Asia, the market of the future

Volume II Number 11 June 2007

ChinaOne of the drivingforces in the industry

IndiaNew Delhi, world’slargest CNG publictransport fleet

June 20072

Summary

04 Asian NGV market today

An inclusive overview on this region covering vehicle retrofits, expansion of fuelling network, and NGV marketshare in total vehicle sector.

14 Asia is the driving forces in the industry

Asia rapid economic growth has affected global market during the past few years. It has become a new market destination for NGV industry

20

23 China, a market to be forNGV equipment suppliers

26 Seven billion funding for CNG rickshaws in Pakistan

28 India to increase gas infrastructure in 200 cities

31 Bangladesh copes with highdemands on vehicles conversions

32 Russia to add 200 NG refuelling facilities in 2007-2015

35 Market expansion in Australia, China, India, and Malaysia

38 BusinessCentre page covering product launches, etc

We print and mail to 24countries about 4.000copies addressed to governmental relatedoffices, OEM and Oil & Gascompanies, associations,related NGV industries,refuelling stations,workshops and suppliers,according the following list(some figures rounded):

Armenia: 0.3%Australia: 4.1%Azerbaijan: 0.2%Bangladesh: 5.0%China: 10.9%

Egypt: 1.9%India: 9.5%Indonesia: 1.6%Iran: 7.0%Israel: 0.1%Japan: 10.2%Korea: 5.1%Malaysia: 6.6%Myanmar: 0.5%New Zealand: 1.0%Pakistan: 11.4%Philippines: 3.6%Russia:4.3%Singapore: 3.1%Taiwan: 0.2%Thailand: 5.8%Turkey: 5.5%United Arab Emirates: 2.1%

Vietnam: 0.1%In addition, the magazine issent to over 19.300 readersin 94 countries

by e-mail (.pdf) and is alsoonline in www.ngvgroup.comIf your NGV business is inAsia, advertise with us.

Asian NGV Communications300-14, Changchon-Ri,Namsan-Myun, Chuncheon-Si, Kangwon-Do,200-911 KOREATel : +31 6 184 33 138Tel : +82 33 260 3419e-mail: asia@ngvgroup.com

Copies Distribution

The Green Highways project

18 ISO standards on NGV and fuelling equipment

Harmonisation of standards is important to our industry. The key target at the end is to have lowercosts.

Asian NGV Communications is a publicationof NGV Communications Group, publishinghouse and fairs-conferences organizer: www.ngvgroup.comIn Europe, we print The Gas Vehicles Report,GVR, and www.ngvguide.com, theInternational NGV Guide. In Argentina, the Group publishes PrensaVehicular, Argentine CNG Guide, maps,books and brochures while in Brazil, Folhado GNV, Brazilian NGV Guide, maps andposters, among others. In Peru PrensaVehicular Peru. More info: www.ngvgroup.comThe signed articles are exclusive responsibility ofthe authors, as well as advertising companies andagencies are responsible for the published ads.

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Uspallata 711 ■ CP 1268 ■ Capital FederalTel./Fax: +54 11 43074559 /5201/ 43006137 info@prensavehicular.comwww.prensavehicular.com

is member of the ANGVA (Asia Pacific NGV Association)

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June 20074

Retrofit marketNGV retrofit market in Asia holds above70% of total methane vehicle market inmost Asian countries, except for thosein Japan and Korea with almost 100%OEM made, and the 46% OEM NGVsin China. This huge retrofit market willcontinue to grow in the next five years.The global automotive industry is making emission reduction a top prioritywhich will lead to increased development of CNG as alternative fuel and associated conversion kits,according to Frost & Sullivan ResearchAnalysts.

According to recent analysis of thiscompany, the number of CNG/LPG kitssold globally last year was 2.9 millionunits. It is estimated that sales willincrease 176% in the next five years,resulting in 8.0 million sales in2012.Together with the already well-established markets in Pakistanand India, Iran is projected to record thehighest growth in CNG/LPG sales. India and Iran accounted for 20% ofglobal CNG kits sales in 2006 andwould continue to increase to over 42%by 2012. Currently, the after sales market of these kits holds over 85% ofthe total global kit sales. However, kitssold to the OEM will steadily increase toreach over 27% of the total number ofunits sold by 2012.

NGV market shareAccording to the statistics of Asian NGVCommunications and the GVR, NGVpopulation increased by 138% in Asiaand 75% globally from 2003-2006: 0.8M to 1.9 M in Asia and 3.2 M to 5.6 Mworldwide. By April 2007, the growthsare even bigger—200% for Asian countries and 103% worldwide, ofwhich 2.4 M units are in Asia and 6.5 Mglobally.

But how do these figures fit within theregional and global vehicle marketpresently? NGVs accounted for 0.85%of total vehicle population in 64 countries*. The NGV market share inAsia reaches up to 1.33%. China, India,and Taiwan are not yet included in thecalculation as the total vehicle figuresare not available yet. Asia comes thirdcomparing to other regions, in whichSouth America leads with 11.7%,

followed by Africa (1.68%) and otherregions such as Europe (0.26%), andNorth and Central America (0.06%).

Rushing towards NGVsMore NGV are expected as Gazprom inRussia has recently approved a CNGrefuelling network expansion programme for 2007-2015. Two hundred new stations will be constructed during the period and ninety moveable refuelling facilities willalso be operated.

Continued rapid oil price hikes bringgood news to our industry.Automobilists in Bangladesh andThailand rush to CNG workshops toconvert their vehicles. For public transport operators, the economic benefit goes beyond fuel savings. Even better, the government of Malaysiaand Bangladesh suggested that taxiand three-wheeler fares should beincreased.

The Thai Energy Ministry encouragesthe increased use of CNG vehicles andhopes to raise production of CNG,gasohol and bio diesel to at least 10%of total fuel consumption in transportsector. Seven million baht (Euro157,000) loan will be offered to largevehicle operators wishing to converttheir fleets to NGVs.

In Chittagong city of Bangladesh, theworkshops cannot cope with the highdemand as many vehicle owners intendto save fuel cost by switching their vehicles to NGVs.

While China is busy enhancing air quality by adding NGV fleets in theirpreparation for the Olympic Games2008, India is getting ready for theCommonwealth Games 2010. To reduce oil pollution and increasepublic transport service, a CNG busprogramme is expected to be launchedin New Delhi, the capital city of thiscountry. Around 500 low-floor air-conditioned CNG buses are going tobe purchased by Delhi TransportCorporation.More and more CNG refuelling stations are also expected tobe built before the Games are held.

Although present Pakistan NGV market is 100% of low-duty vehicles,soon, this will change. The federal government will provide Rs 5 billion(Euro 60.6 M) to transporters in Karachi city for the procurement of new CNG buses. About 20,000 NG wide-bodied busesare needed to cater the needs of themillions of commuters in this city.Conversely, a green-coloured clean andsilent NG rickshaw is finally being introduced in Karachi. In Lahore city,35,000 CNG rickshaws are expected toreplace some of the 50,000 two-strokediesel rickshaws, according to theTransport Department. Currently, thereare only 2,000 CNG rickshaws operating in this city.

Note: * List of countries included:Algeria, Argentina, Armenia,Australia, Austria, Bangladesh,Belarus, Belgium, Bolivia, Brazil,Bulgaria, Canada, Chile, Colombia,Croatia, Czech Republic, Egypt,Finland, France, Germany, Greece,Hungary, Iceland, Indonesia, Iran,Ireland, Italy, Japan, Korea,Kyrgyzstan, Latvia, Lichtenstein,Luxembourg, Macedonia, Malaysia,Mexico, Moldova, Myanmar (Burma),Netherlands, New Zealand, Nigeria,Norway, Pakistan, Peru, Philippines,Poland, Portugal, Russia, Serbia &Montenegro, Singapore, Slovakia,Spain, Sweden, Switzerland,Tajikistan, Thailand, Trinidad &Tobago, Tunisia, Turkey, Ukraine,United Arab Emirates, UnitedKingdom, USA, Venezuela. See moreinformation on statistical pages inthis issue.

Asian NGV market today

NGV growth in Asia

NGVpopulationin million

June 20076

June 20078

June 200710

June 2007 11

June 200712

June 2007 13

Pangsa pasar retrofitkendaraanLebih dari 70% dari total pasar NGV di sebagian besar negara-negaradi Asia terdiri dari sektor retrofit, kecuali di Jepang dan Korea yang100% terdiri dari buatan pabrik (OEM)dan 46% OEM NGVs di China. Pasar retrofit in akan terus berkembang dalam 5 tahun mendatang.Industri automotive di seluruh dunia menjadikan reduksi polusi sebagaiprioritas utama yangpada akhirnya akan menambahperkembangan di industry CNG sebagai bahan bakar alternatif dan konversi kits menurut Frost & SullivanResearch Analysts.

Menurut analisa perusahaan ini, 2.9MCNG/LPG kits terjual tahun lalu secaraglobal. Dalam 5 tahun mendatang,sales dari kits ini diperkirakan akanberkembang sebanyak 176%, dengan8.0 M sales di tahun 2012. Pakistan,India dan Iran diperkirakan akanmenunjukkan peningkatan terbesardalam penjualan CNG/LPG kits. Dua puluh persen dar global CNG kitssales terjual di India dan Iran. Di tahun2012, persentasenya akan meningkantmenjadi 42%. Pada saat ini, secaraglobal, lebih dari 85% salesdialokasikan pada retrofit workshop.Namun, di tahun 2012, 27% dari conversion kits akan dijual pada OEM NGVs.

Share pasar NGVMenurut statistics dari Asian NGVCommunications dan the GVR, populasi NGV meningkat 138% di Asia dan 75% secara global dari tahun2003-2006: 0.8 M hingga 1.9 M di Asia dan 3.2 M hingga 5.6 M si seluruhdunia. Hingga April 2007, perkembangannya semakain besar—200% di Asia dan 103% di seluruhdunia, yang mana 2.4 M unit NGVsberoperasi di Asia dan 6.5 M secara global.

Dalam pangsa pasar kendaraan secararegional dan global, 0.85% dari totalpopulasi kendaraan di 64 negara*adalah NGVs. Di Asia, NGV share mencapai 1.33% dari seluruh

kendaraan. Cina, India, dan Taiwanbelum diseratkan dalam kakulasi inikarena jumlah total kendaraan dinegara-negara tersebut belum diketahui. Asia menduduki posisi ketiga, sedangakan Amerika memipin dengan 11.7%, diikuti oleh Afrika (1.68%), Eropa (0.26%), dan Sentral Amerika dan Amerika Utara (0.06%).

Pengambangan industry NGVGazprom di Russia baru saja mengumumkan approval dar pengembangan stasiun bahan bakar CNG di tahun 2007-2015, yang mana diharapkan akanmeningkatkan jumlah NGVs di negara ini. Dua ratus stasiun baru akan dibangun selama periode ini san 90 fasilitas pengisian bahanbaker mobile juga akan dioperasikan.

