CNG Use Stagnant

CNG Use StagnantCNG Use Stagnant

Compressed Natural Gas (CNG) Consumption has remained steady over the past years, due to a marginal difference in CNG and gasoline prices, said managing director of National Iranian Oil Refining and Distribution Company (NIORDC).

CNG consumption averaged 17 million cubic meters per day (mcm/d) in 2011, 19 mcm/d in 2012, 18.5 mcm/d in 2013, and remained unchanged during the first eight months of current Iranian calendar year (started March 21).

The average price of gasoline is $0.20 per liter, which is not considerably higher than CNG price of $0.12 per liter. "CNG prices should be regulated as to encourage consumers to consume less gasoline," Seyyed Nasser Sajadi was quoted by Tasnim news agency as saying.  He concluded that the small discrepancy in price is the primary cause of steady consumption pattern, and a disincentive to CNG consumers.

Two-fold increase in commission of private station owners and inclusion of special bonuses are among incentives the government is set to attract private investment in the CNG sector, Sajadi said while highlighting the necessity to improve and develop CNG stations.

Efforts to promote CNG consumption started more than a decade ago, as Iran tried to capitalize on its huge gas reserves. Promotion of CNG, which is drawn from natural gas wells, is an inevitable economic and environmental necessity for a country that holds the second largest gas reserves in the world.

Iran is one of the leading countries in promoting CNG with 2,249 stations. More than $2.4 billion has been invested for promotion of CNG, and close to 22,000 individuals are employed in this industry.