Iran’s National Iranian Oil Products Distribution Company (NIOPDC) has signed two major agreements with domestic technology firms to expand the country’s compressed natural gas (CNG) infrastructure and convert tens of thousands of gasoline-powered vehicles to dual-fuel systems. According to Saeed Rahman-Salari, Director of the National CNG Plan, the new contracts—worth $23 million—are expected to result in annual savings of roughly 161 million liters of gasoline, reinforcing the government’s broader strategy to optimize fuel consumption and promote cleaner energy sources.
Rahman-Salari explained that the agreements align with the government’s ongoing efforts to reduce reliance on gasoline and strengthen the use of natural gas as a transportation fuel. The first contract, valued at $13 million, was signed with the Isfahan-based knowledge–based company Behineh Sanat. Under this agreement, Iran will manufacture CNG cylinders domestically and convert 25,000 gasoline vehicles to dual-fuel systems. This phase alone is projected to save more than 91 million liters of gasoline per year once operational. The signing coincides with the launch of eight new CNG stations across several provinces, including Isfahan, Gilan, East and West Azerbaijan, Sistan and Baluchestan, Khorasan Razavi, and Tehran, reflecting a simultaneous expansion of infrastructure to support the growing fleet of gas-powered vehicles.
A second agreement, valued at $10 million, was finalized with Shahab Gazsouz of Qom, a leading domestic manufacturer of fourth-generation gas conversion kits. This contract covers the conversion of an additional 20,000 vehicles, with estimated annual savings of over 70 million liters of gasoline. Combined, the two deals underscore Iran’s strategy of relying on homegrown technology to reduce fuel consumption, curb air pollution, and strengthen energy security.
Rahman-Salari emphasized that both contracts directly support national policies aimed at promoting clean energy and decreasing dependence on imported equipment. By boosting domestic production capacity and expanding CNG availability, Iran is positioning its transportation sector toward greater sustainability. The conversion of 45,000 vehicles, alongside ongoing station development, is expected to deliver substantial economic and environmental benefits, marking a notable step in the country’s long-term fuel diversification strategy.