Peningkatan harga minyak secara kontinu membantu penginkatan jumlahNGVs. Banyak pemilik kendaraan diBanglades dan Tailand menuju ke workshop-workshop CNG untuk memodifikasikan mobil mereka. Untuk operator kendaraan umum,keuntungan ekonomis didapatkan dari perbedaan harga bahan bakarbensin/diesel dan CNG. Disamping itu, di Malaysia danBanglades, pemerintah mengusulkanagar karcis dari pengguna taksi dantuk-tuk ditingkatkan.

Menteri Enerji menghimbau automobilistuntuk menggunakan NGVs dan mengharapkan untuk meningkatkanproduksi CNG, gasohol dan bio dieselmenjadi minimal 10% dari total konsumpsi bahan bakar di transportsektor. Dana sebayak 7M baht (Euro157,000) akan dipinjamkan kepadapemilik armada kendaraan besar yangingin memodifikasi kendaraan merekamenjadi NGVs. Di kota Chittagong, Bangladesh,banyak CNG workshop yang fullybooked karena banyak pemilik mobilyang ingin mengkonversi/memodifikasikendaraan mereka menjadi NGVs.

Cina sedang sibuk mempersiapkanOlympic Games 2008 dan berusahakeras untuk memperbaiki kualistas

udara dengan mengadopsi lebih banyakNGVs. India juga mempersiapkan CommonwealthGames 2010 dan meningkatkan polusidari diesel dan bensin danmeningkatkan servis di sector tansportumum. Sebuah CNG bus programdiharapkan akan dijalankan di NewDelhi. Juga, banyak fasilitas stasiunbahan bakar CNG akan dibangunsebelum Games dilaksanakan. Sekitar500 low-floor air-conditioned CNG busakan dibeli oleh Delhi TransportCorporation.

Pada saat ini seluruh NGVs di Pakistanadalah low-duty vehicles. Tidak lamalagi, pasar NGV juga akan dipenuhi olehheavy-duty vehicles. Pemerintah federalakan mengalokasikan Rs 5 billion (Euro60.6 M) kepada transporter di kotaKarachi yang hendak membeli bus-busCNG. Sekitar 20,000 NG wide-bodiedbus diperlukan untuk melayani penduduk di kota ini. Di lain pihak,sebuah NG rickshaw telah didemontrasikan di kota ini. Di kotaLahore, 35,000 CNG rickshaw diantisipasikan untuk menggantikansebagain beasr dari 50,000 two-strokediesel rickshaw, menurut DepartmeneTransport. Pada saat ini, hanya sekitar2,000 CNG rickshaw sedang beroperasi di Lahore.

Catatan: * Algeria, Argentina,Armenia, Australia, Austria,Bangladesh, Belarus, Belgium,Bolivia, Brazil, Bulgaria, Canada,Chile, Colombia, Croatia, CzechRepublic, Egypt, Finland, France,Germany, Greece, Hungary, Iceland,Indonesia, Iran, Ireland, Italy, Japan,Korea, Kyrgyzstan, Latvia,Lichtenstein, Luxembourg,Macedonia, Malaysia, Mexico,Moldova, Myanmar (Burma),Netherlands, New Zealand, Nigeria,Norway, Pakistan, Peru, Philippines,Poland, Portugal, Russia, Serbia &Montenegro, Singapore, Slovakia,Spain, Sweden, Switzerland,Tajikistan, Thailand, Trinidad &Tobago, Tunisia, Turkey, Ukraine,United Arab Emirates, UnitedKingdom, USA, Venezuela. Informasilanjut juga tersedia di halama“Statistics” di edisi ini.

NGV industri di Asia

Eugen Seitz AG, Switzerland

a. The Asian market is extremely important for EUGEN SEITZ AG. Ourmain markets of high pressure valvesfor CNG station manufacturers todayare Iran, Pakistan and P.R. China. Wesee an extraordinary growth whichexceeds Europe by far. Therefore wehave our own office in Shanghai whichtakes care of China and we are supplying directly from Switzerland tomost of the other Asian countries. CNGstations manufactured in Asia andMiddle East have high quality standardsand are even exported to other countries. Therefore low maintenanceas well as top quality-products isabsolutely necessary. Having highresearch and development capabilitiesas much as experienced engineeringcapacities at SEITZ, our customersworld-wide are happily cooperating withus for new solutions and technologies.

b. We need good platforms such asexhibitions to introduce ourselves intothese markets. But mostly our potential customers do contact us directly.

c. We have not experienced any problem as long as we supply customers according to European standards, such as ATEX, CE certificate, etc.

d. We offer our products to all countriesbut have realized that countries withtheir own gas resources, such as Iran,Pakistan, China, are the main marketsand "driving forces" in the CNG industry. For the next years we are hoping that S.E.A. will grow andThailand is a good example. The Asian manufacturers of CNG stations, who are our main customers,

June 200714

have good manufacturing facilities andare very open to good- and new solutions. Therefore we are happy forthe direct contacts we have with thesecompanies, which allows us to offereconomical and well-engineered packages and to understand the special needs of the customers in theAsian region.

Romano srl, Italy

a. Asian market is truly strategic forEuropean companies which export theirNGV products abroad, because thisarea is increasing its business more and

more; thanks to a well-established technology we can now talk aboutthousands of systems exported all over Asia.

b. To establish a good business relationship with Asian partners, bothfrom commercial and technical pointsof view, it is important that the local distributor creates a well trained staffable to understand not only the functioning of the system but also theworking standards of European manufacturers.

d. At the present time, we export ourproducts (CNG reducers, injectors, andvalves) mostly to Thailand, India andPakistan, but now we’re trying toincrease our business in that area.

Autogas Italia s.r.l.

a. The Asian market is absolutelyimportant to us because it representsthe market of the future. Today theEuropean market (EU market) is a consolidated market, where Italy hasthe biggest share. Obviously, one country only (Italy), even if it is important and is also growing, cannotcharacterize a continent like Europe.Another important thing is that theAsian reserve represents more than40% of natural gas reserves in theAsian-Pacific region. The policies andstrategies of the Asian government arepushing a lot towards this direction so itis easy to see that: CNG future meansAsia. European CNG equipment is synonymous of quality, efficiency, performance and assistance so we arein the position to propose systems thatare always technologically up-dated,

Asia is the driving force in the industryAsia rapid economic growth has affected global market during the past few years. It has become anew market destination for many countries around the world. European NGV companies have beenbenefiting from this new development. Below are some comments from European companies highlighting the importance of this ever-growing market.

a. How important is Asian market to European exporting NGV companies? And how can the Asiancountries benefit from the European NGV equipment?b. What kind of support/facilities do you need from Asian countries to allow you penetrating themarket further?c. Are there any issues in exporting your product due to the local Asian standardisation? d. To which Asian countries do you offer your CNG products?

Matthias Duvenbeck

Luigi RomanoContinued on page 16

June 200716

following the constant development ofcar manufacturer engines. For instance,Autogas Italia is developing a system ofnew generation (sequential injection)suitable for new ODB car according tomain anti-pollution norm, taking particularly care of quick installation andeasy set-up of the system, where electronic components will be reducedto the minimum. This means, for newmarkets like the Asian one, a bettermanagement of the system without anykind of technical problem.

b. To penetrate the Asian market further, we do not need any particularrequirement, we do not forget that theAsian market is a relatively new market,so the most important job has to beperformed by us, it means that oureffort at the beginning is to teach all“actors” involved in this market how toproperly work on the car first and onthe conversion system consequently.For example, Autogas Italia devotes alot of time and effort to technical training courses constantly dedicated to his partners throughout the year inorder to be always up-dated.

c. There is no problem over this subject. Our systems are producedaccording to the main international regulations and respecting the maininternational anti-pollution norms. Our products met the international standards: ISO 15500 and ECE R 110.

d. We practically offer and sell our systems to every Asian country fromEast to West and from North to SouthAsia. Obviously there are some countries like Thailand, Korea,Philippines, for example, where the government is promoting a lot this alternative fuel, consequently the salesshares are more important.

Alberto Catto

Continued from page 14

June 200718

application/equipment are used in ourindustry. In Australia, several standardsare applicable, such as: AG, AS,AS/NZS, SAA, and some NorthAmerican standards (ANSI/IAS) areused in this country. Japanese Industrial Standards Committeereleased JGA NGV01 up to 05 for NGrefuelling appliances and station, NGV equipment and fuelling connectors, as well as for the gas quality. Malaysia owns two standards(MS) for the use of CNG in internalcombustion engines and for CNG compressors and refuelling station. Russian standards—STAGTO—contain the technical requirements and safety/testing issues

fuelling equipment around the world,which later will lead to higher adoptionof NGVs. The key of having this harmonisation in the end is to havelower costs. And as the main driver ofNGVs adoption in Asia is economics,the importance of globalisation is evenhighlighted.

National standards in AsiaIn Asia, various standards for naturalgas vehicle and fuelling

Harmonisation of standards is importantto our industry. Standardisation itself iscreated to provide assurance aboutquality, safety and reliability of a product, according to the InternationalOrganisation for Standardization (ISO).Harmonisation of standards benefits allparties, from government,suppliers/exporters, buyers/importers,to end-users and the whole society.Globalisation of standards will allowwider acceptance of NG vehicle and

