to expand itsapplication. Since 1999, Chi-na’s central government hasput unprecedented emphasison the natural gas vehicle de-velopment. Just that year, acoordination committee , ma-de up of a dozen of centralgovernment agencies, such asthe Ministry of Science andTechnology£¨the leadingmember, the State Environ-mental Protection Agency, theNational Development andReform Commission, etc wasset up to organize and imple-ment a state-wide program----Clean Vehicle Action. NGVsare the focused ones to pro-mote.Through many key tech-nology R&D programs and de-monstration projects, the ma-jor manufacturers of passen-ger cars and buses have deve-loped natural gas vehiclesmeeting Euro 2 or Euro 3 tail-pipe emission standards, andthe product goes from dualfuel to the dedicated. Thenumber of natural vehicles al-so grows from less than10,000 in 1999 to the present150,000 or so. 400 fueling sta-tions have also been built up.In addition to the CNG vehi-cle expansion, the Liquefied

Natural Gas (LNG)vehicleshave staged good start, forexample, demonstration pro-jects of LNG transit bus flee tshave been conducted in suchcities as Beijing, Changshaand Wulumuqi, which sho-wed good performance.

A stronger industry forNGV is being formed.Years ofefforts reaped a rapid pro-gress of this industry. R&Dand production cover a fullrange of products, such ascomplete vehicles, parts andcomponents, equipment setsfor refueling station,gas cylin-ders, gas fueling equipmentsand dispensers. The domesti-cally made products are ex-panding their market share,for example, the domesticallymade refueling station equip-ments such as gas compres-sor has gained a 80% marketshare. Moreover, productssuch as natural gas vehicle en-gines, refueling station equip-ments and complete vehicleshave been exported.

WeaknessesChina currently is lacking

of a systematic policy frame-work for the development ofNGV. Although a series of lo-cal policies were born in re-cent years, national level poli-

cies, esp. economic incentivepolicies have not emerged toencourage the further pro-motion of NGVs.

There are great gaps ofapplying technology bet-ween different cities whereNGVs are used, and NGVs insome cities are of low level oftechnology. Notably, a largenumber of NGVs are still con-verted ones, though the Chi-na government has been en-couraging the purchase ofOEM NGVs for many years. InChina, facts show that con-verted NGVs can not ensurethe good performance in ex-haust emissions and fuel eco-nomy, and have some poten-tial safety problems.

The performance-to-price ra-tio of homemade NGV enginesneeds to further improve.Com-pared with imported engines,the homemade ones are a littlelower in price, but much infe-rior in reliability, and just cannot well meet the users’ requi-rement in fuel economy.

Natural gas is priced high insome areas in China, for exam-ple, the east coastal areas,which results in a lower com-petitiveness with gasoline anddiesel prices and thus a indif-ference of vehicle users.

SWOT Analysis of NGV Development i

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are now living in cities wherethe air they breathe fails to at-tain the National Air QualityStandards. Data demonstratesthat motor vehicles have be-come the major source of airpollutants in large and me-dium sized cities. It is also fo-recast that tailpipe emittedpollutants will make up 64%of the total air pollutants by2010. As world recognizedclean vehicles, NGVs have al-so been welcomed by China’senvironment protectionagencies as an important so-lution to curbing the vehiclepollutant emissions.

In the national develop-ment strategy, the govern-ment highlights the policy ofbuilding a resource conser-ving and environmentallyfriendly society. In the natio-nal policies, such as Automoti-ve Industry Development Po-licy, Mid and Long TermEnergy Conservation Plan,and National Science Deve-lopment Strategy, energy effi-cient vehicles as well as clean

OpportunitiesEnergy security issue has

become the spotlight in na-tional development strate-gies. For the past severalyears, China has consumed afast growing volume of oil,with a growth rate of 106%from the year 1994 to 2004.Forty percent of oil Chinaused is dependent on foreignsources,and the rate is expec-ted to get 60% by 2020.A to-tal stock of 27 million vehi-cles in China is eating up onethird of the oil among all thesectors in the economy. Andthe vehicle stock is forecastto be 150 million by 2020,implying a 250 million tons ofoil at that time. Natural gas,however, accounts for onlyless than 3% of the energyconsumption, much lowerthan the world average of24% and the Asian average of8.8%, which signifies a largepotential in this market.

Environment protection isanother big issue in China.Up to 60% of urban residents

alternative fuel vehicles inclu-ding NGVs are proposed tobe highly developed.

