Opportunities for NGV investors

Volume II Number 12 August 2007

Iran1.000 stations byMarch 2008

Beijing, China90% of public vehicles on alternative fuels

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Summary

04 NGV market potential is in Asia

Which countries are favourites to equipmentsuppliers and vehicle producers?Several Asian countries are consistentlymentioned by those suppliers.

15 Powering China, 200 Bcm NG in 2018

A large number of municipalities andprivate sector in China is working hardto enlarge NG distribution for housingand transport needs. Many cities ...

22

24 Pakistan to build 4,250 more NG stations

25 In Karachi, 250 CNG busesto start operating this year

26 Middle East target 2010 and beyond

28 Projects in Australia, China,Korea, Pakistan, and Thailand

30 Gangwon province NGV association in Chuncheon city

32 Investment opportunities inIndia for cylinder suppliers, etc

36 World NGV fairs and conferences: IANGV2008,

We print and mail to 24countries about 4.000copies addressed to governmental relatedoffices, OEM and Oil & Gascompanies, associations,related NGV industries,refuelling stations,workshops and suppliers,according the following list(some figures rounded):

Armenia: 0.3%Australia: 4.1%Azerbaijan: 0.2%Bangladesh: 5.0%China: 10.9%

Egypt: 1.9%India: 9.5%Indonesia: 1.6%Iran: 7.0%Israel: 0.1%Japan: 10.2%Korea: 5.1%Malaysia: 6.6%Myanmar: 0.5%New Zealand: 1.0%Pakistan: 11.4%Philippines: 3.6%Russia:4.3%Singapore: 3.1%Taiwan: 0.2%Thailand: 5.8%Turkey: 5.5%United Arab Emirates: 2.1%

Vietnam: 0.1%In addition, the magazine issent to over 19.300 readersin 94 countries

by e-mail (.pdf) and is alsoonline 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 : +31 20 420 1076Tel : +82 33 260 3419e-mail: asia@ngvgroup.com

Copies Distribution

Iran government mandatesto promote CNG car industry

18 India investing over US$ 14B in gas network

As vehicle makers expressed theirdemand on better gas supply infrastructure, energy firms aim toimprove gas infrastructure including ...

Asian NGV Communications is a publicationof NGV Communications Group, publishinghouse and fairs-conferences organizer: www.ngvgroup.comIn Europe, we print The Gas Vehicles Report,GVR, and www.ngvguide.com, theInternational NGV Guide. In Argentina, the Group publishes PrensaVehicular, Argentine CNG Guide, maps,books and brochures while in Brazil, Folhado GNV, Brazilian NGV Guide, maps andposters, among others. In Peru PrensaVehicular Peru. More info: www.ngvgroup.comThe signed articles are exclusive responsibility ofthe authors, as well as advertising companies andagencies are responsible for the published ads.

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August 20074

Whenever Asian NGV Communicationsteam participates in NGVexhibitions/conferences around theworld, we always promote this regionand track the most recent tendencies inworld’s NGV market. One issue that wealways monitor is “which countries arefavourites of equipment suppliers, vehicle producers, and consultants”. A consistent feedback concludes that“Asia” is a very interesting emergingmarket which holds potentials for NGVrelated suppliers.

China, India, Iran, Pakistan, and South-East Asian countries are repeatedly mentioned by manyEuropean, North and South Americanequipment suppliers, also by few vehicle producers.

China NGV industry has attracteddomestic and overseas companies toexpand their business globally throughsales and distribution from this country.Increase revenues of NGV companiesfills up the media, such as that fromChina Natural Gas, Inc. –CNG distributor and fuelling station owner--with 70% increased revenue from US$18.8M in 2006 to US$ 32.0 M in 2007and a net income of US$ 9.3 M. Thefirm plans to open 27 new NG stationsby end of 2008, also anticipates revenue and net income growth of 70%by financial year 2008.

Sinoenergy Corporation, a CNGVsmanufacturer and NG fuelling stationbuilder and owner expects to increasetheir 2006 revenue of US$ 12.4M by140%, achieving net revenue of US$30.0-US$ 32.0M in 2007 after opening20 CNG filling stations in the secondhalf of 2007. The expected net revenueof US$ 17- US$18M would be gainedfrom fuelling stations, conversion kitsand other CNG-related business.Demand on NG is expected to increaserapidly in coming years with averagegrowth of 11%-13% anticipated withincreased reliability on imports. By 2010demand will run to 100,000 MNm3,with local supply availability of about80,000 MNm3. By 2018, demand isexpected to double to 200,000 MNm3,of which 50% is likely to be dependenton import. Over 75 cities in China use methane,

expected to increase to 270 by 2010.China is one of the fastest growing NGVnations in the world, with about201,000 NGVs on its roads. By 2050,65% cities in China will use natural gas.

Indian energy firms are stepping upspending on compressed natural gas(CNG) infrastructure to meet soaringdemand from vehicle makers. Althoughonly 1% of India’s 35,000 fuelling facilities offers CNG, demand for naturalgas for transport and household supplyis forecasted to reach 7% of total gasdemand in the next five years, according to KPMG (from Klynveld PeatMarwick Goerdeler). The firm expects atleast 30 cities will have CNG fuellingstations while the government haspledged to supply piped natural gas to200 cities.

Goldman Sachs estimates that NGshare in India’s energy basket will double to 18% by 2015, in which oilshare will decrease to 25%. Analystssay that 2%-3% of all cars sold run onCNG but they see this segment as thefastest-growing in terms of fuel optionsin India's rapidly expanding vehicleindustry. Only eight in every 1,000Indians currently own a car.

In 2005, India’s three financial advisorssuggested project structure for executing a US$ 7.4 B Iran-Pakistan-India gas pipeline. And the governmentalso expressed the need to have another pipeline from Turkmenistan-Afghanistan-Pakistan-India. In 2007,two big gas distributors are committedto invest US$ 7 B each to set up gasinfrastructure, including city gas distribution projects such as CNG outlets. Several other gas distributioncompanies from India and the UK arealso pledging to invest multi million dollars in the business.

NGVs OEMs see the opportunity in themarket and offer wide range of CNGvehicles. General Motors Corp.,Hindustan Motors, Maruti Udyong, andDaimlerChrysler either already offer orwill launch their NGV models in thismarket.

In Iran, President MahmoudAhmadinejad called for a nationwide

focus on reducing fuel consumption,and also described an increasing focuson switching transportation to naturalgas fuel. The country gains about US$50B from energy sales, yet consumeUS$ 55B worth of fuels. The presidentaims at cutting fuel consumption from80M litres to 70-60M litres and hopesto switch all gasoline automobiles toNGVs during the next 3-4 years. Thepresident also said that 550 CNG fuelstations will be installed in the countrybefore the end of September and thefigure will reach to 1,000 before March20, 2008.On the other hand, a national car manufacturer, Iran Khodro Company(IKCO), will start operations next yearwith an initial capacity of 250,000 unitsper year to meet domestic demand.The firm has purchased 70,000 fueltanks from a domestic company andthe agreement for another 300,000 hasbeen signed. An additional agreementfor 200,000 tanks is also under negotiation.

According to Economic Survey in Junein Pakistan, there are 1,450 CNG stations servicing almost 1,4M NGVs inthe country while 1,000 more stationsare under construction. The Oil and GasRegulatory Authority (Ogra) has so farissued over 5,700 (!) provisional licensesfor the establishment of CNG stationsacross the country while the governmentis providing incentives regarding purchasing of new CNG vehicles.

Diesel vehicles in major cities are beingphased out to be replaced by CNGbuses for intra city transportation.Those cities which include Karachi,Rawalpindi, Hyderabad, Lahore,Peshawar, Quetta and Islamabad willbenefit from the Economic CoordinationCommittee (ECC) of the cabinet’s policyon zero rated sales tax on import ofpublic transport such as CNG buses.

In South-East Asia, Indonesia,Myanmar/Burma, and Thailand arefavourites among equipment suppliers.In those countries, government supportis quite strong and fuel supply is reliable. Apart from all countries mentioned above, Bangladesh, Korea,and United Arab Emirates are also highly active countries in this industry.

NGV market potential is in Asia

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Setiap kali Asian NGV Communicationsteam menghadiri pameran/seminarNGV di seluruh dunia, kami selalumempromosikan regio Asia dan melacak trend terbaru dari industri ini.Salah satu subyek yang selalu kamipantau adalah ”negara manakah yangmenjadi favorit bagi supplier componentNGV, pabrik kendaraan, dan konsultant”. Secara konsisten, Asiadisebut sebagai pangsa pasar baruyang sangat menarik dan berpontensibeasr bagi pemasaran Komponen-komponen NGVs. Cina, India, Iran, Pakistan, dan AsiaTenggara sering disebut oleh banyaksuppiyer dan beberapa produserkendaraan.

NGV industry di Cina menarik banyakperusahaan dari dalam dan luar negeriuntuk memperluas jaringan bisnis mereka ke dunia inernasional. Banyakmedia memberitakan kenaikan omzetdari perusahaan-perusahaan NGV.COntohnya, China Natural Gas, Inc.–distributor CNG dan pemilik tank stasiun—mengalami peningkatan omzetsebesar 70% dari US$ 18.8M-US$32.0M sepanjang 2006-2007 denganpemasukan bersih US$ 9.3M.Perusahaan ini berencana membuka 27 stasiun NG baru di akhir 2008, danmengantisipasikan peningkatan omzetdan keuntungan bersih sebanyak 70%di tahun keuangan 2008.Sinoenergy Corporation, produserkendaraan CNG dan kontraktor danpemilik tank stasiun NG, dengan omzet2006 sebesar US$ 12.4M mengharapkanpertumbuhan omzet sebayak 140% menjadi US$ 30.0-US$ 32.0 M di tahun2007 setelah membuka 20 tank stasiunCNG setelah musim panas 2007.Pemasukan bersih sebesar US$ 17-US$18M diharapkan akan didapat daritank stasiun, conversion kits, dan bisnisCNG lainnya. NG demand diharapkan meningkatdengan drastic pada tahun-tahun mendatang dengan rata-rata pertumbuhan 11%-13% yang manasupply gas juga akan dipenuhi denganimport. Pada tahun 2010 demand akanmencapai 100,000 MNm3, dengansupply local sebanyak 80,000 MNm3.Di tahun 2018, demand diharapkanmeningkat menjadi 200,000 MNm3,yang mana 50% dari supply akandatang dari import gas.