ISO standards on NGVand fuelling equipment

Components ISO references StatusOn-Board CNG CylindersGas Cylinders: High pressure cylinders for the on-board storage of natural gasas a fuel for automotive vehicles 11439:2000 Draft International StandardGas QualityNG for use as a compressed fuel for vehicles: Part 1-Designation of quality 15403-1:2006 Published in 2006, (ISO/TR)NG for use as a compressed fuel for vehicles: Part 1-Specification of the quality 15403-2:2006 Published in 2006, (ISO/TR)Vehicle InstallationCNG Fuelling System: Part 1-Safety Requirements 15501-1 Published in 2001CNG Fuel Systems: Part 2- Test Methods 15501-2 Published in 2001Gas Cylinder: Inspection of the cylinder installation, and re-qualification of high pressure cylinders for the on-board storage of natural gas as a fuel for automotive vehicles 19078 Draft International StandardVehicle Installation: Fuelling Receptacles and ConnectorsCNG Fuelling Connectors: For LDVs with pressure capacity 200 bar (20Mpa) 14469-1.2 Published in 2004CNG Fuelling Connectors size 2: For HDVs with pressure capacity 200 bar 14469-2 FDISCNG Fuelling Connectors: Pressure capacity 250 bar (25Mpa) 14469-3 Published in 2006. *Vehicle Fuel System ComponentsCNG Fuel System Components: Part 1: General Requirements and Definitions 15500-1 Published in 2000CNG Fuel System Components: Part 2-Performances and Definitions 15500-2 Published in 2001CNG Fuel System Components: Part 3-Check Valve 15500-3 Published in 2001CNG Fuel System Components: Part 4-Manual Valve 15500-4 Published in 2001CNG Fuel System Components: Part 5- Manual Cylinder Valve 15500-5 Published in 2001CNG Fuel System Components: Part 6-Automatic Valve 15500-6 Published in 2001CNG Fuel System Components: Part 7-Gas Injector 15500-7 Published in 2002CNG Fuel System Components: Part 8-Pressure Indicator 15500-8 Published in 2001CNG Fuel System Components: Part 9-Pressure Regulator 15500-9 Published in 2001CNG Fuel System Components: Part 10-Gas Flow Adjuster 15500-10 Published in 2001CNG Fuel System Components: Part 11-Gas/Air Mixer 15500-11 Published in 2001CNG Fuel System Components: Part 12-Pressure Relief Valve 15500-12 Published in 2001CNG Fuel System Components: Part 13-Pressure Relief Device 15500-13 Published in 2001CNG Fuel System Components: Part 14-Excess Flow Valve 15500-14 Published in 2002CNG Fuel System Components: Part 15-Gas Tight Housing and Ventilation 15500-15 Published in 2001CNG Fuel System Components: Part 16-Rigid Fuel Line 15500-16 Published in 2001CNG Fuel System Components: Part 17-Flexible Fuel Line 15500-17 Published in 2001CNG Fuel System Components: Part 18-Filter 15500-18 Published in 2001CNG Fuel System Components: Part 19-Fittings 15500-19 Published in 2001CNG Fuel System Components: Part 20-Rigid fuel line made of material other than stainless steel 15500-20 FDIS

The ISO and UN standardsBelow are two lists of the ISO and the United Nations (UN) standards related to natural gas vehicles.

Topic UN reference StatusConversion systemSpecific CNG retrofit system to be installed in motor vehicles for Uniform provisions for the the use of CNG in their propulsion system TRANS/WP.29/2000/42 approval of this standard,

20 April 2000

Note: •:ISO 14469-3:2006 is applicable to compressed natural gas in accordance with ISO 15403.International Organization for Standardization/Technical Report (ISO/TR). Final Draft International Standard (FDIS)

June 2007 19

of CNG vehicle cylinders and equipment, fuel mechanism anddevices, and for high pressure cylinders for the on-board storage ofCNG. New Zealand standards for bothCNG vehicles and fuelling stationsequipment and installation are commonly used by other Asian countries. So are the European Unionemission standards—EURO I-IV. From our industry’s leading organisation, International Associationfor Natural Gas Vehicles (IANGV), astudy was conducted to identify the relevant international standards and regulations pertaining to NGVs, to compare them and identify key differences and to find areas wherethere are currently no published international standards or regulations(see also Asian NGV Communications,December 2006, page 12). The report,Gap Analysis of International NGVStandards & Regulations - November2006, is available on www.iangv.org.

Revisions on ISO standardsAccording to the ISO regulation, anyISO standard being implemented formore than five years is allowed to berevised, if this is considered necessary bythe experts. The modification procedureincludes a bureaucratic process whichinvolves voting from member countries.Should the vote result be positive for analteration, then the modification processcan be started.Currently, the two series of standardsfor NGV related equipment which mightbe amended are ISO 15500, part 1 to19, dealing with on board CNG fuellingsystem components, and ISO 15501,part 1 and 2, dealing with on-board CNGfuelling systems. The standards containgeneral safety requirements and testmethods, which were published in 2001. The regulatory body—ISO-- is alsoworking on standard ISO 14469 forreceptacles and connectors. This standardconsists of three different parts:

ISO14469-1, which has been publishedFor NGV refuelling connectors andreceptacles with a pressure capacity of200 bar (20Mpa).This standard is suitable in particular for refuelling oflight-duty vehicles;

ISO 14469-2, in process (not yetpublished). For connectors of biggerdimension (size-2). This CNG connectoris applicable for a maximum pressure of200 bar in heavy-duty vehicles;

ISO 14469-3 For CNG connectors with higher pressure (250 bar/25Mpa).

June 200720

It is the objective ofthe ANGVA GreenHighways project toestablish routes for“Green Highways” inthe Asia-Pacific. A green highway isthe Asia-Pacificequivalent of a BlueCorridor transportroute where a net-work of alternativefuels refueling infrastructure is available.The project seeks to maximise mediaattention on the NGV industry andemphasize the environmental and economic benefits of Green Highwaysfor the region. Additionally, the projectalso seeks to highlight gaps in the refueling infrastructure as well as highlighting the need for the harmonization of standards.ANGVA is seeking to work with nationalNGV associations in Asia-Pacific, fuelsuppliers and governments to establishviability of green highways in the region. The project will consist of three caravans of NGVs departing from East,West and South East Asia and arrivingconcurrently in Bangkok to coincidewith the 27 -29 November 2007ANGVA Conference and Exhibition inBangkok, Thailand.

The three Routes are as follows.1. West Route – Dubai to Bangkok

By Ryan Freer,NGVI

Asian NGV June 2006.

The GreenHighways Project

2. East Route – Chuncheon to Bangkok 3. South Route – Singapore to Bangkok As a cooperative effort champions havevolunteered to support and lead eachroute. CGTech and IFCO are the champions behind the Western route,NGVI will be championing the Easternroute and PTT and Petronas, the champions for the Southern Route. Each route will be actively seekingsponsorship and further support. If yourorganization is interested in taking partor becoming a sponsor please contactANGVA through the website,www.angva.org.For a review on Asian Blue Corridors,please see also the editorial of thismagazine, “Blue pathways for a greenerworld”, in the Asian NGVCommunications, vol. 1 #5, June 2006.

Iran: all cars will beNGVs by 2015

The nation’s four-point programmeregarding methane vehicles (NGVs)set includes:1. Conversion of most existing carsto run on natural gas within fiveyears (around 2010/2011) at a rateof 1.2 million annually. This willbegin with conversion of 600,000public and governmental cars toNGV;2. Phase out of very old cars (about 1.2 million) by 2010;3. As of June 2007, most of thenewly manufactured cars will haveto be able to run on natural gas;4. Within five years most of Iran’s10,000 refuelling stations will offernatural gas.

The Iranian government aims tohave most of Iran’s cars running on natural gas by 2015.

To facilitate this industry, the gov-ernment is prepared to issue US$400,000 loan with low to zero interests to be granted to privatecompanies aiming to construct natural gas refuelling stations.

To achieve rapid conversion, thecountry built over 107 conversionworkshops of three types in 37cities by December 2006: workshops specializing in conversion of diesel engines, conversion of mini-buses, and conversion of cars and vans.

To encourage Iranians to converttheir vehicles, the government subsidises up to 90% of the conversion cost. Incentives are alsooffered to buyers of CNG cars andmeanwhile, the government hasdecreased the gasoline subsidies.

Beside the spectacular conversionproject, Iran will also manufactureits own OEM NGVs which will bemainly produced by Iran Khodroand Saipa. Three other automakers- IranKhodro Diesel, Shahab Khodro,and Zamyad - will also take part inachieving the national target todeliver 1.2 M OEM bi-fuel and dedicated NGVs.

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China is really the place to be for many local and overseas NGV equipment suppliers.Numbers of projects for both CNGand/or LNG refuelling station constructions and NGV procurement or conversions are taking place in various cities throughout the country.

BeijingA CNG double-deck bus, JS6110SHmade by Yanzhou Yaxing Motor CoachCo., Ltd, was displayed at the 6thBeijing International Commercial Vehicle Exhibition recently in April. The 11.2 m long and 4.18m tall bus ispowered by compressed natural gas(CNG) engine. Beside the high quality in the interior design, the optimumdesign of its chassis increases dynamic characteristic and bearing capacity ofthe bus. Its gate type front axle not only provides excellent function of thelower floor but also reduces the vehicle weight and increases passenger load capacity.

ChangsaFollowing the opening of the first CNGmother fuelling station in Changsa inApril 28, 15 more stations will be builtthis year. The economic benefit of CNG is getting more and more popularin this city. Yang Jian, owner of a natural gas car said that he can collectup to 40% per day on fuel savings.“Within a month, 1,200 yuan can besaved from fuel costs. It is indeed worth while,” he said.An official of Changsa municipalityinformed in September last year that aCNG vehicle demonstration programmewould be held from October 2006 -October 2008. The above-mentionedmother station and 15 other stationsare included within this project alongwith the adoption of 800 CNG busesand 1,000 CNG lease cars. The projectwill be followed by a promotion phaseof CNG vehicles from 2008 to 2010.The official said that if the gas supplyconditions permit, Changsha will build25 CNG stations. Most of the city'spublic transportation vehicles and passenger vehicles will be powered bythis clean fuel.

China, the market to be for NGVequipment suppliers

More CNG stations to be built in China

Continued on page 22

June 200722

ChifengAbout 500 natural gas taxis were liningup waiting to refuel their cars on May1st, 2007, in Chifeng city. This longqueue has happened before in February2007. Due to the high costs of oil, manytaxis were converted to NGVs. In thiscity, about 1,000 are running on naturalgas while there are only two refuellingstation to facilitate those taxis. Taxi drivershave expressed their hope that oil companiestake this issue seriously and ensure thatthe supply of gas for vehicles during theholiday season meets the demand.

GuizhouGuizhou provincial government hasannounced that Guiyang city busCompany will convert more than 1,300buses to LNG buses this year. With thisclean technology, fuel savings up to15,000 yuan will be collected for eachaverage travelling distance of 60,000km/year. This year, the Guiyang CityTransit Bus Company and "Yellow Sky"rental car will complete their conversionproject. The expected benefits includean annual fuel cost saving of over 30million yuan plus 50,000 tonnes reduction in exhaust emissions.

GuiyangThe Guiyang City Bus Company’s VicePresident Xiang Hu said all 2,000 unitsbuses of Guiyang City TransitCorporation are scheduled to operateas LNGVs by 2008. The big conversionprogramme has been taking place since2006. Guiyang also has 175 busesoperating on CNG fuel, which later willbe retrofitted to LNG vehicles as well.Xiang Hu stated that by using LNG, thetransit vehicles fuelling time and frequency can be reduced. CNG vehicles that normally run only one day,

now can operate for three days afterusing LNG before needing to be refuelled. In January 2007, Giuyang had 10,000vehicles in its LNG fleet. Those consisted of 3,000 taxis, 8,000 busesand 5,200 other vehicles according toClean Vehicle Productivity Center. Twofuelling facilities are available in the city.

LanzhouAccording to the State Developmentand Reform Commission of Lanzhou,Lanzhou Municipality plans to establish40 new CNG stations to meet the

Convert thousands of buses to CNGVs or LNGVs

Continued from page 21

June 2007 23

demands of bi-fuel market needs.According to the plan, in the next threeyears, eight stations are expected to beconstructed.By January 10, there were 4,970 retrofitted taxis powered by CNG,according to Lanzhou city transportmanagement. Lanzhou also had 2,171buses and 210 other vehicles operatingon CNG, as well as 11 fuelling amenities by early January 2007.