A series of sound condi-tions for natural gas supplyare also being formed,such asthe gas transport projectwhich sends the natural gasin the west to the east in Chi-na, and the import of interna-tional natural gas sources.Thegas transport project got aninvestment of 140 billionRMB, and was completed inDecember 2004. The linecrosses Provinces of Xinjiang,Gansu, Shanxi, Shaanxi, He-nan, Anhui, Jiangsu, Shanghai(a metropolitan city) andZhejiang and more than 100large and medium sized ci-ties, totaling 4000 kilometersand boasting a transport ca-pacity of 12 billion m3 of na-tural gas.The Chinese govern-ments are actively sourcinginternational natural gas. Forexample, in the north of Chi-na, natural gas will be impor-ted through pipelines fromMiddle Asia and Russia; in the

June 2006

19

east, there will be LNG im-port from Asia Pacific Area,where 17 projects involvingLNG import are under way orbeing planned which are ex-pected to import 40 milliontons of natural gas each year.

ChallengesThe current consumption

structure of natural gas is animpediment to the furtherdevelopment of NGVs in Chi-na. Chemical industry, oil andgas excavation,and power ge-neration are the major usersof natural gas which reachesa high of 87% of the total con-sumption. For instance, pro-duction of chemical fertili-zers alone uses 38.3%.

The network of natural gaspipelines are far from enough.A lot of regions can not sharethe network. Much more fun-ding needs to be invested toset up both the network andgas refueling stations at locallevel,which forms another bigchallenge for the develop-ment of NGVs in China.

t in China

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Pakistan: good chance for a moreprofitable CNG retail business

June 2006

20

The Adviser to Pakis-tan Prime Ministeron Energy, Mukhtar

Ahmed, has proposed thegovernment to review thecompressed natural gas pri-ce for vehicle. He reportedthat there is a significantroom for increasing theCNG retail price while stillmaintaining the incentive toconvert gasoline vehicles toNGV. The price of CNG inMarch 2006 was 37% of thatof gasoline. NGV is very po-pular in Pakistan as thiscountry has more than700.000 vehicles running onCNG. This is also made pos-sible since the refuelling fa-cility is well-establishedwith more than 760 sta-tions.

Old vehicle banning androad test

In Punjab, to lower pollu-tion, the government hasbanned registration of two-stroke rickshaws while theexisting ones would be sentto smaller cities.Vehicles ol-der than ten years will notbe allowed to operate inPunjab. The vehicles youn-ger than five years wouldundergo a strict roadworthi-ness test to be conducted byhigh-tech checking stations,which are established withthe help of private sector. Ina larger scale, manufacturesof two-stroke rickshaw andmotorcycle-rickshaw in Pa-kistan have received war-ning that those vehicleswould not be allowed in thebig cities by 2009.

FundingThe Punjab chief minister

Pervaiz Elahi has initiated aRS 1 billion green CNGrickshaw scheme underwhich people owning "po-lluted" two-stroke rickshawand motorcycle rickshawwould be eligible to zero in-terest loan to purchaseCNG-fitted four-stroke ricks-haws being manufactured

by three local companies.This is an effort to switchthose vehicles to cleanerones in the next three yearsinitially in Lahore, Multan,Faisalabad, Rawalpindi andGujranwala cities.

The government alsolaunched a similar program-me for about 4,000 CNG bu-ses with the help of the fe-deral government.

The chief minister men-tioned that education sectorreforms programme, donoragencies would help fun-ding the Green Programme,to support the governmentplan to convert all publictransport to CNG to achievea cleaner air.

Demand on CNGVsEven to these days, cou-

pled with NGV purchasefunding and banning regula-tion for polluted vehicles,there are a lot of requests onfour-stroke CNG rickshaws.Many two-stroke rickshawdrivers sold their vehicles tobuy the CNG ones. Accor-ding to the Transport De-partment, there were 50.000two-stroke rickshaws whilethere were only 300 CNG

rickshaws. And now thereare 1.500 applications forthe NG rickshaw in one ofthe two manufacturers ofCNG fitted rickshaws, Saz-gar Auto Rickshaw. The ot-her supplier is Pak Hero.

On the buses programme,there were already repeatedrequests of CNG buses eventhough those buses havenot been produced yet. Thedemand for this ecologicalpublic transport is so highthat Lahore is facing suppl-ying issue.

More control is neededThe government has ap-

pointed Bank of Punjab toadminister the funding. The

bank required Rs38,000 asdown payment for the deli-very of CNG rickshaw. Asdemand is very high, somedealers are involved inblack-marketing scheme bycharging about Rs. 22,000extra—this portion is keptby the dealer--to deliver thevehicle in few days even be-fore the bank approval.

On the other hand, consu-mers are expecting a betterquality product from CNGrickshaw manufacturers, inwhich less maintenance re-quirement will be possible.

