Natural Gas Vehicles Company (Cargas), an affiliated company to the Egyptian Ministry of Petroleum, has received a grant specifically for the construction and conversion of vehicles to Compressed Natural Gas (CNG). The grant of EGP 5m (USD .725m) has come from Egypt’s Social Fund for Development (SFD) and is the 16th grant from the Fund.
According to a Daily News Egypt report, Cargas has reportedly converted over 79,000 vehicles to natural gas operation in accordance with approved standards, in addition to constructing 71 fueling stations for these vehicles in locations throughout Egypt. Several more stations are planned or are in stage of construction to meet the growing demand. Oil Minister Osama Kamal anticipates about 30,000 vehicles will have been converted to CNG by end of Egypt’s financial year (30 June).
Minister Osama Kamal and Major General Ahmed Zaki Abdeen, the Minister of Local Development have recently signed cooperation protocols with the Governors of Cairo, Fayoum, Qaliubiya and Port Said provinces to construct 22 natural gas fueling stations.
Including all 16 SDF grants, plus two other grants from the Egyptian International Gas Technology company (GasTec) also affiliated to the Egyptian Ministry of Petroleum, the sum of EGP 82m (almost USD 12 million) has funded natural gas vehicle growth in the country.
Much of this funding came in the form of grants and loans made to citizens to help facilitate the conversion of 16,400 vehicles to natural gas, a step that would help ease the ability of the Egyptian government to restructure and reform its fuel subsidies program.
According to the media, Petroleum Minister Ossama Kamal said the number of cars in Egypt operating on natural gas had increased to 185,000, with 162 separate fueling stations having so far been built in 20 separate provinces.