NanjingTo promote the development of NGVs,

500 CNG buses will be introduced inNanjing city.

PenglaiCurrently, there are 7,002 CNG users inPenglai City of Sandong Province. Two new CNG refuelling stations will be installed in the middle and easternparts of the city.

WuhanWuhan Natural Gas Company has built the first CNG station for Dun Kou development zone of Wuhan city. The station, which can serve 650 vehicles/day, was opened last April. The gas is sold at 3 yuan/Nm3.Its daily gas supplying capacity is10,000 Nm3. Presently Wuhan has setup six CNG stations to mainly supplybuses and taxis. This year, 16 more stations will be installed and 1,500buses and taxis are planned to be retrofitted to CNGVs.

YangzhouYangzhou Public Transport Companyhas received forty CNG buses whichwere purchased from Yangzhou Ya XingBus Co., Ltd. The buses meet Euro Ö†emission standard, and can be drivenup to 300km before being refuelled.

Xin AoXinAo Gas Co has begun inauguratingcompressed natural gas (CNG) stationsin the Songtiao Development Zone. Thefirm is constructing four more stations inCangwu City, Xinpu and Xugou.

XingtaiThe first CNG fuelling station with acapacity to serve 800 vehicles/day wasopened in Xingtai City of ShandongProvince. The second station will beoperated in 2008. Both stations willhave the capacity to fuel 1500 vehicles/day. Xingtai City will build fourmore stations from 2007 to 2008.

ZhengzhouHenceforth, Zhengzhou city will havemore natural gas stations as Xi'an West Blue Company will invest US$ 50million on natural gas refuelling stations.West Blue chairman Qinan Ji, after hismeeting with the Henan provincial Vice-Governor Xu Ji, stated that thefirm will bring their own funds and technology to build gas stations inZhengzhou.

Qinan Ji said the next step will be tofurther cooperate with Henan in 17other cities for investment in gas stations.

Flourishing LCNG market

June 200724

Quiet and clean: CNG autorickshaw in Karachi and PunjabFinally, the long-expected -quiet andclean- green coloured CNG rickshawhave finally landed in Karachi city inPakistan. It has been a long way sincethe Asia Development Bank (ADB)demonstration project in November2000, in which 60 autorickshaws wereconverted to CNG ones to battle airpollution in Pakistan. During an “ADBregional workshop on reduction ofemissions from 2-3 wheelers” in 2001, itwas reported that according to a WorldBank study on air quality, urban air pollution costs US $369 million toPakistan’s economy. On the other hand,CNG drastically reduces the emission ofharmful and toxic substances such ascarbon monoxide. Quoting a report,1,200-1,500 people die in Lahore cityper year due to air pollution related diseases according to DistrictEnvironment Officer Tariq Zaman in2006. Karachi has many more vehicles

than Lahore on its streets. Thus, thearrival of a CNG rickshaw in Karachi lastMarch 2007 was more than welcome.The initial cost of this “green” autorickshaw is Rs 150,000, while thevehicle registration costs around Rs5,000 - 8,000.In another region, more and more“green” rickshaws are going to beadopted. The provincial government of

Punjab was reported in May 2007 toengage eleven more factories –addingto the previous three manufacturers--toimprove the production of these newbrand three-wheelers. This action wastaken in line with the 2005 policy toreplace two-stroke rickshaws withCNG-fitted four-stroke by end 2007 infive major cities of Punjab. The citiesincorporated in the policy include

Seven billion funding for CNG rickshaw and buses procurement

Rs 5B funding will be allocated for the procurement of CNG buses

June 2007 25

announced Rs 2 billion “Green PunjabFund” to give loans to two-stroke rickshaw owners to buy governmentapproved four-stroke CNG rickshaws.Bank of Punjab was assigned to administer the loan.

Funding for CNG buses procurement A financial incentive of Rs 5 billion fromfederal government will be will be allocated for import of CNG busesaccording to Sindh Governor Dr IshratulEbad Khan in March 2007.The federal government had approved aPC-I for CNG buses for the City DistrictGovernment Karachi (CDGK) of which250 new CNG buses would be introduced next month, said City Nazim Mustafa Kamal. At least 20,000 new wide-bodied NGbuses are needed by the Karachi citycommuters. An assessment of CNG fittings after every five years should bemade mandatory and officials wereasked to activate and accelerate outsourcing of vehicle fitness. The registration of vehicles must bedone according to their original specifications and the vehicle registration system should be devolved.Proper infrastructure should be

Lahore, Multan, Faisalabad, Rawalpindiand Gujranwala. Three manufacturerswere ordered to produce 60,000 four-stroke vehicles, but they reportedlysupplied 2,000 to the governmentwhich were now plying on city roads.According to the policy, two-stroke rickshaws powered by LPG would notbe allowed to operate on The Mall,Lahore’s main road, otherwise Rs 600fine would be applicable. In 2006, the Punjab Transport MinisterRana Shamshad Ahmed Khan has

provided for the operation of thesebuses in Karachi, including arrangements for their checking and theprovision of CNG filling stations. On theother hand, driving schools should bereactivated to offer better training to thedrivers, advised the governor.

Concern on NG priceOn the other hand, the healthy condition in this industry has caused asteady increase in CNG price. A good business for CNG fuelling station investors and gas distributors, aconcerning trend for NGVs owners. Prices on CNG have continued to risesince November 2004. By 14 March2007, CNG Dealer Association hasraised the price by 28% as it is sold atRs 33,50/kg at fuelling stations.Consumers concern that the price willcontinue to rise in the 2007-2008 budget.

CNG retail price 2004 - 2007

Dates Increase Retail price (per kg) (per kg)

November 2004 Rs 262005 Rs 3 Rs 29Beginning 2006 Rs 1.25 Rs 30.25June 2006 Rs 2.75 Rs 33March 2007 Rs 0.50 Rs 33.50

Rs 2B “Green Punjab Funding”for new CNG rickshaws

June 200726

Preparing India for theCommonwealth Games-2010The use of CNG fuel to trim down pollution levels in towns and NationalCapital region (NCR) was addressedduring the first meeting of theEmpowered Committee of the NCRPlanning Board in New Delhi. Apartfrom that, the committee suggested theexpansion of CNG fuelling station network to facilitate NGVs. The committee also felt that inner-statebuses, particularly running from NCRtowns to Delhi and also from state capitals to Delhi, should be progressively converted to CNG or otherwise EURO II norm must be implemented in diesel buses. Dr. H.S.Anand, Member Secretary, NCRPlanning Board, called for enhancementof CNG buses in the NCR.

Gas supply networkThe government has decided to promote use of Piped Natural Gas(PNG) and CNG in more metro, megacities, and towns in India, according tothe Union Minister of Petroleum andNatural Gas, Shri Murli Deora. The environmental benefits of clean naturalgas are proven in both transport andhousehold sectors. Hence, the government will replace the use of LPGin household with PNG and more NGVsare expected to ply in India roads.About 200 cities in 15 states will haveaccess to PNG and CNG, of which 10million metric standard cubic metres perday (MMSCMD) will be available for

India:Towards the Commonwealth Games 2010

Gas network in 200cities and more NGVs

household and transport use. Most ofthe cities are anticipated to be coveredby 2009.

Among the cities to be supplied areMumbai, Delhi-Agra, Kanpur, Lucknow,Faribad, Pune, Patna, Varanasi,Ahmedabad, Sholapur, Hyderabad,Bangalore, Chennai, Kolkata, Bareilly,Rajahmundry, Vijayawada, Vadodara,Navi Mumbai and Thane, NCR citiessuch as Gurgaon and Noida, Allahabad,Jhansi, Mathura, Gwalior, Indore, Ujjain,Rajkot, Surendranagar, Kota and Kochi.

At the moment, there are 376 CNG stations in this country, 172 stationswere added during the last two years—a growth of over 84%. Current city gasdistribution projects are under way inNew Delhi and Mumbai on a largescale. Both cities supply gas to over300,000 NGVs.

LucknowThe introduction of Compressed NaturalGas (CNG) vehicles in public transportfleets in Lucknow city a year ago hasimproved the city’s air quality substantially. In its pre-CNG and post-CNG survey, the Uttar PradeshPollution Control Board (UPPCB) hasfound that the levels of harmful sulphurdioxide (SO2), suspended particulatematter (SPM) and respiratory suspended particulate matter (RSPM)which can cause breathing problems,asthma, heart problems and manyother diseases, have come down to a

“safe level”. The survey found 27.8%reduction in the SO2 levels in Aliganjand 20.3% in Hazratganj. The monitoring was done in five areas —Hazratganj, Talkatora, Aminabad, Aliganj and Mahanagar. “UPPCB officials have initiated the useof CNG fuel in Lucknow, in which thegovernment authorities responded verywell,” said SK Singh, ChiefEnvironmental Officer, UPPCB. Besidesintroducing Natural Gas Vehicles(NGVs), the government also improvedthe whole transport system which at theend also enhances the air quality. “The roads are becoming wider, improving the flow of traffic”. Following the good result of the adoption of NGVs, the State TransportAuthority (STA) has decided to covertthe entire public transport in the cityinto CNG, said Gangaphal, regionaltransport officer (RTO). All bus ownersand auto owners plying in the city havebeen asked to covert their vehicle intoCNG mode before May 31, otherwise

By 2009. 15 states will haveaccess to CNG/PNG

June 2007 27

those will be banned from Lucknowroads. Though around 60-70% of thecity transport is already powered byCNG, the private buses and somethree-wheelers are still to follow thenorm.

NoidaThe UP State Road Transport(UPSRTC) has launched a 30 CNG bus

fleet in Noida city on 30 March 2007.The city owns two refuelling stationsthat can serve those buses. Some ofthose buses will use the refuelling facilities in New Delhi until the fuellingnetwork expands.

New DelhiDelhi Transport Corporation was reported to buy 500 low-floor CNG

buses with air-conditioning facility tocater public transport needs. Before theend of 2007, the city will have its firstCNG low-floor buses. The local government efforts to convert all vehicles to CNG have contributed a lotto the enhancement air quality. Citieswhich do not use this clean fuel, suchas Calcutta, have been proven to haveworse air quality.

Stricter norms for pollutiontesting centresThe Motor Vehicles Department (MVD)has proposed to upgrade pollution testing centres across the State asdirected by the Union Government aspart of emission control norms. The 500pollution testing centres in the State willhave to upgrade their testing equipment. Stricter requirements for thetesting methods of diesel vehicles areintroduced. Emission tests for gasoline,diesel, LPG, and NGVs before BharatStage II can be performed after upgrading the existing two gas analysers. Bharat stage III and abovevehicles require four gas analyser toconduct the test. Another norms onemission levels (HC and CO) for twoand three-wheelers are also introduced.