NGV is indeed loved andwanted in Pakistan, the big-gest NGV country in Asia.

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Along waited goodnews for CNG vehi-cle drivers in Dhaka,

Bangladesh, is revealed re-cently by a gas supplier, TitanGas Transmission and Distri-bution Company Ltd . A pro-ject for the installation of a16’’ gas pipeline in the city isunderway and is expected tobe complete by June 2006.This is expected to help sol-ving the gas supply and queu-ing problems in CNG refue-lling stations. Thus, it wouldallow taxi cabs and three-wheeler drivers who aremostly affected by the queueto operate more effectively. Adriver in Tejgaon recently spo-ken to The Daily Star "…Ican't afford to use petrol.Themoney I earn driving this th-ree-wheeler is not enough forme to even pay the daily rent."

With more than 42.000NGVs in 2005, Bangladesh ran-ked at number 15th worldwideand number 8th in Asia as oneof the biggest NGV countries.With about 10.000 additionalNGVs in one year, it is also in-

cluded in the top-ten countrieswith the biggest increase ofNGV population worldwide.Bangladesh has increased itsCNG fuelling station popula-tion by 103% from 60 stationsto 122 units in 2004-2005, a se-venth rank in the countrieswith fastest growing natural gasrefuelling station in the worldand a third best in Asia. In April2006, CNG conversion kits we-re also displayed in the on-going Dhaka Motor Show atBangladesh-China FriendshipConference Centre. NGVs areso popular and loved by theowners in this country that car-jackers stole and sold backCNG tuk-tuks (three-wheelers)to the owners with its legitima-te papers while other cars arenormally sold to other buyerswith false papers.NGVs are de-finitely wanted in the country.

On the other hand, the go-vernment is facing a problem tofinance its plan to develop thecountry.Due to a huge rise in im-ported-oil bill, the governmentwill slash its Annual Develop-ment Programme (ADP) by 8%.

June 2006

21

Gas pipeline for CNG stations in Dhaka

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UAE goes to NGVJune 2006

22

United Arab Emiratesgovernment con-cerns about the air

quality in the country espe-cially in Abu Dhabi the capitalcity.The air in this city is pollu-ted, in which 70% CO,50% NOand 25% NO2 comes from pe-troleum powered vehicles.It isreported that the most pollu-ting vehicles in UEA are go-vernment fleets, taxis, buses,and driver’s training vehicles.

In 2005, United EmiratesArab has formed a TechnicalCommittee for cleaner airacts.The committee is chairedby the Environment Agency -Abu Dhabi (EAD). The mem-bers include Abu Dhabi Natio-nal Oil Company (ADNOC),Mubadala, General PoliceHeadquarters, Civil Defence,Emirates Standardization andMeteorological Authority andthe Department of Municipali-ties and Agriculture.

The Committee set targetfor 2012 to switch 20% of themost polluting vehicles inAbu Dhabi to CNG.Among ve-

hicles that will be retrofittedare those belonging to theDepartment of Municipalitiesand Agriculture, the EmiratesTransportation Association,Abu Dhabi International Air-port and Al-Ain Airport, besi-des the rest of the govern-

ment-owned vehicles as wellas taxis.

The committee will set thestandards and guidelines forretrofits and the newly manu-factured vehicles, exhaustemissions from different ty-pes of fuels, conversion

workshops, and for the cons-truction of gas stations. It isexpected that the private sec-tor will get involved in provi-ding NGVs. The Strategy alsowill encourage the public touse CNG by reducing the costof conversion to NGV.

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Big NGV bus investment in NewSouth Wales, Australia

June 2006

23

+ Industrial Gas EngineEngine Power Range

Genset/Co-gen : 10kW ~ 100kWBio-Gas Genset : 10kW ~ 50kWIndustrial Engine (Forklift) : 15hp ~ 264hpSpecial Vehicle (SDA) : 150hp ~ 300hp

Main ProductsEmission-certified/Non-certified Engine (EPA/CARB)Complete Fuel SystemsElectronic Control SystemsThree-way catalytic converter

Base Engine (OEM)GM : 1.6L/3L/4.3L/5.7L/8.1LMMC : 2.0L/2.4LHMC : 1.5L/2.0LDAIHATSU : 750/950 cc

ServiceEngine Dressing ServiceGenset/Co-gen/GHP Packaging ServiceTechnical Training ServiceComplete Fuel System Design ServiceSales and Marketing Assistance

NGVI Inc. - 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911 KOREATel. +82 33 260 3400, fax. + 82-33-261-9184 - More information: www.ngvi.co.kr

+ NGV Total Solutions + Composition of Bi-Fuel Conversion Kit

+ Industrial Gas Engine

"Clean Air, Blue Sky."

