Natural gas the fastest growing alternative fuel for motorist

1. Natural gasthe fastest growing alternative fuel for motorist • Mr.NuttachatCharuchinda • EVP. Natural gas for vehicles, • PTTPLC. • 22 May 20090

2. Contents • NGV in Asia Pacific-Fast growing region • Key Drivers & Success Factors • Case Study : The Rapid Growth of NGV in Thailand • Conclusion

3. Contents • NGV in Asia Pacific -Fast growing region • Key Drivers & Success Factors • Case Study : The Rapid Growth of NGV in Thailand • Conclusion

4. Asia Pacific Natural Gas Vehicles Association (ANGVA) • VISION To make natural gas the transportation fuel of choice. ██Asia Pacific Region – 58 Countries (Asia Pacific region comprises of countries in the United Nations Asian Regional Group and Australasia). • MISSION • Assisting members in their NGV business. • Reducing emissions and greenhouse gases. • Optimising the use of indigenous fuel. • Establishing a platform for harmonising standards. • Encourage development of NGV technology and refuelling infrastructure. • Website:www.angva.org • Secretariat Office: Malaysia. • Memberships: 77 members from 20 countries (as of 2nd April ’09).

5. Status of NGV in Asia Pacific • 9.6 millions vehicles and 14,550 stations worldwide with 4.95 millions vehicles and 6,600 stations in Asia Pacific region. • Among the top 10 NGV countries worldwide, 6 are from the Asia Pacific. (Source: Asian NGV Communications & GVR magazines Aug ‘08 & Others)

6. NGV Growth in Asia Pacific • There are 21 countries with NGV programme in Asia Pacific. • The NGV market in Asia Pacific region has grown rapidly in the last 5 years, growing at an average of 40 % per year. (Source: Asian NGV Communications & GVR magazines & Others)

7. Current NGV Markets in Asia Pacific 4.95 Millions Natural Gas Vehicles and 6600 Stations in Asia Pacific (Source: Asian NGV Communications & GVR magazines Feb ‘09 & Others) (Source: Asian NGV Communications & GVR magazines & Others)

8. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how Pakistan NGV Market Human Population (2006) = 159 million. Pakistan Oil Reserves (2006) = 0.3 Billion Barrels. Pakistan Gas Reserves (2006)= 28.15 TCF (~ 5.067 billion barrels equivalent of oil) No. of Vehicles = 2,000,000 No. of Stations = 2,700 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

9. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how Iran NGV Market Human Population (2006) = 62.92 millions. Iran Oil Reserves (2006) = 132.5 Billion Barrels. Iran Gas Reserves (2006)= 971.15 TCF (~ 174.807 billion barrels equivalent of oil) No. of Vehicles = 1,215,593 No. of Stations = 764 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

10. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how India NGV Market Human Population (2006) = 1.001 billions. India Oil Reserves (2006) = 5.8 Billion Barrels. India Gas Reserves (2006)= 38.88 TCF (~ 6.9984 billion barrels equivalent of oil) No. of Vehicles = 821,872 No. of Stations = 402 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

11. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how China NGV Market Human Population (2006) = 1.3 billions. China Oil Reserves (2006) = 18.2 Billion Barrels. China Gas Reserves (2006)= 53.32 TCF (~ 9.5976 billion barrels equivalent of oil) No. of Vehicles = 400,000 No. of Stations = 1260 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

12. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how Japan NGV Market Human Population (2006) = 127.6 millions Japan Oil Reserves (2006) = 0.1 Billion Barrels. Japan Gas Reserves (2006)= 1.4 TCF (~ 0.252 billion barrels equivalent of oil) No. of Vehicles = 36.345 No. of Stations = 327 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

13. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how Korea NGV Market Human Population (2006) = 48.4 millions. Korea Oil Reserves (2006) = 0 Billion Barrels. Korea Gas Reserves (2006)= 0 TCF ( 0 billion barrels equivalent of oil) No. of Vehicles = 17.123 No. of Stations = 121 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

14. Contents • NGV in Asia Pacific -Fast growing region • Key Drivers & Success Factors • Case Study : The Rapid Growth of NGV in Thailand • Conclusion

15. Key Drivers Key Success Factors / Challenges CNG Price (Compared to Gasoline and Diesel) Refuelling Infrastructure (Gas pipelines & Stations) Technology & Know-how (Vehicles, Stations, Engineers, Etc) Energy Economics Environment Government Support & Policies Benefits to Key Stakeholders • Reduce oil imports • Reduce fuels subsidies • Cheaper source of energy • Reduce air pollution cost • Create local employments • Security & Supply • Transport major energy consumer • Oil supply and price volatile • Stable / Indigenous supply of natural gas • Reduce air pollution esp. in cities. • Climate Change • Global Warming • Biomethane – renewable & Sustainable CNG Safety (Standards, Regulations, Enforcement) Awareness & Education (All stakeholders) Key Drivers & Key Success Factors of NGV Markets