World’s largest CNG public transport fleet

In May 2007, the second “C40 LargeCities Climate Summit” was held inNew York and was attended by leaders of municipal governmentsand international businesses fromover 30 cities. From India-New Delhi,CM Sheila Dikshit presented theworld’s largest fleet of CNG-run public transport vehicles, with a presentation titled ”Shifting of polluting industries and increasing theforest cover in the Capital, on improving standards of living and climate. Besides Delhi, Mumbai alsoparticipated in this summit.Dikshit also enumerated new public

transport initiatives like Metro, HighCapacity Bus Systems and the moveto introduce Monorail and Light RailTransit at the summit. “Delhi’s experience will be valuable to otherlarger cities as it has one of thelargest population, huge vehicle numbers and an ancient history,” saida Senior Delhi Government official. The world’s biggest cities have a criticalrole in reducing carbon emissions asthey consume three-quarters of theworld’s energy. Officials said the leaders have discussed on how tobring down carbon emissions andexchange notes on their initiatives.

June 200728

EcoFuel World Tour with a CNG car

Across five continents in six monthsGerman adventurer Rainer Zietlow andhis 3 companions have made an entryin the Guinness World Record with hisEcoFuel World Tour, to prove thatCompressed Natural Gas (CNG) is anenvironmentally friendly and universallyavailable alternative to fossil fuels. Andwhat a success! Quick facts of the journey:

Vehicle: A CNG-poweredVolkswagen Caddy EcoFuel with 80 kW(109 hp)

Travel period: 180 days, from 25October 2006 to 13 April 2007

Coverage: 46,000 km in 75 cities of40 countries in 5 continents: fromEurope to Africa, Asia, Australia, andAmerica

Route: Started at the headquartersof sponsor TÜV Rheinland Group inCologne, Germany, followed by an excursion in 39 other countries, andback to Leipzig in Germany. Asiancountries covered in this quest:Australia, Egypt, Jordan, India, Iran,Malaysia, Pakistan, Singapore, Syria,Thailand, Turkey, United Arab Emirates.

Fuel economy: CNG is cheaper thantraditional fuels. In Iran, Zietlow filled histank for less than Euro 0.01.

Performance: “In terms of fuel consumption, the natural gas van vastlyoutperforms any gasoline car”, saidZietlow. The 2.0-liter engine consumesbetween six and eight kilograms of gasper 100 kilometers, depending on theroad quality. With nine additional fueltanks tested for safety by TÜVRheinland, the VW Caddy EcoFuel hasa range of 2,500 kilometers. This madeit possible to drive right around theworld with only 32 fuel stops.

Environment benefits: The car emits25% less CO2, as well as less nitrogenoxide, carbon monoxide and particulatematter than conventional gasoline ordiesel vehicles. This makes them a popular alternative for polluted African and Asian metropolises.

Donation: Euro 0.10 was given tothe SOS Children’s Village program forevery kilometer covered. The teamreceived a warm welcome whereverthey went. "When they recognized us as naturalgas users, the other motorists greetedus," says Zietlow. “They were hugelyimpressed by the idea of a round-the-world trip with natural gas in the tank.”

Noted in the “Guinness Book of Record”, CNG VW Caddy car’s journey covering 40 countries, proofing the world’s blue corridor in 5 continents

The drivers who rent the three-wheelershave to pay Tk 450 as daily deposit toautorickshaw owners instead of the previous fee of Tk 300.

Long queues at Dhaka CNGstationsDue to closure of around 30% of CNGfuelling stations in Dhaka city and rapidincrease of NGV population triggered byrecent petroleum price increases, longqueues take place in many CNG fuellingstations. Rupantarita Prakritik GasCompany Limited (RPGCL) had recentlydeactivated eighteen out of sixty-threeCNG fuelling stations in and aroundDhaka as some of those stations hadunpaid gas bills or had illegal gas con-nections.To cope with market needs, now the

government has decided to make CNG fuelling facilitiesmandatory for every gasoline station, according to NazmulHaque, President of Petroleum Dealers, Distributors, Agentsand Pump owners Association. But, without financial assistance from the government, it will take a long time toimplement this decision, he continued.

June 2007 29

High demand at conversioncentres and fuelling stationsFollowing the oil price hike since April2nd, 2001, owners of gasoline andoctane vehicles are lining up in workshops to convert their vehicles toCNG ones in Bangladesh. As there aremore vehicles operating on CNG, naturalgas stations are filled with vehicles waiting for refuelling.

Coping with conversiondemandsIn Chittagong city, the currently existing15 workshops are also experiencing anincreased demand and long queues ofvehicles. Several vehicle owners optedfor making advance booking in thoseworkshops. It takes about five days to retrofit a car at Intraco CNG Limited.Mokhlesur Rahman Mukul, senior execu-tive (marketing) of Intraco, informed thatin April they were not taking more booking for conversion as itwas already fully booked for the month. The conversion ratewas doubled from five to ten vehicles per day to fifteen totwenty units. Another challenge is that most conversion centres only modify gasoline and octane-powered vehicles and not dieselvehicles, such as buses and trucks. MD Abdul Hakim, lineman secretary of City Bus Mini Bus Human HaulerAssociation, said that it is difficult (for diesel bus drivers) tobear the maintaining costs of vehicles due to hike in (diesel)fuel price.Switching to NGVs is indeed a good decision. Fuel costs willdecrease around 70% after retrofitting a gasoline engine toCNG. MD Yusuf, owner of a private car, stated that in thepast, he used to spend Tk 5,000-6,000 on gasoline andoctane a month while now the fuel cost decreases to Tk1,200 after the conversion.

It costs Tk 30,000-35,000 to convert an autorickshaw, Tk45,000-50,000 for a car, Tk 90,000 for a microbus. To convert a diesel bus to NGV, the cost is around Tk300,000. The pay-back period for the conversion of a car isaround ten months. After that period, CNG car owners willstart saving money from the difference of gasoline and CNG prices. A similar episode also takes place in the capital city, Dhaka,where over 80 CNG conversion centres have been workingdouble shifts to keep up with the increased demand since thepetroleum price increase.

Increased transport fareThe municipality of Dhaka has decided to increase CNG threewheelers fare as from May 1st. Passengers of these vehicleshave to pay starting charge of Tk 15, Tk 13.50 for the firsttwo kilometres plus Tk 5.50 for each of the next kilometres.The stoppage charge has been fixed at 75 paisa (Tk 0.75) perminute. The old prices were Tk 12 for the starting charge, Tk12 for the first two kilometres, while the waiting charge wasTk 0.50 per minute.

CNG workshops in Chittagongare fully booked

June 200730

The Roads & Transport Authority (RTA)of United Arab Emirates has signed anagreement with Emirates Gas, a subsidiary of Emirates National Oil Co.Ltd (ENOC) to convert three dieselengines of Dubai traditional woodenboats called Abras to compressed natural gas (CNG) engines.The agreement has been signed onbehalf of RTA by H.E. Mattar Al Tayer,Chairman & Executive Director, and onbehalf of Emirates Gas by H.E. HussainSultan, Chief Executive of ENOC Group,in early May 2007. According to theagreement, RTA & Emirates Gas areresponsible for conducting experimentsand studies on CNG abras operation.Abras operators and the Emirate ofDubai will be briefed with the importance of the study and the benefits of this clean vehicle. The operators will be trained to managethese CNG abras.A temporary CNG refuelling station isset in abras berthing sites near publicroads after the approval of the concerned authorities. Safety and security rules have to be ensured in

UAE traditional boats with CNG enginesaccordance with the international standards and all regulations and lawsgoverning operation of abras. EmiratesGas Co. will fund the experimentalphase of the project and periodicalreports will be made by the two partieson the progress of the project.Conclusions and findings will be outlined to sort out the problemsencountered during the execution. In the future, RTA plans to conduct astudy to popularise the use of CNG inother various modes of marines transport. This clean fuel is expected toreduce fuelling cost by 30% and toreduce pollution level resulting from thediesel-operated engines of abras by66%. It will also cut back the emissionof harmful gases such as 1st and 2ndCarbon Dioxide (CO2). In fact, in thisCNG engine the safety quality isenhanced as auto shutting system isintroduced to prevent gas leakage.Beside, a smaller engine with a higherefficiency and reduced noise is going tobe used, which will add more superiority of NG engine than diesel.Maintenance works are easier compared

to diesel-operated engines. The expectedlifetime of the engine is ultimately prolonged as it will be free from leadand oil spills, according to Al Tayer. H.E. Hussein Sultan, Chief Executive ofENOC Group, expressed his deeppleasure to cooperate with RTA on thisCNG abras. 'Signing this agreement comes out ofour deep sense of social responsibilitywe are shouldering. We, in ENOC, arekeen to protect environment and workon devising methods to curb the problems of pollution,'' he said.

Al Tayer, Chairman & ExecutiveDirector and Emirates GasCompany Hussain Sultan, CEO.

June 2007 31

Russia to add 200 newNG fuelling stationsExpanding gas station networkOAO Gazprom has approved a program of natural gas fuelling stationsnetwork development and a NGVs market in 2007-2015, announcedGazprom official in April 2007.The goal of this programme is to develop a wider infrastructure for NGV-refuelling compressor stations andto increase the number of cars and agricultural equipment powered bycompressed natural gas (CNG).According to the program, 200 newNGV-refuelling compressor stations and90 mobile gas fuelling stations will beready to operate in 47 regions in 2007-2015. Nowadays, there are 218CNG stations in service in Russia.Average cost for 1 cubic metre of gas is5.4 rubel (1 cubic meter is equal to 1litre of gasoline or diesel). Considering gas projects with BrazilThe state-run oil companies of Braziland Russia, Petroleo Brasileiro S.A. andGazprom, signed a memorandum of

understanding to identify possible areasof cooperation on natural gas projects.Petrobras was interested in Gazprom'stechnology for the development, storage and transportation of liquefiednatural gas (LNG).The two could seal deals on LNG projects by 2007, according toPetrobas. The Brazilian company also is interested in Gazprom's technologyfor pipeline construction. Brazil is tryingto reduce its dependence on Boliviannatural gas.

A member of the CPGNV

On the 19th of April, our publishingcompany added another landmarkto a trajectory of more than twodecades, focused on the promotionof CNG in the whole world.

On this occasion, the PeruvianChamber for CNG (CPGNV) honoured us with appointing usmembers.

From this thriving and respectableorganization, they sent their bestwishes to us: "Congratulations andwe are certain that the bonds andcooperation efforts we have beencarrying out together in favour ofthe development of the PeruvianCNG market will grow in the future.”

NGV Communications Groupgreets this recognition, whichmakes us proud and commits ourselves to continue, with thestrictness that characterizes us, ourcommunication task in the segmentof natural gas for vehicles.