+ NGV Total SolutionsCNG Engine DevelopmentFuel Storage System DevelopmentSoftware CalibrationHydrogen & fuel cell Vehicle DevelopmentFuel Control System(Bi-fuel, Duel-fuel, Dedicated)

+ Composition of Bi-Fuel Conversion KitMPI System to meet ULEV / EURO3High Performance & Low EmissionEngine Control UnitPressure Regulator & Gas FilterFuel Rail w/Injectors(3,4,6 & 8 cylinders)CNG Tank / Tank Valve / Receptacle / Check Valve

The State Transit Aut-hority of NewSouth Wales in Aus-

tralia has ordered Daim-lerChrysler to supply 255O500LE Mercedes-BenzCNG city buses over thenext five years with delive-ries to begin late 2006. StateTransit owns 1,914 buses inand around Sydney andNewcastle of which 62% areMercedes-Benz products,such as Articulated 0305,0405, 0405N and 0405NHCNG and soon the O500LECNG will join the fleet.

N.S.W. Premier MorrisIemma and Transport Minis-ter John Watkins unveiled aplan this month to replacemore than a quarter of StateTransit’s bus fleet with CNGones.

The Bus features:CNG powered, turbo char-

ged and intercooled(OM447hLAG) "clean" engi-ne, generating the lowestemissions of any mass-pro-duced conventional com-mercial buses in Australia; asix speed ZF transmission; aCustom-Coaches body; alow-floor fully acces-siblevehicle; fully air-conditio-ned; and, an ergonomic de-sign that meets the highestsafety standards for driversand passengers.

Source: Auto Web Drive

N.S.W. Premier Morris lemma

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OEM NGV Price Advantage

Hyundai Super Aero CNG city bus Mercedes-Benz E200 NGT bi-fuel passenger car Daewoo Low Step CNG bus

Pass this charts on… Help your country to have a cleaner air

The first and second charts which was originally made by Daewoo and Hyundai were modified as the fuel prices change over time. The 2004 and 2005 diesel and CNG priceswere previously in US$.. We converted them into Euro with current currency rate of US$1= Euro 0.835446. However, the main data, such as fuel consumption remains thesame as it was used as a reference in the calculation above.

In the comparison 2004-2006 chart, you can see that using a CNG bus could be more and more profitable since diesel price continue to increase a lot while CNG price eitherincreased a little or even decrease (2005-2006).

You can calculate your country price advantage by using your local fuel prices. The data that you can use for your calculation is as following:Set a mileage, for example, 90,000km/year;Fuel consumption for Daewoo bus: 2.8km per litre diesel and per m3 CNG;Fuel consumption for Hyundai bus: 2.3 km/litre diesel and 2.1km/m3 CNG;Use your current CNG and diesel prices: current fuel price x (90,000/fuel consumption).Fuel savings may vary for each country as fuel prices (and fuel energy contents) also varies.Show the comparison chart above to your government and local public transport companies,…and buy CNG buses.

June 2006

24

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Philippines government’splan to buy CNG buses

The Philippines’ Presi-dent, Gloria Macapa-gal Arroyo, has an-

nounced a plan to buy CNGshuttle buses worth of P 1,4billion (Euro 21,4 M) for go-vernment workers to save na-tional energy and money.Mrs. Arroyo also suggestedprivate firms, especially callcentres, to buy CNG buseswhereas the governmentcould also lease CNG buses

to those private firms.Meanwhile the Philippine

National Oil Co. is reviewing aplan to build a CNG refuellingamenity with the Korean firmSamsung Heavy Industries Co.This station will be operatedwithin nine months. The firstPhilippines’ CNG mother re-fueling station was construc-ted in Tabangao, Batangas, whi-le its daughter station is loca-ted in Biñan, Laguna. Both we-

re completed a few months be-fore oil prices hit record highsin mid-April, according to Ma-nila Standard Today. These sta-tions serve the first 200 CNGbuses from China which arri-ved in December 2005 and areoperated in metro Manila.Thegovernment’s target for 2010 isto have 2.000 CNG buses run-ning in Metro Manila routes.

The President has also sig-

ned Executive Order 488 inthe beginning of 2006, gran-ting duty-free importation ofparts, accessories and compo-nents for the assembly of hy-brid, electric, flexifuel andCNG vehicles,which were pre-viously rated at 1%-3%.The wai-ver of this import duty is onlyapplicable to auto assemblersthat are part of the Motor Vehi-cle Development Program.

June 2006

26

Philippine President Arroyo and one CNG bus.