Sekitar 75 kota di Cina telah menggunakanmethane(NG) dan sekitar 270 kota akanmemiliki akses ke methane pada tahun2010. Cina adalah salah satu negara NGVyang mengalami pertumbuhan tercepat diindustri ini dengan sekitar 201,000 NGVsberoperasi di jalan. Pada tahun 2050, 65%kota di CIna akan menggunakan NG..

Perusahaan enerji di India berinvestasibesar di sector infrastruktur compressednatural gas (CNG) untuk memenuhidemand dari pabrik kendaraan.Meskipun hanya 1% dari 35,000 totaltank stasiun di India menawarkan CNG,demand NG di transport sector dansupply perumahan diprediksikan akanmencapai 7% dari total demand gasdalam lima tahun mendatang, menurutKPMG (Klynveld Peat MarwickGoerdeler). KPMG mengharapkan minimum 30 kota akan memiliki tankstasiun CNG sedangkan pemerintahmerencanakan untuk mensupply pipednatural gas ke 200 kota.Goldman Sachs menestimasikan NGshare di total enerji paket di India akanberlipat dua menjadi 18% di 2015,sedangkan pangsa oli akan menurunmenjadi 25%. Analist-analist mengatakan bahwa hanya 2%-3% dariseluruh mobil yang terjual beroperasidengan CNG tetapi mereka melihatbahawa segmen ini akan mengalamipertumbuhan paling cepat dibandingkan dengan mobil berbahanbakar alternatf lainnya. Pada saaat ini,hanya 8 dari 1,000 penduduk Indiamemiliki sebuah mobil.Di tahun 2005, tiga penasehat financialIndia menyarankan sebuah struktur gaspipeline proyek senilai US$ 7.4 B di ruteIran-Pakistan-India. Dan pemerintahmengumumkan kebutuhan nasionaluntuk juga mendapatkan supply darijalur gas Turkmenistan-Afghanistan-Pakistan-India. Di tahun 2007, dua gasdistributor besar merencanakan untukmenginvestasikan US$ 7 B per distributor untuk menginstalasikan infrastruktur gas dan distribusi gas dikota-kota termasuk CNG outlets.Beberapa gas distributor lainnya dariindia dan Inggris juga akan mengivestasikan multi million dollars dibisnis ini.NGVs OEMs melihat potensi di marketini dan menwarkan beberapa modelNGVs. General Motors Corp.,Hindustan Motors, Maruti Udyong, dan

DaimlerChrysler sebagian telahmemasarkan atau masih akanmenawarkan NGVs di pasar ini.

Di Iran, President MahmoudAhmadinejad menghimbau rakyat untukmengurangi konsumpsi bahan bakar,dan menganjurkan rakyat untuk mengganti bahan bakar (BB) transportdengan NG. Hasil penjualan enerji Iranmencapai US$ 50B, tetapi tingkat konsumpsi BB mencapai US$ 55B.Bapak president menargetkan untukmereduksi konsumpsi BB dari 80M litermenuju 70-60M liter dan mengharapkanseluruh automobile berbahan bakargasoline akan digantikan dengan NGVsdalam 3-4 tahun mendatang. Bapakpresident juga menyatakan bahwa 550stasiun CNG akan dikonstruksikansebelum akhir September dan jumlahtank stasiun CNG akan mencapai1,000unit sebelum 20 Maret 2008.Di lain pihak, Iran Khodro Company(IKCO)—pabrik kendaraan, akan memulai operasinya tahun depan dengan kapasitas inisial sebayak250,000 unit/tahun untuk memenuhidemand domestik. IKCO telah membeli70,000 cylinder dari perusahaan localdan telah menandatangani kontrakuntuk membeli 300,000 unit tambahan.Sebuah agreement tambahan untukmenambah 200,000 unit cylindersedang didiskusikan.

Menurut Economic Survey, Juni diPakistan, negara ini mempunyai 1,450stasiun CNG dan hampir 1,4M NGVs,yang mana 1,000 stasiun baru sedangdibangun. Oil and Gas RegulatoryAuthority (OGRA) telah mengeluarkanlebih dari 5,700 (!) ijin provincial untukmenginstal stasiun CNG sedangkanpemerintah menawarkan incentive untuksetiap pembelian kendaraan CNG baru. Kendaraan diesel di kota-kota besarakan segera ditarik dari operasi danakan diganti dengan bus-bus CNGuntuk transport umum dalam kota.Kota-kota itu Karachi, Rawalpindi,Hyderabad, Lahore, Peshawar, Quettadan Islamabad yang akan menikmatikeuntungan dari kebijaksaaan EconomicCoordination Committee (ECC) yangmana 0% sales tax pada importkendaraan umum seperti CNG bus.Di Asia-Tenggara, Indonesia,Myanmar/Burma, dan Tailand adalahfavorit bagi supplier komponent. Dinegara-negara tersebut, supportpemerintah dan supply NG sangatlahkuat. Di samping negara-negara tersebut di atas, Bangladesh, Korea,dan United Arab Emirates juga sangataktif di industri ini.

Pangsa pasar potentialNGV berada di Asia

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China is hitting the 7th place withinlargest NGV countries in the world,number 3 after Pakistan, India and Iranin Asia. However, the ranking might bechanged in the future as China is highlyactive in building NG refuelling stationsand conducting study and research onadoption of more NGVs and more typesof this clean vehicle. Dual fuel technology, CNG/gasoline engines system on buses, and LNG use inheavy-duty vehicles are a few of thestudies being conducted recently.Below is more information on local andnational developments within the industry.

Future gas demandDemand on natural gas is predicted toincrease rapidly in coming years withaverage growth of 11%-13% anticipat-ed with increased reliability on imports.By 2018, about 200 Bcm gas will berequired, of which half of that will besupplied by other countries. More thanhalf of all cities in China are expected touse NGVs by 2050.

Gas supplyUzbekistan's fresh agreement with theChinese to build a 530-km natural gaspipeline to China shows that the CentralAsian nation is trying to break Russia'sdominance over natural gas exportsand boost revenue. The pipeline isplanned to have a capacity of 30 bn cma year, half of the nation's current annual production.Also uncertain it is whether China wouldcommit to one or two pipelines: Beijinghas also signed a deal withTurkmenistan that will provide 30Bcm/year for 30 years, starting in 2009,through a pipeline that would crossUzbekistan.On the other hand, China and Iranexcellent energy cooperation is expected to be expanded and deepen,according to Iranian Oil Minister KazemVaziri Hamaneh.Both countries have chances to cooperate in all fields of the oil and natural gas industries, includingexploitation, refining as well as terminalconstruction, said Hamaneh.

Natural gas import regulationThe Chinese government will introducemeasures to regulate imports of naturalgas in order to protect its three major

gas importers from intense domesticcompetition, according to the Ministryof Commerce. The competition amongChina's three oil and gas giants --China National Petroleum Corp,Sinopec and China National OffshoreOil Corp.—has helped overseasexporters to raise prices. New regulation requires importers toapply for import permits for natural gas.After that, each application for animport permit will be examined andapproved.

The cities

BeijingThe municipality of Beijing hasannounced its “11th Five-Year Plan”, inwhich reduction of pollution level isincluded in the resolution. Beside

stricter emission management, the useof NGVs will definitely be incorporatedin this plan. In line with the effort to improve airquality, the Beijing Olympic 2008 eventpreparation will bring 5 Bcm of naturalgas to the city. This will be used both inindustrial and transport sector. Themunicipality plans to convert 90% of itspublic vehicles to run on clean alternative fuels, such as NG. Recently, the Beijing Public TransportGroup has learned that by end of 2007,about 4,000 city buses will run on natural gas. This has confirmedBeijing’s position as the house ofworld's largest natural gas bus fleet. The Deputy Director of Beijing BusGroup Technology ServicesDepartment, Qiang Zhong, noted that

Powering China, 200 Bcm NG in 2018

Continued on page 16

Natural gas demand is expected to increase with an average growth of 11%-13% per year

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the city begun its NG bus programmeto improve air quality in 1999.Beside buses, cars are also convertedto bi-fuel vehicles in the city. This yearalone, thousands of (old) taxis andbuses will be replaced by NGVs, ofwhich 70% of taxis are to be operatedon natural gas.

ChongqingChongqing Municipality has experienced rapid increase in naturalgas consumption within the past sixyears. Total natural gas consumptionrose by 97% from 20.6 billion cubicmeters (Bcm) in 2000 to 40.1 Bcm in2006. The growth, mainly in gas usagein transport sector, was caused by thelow price of CNG. CNG costs 40%lower than gasoline price. A taxi operator can save up to 30yuan/day while driving on CNGVinstead of using gasoline taxi.Chongqing has become Asia's largestnatural gas industrial base as the cityhas over 40 NGV related businesseswhich sold 83.4% of its products toother cities in China and to West Asia,South and Southeast Asian countries.Last year sales income of these natural

Continued from page 15

gas related products was as much asRMB 1.8B. The city started its NG developmentback in 1998. Currently, 90% of taxis and transit vehicles are poweredby natural gas. Almost 41,000 buses,taxis and other vehicles are fuelled byCNG.Over 30 models of NGVs are produced in this city. CNG-related products vary from motorcycles, cars,buses, cylinders, to other vehicle and refuelling station equipment.Beside dedicated CNGVs, CNG/diesel

dual-fuel conversion technology is beingstudied.