By 2015, Russia will have 415CNG stations

June 200732

Many Asian countries shift towards natural gas as potential oil shortageincreases as a result of renewed tensions in the Persian Gulf. So doesThailand. Metta Buntherngsuk, theDirector-General of the Energy BusinessDepartment, said officials were concerned that the Iran-US nuclear dispute could cause fuel shortages inThailand. The government has initiateda campaign to increase NGV consumption and has said that naturalgas resources would be secure in theevent of an energy crisis.

Challenges in switching fuelsThe Ministry set a target to increaseproduction of natural gas, gasohol andbio-diesel to at least 10% of total fuelconsumption. The government will alsolaunch a campaign to increase consumer confidence in the safety ofalternative vehicle fuels, especiallyNGVs.The state oil company PTT plays a keyrole in encouraging NGV consumption.The current challenge is to persuadepersonal car owners to switch to NGVsdespite of the engine-modification costsof up to 50,000 baht per vehicle, and toincrease the number of NGV servicestations.

PTT is now encouraging transport fleetoperators -particularly those with truckand public bus fleets- to use naturalgas since those heavy-duty vehiclesconsume four to six times more fuelthan personal cars. Due to fuel consumption and saving, large vehicleoperators could recover their conversion expenses more quicklycompared with individual car owners. Daily consumption of natural gas forvehicles nationwide currently totals 17million cubic feet or an oil equivalent of3.4 million litres, up from 10 millioncubic feet or two million litres inDecember 2006. Gasoline consumption totals 18-20 million litres aday and diesel 53-55 million litres.About 31,700 NGVs are plying on Thai roads nowadays. PTT targets to raise this number to60,850 this year and to 256,600 by2011, according to PTT’s SeniorExecutive Vice President Chitrapongse Kwangsukstith.

Conversion workshop certificationTo ensure the high quality of retrofittedNGVs, the Energy Ministry is issuingcertification to standardise CNG vehicleconversion workshop. Throughout thecountry, there are 160 workshops ofwhich eighteen have been certified. To acquire certification, a station mustbe located in a 200 sqm plot. The permanent building must beequipped with standard tools. The conversion must be done by experienced engineers and mechanics.The workshop must offer at least oneyear guarantee.

Loans for conversion to NGVsTo promote NGV consumption, theMinistry plans to set up a seven-billionbaht loan for large vehicle operatorswishing to convert their fleets to useNGV, of which five billion baht will besupported by PTT Plc and two billionbaht by the Energy Conservation Fund. Participants will repay the loans,arranged by PTT, out of the money theypay for NGV. PTT will sell CNG to themat 24.50 baht per kilogramme, of which15 baht will be used to repay the loanand the rest is the current normal CNGprice. The 24.50-baht rate is equal tothe current diesel price. The target group of borrowers includesthe Bangkok Mass Transit Authority andits affiliated private bus operators.

Pay back periodThe high CNG fuel saving –up to 65%-

70% compared to diesel and gasoline—ensures a fast pay back period for the vehicle conversion toNGVs. The pay back period for low-duty vehicles ranges from fourmonths to less than three years. Forheavy-duty vehicles it will take abouteleven months to 2.5 years.

It is estimated that the cost of moving acar by NGV is THB 0.59/km, comparedto THB 0.91/km by liquefied petroleumgas and THB 2.00/km by gasoline orgasohol (a blend of gasoline andethanol).

CNG price ceilingCurrently, CNG is offered in 104 refuelling facilities across the countrywhereas 90 more stations are underconstruction. To support a healthygrowth in this industry, CNG price is setat 30% of regular gasoline and 35% ofdiesel. And it will not go above 55% ofthe unleaded regular gasoline price. The ceiling price for 2008 will be 60%and 65% respectively for 2009.

By April 2007, there are 118 CNC stations nationwide, of which 100 unitsare located in Bangkok and 18 others in the provinces. By end 2007, it is anticipated 270 stations will provideservices in 40 provinces and 545 stations by 2011.

OEMs entering the marketHealthy economic and vehicle marketconditions plus strong support from thegovernment and PTT have encouragedseveral OEM NGVs to introduce theirmethane vehicles to Thai consumers.DaimlerChrysler plans to mass marketNGV E200NGT soon. And in fact, several cars have been handed over toPTT last year. Chevrolet has recentlylaunched C190 Colorado CNG dual fuelpick-up and will introduce Optra passenger car in 2007. The Coloradodual fuel has undergone a fuel consumption test where it showed theability to replace 87% of diesel with natural gas. The US based company,US Energy Initiatives Corporation, isengaged in a programme with GMThailand to provide the C190 Coloradodual fuel system for model years 2007,2008, and 2009.

Persian Gulf situation causes bigger growth in NGV industry

June 2007 33

More CNG vehicle equipmentfor China and IndiaThe American based Quantum FuelSystems Technologies Worldwide Inc.has signed new agreements with Indiaand China to distribute CNG cylindersand other alternative fuel vehicle products and systems for CNG. The branch in China will now beresponsible for the local manufacturing,distribution and sale of type II steeltanks and type III aluminium-lined, carbon fibre wrapped, high pressureCNG cylinders into international marketssuch as China, India, and Europe. Thecylinders will be certified by ISO 11439,EU ECE R110, and US NGV2-2000.

The Indian office will cover the marketing, sales, and distribution ofQuantum’s alternative fuel vehicle products and systems for CNG, mix ofNG and H2, and liquid petroleum gas(LPG). Products/services offered includeType II, Type III and light-weight Type IVfuel storage tanks, high-durabilitygaseous fuel injectors, fuel meteringsystems, electronic engine control units,and calibration strategies to meetincreasingly stringent emission standards; and vehicle integrationmethodologies for India's fast growingautomotive and bus markets.

Indian OEMs to add NGVmodelsBajaj Auto will launch a cargo mini truckof 500cc to 600cc in 2009, which willbe available in diesel, gasoline, andCNG versions.

Meanwhile, Hyundai Santro bi-fuelCNG/gasoline will be launched thissummer 2007. “The demand is huge inDelhi and Mumbai and as the supply isstrengthened in other cities, it will goup,” stated H.S. Lheem, Hyundai MotorIndia Ltd. Managing Director.

Expanding equipment marketshare through ChinaChinese NGV market’s growing importance is recognised by both localand overseas companies. Beside theUSA based Quantum Fuel SystemsTechnologies Worldwide, Inc.’s agreement in China (see the first articlein this page, entitled “More CNG vehicleequipment for China and India”), othercompanies are also expanding theirNGV business and profiting from theexcellent market growth in this country.

On the other hand, local companySinoenergy Corporation has acquired60% of Jiaxing Lixun AutomotiveElectronic Company’s share to expandits market share in the NGV equipmentindustry. Sinoenergy is a manufacturerof CNG vehicle and gas station equipment and designer, as well as adeveloper and operator of CNG fuellingstations in China. Jiaxing LixunAutomotive Electronic Co., Ltd. is adesigner and producer of electric control devices for CNG/LPG vehicles,and a full range of electronic devicesused for multi-powered vehicles suchas controllers, conversion switches,spark advancers, tolerance sensors,emulators, etc.

AustraliaBoral and IVECO Trucks have collaborated to develop CNG agitatorsto create high performance and environmentally friendly agitators inAustralia. Boral Limited is Australia'slargest building and construction materials supplier, while IVECO is aHeavy-Duty Vehicles manufacturer.Since the fourth quarter of 2006, Boralconcrete business has been testing fiveCNG trucks in its sites in Penrith,

Preston and Liverpool. The five trucks are fitted with 6 cylinders, 8.3 litre Cummins C Gas Plusengines. The trucks daily mileage isabout 180km to 240km and need torefuel only once at the end of each day. Advanced Fuel technologies were commissioned to perform the gasequipment design and fits-out.

Steve Alberse, the Fleet AccountManager of IVECO Australia, stated thatCNG programme with Boral was anexciting development, and the firmlooked forward to a bright future in thisniche market segment.

Malaysian company to distribute Korean NG enginesTForce NGV, an automotive engineeringdesign and NGV consulting company, isjoining the NGV market in this country.The firm has received five orders toconvert Hino H07C buses and fiveInokom Lorimas trucks after successfully retrofitting a unit of eachmodel to dedicated NGVs with RMWayEngineering.

TForce was awarded exclusive marketing rights for monogas enginesby Indes Technologies and Engine TechCo. Ltd from Korea. And now, it isready to start large scale commercialoperations.

About 20 more workshop entrepreneurs, who have undergonebasic NGV engine conversion andinstallation through MARA SmartAutoprogramme for automotive workshop,will enter the commercial sector soon.

Market expansion

June 200734

This year the Asia-Pacific Natural GasVehicles Association (ANGVA) hasalready successfully held its 6th and 7thNGV Schools at Kasetsart University inBangkok, Thailand and at SeoulNational University in Seoul, Korearespectively.

During March in Thailand, close to 200attendees from NGV related industriesand public offices took part in makingthe school a success. Similarly, morethan 100 people attended the April program held in Korea’s premier educational institute making it the most successful NGV School held inKorea to date.

The ANGVA NGV School has beenoperated by ANGVA and Korea’sGangwon National University with funding from the Gangwon Provincialgovernment, educating skilled technicians, legislative officers and professionals for the burgeoning naturalgas vehicle industry in the region since2004.

Along with the support of ANGVA andnational NGV associations there havebeen three driving influences critical tothe NGV schools success. Since 2004the school has been generously fundedby Korea’s Gangwon Province. NGVSchool Dean, Professor Sung-joon KimPhD of Gangwon National Universityhas worked tirelessly toward runningthe school in the region. NGVI PresidentKevin Park is responsible for the marriage of ANGVA, Gangwon Provinceand Gangwon National University.

“The aim of NGV education is to trainand graduate NGV experts using available materials and highly qualifiedlecturers as well as and furnishingindustry growth and business opportunities,” said Kevin Park.

“The school has the purpose of servicing and educating technicians andprofessionals for the burgeoning Asia-Pacific NGV industry. The maingoal of the school is to ensure theindustry establishes a reputation forquality and safety throughout the Asia-Pacific region,” said NGV School

ANGVA NGV School:Gathering Momentum

Dean Professor Kim. The NGV School has been run over one or two days with each attendee receiving an attendance certificate and commemorative gift. Previous curriculum and lectures of the NGVSchool have covered a broad range oftopics including strategy and policy forNGVs and NGV refueling to bio-methane for transportation to safetyand maintenance orientated issues andtraining.Increasing industry demand for training

services led to the development of awebsite designed as part of the operations of a ‘virtual’ NGV School.

“The online courses will increase thescope and accessibility of the schoolreaching a wider audience,” saidProfessor Kim.

