CNG growing in popularity as motor fuel in Pakistan, Iran

May 12, 2004
Pakistan has become the top country in Asia—and third in the world—in the use of CNG as a motor fuel, said Hilal A. Reza, director-general of the Hydrocarbon Development Institute of Pakistan. He also said Iran plans to convert 1.5 million motor vehicles to CNG and establish 700 CNG filling stations within the next 5-7 years.

By an OGJ Correspondent

KARACHI, May 12 -- Pakistan has become the top country in Asia—and third in the world—in the use of CNG as a motor fuel, said Hilal A. Reza, director-general of the Hydrocarbon Development Institute of Pakistan during a late April meeting with the Federation of Pakistan Chambers of Commerce and Industry's standing committee on CNG, oil, and gas held at the Federation House.

Reza said 15 billion rupees have been invested in CNG development in Pakistan, with another 3 billion rupees planned. All new government vehicles will be converted to CNG by June 2005, and the conversion of diesel vehicles is being pursued, he said. A proposal is under consideration for seeking government incentives for CNG use.

Iran's CNG use
Pakistan and Iran signed a memorandum of understanding (MOU) to cooperate in the development of CNG manufacturing and use, and Iran has invited Pakistani investors to support Iran's CNG initiatives, Reza said.

Iran plans to convert 1.5 million motor vehicles to CNG and establish 700 CNG filling stations within the next 5-7 years. That includes 100,000 taxis that Iran earlier had converted to liquefied petroleum gas. LPG will be used for value-added products or for export.