DaqingDaqing Vehicle Gas Company haslaunched the first CNG daughter stationin He Longjinag Province’s Daqing Citylate June 2007. This station is capableof delivering 12,000 cubic meters ofCNG per day. In July, there are alreadytwo CNG daughter refuelling stations inoperation. By the end of 2007, onemother refuelling station and sevendaughter stations will be constructed.

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NG share in India will double to 18% by 2015

PatrocinioHosted by

OrganizzatoreOrganizer

Dall’ 25 al 27 settembre 2008September 25-27, 2008

Lingotto Fiere, Padiglione 1 - Torino, ItaliaLingotto Fiere, Pavilion 1 - Turin, Italy

info@ngvworldfair.com

Energia pulita per un mondo sostenibileClean energy for a sustainable world

India to cut oil consumption by 5%

Investing over US$ 14B in gas networkLocal and overseas gas distributorsrecognise the big potential in the CNGindustry in India. As vehicle makersexpressed their demand on better gassupply infrastructure, about seven energy firms pledged to invest over US$14B to improve gas infrastructureincluding CNG outlets for transport sector. It is estimated that within fiveyears the new infrastructure will beready to operate. India is Asia’s thirdlargest oil consumer, imports 70% of itsoil demand and, thus, is encouraging itspeople to help cutting oil import bills byswitching to natural gas. Domestic gasproduction reaches up to 95 millionstandard cubic metres (mmscmd) perday, which is expected to increase tomore than 190 mmscmd by 2009. Goldman Sachs predicts that NG sharein India energy basket will double to18% by 2015, while oil consumption willdecrease from 30% to only 25%. TheSupreme’s Court decision mandatingthe use of CNG in heavy-duty vehicles

Saving Ludhiana city from filthy air

The Punjab and Haryana HighCourt has issued notices to theState of Punjab, MunicipalCorporation Ludhiana and PunjabPollution Control Board, Patiala, ona Public Interest Litigation (PIL) filedby Lt Col Naresh Ghai. The PIL hassought directions to Punjab government to save Ludhiana frompollution by putting a ban onautorickshaws. The PIL has alsosought directions to introduce CNG asfuel and set up auto stands, so that theautos do not hinder the flow of traffic.

Soon, CNG for vehicles in Jammu and Kashmir

The Union Petroleum Secretary M S Srinivasan today said that LiquefiedPetroleum Gas and Compressed Natural Gas fuels for automobiles wouldsoon be introduced in Jammu and Kashmir. Earlier, the Jammu and Kashmir High Court had asked the State Governmentand the Central Government to establish a CNG pipeline network in the State.Continued on page 20

August 200720

(HDVs) in New Delhi which later extended to 28 cities has created sucha big demand on NGV and its components. Conversion workshopsacross the nation benefits from this policy as demand for vehicle retrofitsincreased.In 2006, India has 325 CNG refuellingstations. Even currently, a merely 10%of the total 3,500 refuelling facilitiesacross the nation offer NG. Of totalvehicle market, only 2%-3% of vehiclessold in India are NGVs and it is expected to increase significantly.About 16 low-duty vehicles and fourHDVs models powered by NG areoffered by OEMs in this market. On theother hand, retrofit market is still big.Autorickshaws, taxis, and buses arealready running on CNG.

Big NGV fleet expected in Agartala

Agartala, the capital city of Tripura,is expected to become the fourthcity in the country after New Delhi,Mumbai and Lucknow to run CNGvehicles on a large scale. After theopening of the first NG station, it isestimated that around 20,000 lowand medium-duty vehicles wouldbe converted to CNGVs in Tripura.Those vehicles which are mainlyauto-rickshaws, mini buses andother small and medium vehicles,would get CNG kit. Presently, thereare 40 autorickshaws and sevensmall vehicles powered by CNG inthis state. Last June, the first CNGrefuelling station in the EasternState of India was opened inTripura. The station was set up byTripura Natural Gas Company Ltd(TNGCL), a division of the GasAuthority of India Ltd (GAIL).TNGCL shall very soon double its domestic connectivity atreasonable price in Agartala (thecapital of Tripura state), saidTNGCL Managing Director, H. C.Hatwal.

Continued from page 18

Adopting Bharat IV emission standard

A higher emission standard, Bharat IV (Euro IV equivalent), for heavy-duty vehicles (HDVs) will be implemented in 11 India’s big cities between April 2008and April 2010, while the rest of the country will adopt Bharat III. It meansgreater challenge for traditionally fuelled HDVs and more favourable environment for NGV industry. The first eleven cities to adopt Bharat IV include Agra, Ahmedabad, Bangalore, Calcutta, Chennai, Hyderabad, Kanpur,Mumbai, New Delhi, Pune, and Surat.

Highly polluted air in bigcities has increased thenation’s health costs

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Hyundai Motor India Ltd ( HMIL)launched a bifuel passenger car namedSantro CNG on 4 July 2007. Santro,which means “Sunshine”, with its bifuelsystem, can be operated on either CNGor gasoline. It meets the EURO III emission standard.

Santro CNG is equipped with a knobthat allows drivers to switch fuel fromgasoline to CNG. The onboard CNGcylinder has a capacity of 12 kg CNG.The original gasoline engine has acapacity of 1.1 litre engine.

The fuel economy when using CNG isas much as Rs 1 per kilometre, or evenless depending on the driving cycle.

It means about 60%-70% fuel saving isgained when using CNG engine insteadof the gasoline one. CNG SANTROmodel XK without air-conditioning system is sold at Rs 325,361 per unit.

Initially, the CNG Santro will belaunched in Delhi. All Hyundai dealers inDelhi in collaboration with NGVI Indiaare prepared to sell and service theCNG Santro. Incentives such as 2 yearunlimited mileage warranty are offered.

Besides, there is an additional warrantyfor the same period for the CNG kit andthe retrofit as well.

Hyundai enters India NGV market

Launching of bifuel Santro

August 200722

Iran resolution to reduce oil consumption

The President to endorse NGV industry

Nowadays oil dependency is a commonproblem in many countries. Even for anOPEC member country and a giantcrude oil producer such as Iran, gasoline shortage is a substantial issue.Therefore, the President of Iran calledfor reduction of oil consumption in thecountry. Fuel switching from gasoline tonatural gas (NG) is being highlighted asone of the most important policies toanswer the challenge.

Being the second-largest OPEC producer of crude oil after Saudi Arabia,Iran refinery capacity is below the quoteof demand in the transport sector. Witha combined capacity of 1.6 million barrels per day, the Iranian refineriescurrently produce just 16% gasoline,according to the Energy InformationAdministration (EIA). Iran has importedrefined product since 1982. As demandincreases very rapidly, cost of oil importalso rises. Thus, President MahmoudAhmadinejad called for people toreduce the current energy consumption-- of total 80M litres--worth of US$ 55B, and to switch fromtraditionally fuelled vehicles to NGVs.

Target is set to decrease the consumption by 10-20M litres. “If wecan change our automobiles fuel fromgasoline to gas during the next 3-4years, we won’t need gasoline any-more,” he stated. Iran possessesworld’s second largest reserves of natural gas of 970 trillion cubic feet(Tcf), according EIA. The country’sreserves/production ratio in 2004-2005was predicted about 265- 323 years*.

The president also stated that 550 CNGrefuelling stations would have been constructed before September 2007and a total of 1,000 stations would beinstalled before March 2008. By April2007, Iran houses 199 CNG refuellingstations, of which 168 units are publicstations and 9 private plus 22 unitsoffering both CNG and gasoline (bi-purpose stations), according to IranFuel Conservation Organization (IFCO).The total capacity of those stationswere 283,333 Nm3/hour. Additionally,

289 stations were ready to operate, ofwhich 128 are public, 11 private and150 bi-purpose stations. By that month480 stations were under construction,in which 154 would be opened to public, 110 for private fleet use, and216 bi-purpose. In the vehicle sector, Iran convertsabout 12,000 vehicles to NGVs on amonthly basis. Car producers, such asIKCO, join the industry by offering bi-fuel cars and pick-ups. IKCO is the largest vehicle manufacturerin Iran and the Middle East, and buildscars and commercial vehicles fordomestic use and for export.

This Tehran-based vehicle manufacturerwill begin this new operation on CNGvehicles, with a 250,000 tank capacity,starting 21 March 2008. It is quite a bigprogress from previous financial yearresolution which aimed to produce137,000 CNG cars by the end of March2007. Presently, the firm offers Samand,Peugeot 405, Peugeot Roa, andPaykan pick-up in their NGV assortmentplus the new products: 206 andPeugeot Pars CNG.

Iran Khodro Company will start manufacturing compressed natural gas/gasoline cars in the centralprovince of Qazvin by March 2008, following the President’s calls to cut oil use in the nation.

Iran to stop producing gasoline carsIn order to promote CNG vehicle production, the Ministry for Industry and Mines issued a new mandate forautomakers to shift manufacturing polluted gasoline vehicles early July 2007. The government also requires car makers to include this policy in their five-year plan.

The policy was issued to encouragemore production of low fuel consuming cars in accordance with the existing international standards, said Iran's deputy minister for production, Hatam. He also called for the use ofCNG/gasoline buses for those OEMstransportation services.

* Reserves/production ratio has beenobtained by dividing the reserves of agiven year by production for the sameyear. Data 2004: ENI “World Oil & GasReview 2006. Data 2005 from EIA: NGreserves of 970 Tcf and production of3,653 Tcf (1 m3 = 35,312 Tcf)

Within five year, car manufacturers should shift their gasolinecar production to clean vehicles while CNG/bifuel cars production is expected to increase up to over 1 million units.

August 2007 23

Gasoline rationing policy

In June 2007, the Iran Ministry ofOil launched the government’sgasoline rationing plan-for four tosix months for all vehicles includingmotorcycles. The plan was implemented in two phases, ofwhich, the first one applied to government vehicles and the second one to private vehicles.According to the scheme, ownersof private cars who were unable touse CNG would get 100 litres ofgasoline per month, and those whocould will get 30 litres only. The maximum gasoline quota was400 litres for dedicated gasolinecars, and 120 litres for bifuel cars,in which, fuel quotas could besaved and used later. The maximum quota for each government car at the start of theprogram is 10 litres/day.