The website can be located athttp://www.ngvschool.org/By: Ryan Freer, NGVI InternationalBusiness Development Manager

Expected results and applications of LNG vehicle project in Asia

Future plan of ECO-STAR project

June 2007 36

The third edition of ExpoGNV, 2007 version, which was carried out in SãoPaulo, Brazil, surpassed the previousones. Over 70 companies from 15countries of the five continents andalmost 4,700 visitors are in line with the success of this gathering, both for the exhibitor companies that closed significant deals, and for theusers who walked around the site and were able to find much more than they were looking for. The event was organized by theBrazilian Institute of Petroleum, Gas and Bio-fuels (IBP) and Folha do GNV(NGV Communications Group).

Massive presenceExpoGNV 2007 was visited by 4,628people. The attendees came from the18 Brazilian states and from distantplaces like Nigeria, Egypt, China,Malaysia, Iran, Pakistan, India andAustralia.

The exhibition was held in 4,500squared meters hall attended byexhibitors from 70 most important companies of Brazil and the world.

Conferences and courses With free access, and simultaneouslywith the exhibition, during the first twodays, there were sessions of muchinterest to the sector, given by recognisable specialists.

The Update Course on NGV focused onthe installation of conversion workshopsand fuelling stations, and how tochoose the kit and cylinder suitable forthe retrofit process. Participants werehanded in a diploma certifying theirpresence.

Ideal frameworkBrazil produces around 67.5 thousandm_ NG/day, has over 1,300,000 converted vehicles and already exceedsthe number of 1,400 CNG fuelling stations in operation in the country.

This meaningful summit anticipated thestage for the upcoming WorldConference and Exhibition of theAssociation for Natural Gas Vehicles,NGV 2008, to be held next year in Riode Janeiro (see apart).

ExpoGNV 2007 was held with great success

Record of sales for Rio 2008

During ExpoGNV 2007, the sale ofbooths for NGV 2008 was launched.Expectations for this event were suchthat, only in the first six hours afterthe opening of the exhibition, morethan 600 squared meters were sold,and at the end, it was reached thesignificant and promising figure of1,800.

Aspro from Brazil, Reg OMVL,Worthington, Lovato, Safe, WhiteMartins-Cilbras, GNV Junqueira,Landirenzo, Préssor, Grupo Galileo,Alliance Group, Tomasetto Achille,Inflex, MR Conexões, ElectroDiel,Plast Silva, PVR, Agira, Tury, FixParts,

F1 Cilindros, PumpControl, GrupoGNC and Neogas already confirmedtheir presence in the incoming eventof the industry that cannot be missed.

Press media’s supportMore than 30 mass media companiescovered both the conference and theexhibition. Whether on television,radio or Internet, ExpoGNV 2007 waswidely broadcasted. Additionally,press from printed media also coverstopics of the conferences and theproducts exhibited in this fair. NGVCommunications Group acknowledges their work and interest in the event.

Another big success of an NGV exhibition in Brazil, the next host country of IANGV conference and exhibition in 2008

Seventy exhibitors benefitingfrom the event

Three days conference with certificates

June 200737

BusinessCentreCylinders used in all five continentsInflex- Argentoil holds leadershipattained along 40 years of seeking permanent innovation of its productsline, methodology and quality norms fulfillment, which allowed the companyto deliver over 3,500,000 cylindersglobally, what shows the customers'confidence based on product qualityand safety. Its technology is conceived to competein the local and international markets,and with that aim, they developed cylinders type I, II and III. The company has not stopped its taskof meeting the market's demand andincreasing its export rhythm, and that iswhy they recently restructured theirForeign Trade Department, made uptoday by the Exports Manager, AlbertoMuñoz, Exports Sub-manager, MariaEugenia Fracchia, and Inflex do BrasilExports Sub-manager, HoracioCorridoni.As part of this change, they opened abranch office in Dubai, which is underthe management of Mr. Narayanan Kutty.

Inflex-Argentoil has arranged itsresources and strategic plan, betting on the growth and development of theBrazilian market, through the expansionof sales regions and the extension ofthe distributor network. Doubling effortsand making necessary investments inorder to become a significant referent in the commercialization of CNG and air gases cylinders in this important market. They have the technical andbusiness support that characterizes the firm, and they are loyal to the same spirit in its Brazilian office. The state-of-the-art place occupied bythe company is not due to casual reasons but to a sustained strategicplanning, along with the last 15 yearsinvestments carried out in accordancewith the market globalization whichposes a big challenge. A pioneer in the above mentionedregions, Inflex has gained many clients and friends who incite themto continue on this path of

intelligent management of their

product and market. The company determines and establishes its strategy and is alwaysattentive to the tactic tools that make it possible for them to reach andkeep leadership in the CNG world.

The company develops cylinders

in response to every need

June 200738

Excellence in Pressure and Flow Control

BusinessCentre

Hale Hamilton is pleased to announce the launch of its newrange of Daughter Station distribution panels. This additional product further enhances our range of products for the CNG Fuelling and distribution market.

The panel arrangement can be customised to suit customer individual requirements

Benefits:• Individually sized control products to provide optimised per-formance• Use of standard field proven products• Range of configurations, e.g. free standing, trailer or heatermounted.• Modular designs• Ease of installation• Ease of access to individual products for servicing

Further products produced for this high growth market sectornow include;• Priority Fill Manifolds; 2 line, 3 line and 5 line incorporatingslow fill, withand without direct compressor fill. Flow rates to 5000Nm3/hrfor both carsand commercial vehicle filling.• Direct, banjo and cartridge mounted pressure relief valvesand relief valvemanifolds.• Spring and Dome loaded pressure controllers.• Check Valves.• High pressure gas filters.

Contact points: sales@halehamilton.com, tel. +44(0)1895231407, www.halehamilton.com

Dresser-Rand purchases Gimpel ValveBusiness from Tyco Flow Control

Dresser-Rand Group Inc. (NYSE:DRC) announced on last 5 April that ithas acquired the Gimpel businessfrom Tyco Flow Control, a reportingunit of Tyco International (NYSE: TYC,BXS: TYC). Gimpel products includea line of trip, trip throttle, and non-return valves to protect steam turbines and related equipment inindustrial and marine applications.Terms of the sale were not disclosed.

In a joint announcement, Vincent R. Volpe, Jr., Dresser-Rand president and CEO, stated that the acquisition is consistent with the company’s “bolt-on”acquisition strategy. “We believe that the Gimpel business will help us extend the Dresser-Rand valueproposition to our clients,” he emphasized. “With Gimpel’s extensive installed base, coupled with Dresser-Rand’s strength and global service network, we see opportunities to service Gimpel’s under-servedinstalled base and further grow our aftermarket business.” Commenting on the transaction, Richard Lundgren, president of Tyco Flow Control, Americas, said “As ourpower generation focus has shifted more towards supercritical coal and nuclear applications, the Gimpel linewas no longer a strategic fit with our business. However,Gimpel remains a strong brand in its niche market with anenduring reputation of proven technology and high-qualityproduct performance.”

For more than 50 years, Gimpel has been a leader in itsfield, supplying critical valves for U.S. Navy nuclear-powered aircraft carriers and submarines.Dresser-Rand also is a key supplier of steam turbines forU.S. Navy ships for main propulsion, ship service andemergency generator sets. Additionally, the company’sauxiliary steam turbine drivers are used for main feedpumps, auxiliary feed pumps, circulating pumps, firepumps and standby oil pumps. Dresser-Rand is amongthe largest global suppliers of rotating equipment solutions to the worldwide oil, gas, petrochemical, andprocess industries. It operates manufacturing facilities inthe United States, France, Germany, Norway, and India,and maintains a network of 26 service and support centers covering more than 140 countries.

The company offers the most comprehensive steam turbine selection in the industry, backed by a worldwidenetwork of sales, manufacturing and service support forall Dresser-Rand and legacy steam turbines such asMoore, Murray, Nadrowski, Terry, Turbodyne,Worthington, and COPPUS. For more information, contact ad@dresser-rand.com,www.dresser-rand.com

Vincent R. Volpe

June 2007 39

NGV statistics, 2007

CountryNatural Gas Vehicles N/m3

monthlysalesaverageTotal Cars/LDVs Buses Trucks

Refuelling Stations Refuelling Stationsunder construction

Total Publicuse (a)

Privateuse (b) Hoses Total Public Private

VRA (c) Last updateCompresedtotal capacity

(m3/hour)

Pakistan 1,300,000 1,300,000 1,300 1,300 Mar. '07India (d) 334,820 315,200 12,000 715 52,000,000 325 6 192 60 Oct. '06Iran (e) 263,662 261,009 2,641 12 32,200,000 199 190 9 1,592 283,333 480 370 110 Apr. '07China (f) 200,873 81,257 36,996 486 1 Jan. '07Armenia (g) 81,394 55,163 8,273 17,958 18,222,500 148 9 139 22 22 Jan. '07Bangladesh (h) 80,000 21,361,029 129 6 117 290 49,600 13 6 7 13 Jan. '07Egypt 69,376 58,370 5,367 3,356 25,000,000 103 95 4 23 23 Jun. '06Russia 60,000 3,000 8,000 35,000 22,500,000 218 207 8 15 Dec '06Japan (i) 30,469 11,853 1,268 16,374 311 283 28 77,800 702 Dec. '06Thailand (j) 29,233 27,818 416 998 109 106 3 2 2 Feb. '07Malaysia 24,988 24,908 76 4 10,810,000 50 48 2 148 31,400 50 28 1 10 Feb. '07Korea 12,143 49 11,988 106 109 109 226 5 13 Mar. '07Burma 10,900 2,902 6,373 20 Dec. 06Tajikistan 10,600 10,600 4,130,000 53 53 Dec. '06Kyrgyztan 6,000 100,000 6 6 Mar. '07Australia 2,453 130 1,263 1,060 146 127 19 130 Mar. '07Indonesia 1,000 12 Oct. '06Turkey 520 396 124 400,000 6 4 2 1 1 Nov. '05United Arab E. 305 305 0 0 2 1 1 Mar. '07New Zealand (k) 281 57 66 138 14 14 Feb. '07Singapore 238 224 12 2 1 1 3 396 Jun.'06Philippines (l) 36 11 25 3 1 2 7 Feb. '06Taiwan 4 4 1 1 Apr. '05Grand total 2,519,295 2,153,252 94,892 75,723 3,751 2,567 526 656 430 140 884

Notes: (a):The "Grand total" of NGV is not equal to the accumulated number of cars/LDVs+buses+trucks as some countries only register totalNGV population. Also, as some other countries/sources discontinue to count NGVs based on the type of vehicles, the "Total" number of NGVin each country may differ from the total cars/LDVs+buses+trucks in the respective row. However, we continue to publish the previouslysubmitted figures on each type of vehicles to allow readers to get a rough overview of each market. This also applies to refuelling stations.(b):Public station is open to general public and private station is exclusively for private fleet use. (c): Vehicle Refuelling Appliance (d): Including 3wheelers; India has 127.000 natural gas three-wheelers (e): Adding to the total NG stations in Iran, 156 are bi-purpose gasoline-CNG, and 232bi-purpose stations are under construction. From total 440 stations, 179 units were on operation in Jnauary 2007 and 261 units were ready foroperation. (f): The data was collected from provinces and cities which are listed as the main development and demonstration areas by the central government only. Though the numbers account for most of NGVs and refueling stations in China, the real numbers should be a littlebigger. From the total 127.120 NGVs, 28.311 vehicles were classified as vehicles other than taxis and buses (this figure includes the NG truckpopulation). (g): From 80.000 NGVs, 12.000 are three-wheelers. (h): Most of the NGVs in Armenia are cars/LDVs and trucks. The NGVpopulation is expected to increase by 10.000 vehicles/year in 2005-2009. (i): About 98% of NGVs in Japan are (Japanese) OEM NGVs. Fromthe total NGV population, 974 are off-road. (j): One off-road vehicle/CNG boat taxi is operated since February 2007. (k): There are also 20 off-roadNGVs (6 tractors and 14 mobile machine). (l): Include in the total LDVs are 6 cars, 2 AUVs, and 2 three-wheleers. All are in demonstration.

