Iran intends to start the export of compressed natural gas to neighboring states, including Iraq and Russia and farther destinations like Nigeria, a member of Iran's CNG Association said, signaling the interest in expanding the market for clean fuel.
“Iran has laid the groundwork for CNG exports and is also ready to share knowhow for CNG storage and transportation,” Mohsen Johari was also quoted as saying by ISNA.
The National Iranian Gas Company is engaged in natural gas exports to Iraq, but can also develop CNG infrastructure inside the neighboring Arab country, but the US sanctions have hampered such development projects, he added.
Referring to Russia as a potential market, Johari noted that Russians use CNG as an alternative fuel and Iranian CNG kits’ manufacturers have the ability to penetrate into the foreign marker, if the government facilitates export procedures by cutting red tape.
“The more electric vehicles are produced, the harder it will be to market CNG,” he said, adding that most motorists prefer to fill their cars with either gasoline or liquefied petroleum gas (LPG) rather than CNG, therefore selling CNG has its own challenges.
As the private sectors of other countries cannot have financial relations with Iran due to the US sanctions, they are reluctant to approach Iranian producers.
Referring to ongoing talks with Nigeria, he noted that as per a memorandum of understanding between Iran and Nigeria, a contract to make one million cars use CNG, set up about 70 centers for extending vehicle conversion services and build 1,000 CNG filling stations in three Nigerian cities has been planned.
Nigeria launched an ambitious plan to convert its car fleet to gas last year, as the country aims to cut reliance on imported fuel and use its excess production of liquefied natural gas.
Comparative Advantage
The Nigerian government has stated that CNG was selected as the fuel of choice because it holds a comparative advantage due to its ease of use, its comparatively lower capital requirements, supply stability and in-country volumes.
CNG is a natural gas under pressure that remains clear, odorless and non-corrosive. Although vehicles can use natural gas as either liquid or gas, most vehicles use the gaseous form, compressed to about 218 kg/cm2.
According to IEA data on CO2 emission in Nigeria, there is a steady rise in CO2 emissions in Nigeria’s transportation sector. A review of the data shows that in 2018, the sector accounted for the largest source of emission with 67 million tons of CO2, of which road transport accounted for 66.5 million tons.
The number of gasoline and diesel vehicles in Nigeria over the years justifies the CO2 emissions from the transportation sector.
Techno-engineering services are one of the most important sectors of the oil and gas industry. However, due to the US sanctions on Iran, many of the world's largest companies withdrew from the Iranian market in 2018 and this compelled the country to promote domestic capabilities.
Reliance on the capacities of Iranian engineers and manufacturers helped improve indigenized knowhow and led to the manufacture of various parts and equipment, especially in the gas sector.
At present, the country aims to enter Asian and African energy markets and export its services in the field.
A nationwide plan to convert 1.4 million gasoline-powered public transportation and commercial vehicles to compressed natural gas hybrids is underway in Iran.
CNG consumption is growing and has exceeded 24 million cubic meters per day. The figure is expected to rise by a further 90% and reach 45 mcm/d at the end of the conversion scheme.
It is projected to comprise 35% of Iran's total fuel consumption by the end of 2022. To achieve this goal, the government has launched the initiative to motivate more drivers to convert their gas-burning vehicles to CNG hybrids.
Iran has over 2,500 CNG stations and ranks fifth in global CNG consumption.
Boosting the CNG share in the fuel basket can have multiple advantages, especially as it reduces gasoline demand and air pollution.