Gasoline purchased above quotawill be priced at much higher cost,according to the rationing lawpassed by parliament in March.The significance of the rationing lawwill only be realised when it isenforced for private cars, forcingIranians to pay a higher price for acommodity that now costs lessthan a comparable amount of mineral water. Iran has alreadyraised pump prices by 25%, toaround 10 cents/litre, and forcedconsumers to use smart cards tokeep track of their purchases.

However, as private cars ownersare unable to cope with the mandate and, thus, this createsriots in several pumps stations andother public places, the government might consider toreconsider the plan.

President Ahmadinejad

August 200724

Pakistan to build 4,250 more NG stationsIn June, the team of Economic Survey of Pakistan reportedthat there are 1,450 CNG refuelling stations in Pakistan,whereas 1,000 new stations are under construction. This has made Pakistan the biggest NGV country to have the highest number of CNG refuelling station third toArgentina with its 1,687 stations and Brazil with 1,467 stations. Pakistan has recorded a big growth in methane station sector as in 1999 only 62 stations were operated.

Rs 60 B investment in the CNG transport sectorThe result of the survey was launched by Dr Salman Shah,Advisor to Prime Minister on Finance and Revenues and DrAshfaq Hasan Khan, Advisor to Finance Ministry. The number is expected to grow rapidly as, up to now, Oiland Gas Regulatory Authority has issued more than 5,700provisional licenses for the installation of CNG refuelling stations. So far, this sector has attracted investment of Rs 60billion creating 60,000 jobs across the country, reveals theEconomic Survey.

To date, almost all NGVs are cars and Low-Duty Vehicles.There is a plan to adopt CNG buses to close the gap withinthe public transport service sector and replacing the polluteddiesel buses in seven major cities. The government encourages the phase-out of diesel vehicles by providingincentives for purchase of new CNG vehicles, and 0% salestax for procurement on imported CNG buses. The later onewas issued in December 2006.

Lowering air-pollution levelIn early 2005, the government issued the Pakistan NationalReport on the Millennium Development Goals (MDGs) 2015,in which, resolution number seven seek for sustainability inenvironment. The followings targets are included in the resolution, amongst other:

To increase energy efficiency from the current level of27.3% to 28.0%;

To increase the use of clean fuel in the transport sector by increasing the number of vehicles using CNG from 0.37 million to 0.92 millions. This target was exceeded already in 2006;

To reduce the sulphur content in diesel fuel from 1.0% to 0.25%.

Municipalities in major cities offer incentives and issue severalmandates to achieve the target on diesel-sulphur content. InLahore, polluting two-stroke autorickshaws would be bannedsoon. Auto Rickshaw Dealers Association (ARDA) GeneralSecretary Haji Taj Muhammad said that negotiations betweenrickshawalas and the government were underway on theissue of the government’s plan to ban two-stroke rickshawsfrom Lahore by the end of 2007. Two stroke-rickshaws are supposed to be replaced by four-strokes ones, and additionally, with special governmentcalls to switch from traditional fuel to CNG. The authority offers a subsidy of Rs 20,000 on every government-approved CNG rickshaw.

August 2007 25

CNG buses in five cities in PakistanKarachi will be the first city to operateCNG buses in Pakistan. City NazimSyed Mustafa Kamal noted that 250CNG buses will start plying on the city’sarteries this summer with the arrival ofthe first batch of buses from theNetherlands. Four CNG bus terminalswould be made in different city areaswhere under the public-private partnership programme four CNG fillingstations would also be established.Deputy Chairman Planning CommissionDr Akram Sheikh from CentralDevelopment Working Party (CDWP)said that about 500-600 CNG buseswill hit Karachi roads early next financialyear, followed by Lahore, Peshawar,Quetta and Rawalpindi-Islamabad. By 2012, diesel vehicles in public transport in all major cities will bereplaced by CNG buses, announcedthe Central Development Working Party(CDWP) this year. In general, the CDWPhas approved 40 development proposals of many sectors worth ofRs16.6B, of which Rs 9.6B will be allocated for 21 infrastructure projects.Private sector aims to invest in the CNG

bus business with a number of fleet notless than 50 units will be able to enjoyparts of this funding to partially offsetinterest loans. Rs 5B will be allocatedfor this purpose.

Tender for establishing bus terminal and fuelling stations

On 10 July 2007, the Transport andCommunication Department of CityDistrict Government Karachi (CDGK)has invited tenders for setting upCNG station in Karachi following theplan to adopt 8,000 big CNG publicbuses in the city. The adoption ofthese buses would be done in several phases and the Karachimunicipality has signed a Memo ifUnderstanding (MOU) with a Dutchbased Company. The Transport andCommunication department of CDGKhas been working out for the strategies to facilitate private sectorabout the smooth operations of CNGbuses on urban routes and theefforts have also been underway toestablish a modern bus terminals or

depots designed by CDGK in collaboration with professionalexperts in CNG industry, to ensurefuelling facilities for CNG transports.CDGK has also invited consultantsfor setting-up of CNG station besidestheir operation, management andmaintenance at already establishedterminals for CNG buses in Sector 5-D and 7-A of Surjani Town.Transport department had also prepared a report that includes RFPproposals to be issued as guidancefor companies and potential biddersshowing interest in CNG station andthe whole exercise was aimed to create a proper environment for setting-up quality stations for newCNG buses under private sector.

To reduce initial investment costs, theprovincial governments of the involvedfive cities will provide land on lease forparking and related requirements tothese companies.

August 200726

Towards the 2010 fuel replacement target, Middle Eastern countries are setting actively several schemes toachieve the goal to switch to alternativefuels. Despite being home to 65% ofthe world’s oil reserves, Middle Easterncountries have chosen to switch to natural gas as an alternative. The International Association for NGVexpects that about 1 million NGVs willbe plying in this region by 2010.

Public and private sectors are workingtogether to implement NGV projects inEgypt, Iran, and the United ArabEmirates (UAE). Currently, 70,000 NGVsare operating in Egypt roads. The country aims to have 145,000 unitsof this vehicle by 2010. Iran has about300,000 NGVs, targeting to have600,000 vehicles by 2010.

UAE targets in 2010-2017In the UAE, the Sharjah Municipality(SM) agrees to work with the SharjahElectricity and Water Authority (SEWA)in a 10-year agreement (up to 2017) tosupply CNG to its vehicle fleet.

The programme will be implemented intwo phases. In the first phase, SM tocommission a CNG refuelling station,and in the second to supply 200 CNGvehicles of the municipality. SEWA’sDirectorate General said that this agreement is the third after thosesigned with ADNOC and Al NaboudaCompany.

On the other hand, it has been a part ofAbu Dhabi Executive Council strategy toconvert 20% of the most polluting carsin the Emirates to run on methane by2012. The government has targeted tohave 10,000 methane vehicles by 2010.As part of the strategy, new guidelineson emission standard were issued, apublic refuelling station and two

Middle East target 2010 and beyond

By 2010, 1 million NGVs are anticipated to ply in the Middle East

August 2007 27

conversion workshops were opened,rules on CNG equipment wereapproved, while regulations on CNGcars would be issued. Also, CNG pricewas reviewed. Methane cars areexempt from certain vehicle fees, andinsurance companies were compelledto reduce charges by 10% for cars running on CNG.

On the other hand, a research projecton conversion of diesel water taxi toCNG and its operation will be run untilthe end of the year in Dubai. Aspokesperson of Dubai Road andTransport Authority said that the authority is keen to operate all publictransport on CNG in due time.

UAE will have 16 CNG refuelling amenities by 2008, which will be able toserve 10,000 low-duty vehicles per day.In the future, the Emirates will see thepossibility to expand this programme byadding more NG refuelling stations andto use methane in public busses andheavy duty vehicles.

UAE states consist of Abu Dhabi,Dubai, Ajman, Fujairah, Ras al Khaimah,Sharjah and Umm al Qaiwain

The Government of Bangladesh hasdeclared a tax exemption for CNGheavy-duty vehicles. The taxes & supplementary taxes for these vehiclesare reduced from15% to 0%. The cutswere made by Dr. Mirza Azizul Islam,Head of Ministry of Finance, during abudget session earlier this month. Healso expressed that due to the creation

of a cleaner environment in the Dhakacity through the use of natural gas vehicles, the government is interestedin promoting imported heavy CNG vehicles. It is expected that these environmentally-friendly vehicles willreplace many of heavy diesel vehicleswhich are main contributors of PM 10 &2.5 in the city.

Tax cuts for Heavy-Duty CNG vehicles

The Government wants to promote imports of Heavy-Duty CNGVs

August 200728

LNG, the fuel for heavy-duty vehicles,made its debut in China a few yearsago. This “new entry” alternative fuelgets more and more attention from several big NGV countries in Asia.Below is a short description on theLNGV and refuelling station adoption inthis region.

AustraliaAlready for several years, the Australiangovernment provides funding for “cleanfuels” projects, such as for theAlternative Fuels ConversionProgramme (AFCP) to increase environment quality. The governmentaims, amongst others, to reduce emissions in heavy commercial vehiclesby increasing the use of alternative fuelssuch as natural gas.

The most recent funding for NGVs wasawarded to Wesport Innovations Inc. fora project to evaluate the use of LNG inhighway trucks in the nation. The A$ 1.36M will be used for emissionand performance tests to quantifygreenhouse gas, noise, and regulatedemission benefits during the demonstration of LNGVs’ performanceand economic advantages. The projectwill also provide information to allow theinvolved parties—Mitchell Corp., SandsFridge Lines, and Murray GoulburnCooperative—to asses their potentialinvolvement in a commercial LNG truckoffering in Aussie.