Statistics

Regional NGV share in total vehicle market, 2007

Country Total NGVs(2007)

Total all vehicles (2006) Market share

Pakistan 1300000 2500000 52.00%Iran 263662 1102720 23.91%Armenia 81394 325600 25.00%Bangladesh 80000 293472 27.26%Egypt 69376 2373723 2.92%Russia 60000 22346376 0.27%Japan 30469 70720316 0.04%Thailand 29233 6911630 0.42%Malaysia 24988 366375 6.82%Korea 12143 11400300 0.11%Myanmar (Burma) 10900 296910 3.67%Tajikistan 10600 162370 6.53%Kyrgyzstan 6000 205520 2.92%Australia 2453 13491401 0.02%Indonesia 1000 5497075 0.02%Turkey 520 5206725 0.01%United Arab Emirates 305 578035 0.05%New Zealand 281 2329210 0.01%Singapore 238 659215 0.04%Philippines 36 2559968 0.0014%Sub total 1983598 149326941 1.33%China 200873 35860638 0.56%Grand total 2184471 185187579 1.18%

Note: China was not yet included in the counting of NGV market shareduring the writing of the editorial at page 4. Therefore, it is placed separately in the list above for your reference to the editorial.

Other regions

Country Total NGVs(2007)

Total all vehicles (2006) Market share

Europe 740,469 289,167,115 0.26%South America 3,226,837 27,422,183 11.77%Africa 69,563 4,136,796 1.68%North and Central America 170,418 268,026,305 0.06%

Notes: This table provides details of total vehicle fleets and calculatedNGV share in per cent. Due to geographical situation, Russia (NorthernAsia) and Egypt (a transcontinental country in Northern Africa andWestern Asia) are also included in the Asian NGV fleet counting.For dates of reference of NGV population, please check the table "NGVstatistics, 2007" in this magazine.Source: Asian NGV Communications, The GVR and Peter Boisen

June 200740

www.ngvgroup.com • Visit the biggest NGV portal in the world

CNG price advantage to other fuels (round up%)

Country CNG toPremium

CNG toRegular

CNG toDiesel

Armenia 70% 70% 54%Bangladesh 83% 82% 70%China 52% 46% 33%Egypt 72% 59% 23%India 62% 63% 40%Indonesia 53% 50% 37%Iran 84% 77% -19%Japan 59% 55% 34%Korea 67% 67% 52%Malaysia 61% 60% 46%New Zealand 51% 49% 10%Pakistan 70% 66% 41%Philippines 65% 62% 54%Russia 71% 68% 59%Singapore 62% 66% 36%Tajikistan 66% 52%Thailand 73% 73% 66%Turkey 59% 59% 42%

Fuel price, 2007

Country

Armenia 0.77 0.78 0.58 0.26 0.23 0.27Bangladesh 0.52 0.49 0.34 0.10 0.09 0.10China 0.48 0.43 0.40 0.26 0.23 0.27Egypt (a) 0.19 0.13 0.08 0.06 0.05 0.06India 0.91 0.94 0.67 0.39 0.35 0.40Indonesia 0.42 0.39 0.36 0.22 0.20 0.23Iran (b) 0.088 0.063 0.013 0.016 0.015 0.015Japan (c) 0.98 0.89 0.67 0.52 0.40 0.44Korea (a) 1.23 1.23 0.97 0.45 0.40 0.46Malaysia (d) 0.41 0.40 0.34 0.18 0.16 0.18New Zealand (e) 0.68 0.65 0.42 0.37 0.33 0.38Pakistan (f) 0.88 0.79 0.52 0.30 0.27 0.31Philippines 0.62 0.57 0.53 0.24 0.22 0.25Russia 0.56 0.50 0.45 0.18 0.16 0.18Singapore (f, g) 0.77 0.86 0.53 0.33 0.30 0.34Tajikistan 0.55 0.45 0.21 0.19 0.22Thailand (f, h) 0.57 0.56 0.51 0.17 0.15 0.17Turkey (i) 1.61 1.60 1.26 0.75 0.65 0.73

PremiumGasoline(Euro/litre)

RegularGasoline(Euro/litre)

Diesel(Euro/litre)

CNG(Euro/m3)

CNG price equivalent perlitre gasoline

CNG price equivalent per

litre diesel

Notes: (a): In Korea and Egypt diesel is onlyallowed in heavy duty engines, buses andtrucks. (b): Iranian fuel energy contents: CNG= 13.9kWH/kg = 10.78kWH/m3; diesel = 10.44 kWH/litre; gasoline =9.79kWH/litre. The normal density of CNG is0.775kg/Nm3. (c): The 5% VAT is not yetincluded. Normally, CNG price depends on theconsumption volume of the customers. (d): In Malaysia, CNG is measured/sold in alitre equivalent gasoline. (e): CNG prices inNew Zealand are between 0.89-0.98 NZ$/kg(0.35-0.38 Euro/m3) (f): In these countries thelocal gauge unit is Euro/kg, the conversionfactor depends on the normal density ofgaseous natural gas in each country. (g): The normal density of 1 Nm3 CNG inSingapore is 0.76 kg (h): Thai's CNG normaldensity is 0.73 kg/Nm3. (i): All taxes included.Fuel energy content in Turkey: CNG = 10.24kWH/Nm3; diesel = 9.95kWH/litre; gasoline =8.93 kWH/litre; LPG = 7.15kWH/litre. LPGprice is 0.75 Euro/litre in November 2005.Normal density of CNG is 0.7172 kg/Nm3.

Assumption made for fuel price calculationCH4 content in natural gas is 97% • CNG energy content is 9.6 kWh/Nm3 • Gasoline energy content is 8.6 kWh/litre Dieselenergy content is 9.85 kWH/litre. These conversion units are used in CNG price equivalent to gasoline and diesel, except theexact units of each countries are notified in the foot notes.

Cities with CNG refuelling stations

Armenia 23 Jan. '05Bangladesh 8 Nov. '05India 8 Oct. '06China 74 Sept. '04Egypt 16 Apr '06Iran 77 Apr. '07Korea 34 May. '05Malaysia 6 Oct. '06Pakistan 50 Oct. '05Philippines 1 Oct.'05Russia 164 Feb. '06Singapore 1 Jul. '05Taiwan 1 Apr'. 05Thailand 3 Oct. '04Turkey 2 Aug. '04United Arab Emirates 2 Oct. '06Total 470

LastUpdate

Numberof citiesCountry

Yea r NGV Refue l l i ngstat ion

Wor ldw ideAsia, AAfr ica,

A m e r i c a ,Europe

2020 50.000.000

A S I A 2020 A 20% petroleum fuel replacement by 2020.

2010

5% of totalvehicle

population inAsia

5% of total Asian vehicle population uses CNG

202010%-20% oftotal vehiclepopulation

Summary of fuel use in vehicle in Asia: t-10% NG, 8% biomethane and 2% Hydrogen

203035% of total

vehiclepopulation

Fuel use in vehicle: 20% Biomethane, 13%NG and 2% Hydrogen (?)

2007 100,0002010 145,000

UnitedEmirates AArab

2007-2008

10,000(2008) 16 (2007)

Beside the existing 1 pilot fuelling station inAbu Dhabi, 16 stations will be tendered inMay-June 2006. UEA is focusing in LDV

market, presently. By 2012, 20% of mostpolluted vehicles (government fleets, taxis,

buses, driver’s training vehicles) will beswitched to NGVs.

I r a n 2010 600,000

Monthly conversion: 12,000 vehicles. Planfor 2010: to produce 550,000 OEM bifuel,

667,000 dedicated OEM CNGVs (LDV market).Anticipated NG bus population by 2010:

20.000 units.

Pak i s tan 2010 >1200000

Expected yearly growth of 100,000 NGVs.Included in the total target, 5,000 NG buses

would be added by 2010. By mid 2007, itisexpected that Pakistan will be #2 NGV

country worldwide after Argentina.

About 250 more stations and some fullservice stations are expected.

Armenia, Russia and Ukraine are targeting tohave 1,000,000 NGVs and 1,000 fuelling

stations by 2020.A rmen i a 2010 88,000 About 10,000 NGVs/year would be added

China 2010 100,000Korea 2010 23,020 410 Still focused at HDV market

Indones ia - 15,250+ 19+

From the noted number (15,250 CNG threewheelers), about 15,000 more units will beadded in the future. An increase of 100 NGVs

(buses)/year is anticipated.M a l a y s i a 2009 57,000 94

Tha i land 2010 500,000 740

Target 2007: 171.000 NGVs and 270stations. Target 2008: 300.000 NGVs and

420 stations. This national target is plannedto be modified soon.

Myanma r 2007 40

Singapore 2008-2009

3,000-4,000 taxis

Aus t r a l i a 2010/2011 >2,300 In New South Wales, 255 Mercedes CNG buses

were ordered for 2006-2011

EAST AASIA

SOUTH EEAST AASIA

THE PPACIFIC

WEST AASIA

SOUTH AASIA

Russ i a - 465

Count ryT a r g e t *

Remarks

RUSSIA AAND CCENTRAL AASIA

Egypt

ANGVA ttarget

Yea r NGV Refue l l i ngstat ion

Count ryT a r g e t *

Remarks

WEST AASIA

SOUTH AASIA

RUSSIA AAND CCENTRAL AASIA

EAST AASIA

SOUTH EEAST AASIA

THE PPACIFIC

NGV and refuelling station targets 2007 - 2020

*Total targeted NGVs and/or natural gas refuelling stations population (rounded up) and/or oilreplacement. Those are calculated based on the current numbers plus the additional targetedpopulation.To see the accomplishment rate of the plan, please compare this list with our statistics at few last pages of this magazine: “NGV and fuelling station growth 2004-2005”and the current existing figures at “NGV statistics”.