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Following the local government planto switch all public transport and go-vernment vehicles to CNG vehicles by

April 2006, the number of CNG stations is "in-sufficient for crossover".The government hascommitted to buy more than 70 Daewoo NGbuses. However, more refuelling amenities inmore wide spread locations,preferably with arapid refilling capacity, are needed.

At this moment there are six natural gas re-fuelling stations in Jakarta. The Jakarta trans-portation agency mentioned at least 35 CNGstations are needed to encourage the use ofnatural gas in the city.

At the end it is chicken-egg issue comes upagain.As no campaign is done in the privatecar owners level, the public has not yet consi-dered to buy NGV.To encourageinvestors to build refuelling sta-tions, more demand is expected,also that from private custo-mers. The refuelling station li-censing agency has asked refue-lling stations to set aside spacefor CNG compressors at theirpremises.

The administration has signed amemorandum of understanding with state oil and gas companyPertamina and state gas distributor PT Perusahaan Gas Negara tosupply gas to public vehicles.

"We hope President Yudhoyono will start using CNG in hisvehicles to set a good example for the public," said head of thelicensing agency, Satrio Nugroho, to The Jakarta Post.

Taxi drivers are alerted as potential users of CNG stations.Yet,conversion cost—Rp.15 M or _ 1.350-- is still an issue.The go-vernment has previously ordered all taxis to run on CNG in1987.The lack of refuelling facilities has hampered the imple-mentation of this policy. Jakarta used to have 17 fuelling station,whereas only 6 units are operating presently. Out of the poten-tial 42.000 taxis plying in Jakarta and surrounding, only few ta-xis from Kosti Jaya and Royal City are running on natural gas.Last year, new regulation announced requesting all public trans-portation and government fleets to switch to CNG. Followingthe ruling, a state oil & gas company, Pertamina, will supply thegas while PT PGN, a state gas company will distribute it.

Government policiesAccording to the "Air Quality Improvement Analysis by New

Emission Standard of Vehicles" report, the Ministry of Environ-ment made plans to implement EURO 2 emission standards inJakarta within the following stages:

• Phase I (2005) enacted for new type of motor vehicles• Phase II, enacted (July 2006) for current production of four

strokes motorcycles;• Phase III enacted 2007 for two strokes motorcycles and ot-

her motor vehicles.

It is expected that by 2015, the implementation of EURO 2will reduce emission load significantly for THC (55,6%), CO(54,4%), NOx (43,6%), PM10 (22,7%) and SO2 (31,7%).

On the other hand,Surabaya city also quantify the fuel savingand emission reduction of CNG vehicles in 2003. Below is theresult of the analysis.

Jakarta city is facing "the egg" issue June 2006

27

CNG emission reduction versus gasoline in Surabaya

Following the good move of the Indonesia government instarting the CNG vehicle program, the country will hold the5th Better Air Quality (BAQ) workshop on 13-15 September2006 in the historic city of Yogyakarta in Central Java.

In August 2006, the Indonesian government will announce itsplan to restrict fuel consumption of government and private ve-hicles to save energy as global oil prices has touched US$ 75/ba-rrel. Especially considering that Indonesia also imported oilfrom abroad.Fuel prices in Indonesia were among the cheapestglobally until the government withdraw its subsidy due to thehigh import petroleum prices.This has doubled the fuel prices.

For the complete report/presentation and the BAQ 2006 site, please log on tohttp://www.cleanairnet.org/baq2006/1757/channel.html

Signs of the CNG busway in Jakarta

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Iran is to achieve 8-10% ofthe world's gas trade

June 2006

28

developing new fields couldmeet both domestic and ex-port commitments. It is esti-mated that by the end of2010-2015, Iran's gas exportcould reach 248.4 BCM ayear, both as LNG and th-rough pipelines. Moreover,the country's policy - as thethird gas producing countryin the world - is to achieve 8-10% of the world's gas tradeand its by-products withintwenty years."

On that basis, NIGC plansto export natural gas toneighbouring countries viapipelines and to other partsof the world as LNG. Also, itwants to optimize the do-mestic and industrial energyconsumption together witha reduction of the energyconsumption rate.

"We also hope to increase

the gas share in Iran's energybasket consumption throughreplacing oil-based equip-ment, vehicles etc. with natu-ral gas-based equipments",says Kasaei Zadeh.

Iran’s ambitions require aconsiderable increase in thelevel of investment in the Ira-nian gas sector.The IEA esti-mates that, based on its owncalculations, between nowand 2030 an investment ofmore than US $80 Billion isnecessary in the Iranian gassector. According to NIGCthe capital required is almostdouble that amount.