Four new Kenworth trucks will be usedin this programme. The trucks will bepowered by Cummins 2008-15 litreengines that incorporate Westport’sLNG technology.

LNG vehicle market enters Asia

As much as A$ 130,000 per year of fuelsaving can be gained from using LNGas the fuel cost is lower than traditionalfuel. Besides, LNG trucks also deliververy high mileage. Over 10,000 trucksare sold in Australia every year.

China Last year, a conference on LNG forvehicle fuel was held in China. The second conference and technologyworkshops on LNGV industry isplanned to be organised in Xin JiangProvince in August 2007. Also, sinceJuly 2007, a research for Hongkong cityhas been conducted to learn fromBeijing experiences in running LNG bus

demonstration. The result of this study will be used bythe Hongkong government which islooking for the possibility to adopt LNGvehicles in the city.

Meanwhile, Guanzhou Fazhan Gas FuelCo., Ltd will invest in an LNG project inZhuhai city. It will have a capacity tosupply 128,000 tonnes of LNG toGuanzhou province during the first year.After July 2007, the yearly supply will beincreased up to 412,000 tonnes.

KoreaSouth Korea’s LNG project was startedin December 2004. The scheme will be

LNG and LCNG refuelling stations are becoming more popular in Asia, servicing heavy commercial fleets

August 2007 29

completed in May 2008, involving astudy, technology development,demonstration, and a construction ofLNGV/station business model. One ofthe aims of this “Eco-Project” is todevelop Heavy-Duty dual fuel LNG vehicles technology that meets EURO 4emission standard.

The LNG team is led by Kogas andjoined by ITS, NGVI, TEMS,EngineTech, YooSung T&S, Doojin,Kangwon University, Jeonam University,KERI.

After a preliminary study, an LNGV testand demonstration project has beenperformed since July 2006. Two OEM vehicles, a bus and a tractorwith dedicated LNG engines, are bothstill under performance evaluation,achieving a mileage of 50,000 and36,000 km so far. And modified dualfuel tractor has been developed ofwhich a preliminary test on vehicle condition is being conducted. The performance testing routes for LNGwas set for this demonstration programme along the LNG fuelling facilities, which cover:

1. Bus route - Incheon to Daejeon(230km);

2. Tractor route– Pyeongtaek toDaejeon (180km);

3. Tractor route– Pyeongtaek toPohang (380km).

Currently, three LCNG fuelling stationsare operated to supply LNG and CNG.

PakistanAs CNG buses are going to be incorporated in public transportation inseveral big cities, Pakistan is also considering to adopt LNG vehicles andLCNG refuelling stations.

ThailandPTT Plc, Thailand’s state energy firm,has drawn a plan to establish LNG market for transport sector whichincludes the adoption of LNG for heavy-duty vehicles and the construction of LNG plants and LNGand LCNG refuelling stations.

Within the “NGV roadmap”, LNG plantand LCNG service station pilot projectis being conducted from June 2005-December 2015. Additionally, a smallLNG plant in Rayong will be built tosupply 22 LCNG stations. These stations will serve 13,700HDVs/day with a capacity to replace

diesel fuel consumption of 700,000litre/day. LCNG stations will be provided across the nation includingthose in Bangkok, Rayong, as well asthe North, North-East, East, andSouth/West parts of the country.

PTT will spend US$ 600 M to US$ 700 M to build the country’s first LNG terminal. The terminal will have a capacity of 5 M tonnes per year (tpy) by2010, according to the firm’s PresidentPrasert Bunsumpun. Annual capacity at the terminal wouldeventually rise to 10 M tonnes, equivalent to 1.4 B cubic feet of gas a day.

To meet the booming demand on natural gas, Thailand increases suppliesfrom local reserves and from neighbouring Myanmar, Australia, Iran,and other sources.

In July, PTT signed a preliminary contract with Pars LNG Ltd to import 3million tpy of LNG for 20 years from2011. Pars LNG Ltd is the joint ventureof Total, Petronas and the NationalIranian Oil Company (NIOC) whichdevelops Phase 11 of Iran’s South Pars,the world’s biggest gas field.

August 200730

Registration Fee:For passenger vehicles: 40% of the Original Market

Value (OMV) at registration;For buses and commercial vehicles: 5% of OMV at

registration. Additionally, owners of CNG vehicles are entitled to a specialtax exemption until 31 Dec 2009. Owners of hybrid, electricand CNG buses and commercial vehicles are subject to payroad tax equivalent to gasoline vehicles, which is 20% lowerthan their diesel equivalents.The government hopes that the incentives will result in highernumber of NGVs and, thus, creating a greater incentive forgas companies to develop and put in place a larger CNGrefuelling infrastructure. Currently, there is one CNG refuellingstation located on Jurong Island. A network of 10 refuellingstations is estimated to cost $40 million. Singapore is aimingto become a main supplier as well as a regional R&D centrefor the green vehicle industry. Several key players from public and private sectors areinvolved in this alternative energy programme*.* For more information on key players, contact Asian NGVCommunications at asia@ngvgroup.com

Singapore offers incentives for ‘08-’09The Government of Singapore has launched several initiativesand funding schemes to support the development of a competitive and innovative environmental industry to developnew clean energy technologies and to conduct pilot projects.This programme will also help Singapore to improve air quality, reduce health costs, and decrease oil import costs.NGV users can also benefit from this “green” policy as thegovernment encourages motorists to switch to clean vehicles. Approximately 5,000 ageing taxis need to be replaced byOctober 2006 and the government has provided incentivesfor taxi companies to replace them with CNG vehicles. The Ministry of the Environment and Water Resources(MEWR) and SBS Transit are looking for low-cost CNG busesto replace existing vehicles. To achieve these goals, the government introduced the GreenVehicle Rebate (GVR) scheme in January 2001 for owners ofelectric, hybrid and CNG vehicles. The rebate applied untilend of 2005. The policy was extended until September 2006.In 2007, after a further review, the incentives are going to bere-activated for the whole two years in 2008-2009. Owners ofgreen vehicles, including CNG vehicles, registered inSingapore will enjoy the following GVR given on the Additional

Clean energy and alternative fuel stakeholders and interest groups inKorea’s Gangwon Province met inChuncheon City on May 23rd to inaugurate the Gangwon ProvinceAssociation for Natural Gas Vehicles(GANGV). The association will have itssecretariat at NGVI in Chuncheon City, thecity where Asian NGV Communications islocated, and hopes to set an example asthe “cleanest” province in Korea. Thereare 19 founding members of GANGV;consisting of companies from the private sector, R&D and training institutions, provincial and city governments, transportation companies, as well as environmentaland civic groups. NGVG PresidentKevin Park was nominated as GANGV’sfirst President. NGV School Dean,Professor Sung-joon Kim and GangwonCity Gas President Ho-jik Lee will serveas Vice-Presidents. GangwonProvince’s Chuncheon City will host theIANGV 2012 Conference and Exhibition.The Province would like to show theworld how a small province can use itswaste to fuel vehicles for cleaner air andenergy independence. It will contributeto lowering the national energy budget

New NGV association for Gangwon province in Korea

and create job opportunities and revenue in the province. GANGV aimsto lead a bottom-up alternative fuelsvehicle movement targeting to replace30% of vehicles with alternative fuelsvehicles by 2020. In doing so, GANGVwill become a “Model” association forimplementing alternative fuel supplystrategies. By 2010 all City Buses inGangwon Province are to be convertedto NGVs. At present 42% of all citybuses are NGVs. Furthermore,Gangwon Province’s Pyeongchang isthe leading candidate city to host the2014 Winter Olympic Games.Pyeonchang City plans to host an environmentally friendly Winter Olympicgames operating only low emissionvehicles. “Gangwon Province has thereputation of being the No. 1 provincepreserving the environment in Korea.Since 2004, Gangwon Province hashosted the ANGVA Secretariat inChuncheon, provided more thanUS$110,000 in funding and has beenactively leading the way in NGV educationand training. The creation of GANGV isjust the next step in keeping our provinceclean and securing our energy independ-ence,” said GANGV President Kevin Park.

Member Companies1.Private sectors: NGVG Inc; NGVSInc; NGVI Inc; Gangwon City Gas; ChambitWonju City Gas Dongam Electronics2.R&D and training institution:Gangwon University;3.Transportation: Gangwon BusAssociation; Kyemyeong Logistics;Daewoo Motor Sales; Hanyang Marine;Hanil Travel4.Associations/ Groups:Citizens Coalition for Economic Justice;Chuncheon Coalition for Environment;Chuncheon Municipal Waste Association5. Co-operating bodies:Gangwon Province; 18 GangwonProvincial Cities and Counties

By: Harry Lee, GANGV Secretary General

Harry Lee, GANGV

August 2007 31

CNG bus made its debut in PhilippinesLast July, the government’s Natural GasVehicle Program for Public Transport(NGVPPT) took a major step forward asPresident Gloria Macapagal-Arroyoreceived the first delivery of clean CNGbuses. The President and the EnergySecretary Raphael Lotilla took part inthe test run of the vehicle fromMalacanang to Luneta Park and backto Malacanang.President Arroyo has actively endorsedthe use of NG in public transport sinceearly 2006 as part of her administration’s program to limit oildependency. At this moment, the transport sector consumes about 56%of the country’s total oil requirements.During her visit to China last September,the President witnessed the signing ofsupply agreements between CumminsWestport and Philippine bus operators.It is expected that a total 200 NG busesfor the public transport Metro Manila willserve the public along Manila-Batangasroute, of which 35 units will be operatedby August this year, according to theDepartment of Energy (DOE). Lotilla saidthat both private sector and the

Development Bank of the Philippines(DBP) will join hands to finance the procurement of these buses.The government hopes to have 2,000CNG buses plying Edsa, SouthSuperhighway and other major MetroManila routes by 2010.Lotilla also confirmed that theMalampaya Power Plant will produceCNG, which can be sold to bus operators at P14.50/litre Shell Group ofCompanies is constructing a CNGmother-daughter refuelling station inTabangao, Batangas, as the main refuelling facility. A refuelling station willalso be constructed near MamplasanExit in Binan, Laguna. According toDOE Director for Energy Management,Mario Marasigan, a group of Americanand Canadian businessmen are planning to put up more CNG refuellingstations in this country. Lotilla concluded that in a long term,the critical issue is the infrastructurewhich includes a pipeline from Batangasto Manila that will allow widespread distribution of CNG stations all overMetro Manila.