16. Contents • NGV in Asia Pacific -Fast growing region • Key Drivers & Success Factors • Case Study : The Rapid Growth of NGV in Thailand • Conclusion 16

17. Government incentives implementedto promote NGV Import Duty • Exempt Import Duty for: • CNG cylinder and conversion kittypeI • Dedicated NGV of new engine • ImportedCKD bus chassiswith engine, CBU chassis with engine • ImportedCKD Passenger Van • Reduce Import Duty forCNG Refueling Facilitiesto 1% Excise Tax • Reduce excise tax for • OEM passenger car and minibusnot over 3000 cc. engine from 30% to 20% • NGV retrofit outside manufacturing plantfrom 30% to 22% but not exceed 1,405 USD 17 Note: 1 USD = 35.58 Baht (as of 20 April,2009)

18. Government incentives implementedto promote NGV Others • Grant 112 Million USD to be Revolving Fund forPassenger Busesthat • Service in BKK and Vicinities area to Convert/Install CNG with very low • 0.5% interest rateannually • Reduce 50% of Road tax for dedicated NGV and 25% for Bi-fuel or DDF 18 Note: 1 USD = 35.58 Baht (as of 20 April,2009)

19. Key Success Factors / Challenges Refuelling Infrastructure CNG Price Benefits to Key Stakeholders Safety Awareness & Education Government Support & Policies Technology & Know-how Thailand NGV Market Human Population (2006) = 64.7 millions. Thailand Oil Reserves (2006) = 0.3 Billion Barrels. Thailand Gas Reserves (2006)= 14.75 TCF (~ 2.655 billion barrels equivalent of oil) No. of Vehicles = 141,335 No. of Stations = 310 19 *Source: Energy Information Administration (EIA), USA, country analysis, Dec 2006

20. Diesel Substitution base • The major NGV population ratio is light-duty vehicles, but consumption is based on heavy duty. • Heavy-duty vehicles takes long time to refuel, which makes other NGV vehicles inconvenient. • NGV station expansion needed along highways. Personnel Cars 9 % Taxies/Tuk Tuk 32 % Personnel Cars 53 % Taxies/TukTuk 33% Buses 16 % Trucks/Truck Tractors 11 % Trucks/Truck Tractors 42 % Buses 4 % NGV Population Ratio NGV Consumption Ratio

21. The lowering Oil price-The weakening driving force • Financial support for • LPG taxi • Baht 45,000.- each • Bangkok Clear sky • with NGV • (Passenger bus) 134 ~3,000 (Ave. in Jan) • Financial support • for LPG taxi • Baht 45,000.- each • Revolving fund • (Soft Loan) 7,000 M • Financial support for light-duty vehicle • Baht 10,000.- each • Financial support for diesel heavy-duty vehicle Baht 400,000.- each Dubai • Mandatory new taxi • to use NGV • Exempted • import duty for • NGV passenger car • Exempted • import duty for • passenger van • CKD 0% CBU 22% 56% • Exempted • import duty • for CNG engine • Reduced excise tax • for NGV retrofit outside • manu. plant to 22% - Reduced excise tax for NGV OEM light-duty vehicle from 30% to20% 85 - Exempted import duty for CNG cylinder+ conversion kit 172% 66% 1,145 51 NGV Cars - 25,371 Stations - 102 NGV Volume 194% NGV Cars - 10,285 Stations - 43 • Encouraged taxi to use NGV (50,000 taxi by 2008) • Revolving fund (Phase 2) 2 M 390 NGV Cars - 3,998 Stations - 28 NGV Cars - 55,868 Stations - 166 180 140 41 NGV Tech. acknowledged 2009 2004 2006 2005 2008 2007

22. Contents • NGV in Asia Pacific -Fast growing region • Key Drivers & Success Factors • Case Study : The Rapid Growth of NGV in Thailand • Conclusion

23. Conclusion • Natural gas for vehicles (NGV) will continue to grow in the Asia Pacific region due to present of strong key drivers of Energy, Economics and Environment. However, success of NGV programs depend on various key factors (challenges) that very among the countries. • The lowering Oil price will have a great impact on all alternatives energy being implemented. • NGV may be the immediate solution for the countries where natural gas is indigenous available but in the longer term each countries will look to more reliable renewable/sustainable alternatives .

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