Kasaei Zadeh: "Firstly, by2030, the required level ofinvestment in the Iranian gassector is expected to be ashigh as $150 Billion. Moreo-ver, based on the proposedprograms and up until 2016,

The interview below was conducted by the International Gas Union with Mr. Reza Kasaei Zadeh, Vice Oil Minister of the Islamic Republic of Iran andGenerral Director of the National Iranian Gas Company (NIGC).

In the World Energy Ou-tlook 2005, issued re-cently by the Internatio-

nal Energy Agency (IEA), thecapacity of Iranian natural gasproduction is estimated toreach a level of 109 BCM in2010 with a possible expan-sion to 240 BCM in 2030.Ac-cording to the IEA,by then upto 57 BCM of the Iranian gasproduction could be madeavailable for export to Asiaand Europe.

But according to Kasaei Za-deh, Vice Oil Minister of theIslamic Republic of Iran andGeneral Director of the Na-tional Iranian Gas Company(NIGC), the prospects aremuch higher. "Iranian naturalgas production will rise upto the level of 157 BCM bythe year 2010 and up to 340BCM by the year 2040. Infact, the rate of gas produc-tion will increase to 1300 mi-llion cubic meters per day(MMCM/D)."

These figures would meana large increase in Iran’s gasexport, says Kasaei Zadeh."Our first priority is to sup-ply the domestic market. Ne-vertheless, the existing in-frastructure with respect to

As the owner of almost 18% of the world's proven gas reserves, Iran is considered one of the world's most gasrich countries. The country claims that its capacity for natural gas production is even larger than estimated byfor instance the International Energy Agency (IEA). The country’s policy is to achieve 8-10 % of the world's gas

trade and its by-products within twenty years. It is estimated that by the end of 2010-2015, Iran's gas exportcould reach 248.4 BCM a year, both as LNG and through pipelines, says Reza Kasaei Zadeh, Vice Oil Minister

of the Islamic Republic of Iran and General Director of the National Iranian Gas Company (NIGC).

As the fourth biggest NGV country in Asia, Iran cu-rrently has 137 NG refuelling stations which facilita-

te more than 115.000 NGVs.With oil prices hiking up ra-pidly, Iran government develops a plan for the NGV in-dustry by offering tax exemption for CNG equipment, fun-ding and regulation to allow bigger adoption of NGVs andfuelling station construction.

It’s recent plan is to convert 600.000 vehicles to NGVs,while to major plan is to switch the whole government ve-hicles and public transportation to these "clean" vehicles.Yearly conversion rate to NGV in Iran is about 10.000-12.500 vehicles.

Besides, there is a target for 4-5 years ahead: 550.000OEM bifuel, and 667.000 dedicated OEM NGV

The big Iran NGV target

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Natural gas is set to fuelIranian economy

According to NIGC, Iran'stotal oil and gas reserves we-re estimated at 311 billion ba-rrels oil equivalent in March2004 with 42.4% for oil and57.6% for natural gas.This ac-counts for 18% of global gasreserves and Iran is thereforeconsidered to be one of theworld's most gas rich coun-tries.

Iran is the connecting brid-ge between the Caspian Seaand Central Asian basin in thenorth, the Persian Gulf, Indiaand Pakistan at its southeastborder, and Turkey and Euro-pe on the other side.With itsenormous natural gas reser-ves, essential infrastructure,including an extensive do-mestic gas transmission sys-tem, and a unique geographi-cal situation, Iran considers it-self to be an effective andcontributing factor in suppl-ying sizable quantities of in-ternational gas demand.

The country's current gasproduction capacity is 383million cubic meters/day. Ac-cording to NIGC,at the end ofthe fourth five-year develop-ment plan 6 new gas treatingplans with a total capacity of600 million cubic meters/dayare set to come into stream.This will include Masjed So-leyman, Bidboland2, SouthPars phases 9 & 10 and SouthPars phases 15 & 16 plants.

For the transportation ofthe gas produced, over tenthousand kilometres of highpressure pipelines are set tocome on stream over a 5 year

June 2006

29

$50 Billion should be inves-ted on the upstream and $20Billion on downstream pro-jects such as transmission pi-pelines, compressor stationsetcetera. It means that thegas sector needs about 5 to 7Billion US$ per year right th-rough to 2016."

NIGC is mainly responsi-ble for the refining, transmis-sion and distribution of natu-ral gas, the construction ofgas transmission pipelinesand gas sweetening plant.The export business is in thehands of National IranianGas Exporting Company (NI-GEC). NIGC is not involvedin exploration, developmentand production of naturalgas. Such tasks, under theexisting law, have been givento the National Iranian OilCompany (NIOC). It intendsto increase the gas produc-tion rate from the southernfields of Iran, particularlythat of the shared reservoirs.