At least 10 bus operators are expectedto join the CNG bus programme, inwhich seven companies are alreadyaccredited to operate almost 200 unitsbuses*.

* Contact Asian NGV Communications(asia@ngvgroup.com) for more information

By 2010, 2,000 CNG buses will beoperated in Philippines

August 200732

Opportunities for CNG cylinderand equipment suppliers With the issuance of India SupremeCourt decree to use CNG in heavy-dutyvehicles in 29 most polluted citiesacross the nation, demand for CNGcylinders, conversion kits, and otherequipment increased a lot in this country.Positioned as world’s 5th largest NGVcountry in terms of vehicles, India possesses about 5% of all NGVs in theworld. Consequently, demand for cylinders is high. In fact, this demandhas been growing at over 40% duringthe past three years. Analysts havedetected a big gap in demand-supplychannel in this cylinder sector whichpromises well for the few existing players and thus offers room for moresuppliers. Until recently, Everest Kanto Cylinder(EKC) was the only listed player in thebusiness of manufacturing cylindersstock exchange, having a market shareof more than 80%. On completion ofexpansion programs, Everest Kanto willbecome the second largest in the worldnext to Faber Industries, Italy. Otherunlisted players include RamaCylinders, Maruti Koatsu and BharatPumps and Compressors. EKC supplies cylinders to OEM NGVs and togas distribution companies, amongstothers. Given the first mover advantageand achieving economies of scale, EKCstands to benefit the most in this growing market.Following the success of EKC, Nitin FireProtection Industries, another CNGcylinder producer, has also listed thecompany in the stock market SinceJune 2007.Since there are very few players in thissegment, companies are likely to be theones which determine the price ratherthan being a price taker. However, givenlow entry barriers, new players mayenter this segment increasing competition.

However, CNG penetration in India isset for strong growth, driven by costeconomics, increasing gas supplies,environmental benefits and improvingdistribution infrastructure, and thedemand for CNG cylinders is likely torise due to the Supreme Court ruling,improving valuations of cylinder manufacturing companies.

More profitable investment inThai NGV/station businessesPTT Plc, the state’s oil and gas company, plans to raise the price ofnatural gas for vehicle fuel from 8.50Thai Baht (THB) per kilogram to 10THB/kg by end of 2007. The increasewill be imposed gradually. The decisionwas made by PTT after reviewing government policy that declares thatnatural gas price should not exceed50% of diesel price. As current dieselprice is 25.34 THB/litre, there is sufficient room to increase CNG price.The oil & gas company is waiting forapproval from the Ministry of Energybefore implementing the new price.CNG price is the lowest among othervehicle fuels. Prices for regular and premium gasoline range about 29.91-29.99 THB/litre, while regular and premium gasohol cost about 26.39-29.69 THB/litre, and 26.64 THB/litre forbio-diesel.To support government’s effort to promote alternative fuel, also in transport sector, the firm has launcheda new campaign to subsidy vehicleconversion in May 2007. A cash discount of 10,000 THB will beoffered to any vehicle owners who wantto convert their automotives to NGVs.This incentive will be given to themotorists if their retrofit cost is not lowerthan 40,000 THB. About 120M THB isallocated for this campaign which willlast until September 2007. Apart fromthat, interest-free loans for installation ofNGV equipment are offered by this firmand several domestic banks.Thailand’s Government also hasannounced favourable tax policies forinvestor in NGV market by issuing taxexemption on new dedicated naturalgas vehicle and engine imports.Measures relating to CBU (completelybuilt up) imports have been put in placeuntil the end of 2008. The 30% tariff forcompletely knocked down (CDK) NGVs

imports will also be abolished. Also tobe removed the 20% tariffs on vehicleswith a 10 people or larger carryingcapacity.

Heavy vehicles also benefit from themeasures with CBU and CKD Chassis(with engines) tariffs reduced from 30%and 10% respectively. Import tariffs of10% on conversion kits and CNG cylin-ders have also been eliminated until theend of 2008.

United Arab Emirates goes greenerDubai government officials in Mayannounced that all taxis operating in theemirate must be replaced over timewith environmentally friendly cars, butdid not set a deadline for the replacement programme. Dubai, andseveral other states in the Emirates,currently is focusing on CNG vehiclesindustry, especially within the retrofitsector.On the other hand, Qatar Airways, thelargest all-Airbus operator in the MiddleEast, has announced a plan to useGas-to-Liquid (GTL) derived from natural gas in their aircraft. It will be thefirst commercial airline in the world touse other fuel than kerosene in its airplane. According to the ChiefExecutive Akbar al-Baker, it is expectedthat by mid or end of 2008 this planwould be realized. Experts say GTL offers only a modestcut in carbon emissions because thebase product, natural gas, contains lesscarbon than crude oil. In this case,using natural gas or the base product ismore economical and more environ-mentally friendly.

Market expansion

August 200734

The ENGVA conference in France

Promoting Asian equipmentsuppliers in Europe

presentation on “Global opportunitiesand challenges” for our industry, inwhich 14 important NGV countries werespecially addressed. Asia has confirmedits importance in the global NGV industry, also as 10 of those countrieswere from Asian region. Those highlighted countries includedBangladesh, China, Egypt, India, Iran,Japan, Korea, Malaysia, Thailand, andPakistan. As part of the conference, a table-tops exhibition and vehicle show was held as well. Beloware few images from the event.

Last June, the Asian NGVCommunications took part in the annualconference of the European NaturalGas Vehicle Association (ENGVA) topromote the Asian industry and companies in Strasbourg, France. Thenext conference will be held in Madrid,Spain, in April 2008.During the event, a political round tablewas held in the European Parliament inthis city, addressing the needs of morefinancial and policy support for NGVindustry from the Parliament. Also, theIANGV president, John Lyon, gave a

Several companies participated in the table tops section of the Engva event

August 2007 35

Following the success of the 1st WorldFair of NGVs and H2Vs in Bolzano, Italyin June 2005, another exhibition will beperformed in Italy, next year. The eventwill be held in Lingotto Center on 25-27September 2008 in Turin city, Italy.Consorzio NGV System Italia will hostthe fair and NGV CommunicationsGroup has been appointed as theorganiser.The support from Turin authorities constitutes a key factor. Their positive decision guarantees thesuccess of the event, which willbecome an important step forward inthe process of this clean fuel massiveuse, from alternative fuel to mature,consolidated fuel: the direct beneficiarywill be public health and the respectivestate expenses, transport sector’seconomy, energy independence andsecurity, all in accordance with regulations from the EuropeanCommission. The national scenario is promising: during 2006, fuelling stations sold 10%more of natural gas and 67,000 vehicles were converted to methane,and almost half of them were OEM.

AntecedentsFrom 8th to 12th of June, 2005, theWorld Fair of NGV and Hydrogen washeld in Bolzano. It was the biggestmethane for vehicles event not only inthe Italian but also in the European history: 101 stands of the sector’s companies (11 of which belonged toOEMs), which occupied a space of3,598 m2, and were visited by 9,320people, and over 70 vehicles were ondisplay. It was a success at promotionallevel for inhabitants of South Tyrol(which since then is one of the NGVleading regions), as well as for the political results attained by the regionalgovernment and the commercial dealsclosed by exhibitors.

ExhibitionThe days proposed for carrying out the event are Thursday, Friday (for theattendance of specialists and the segment in general), and Saturday (for the visit of the Italian family). The trade fair will be of 5,000 m2, and2,000 m2 for conference, registrationand amenities.The admission will be free. Visitors will

be able to register on internet or in-situon entering the fair.

Other eventsBeside the exhibition of vehicles, thefollowings events will be also held:

Free master conferences, which areopen to the public

Technical tourTest driveBusiness room with a capacity for

150 people, which can be rented for 90minutes

For more information, contact info@ngvworldfair.com

2nd World Fair of NGVs & H2Vs and Master Conferences

Italy to host a big NGV fair in 2008

On 25-27 September 2008, the 2nd world fair will be heldin Lingotto Center in Turin city, Italy

August 200736

Rome has been appointed as the IANGV 2010 city

The Council Meeting of theInternational Association for NaturalGas Vehicles (IANGV) approved thecarrying out of the 12th edition of itsconference and exhibition in the ItalianCapital City. They met on Friday 22ndin Strasbourg, France, in the contextof the annual conference and gathering of the European associationof the sector. The Roman proposalwas introduced before the Council bythe Consorzio NGV System, the host,and NGV Communications Group, theorganizer. The initiative arrived, in

addition, accompanied by the signaturesfrom Fiat Group, Iveco, Alpengas,Autronic, Bedini, Emer, Emmegas, IdroMeccanica, Landi Renzo, Lovato,Olmeva, OMB Saleri, Sicom and TorinoMetano, among others. After the presentation, the members ofthe 25th International Council Meetingdeliberated behind closed doors. JohnLyon, President of the IANGV, thenannounced the unanimous agreementon choosing Rome as the venue for the2010 event, describing the presentationas excellent.

The next World Conference andExhibition of the InternationalAssociation for Natural Gas Vehicles will be held on 3-5 June 2008. The event will be carried out inRioCidadeNova Convention Center.It is a very impressive building, of whichthe construction was completed in June2007. The first event will take place inJuly. There are more than 20 eventsscheduled before NGV 2008 and hencedelegates and exhibitors can beassured that it will be an excellentvenue for the NGV conference andexhibition.

