Compressed natural gas sales reached 21 million cubic meters per day in the first half of the current Iranian calendar year (March to Sept.). The figure shows 10% growth compared to the same period in 2019 when sales were 19 mcm/d, IRNA reported.
The share of CNG in the national fuel mix was less than 16% in 2018 but jumped 50% in the last eight months to reach 24%.
“CNG consumption is expected to climb to 30 mcm/d in two years as the plan to convert 1.4 million gasoline-powered vehicles (pickup trucks, taxis and vans) to CNG hybrids is making progress,” Mohammad Hossein Baqeri, head of CNG department at the state-run National Iranian Oil Products Distribution Company said.
Close to 250,000 vehicles were equipped with CNG kits and tanks in the last six months. “It is forecast that CNG use will rise by at least 10 mcm/d after the plan is complete in 2022.”
In addition to curbing gasoline and diesel use, the plan intends to help curtail CO2 emissions from gasoline-based vehicles that contribute to air pollution.
Regarding financial issues, the official said NIOPDC and Bank Mellat signed an agreement last December to underpin the action plan to convert gasoline-powered vehicles to hybrid CNG engines.
As per the contract, $510 million required to convert 1.4 million gasoline-powered vehicles to CNG hybrids will be put up by the lender.
Encouraging motorists to switch to natural gas has long been on the government agenda. However, the effort has largely been limited to major urban areas.
Iran has a large gas network and although CNG is less expensive than gasoline, “we continue to manufacture gasoline-powered cars instead of natural gas vehicles (NGVs),” the official said.
One cubic meter of CNG costs 6,000 rials (3.5 cents), while a liter of gasoline is sold at 15,000 rials (9 cents). “Filling a car with 20 cubic meters of gas costs two times less compared to highly pollutant gasoline.”
There are over 2,000 CNG stations in the country that can supply 25 million cubic meters of gas to hybrid CNG car owners.
Gasoline Consumption
In related news, IRNA quoted Mohammad Atapour, a member of the Gasoline Station Owners' Association (GSOA), as saying that gasoline consumption declined between March and September by 30% compared to the corresponding period last year apparently due to the coronavirus lockdowns that have battered livelihoods, ruined businesses, wiped out jobs and harmed the already struggling economy.
“Fuel consumption crossed 112 million liters per day in 2019 in the six-month period.” According to Atapour, the coronavirus pandemic has hammered the gasoline sector.
“Gasoline sales never exceeded 70 ml/d in the last six months in Iran. This is while the National Iranian Oil Refining and Distribution Company had predicted in 2020 consumption would surpass 125 ml/d,” he recalled.
Iranians used 73 million liters of gasoline per day in 2015, which reached 80 million liter/d in 2016. Consumption climbed in 2017 when the figure reached 88 million liters/d and NIORDC statistics show that in 2018 and 2019 it exceeded 95 ml/d and 112 ml/d, respectively.
Diesel Output
According to Hamid Hosseini, a spokesman of the Iranian Oil, Gas and Petrochemical Products Exporters' Union, close to 95 million liters of diesel is produced per day of which 15 million liters is exported to neighbors, namely Iraq.
High consumption of diesel (80 million liters per day) stems primarily from ageing heavy vehicles, which has not only resulted in excessive fuel consumption but also contributes terribly to air pollution. There are 130,000 vehicles in Iran’s truck fleet the manufacturing dates of most go back 25 to 30 years.
Replacing 50% of the depleted trucks will reduce diesel consumption by at least 1 billion liters per year, he claimed.