Both NIGC and NIOCwould encourage foreign in-vestment in gas explorationand production, says KasaeiZadeh. "Both NIGC and NIOCoverall will cover at least 50%of the investment, and therest can come from foreignsources. We would welcomeforeign companies to partici-pate in our projects."

Asked about his opinionon the recent gas disputebetween Russia and, amongothers, Ukraine, which by so-me policy makers in Europewas considered a threat tosecurity of supply, Kasaei Za-deh says: "Increasing the na-tural gas price for CIS coun-tries could have been consi-dered as an economical deci-sion for Russia policy ma-kers. Russia tries to establisha new gas pricing policy forcountries that can followmarket realities. First priorityin Iran's export projects areeconomical issues ratherthan political. For this, NI-GEC negotiates with gas bu-yers in accordance with pre-vailing market realitieswhich could secure the eco-nomics of the projects."

cubic meters (BCM), ofwhich 30 BCM was deliveredto oil fields for injection pur-poses.

Natural gas has alwaysbeen considered a pivotalelement in Iran's economy,now and in future years aswell. With the country's gro-wing dependence on naturalgas and also growing exportsto various countries throughLNG or pipelines, the role ofnatural gas will gain furthersignificance in the country'seconomy.

period, increasing the totallength of Iranian high pressu-re pipelines to more than 30thousand kilometres.

The current gas share wit-hin Iran’s energy consump-tion basket is 59% with on-going gas delivery develop-ment in various sectors (hou-sehold, commercial, indus-trial and power plants). Thisfigure is estimated to increa-se to 68% at the end of thefourth five-year plan in theyear 2009. Iran's gas produc-tion in 2004 was 149 billion

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Next destination: ExpoGNV 2006

Once again the longexperience of theNGV event organiser

NGV Communications Groupwill run a conference and exhi-bition in Latin America.With aC.V. of more than 18 yearsknowledge in the field,and sup-port from a highly experiencedwork-force in Asia, Europe andSouth America, we present youthe only one NGV exhibitionorganised for the South Ameri-can market this year.

The events covers:• A conference which re-

gistration is free of charge. Certificates will be given

out to those who

6-8 July, Jockey Plaza Convention Centre, Lima city, Peruattend the two-days conferen-ce.A didactic CD on the con-ference summary will be dis-tributed for free to all exhibi-tion visitors.People who haveregistered to the Seminar andthe sessions come from na-tions as heterogeneous anddistant as Canada, United Sta-tes, Nigeria,The Netherlands,Pakistan, Sultanate of Oman,etc., and of course from all La-tin American countries;

• A 4.000 sqm exhi-bition with com-p a n i e sf r o m

18 countries, so far. The exhibition will include

vehicles –sport and street mo-dels, prototypes, vans, heavy-duty ones-, valves and acces-sories, (classical and new ul-tra-light) storage cylinders,compressors, dispensers andother products offered bysuppliers of refuelling sta-tions, conversion kits of third,fourth and fifth generation,among others;

• A technical tour to refuellingstation and companies in Lima;

• A test-drive in a circuitnext to the exhibition site.

Do not miss the chance tojoin the successful NGV com-panies "club". There are only7 stands left in the exhibition.Book your space now. Sendyour inquiry to [email protected] or visit ww-w.expognvperu.com.

June 2006

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Stands map - 10 may.

Hale Hamilton Valves fuel thedrive for CNG filling solutionsHale Hamilton Valves Ltd have over 50 years’ experien-

ce in the design, manufacture and sale of high pressu-re,high flow control valves and systems,with specific

experience in the field of high pressure gas supply and filling.The firm has launched a range of Priority Fill Manifolds

which revolutionise the supply and control of high pressurecompressed natural gas (CNG) for road vehicle re-fuelling, saysMarketing Director Ian Davies.

Market demand for these solutions has been significant, resul-ting in major contracts to supply large volumes of product to arange of International customers.

The manifolds with a choice of modularoptions are fully automatic and do notrequire an electrical interface.

CNG filling configurations are: • 2-line with direct compressor fill • 3-line priority fill• 3-line with direct compressor fill.

Modular designs provide quick and

easy installation and simplified servicing. The solutions utilise arange of standardised cartridge components developed fromour long established, field proven pressure control products.Their design minimise leak paths and provide easy access forservicing.

The dimensions of a 2 line priority fill manifold are 180 x 139x 95mm. This replaces a far larger non modular solution of in-dividual valves which measure at least 1000 x 1000 x 1000mm.

Hale Hamilton’s Chief Executive Allan Goodbrand says; "CNGproduces 20% less carbon emis-

sions than petrol and diesel, sodemand for this environmen-

tally fuel is rising rapidly as go-vernments seek to meettheir obligations to redu-ce ozone-depleting po-llution".