The Brazilian NGV industry has undergone rapid development over thepast few years. In the first quarter of2007, 1.3 million NGVs are running inthe country and the average conversionrate is 17,000 NGVs per month. One ofthe main reasons favoring the use ofNGVs in Brazil is saving, with gas pricesapproximately 50% less than gasolineand 20% less than ethanol, the otheralternative fuel. Also, 1,467 CNG stations which are widely distributed inmany big cities accompanied by numerous workshops. NGV refuelling isavailable widely through a distributionnetwork with more than 1400 refuellingstations. The country houses manyNGV related equipment manufacturerssuch as those for gas cylinder, conversion kits and refuelling stationequipment. OEM NGVs may be purchased directly from automakers

such as Fiat, General Motors andVolkswagen. Delegates will get theopportunity to see some of this in technical tours before the conference.

NGV 2008 Conference and Exhibitionwill be hosting large and small companies and professionals from theindustry all around the world. The topics of the conference includetechnology trends in light and heavyduty vehicles safety, regulations, standards and market development.The exhibition will show the mostadvanced equipment and productsfrom the NGV industry. In addition tothat, delegates will be also exposed to

the newest flex-fuel vehicle technology,converted to the use of natural gas.

An excellent partners program is beingorganized with visits to city sites suchas Corcovado, the Sugar Loaf, theBotanical Gardens and a variety of pre-and post conference tours beingoffered. The chosen conference hotel isSofitel Hotel at Copacabana. However avariety of accommodation will be recommended, mostly in theCopacabana area.

The event will be hosted by IBP andorganized by NGV CommunicationsGroup.

Rio de Janeiro, the venue of the IANGV 2008

NGV 2008 in Rio de Janeiro

IANGV fair & conference in Brazil

J. Lyon (IANGV) and V.Cappellato (NGV System)

August 2007 37

BusinessCentreNG buses for Beijing 2008 Green Olympic Programme

The Italian Ministry for Environment andTerritory (IMET) has launched a widecooperation program with the ChinaState Environment ProtectionAdministration, the Chinese Academy ofSocial Sciences, the Ministry of Scienceand Technology, Beijing and ShanghaiMunicipalities.The partnership between the BeijingMunicipality and IMET is focused uponprojects that address SustainableMobility in view of 2008 Green OlympicGames. This co-operation programaims at realizing pilot projects and feasibility studies for natural resourcesprotection and conservation, energyefficiency, renewable sources promotion, low emission transportationsystems and technologies, sustainableagriculture and environmental trainingcourses.In this framework, on April 26, 2002 the IMET signed a Memorandum ofUnderstanding on EnvironmentalCooperation with Beijing Municipality, tocontribute to the reduction of emissionsof greenhouse gases and local pollutants generated by public transportin Beijing. Thus, the Beijing PublicTransportation Corporation is availing of300 Compressed Natural Gas (CNG)Iveco engines as a key target of the“Beijing 2008 Green Olympic Program”.Emissions of Compressed Natural Gas(CNG) engines are ultra-low, andalready compliant with the emission limitvalues expected to be compulsorybeyond 2010. Moreover, the CNG-powered vehicles produce significantly reduced noise.

The Iveco CNG technologyIveco grounds its strategy upon continuous improvement of a pool oftechnologies aimed at better environment-wise and economic performances. Amongst the number ofpossible alternative fuels, Iveco considers CNG a priority. Iveco haschosen a stoichiometric (chemically correct air / fuel ratio) combustionprocess with exhaust gas treatmentthrough a three-way catalyst, whichenables to comply with the strictestemission regulations, such as theEuropean Enhanced Environment-friendly Vehicle standards. CNG enginesare an example of the Iveco way to amore environment-friendly, safer, competitive and profitable transportindustry.Irisbus-Iveco is the European leader inCNG city buses, with more than 2,500

vehicles operating in more than 40European traffic networks by the end of2004. Irisbus-Iveco keeps on researching to protect the environmentwith measures based on alternativefuels. The chart compares the IvecoCNG engine’s extremely low emissionsof carbon monoxide, non-methanehydrocarbons, mass of methane, nitrogen oxides, and particulate matterversus the present and future environmental European heavy dutyemission standards Euro 3 (2001) andEuro 5 (2009).

Undoubtedly, Iveco NEF CNG is one ofthe cleanest engines available worldwide. Iveco CNG vehicles are themost appropriate to specific fleets formunicipalities, as city-buses andgarbage collectors, as well as door-to-door delivery.

Iveco CNG engines for buses release much lower emissions than required by the EURO 5 emission norm

August 200738

BusinessCentreLNG application and benefits

Benefits of driving LNG vehiclesDriving LNG vehicles can bring severaladvantages in terms of return on investment of the refuelling station, vehicles performances, and overall supply chain efficiency. One of themajor advantages of LNG compared toCNG is its higher density that makesthis fuel really competitive and efficient.Moreover, LNG also presents also ahigh purity with over 90% CH4 content,allowing higher performances, and higher lifetime of the vehicles engine.One of the main advantages of a LNGVis the lower space requirement, approximately 2 - 3 times less space foron-board storage than CNG. The storage weight is reduced as heavysteel cylinders are not used, the rangeability is enhanced. Also the pressurerisks are reduced as the storage tankcontains LNG at low pressure (10 barinstead of 200 bar for CNG).Thanks to some recent developments,LNG vehicles present higher efficiencyand performances than in the past. The new type of high pressure injectionHDPI engines presents 20-30 % betterperformances comparing to regularspark ignited engines, thus makingthem really competitive against dieselengine performances.

Fuelling stations benefits and featuresHaving LNG in a refuelling station canappear as strange since the fuel isstored in large vessels in a cryogenicstate. This cryogenic storage technology is used for many years inthe industrial and natural gas marketwith large LNG shipboards.LNG is the most economic and bestenvironmental solution for NGV fleetsthat operates intensively. In this casethe boil off factor is not significant. Oneof the disadvantages of LNG on boardstorage could be the boil off gas emission. But this can easily be avoidedby refuelling the vehicles in 2-3 days.The liquid supply chain has beenproven for years in the industrial gasesindustry as the most efficient way todistribute cryogenic liquids. Another main advantage of the liquidstorage of natural gas is its independency from the grid.

This allows a diversification of gas suppliers and gives the possibility tostore NG before peak shaving periodcreates a stress in market price. LNG can be supplied from shipboardterminals, small scale LNG liquefactionplants, and biogas/landfill gas liquefaction plants. Those different typesof supplies guarantee the operator tonegotiate its fuel at best price compareto the grid mono source.Moreover the NG stations using liquidstorage for LNG or CNG can reduceelectricity consumption by four due tothe fact that the fuel is compressed inliquid form before vaporisation insteadof being compressed in its gas state.This reduces the maintenance cost significantly, in which the cost is 3 timeslower for a pump comparing to using acompressor due to a lower running

speed and the use of a liquid pistonsealing.

Cryostar scope of supply onthe LNG supply chain

Cryostar systems are designed following a 35 year experience in thecryogenic pump field, and NG applications such as LNG shipboardscompressors, heat-exchangers, and on-board liquefaction systems.

The firm offers LNG stations withhigh measurement accuracy andreduced vent gases emissions. OurLNG stations basically recover the vehi-cle boil off gas prior to refuelling

LCNG stations are designed follow-ing 18 years experience in the industrialgas filling field, this allowing presentingan efficient and easy design capable ofproviding high and flexible performances.

GASLOCAL fuelling station in Goiana, Brazil with Cryostarcontrols and pumps

Asian NGV statisticsAugust 2007 39

Notes: The column 'theoretical monthly consumption' is calculating total monthly consumption if cars consume 180, buses 3000, trucks 800,and other vehicles 50 Nm3/month. There is,of course, a huge difference between different truck types. A 44 ton truck may consume up to8000 (not 800) Nm3 per month. The final column compares this number with the reported consumption (if available), otherwise shown as 0 %.Figures far below 100 % might indicate that the true fleet of vehicles is lower than reported, alternatively that vehicles reported as trucks orbuses are light/medium duty vehicles. The numbers of NGVs in the "othervehicles" column in countries marked with * indicate uncertaintiesabout fleet composition, which leads to substantial deviation between reported and theoretically estimated fuel sales.

Notes:Please refer to the NGV statistics for the "update dates"

NGV statistics

CountryNatural Gas Vehicles

OthersTotal Cars/LDVs MD/HDBuses

MD/HDTrucks

Refuelling Stations Average monthly gas consumption

Total Public Private Underconstruction

Reported usage(MNm3)

Theory(MNm3)

Report VRA Last update

Pakistan 1,400,000 1,400,000 1,450 1,450 200 252.00 0.0% June 2007India* 334,820 315,200 12,000 715 6,905 198 6 192 60 52.00 93.65 55.5% October 2006Iran 292,455 289,802 2,641 12 203 194 9 707 32.20 60.10 53.6% June 2007China* 200,873 81,257 36,996 100 82,520 486 384 102 1 92.00 129.82 70.9% January 2007Armenia 81,394 55,163 8,273 17,958 148 139 9 22 18.23 49.11 37.1% December 2006Bangladesh* 80,000 22,178 1,023 8,355 48,444 129 6 123 13 13 21.36 16.17 132.1% January 2007Russia* 75,000 18,000 8,000 35,000 14,000 218 210 8 6 15 23.90 55.94 42.7% May 2007Egypt* 69,376 58,370 5,367 3,356 2,283 103 99 4 23 25.00 29.41 85.0% June 2006Thailand 33,982 31,785 1,516 681 130 128 2 78 16.02 10.81 148.1% May 2007Japan 31,462 12,192 1,329 16,909 1,032 324 294 30 686 7.45 19.76 37.7% May 2007Malaysia 24,988 24,908 76 4 50 48 2 50 10 10.81 4.71 229.3% February 2007Korea 13,137 61 12,940 136 113 113 13 38.94 0.0% April 2007Myanmar (Burma)* 10,900 2,902 6,373 1,625 20 20 19.72 0.0% December 2006Tajikistan 10,600 10,600 53 53 4.13 1.91 216.5% December 2006Kyrgyzstan* 6,000 6,000 6 6 0.10 0.30 33.3% March 2007Australia 2,453 130 1,263 1,060 146 127 19 130 4.66 0.0% March 2007Indonesia 1,000 1,000 12 12 0.18 0.0% October 2006Turkey 520 396 124 6 4 2 1 0.40 0.44 90.2% November 2005United Arab Emirates 305 305 0 0 2 1 1 0.05 0.0% March 2007New Zealand 281 54 66 138 23 14 14 0.32 0.0% February 2007Singapore 238 224 12 2 1 1 0.08 0.0% June 2006Philippines 36 11 25 3 1 2 0.08 0.0% February 2006Taiwan 4 4 1 1 0.01 0.0% April 2005Total Asia 2,669,824 2,324,538 98,028 84,426 162,832 3,816 3,311 505 1,160 868 303.60 788.18 38.5% July 2007World total 6,823,517 6,301,867 162,259 129,083 230,308 11,481 10,657 824 1,36411,619 1,000.32 1,735.89 57.6% July 2007

Probable annual magnitude of world consumption of methane as a vehicle fuel

Country BillionNm3 TWh PJ Mtoe

Total 0.0 0 0 0.0 100.0Cars 0.2 2 8 0.2 4580.9Buses 3.0 30 109 2.6 65755.0Trucks 1.6 16 56 1.3 33819.0Other 0.0 0 0 0.0 0.0

%

Country's share in world's NGV population

Country

Pakistan 1,400,000 52.44% 1,450 38.00%India 334,820 12.54% 198 5.19%Iran 292,455 10.95% 203 5.32%China 200,873 7.52% 486 12.74%Armenia 81,394 3.05% 148 3.88%Bangladesh 80,000 3.00% 129 3.38%Russia 75,000 2.81% 218 5.71%Egypt 69,376 2.60% 103 2.70%Thailand 33,982 1.27% 130 3.41%Japan 31,462 1.18% 324 8.49%Malaysia 24,988 0.94% 50 1.31%Korea 13,137 0.49% 113 2.96%Myanmar (Burma) 10,900 0.41% 20 0.52%Tajikistan 10,600 0.40% 53 1.39%Kyrgyzstan 6,000 0.22% 6 0.16%Australia 2,453 0.09% 146 3.83%Indonesia 1,000 0.04% 12 0.31%Turkey 520 0.02% 6 0.16%United Arab Emirates 305 0.0114% 2 0.05%New Zealand 281 0.0105% 14 0.37%Singapore 238 0.0089% 1 0.03%Philippines 36 0.0013% 3 0.08%Taiwan 4 0.0001% 1 0.03%Total Asia 2,669,824 39.13% of 3,816 33.24% of

world's total 33 world's totalWorld total 6,823,517 100.00% 11,481 100.00%

Total countryshare

Refuellingstations

Total countryshare

Natural GasVehicles

in world'sNG stationsTotalin world's NGV

populationTotal

August 200740

www.ngvgroup.com • Visit the biggest NGV portal in the world

Fuel price, 2007

Country

Armenia 0.77 0.78 0.58 0.26 0.23 0.27Bangladesh 0.52 0.49 0.34 0.10 0.09 0.10China 0.48 0.43 0.40 0.26 0.23 0.27Egypt (a) 0.19 0.13 0.08 0.06 0.05 0.06India 0.91 0.94 0.67 0.39 0.35 0.40Indonesia 0.42 0.39 0.36 0.22 0.20 0.23Iran (b) 0.110 0.080 0.013 0.016 0.015 0.015Japan (c) 0.98 0.89 0.67 0.52 0.40 0.44Korea (a) 1.24 1.10 0.88 0.49 0.44 0.50Malaysia (d) 0.41 0.40 0.34 0.18 0.16 0.18New Zealand (e) 0.68 0.65 0.42 0.37 0.33 0.38Pakistan (f) 0.88 0.79 0.52 0.30 0.27 0.31Philippines 0.62 0.57 0.53 0.24 0.22 0.25Russia 0.56 0.50 0.45 0.18 0.16 0.18Singapore (f, g) 0.77 0.86 0.53 0.33 0.30 0.34Tajikistan 0.55 0.45 0.21 0.19 0.22Thailand (f, h) 0.57 0.56 0.51 0.17 0.15 0.17Turkey (i) 1.61 1.60 1.26 0.75 0.65 0.73

PremiumGasoline(Euro/litre)

RegularGasoline(Euro/litre)

Diesel(Euro/litre)

CNG(Euro/m3)

CNG price equivalent perlitre gasoline

CNG price equivalent per

litre diesel

Notes: (a): In Korea and Egypt diesel is only allowed in heavy duty engines, buses and trucks. (b):Iranian fuel energy contents: CNG= 13.9kWH/kg = 10.78kWH/m3; diesel = 10.44 kWH/litre;gasoline = 9.79kWH/litre. The normal density of CNG is 0.775kg/Nm3. (c): The 5% VAT is not yetincluded. Normally, CNG price depends on the consumption volume of the customers. (d): In Malaysia, CNG is measured/sold in a litre equivalent gasoline. (e): CNG prices in NewZealand are between 0.89-0.98 NZ$/kg (0.35-0.38 Euro/m3) (f): In these countries the localgauge unit is Euro/kg, the conversion factor depends on the normal density of gaseous naturalgas in each country. (g): The normal density of 1 Nm3 CNG in Singapore is 0.76 kg (h): Thai'sCNG normal density is 0.73 kg/Nm3. (i): All taxes included. Fuel energy content in Turkey: CNG =10.24 kWH/Nm3; diesel = 9.95kWH/litre; gasoline = 8.93 kWH/litre; LPG = 7.15kWH/litre. LPGprice is 0.75 Euro/litre in November 2005. Normal density of CNG is 0.7172 kg/Nm3.

Assumption made for fuel price calculationCH4 content in natural gas is 97% • CNG energy content is 9.6 kWh/Nm3 • Gasoline energy content is 8.6 kWh/litre Diesel energy content is 9.85 kWH/litre.These conversion units are used in CNG price equivalent to gasoline and diesel,except the exact units of each countries are notified in the foot notes.

Cities with CNG refuelling stations

Russia 172 Apr. '07Iran 85 Jun. '07China 74 Sept. '04Pakistan 50 Oct. '05Korea 34 May. '05Armenia 23 Jan. '05Egypt 16 Apr '06Bangladesh 8 Nov. '05India 8 Oct. '06Malaysia 6 Oct. '06Thailand 3 Oct. '04Turkey 2 Aug. '04United Arab Emirates 2 Oct. '06Philippines 1 Oct.'05Singapore 1 Jul. '05Taiwan 1 Apr'. 05Total 486

LastUpdate

Numberof citiesCountry

NGV share in total vehicle fleets

CountryHuman

population(millions)

NGVs per1,000

population

TotalNGVs

Total vehicles

per 1,000population

All Vehicles NGV shares (%)

TotalLD cars,vans and

trucks

MD/HDBuses

MD/HDTrucks

Share oftotal

vehicles

LD cars,vans andtrucks

MD/HDBuses

Other MD/HDTrucks Other

Pakistan 161.209 8.68 1,400,000 16 2,500,000 52.00India 1119.538 0.30 334,820 13 14,554,000 2.30Iran 70.324 4.16 292,455 16 1,102,720 26.52China 1331.217 0.15 200,873 27 35,860,638 0.56Armenia 3.219 25.29 81,394 102 327,477 24.85Bangladesh 144.437 0.55 80,000 2 293,472 27.26Russia 142.537 0.53 75,000 236 33,600,000 26,400,000 800,000 4,700,000 1,700,000 0.22 0.07 1.00 0.74 0.82Egypt 75.437 0.92 69,376 31 2,373,723 2.92Thailand 65.068 0.52 33,982 383 24,931,615 24,073,830 116,054 726,641 15,090 0.14 0.13 1.31 0.09 0.00Japan 128.219 0.25 31,462 611 78,279,000 0.04Malaysia 25.796 0.97 24,988 14 366,375 6.82Korea 47.983 0.27 13,137 238 11,400,300 0.12Myanmar (Burma) 51.009 0.21 10,900 6 296,910 3.67Tajikistan 6.591 1.61 10,600 25 162,370 6.53Kyrgyzstan 5.325 1.13 6,000 39 205,520 2.92Australia 20.366 0.12 2,453 662 13,491,401 0.02Spain 43.379 0.03 1,392 580 25,158,244 24,647,257 58,248 452,739 0.01 0.00 1.20 0.13 0.00Indonesia 225.465 0.00 1,000 24 5,497,075 0.02Turkey 74.175 0.01 520 70 5,206,725 0.01United Arab Emirates 4.657 0.07 305 124 578,035 0.05New Zealand 4.063 0.07 281 573 2,329,210 0.01Singapore 4.380 0.05 238 151 659,215 0.04Philippines 84.477 0.00 36 30 2,559,968 0.00Taiwan 22.859 0.00 4 289 6,614,000 0.00Total 3861.729 0.67 2,571,216 69 268,347,993 0.96

CNG price advantage to other fuels (round up%)

Country CNG toPremium

CNG toRegular

CNG toDiesel

Armenia 70% 70% 54%Bangladesh 83% 82% 70%China 52% 46% 33%Egypt 72% 59% 23%India 62% 63% 40%Indonesia 53% 50% 37%Iran 87% 82% -21%Japan 59% 55% 34%Korea 65% 60% 43%Malaysia 61% 60% 46%New Zealand 51% 49% 10%Pakistan 70% 66% 41%Philippines 65% 62% 54%Russia 71% 68% 59%Singapore 62% 66% 36%Tajikistan 66% 52%Thailand 73% 73% 66%Turkey 59% 59% 42%