For further informa-tion call Hale Hamilton

on 01895 457 541 or visitwww.halehamilton.com

Page 33: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

Swagelok now offers aline of medium-pressu-re products—gaugea-

ble tube and adapterfittings, as well asseamless tubing—tosatisfy higher workingpressure require-ments in the al-ternative fuelsand oil and gasindustries.

S w a g e l o k ®medium-

pressure gaugeable tube fittings andadapter fittings provide a leak-tight gasseal and vibration resistance in appli-cations up to 15,000 psig (1034 bar).Available in 1/4, 3/8, and 1/2 inch si-zes, the all-316 stainless steel fittingscome in a diverse range of fitting sty-les, including elbows, unions, bulkheadunions, reducing unions, tees, crosses, caps,and plugs.

The fittings’ four precision components—amale nut, female body, front ferrule, and back ferrule—com-bine to apply a patented hinging-colleting action to grip andseal the tubing securely with no special tube preparation re-quired. The fittings offer low weight and a compact profileto help save space in installations.

Additional highlights of the medium pressuregaugeable fittings include:

• Easy connection to heavy-wall annealed or cold-drawn1/8-hard stainless steel tubing

• Simple installation, no special tools required • Fitting assembly is by one turn or torque, allowing ma-

nual or automated assembly• Preassembled disposable cartridges ensure correct ferru-

le orientation• Patented low-temperature case hardening processing of

the ferrules and nut provides enhanced performance and co-rrosion resistance over a wide range of applications

• Third-party test reports and extensive Swagelok producttest reports validate performance claims.

Medium-pressure 316/316L stainless steel tubing for use inapplications up to 15,000 psig (1034) bar is available inheavy wall annealed or cold-drawn 1/8-hard condition.Avai-lable tubing sizes are 1/4, 3/8, and 1/2 in. outside diameter,in 20 ft and 2, 4, and 6 m lengths. Medium-pressure tubing:

• Is a perfect complement to Swagelok medium-pressurefittings

• Can be bent with the Swagelok bench-top bender• Is marked with size, material, condition, and heat number.

"Our customers in the alternative fuels and oil and gasmarkets told us they needed easily reassembled fittings andstainless steel tubing that work consistently at pressures of

June 2006

31

Swagelok introduces medium-pressuregaugeable tube and adapter fittings, seamlesstubing for applications up to 15000 psig (1034 bar)

up to 15,000 psig," said Peter Ehlers, alternativefuels market manager, Swagelok Company. "We’re

very excited to offer the marketplace high-qualitymedium-pressure products that meet theseperformance goals."

Headquartered in Solon, Ohio, U.S.A.,Swagelok Company is a major develo-per and manufacturer of fluid systemcomponent technologies providing awide range of high quality products

and solutions to the research, ins-trumentation, pharmaceutical, oiland gas, power, petrochemical,alternative fuels and semicon-

ductor industries. Its manufacturing,research, technical support and distri-bution facilities support a global net-work of more than 200 authorized salesand service centers in 54 countries. Formore information about Swagelok, visitthe company’s Web site at www.swage-lok.com.

Swagelok® offers medium-pressure seamless tubing andgaugeable tube and adapter fittings for applications up to15 000 psig (1034 bar).

Peter Ehlers

Page 34: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911

Worldwide interest inthe Asian NGV market

As revealed during last 12th Annual ENGVA Conference

June 2006

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The 12th conferenceand exhibition of theEuropean NGV Asso-

ciation was held in Brussels,Bel-gium, last April 2006.

Asian NGV Communicationswas present in the event. Du-ring the table-top exhibition,wedistributed hundreds of our ma-gazine copies and promotedour NGV industry’s work in theregion. A huge interest cameform many European and Northand South American countries.

The IANGV President him-self,Juan Carlos Fracchia,has sta-ted that he is pleased with theNGV activities and growth ten-dency in Asia and mentionedthe big importance of Asia tothe global industry.

Thailand,Pakistan,China, Iranare some of the favourite coun-tries mentioned many times du-ring the conversations betweenAsian NGV Communicationsand visitors to our table-top.Countries like Bangladesh, In-dia, Egypt and even Indonesiaand Malaysia are also popular,either due to their current sizeof NGV development or pro-jects.

Page 35: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911
Page 36: Volume 1 • #5 • Number 5 • June 2006 Analysis of NGV ... · Asia, advertise with us. Asian NGV Communications 300-14, Changchon-Ri, Namsan-Myun, Chuncheon-Si, Kangwon-Do, 200-911