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Pakistan CNG Market. Prepared by MISL June 2008. Pakistan CNG Industry Growth. Tremendous Growth in last 8 years
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Pakistan CNG Market Prepared by MISL June 2008
Pakistan CNG Industry Growth • Tremendous Growth in last 8 years • Pakistan among top three CNG users in world (other two are Argentina & Brazil). No. of Stations in 1999 increased from 50 to 1089 (cumulative investment exceeding US$ 600 Million) Pakistan CNG Market - (C) 2008 MISL
Pakistan CNG Industry Growth (cont) • 2,165 stations in pipeline (US$ 450 Million investment expected in next two years) • Industry growth rate consistent around 50% per annum • More than 1 Million vehicles on CNG in Pakistan Pakistan CNG Market - (C) 2008 MISL
Success Factors • Price differential around 50% vs petrol • Direct Government Support • Custom Duty Incentives etc. • Network of Refueling Stations • High Quality Vehicles, Kits • Private Sector Participation Pakistan CNG Market - (C) 2008 MISL
Success Factors • Growth expected to continue due to govt Support, Incentives and Price differential vis-à-vis petrol • 50% p. a. growth rate to continue for next 2 years Auto Manufacturers are introducing OEM CNG vehicles. Approx. 50% are produced with factory fitted CNG Kits Pakistan CNG Market - (C) 2008 MISL
Success Factors (continued) • Deteriorating environmental conditions in big cities has led government plan reduction of diesel usage in urban areas. • Legislation in progress to cut down on diesel and introduce CNG fleets / buses. Major City (Karachi, Lahore, Rawalpindi) Governments have announced plans to introduce CNG buses in next 1- 2 years Pakistan CNG Market - (C) 2008 MISL
CNG Standards • CNG Rules 1992 is the governing rule for installation / selection of equipment. It is based on NZ 5425. • DOT 3AA and ASME Section VIII Vessels are allowed for CNG cylinders / vessels • NZ 5454 is followed for Vehicle CNG Cylinders • For general guidance, NFPA 54 and 58 are also followed. • Other countries (Brazil, Argentina, Italy and Australia) have their own standards / specifications for CNG • ISO standards are being formulated for NGV • All equipment / installations are verified / inspected by Government appointed inspectors prior to operation. • Annual inspection / clearance is also required Pakistan CNG Market - (C) 2008 MISL
Compressors Commonly Used • Geo – Korean - an air cooled Compressor. Hot weather condition is not suitable for such type of compressor, hence it has been problematic. • Hamworthy UK - Hamworthy is a UK made compressor providing prompt delivery 30 days to 45 days in off season. • Compair UK - low capacity Compressor max 320 m3 per hr low range • SAFE Italian Pakistan CNG Market - (C) 2008 MISL
Dispensers Commonly Used • FTI Canada - good performance reviews without complaint from station operators, Price Pak Rupee 2.0 million to 2.2 million (US$1 = Pak Rs. 67) • Tefla Pakistan - Body made in Pakistan and main parts are import from USA. Dispenser with Micro Motion, good support 1 year warranty within 24 hour support and service. 2 year record maintenance facility of cars filled money charged etc. 3 password level. Price in Pak Rupee 1.25 Million on cash and Pak Rupee 1.3 Million with leasing facility. • Compac USA - Not as much data record facility as compared with Tefla Pakistani Compressor. Price Pak Rupee 1.25 Million. Pakistan CNG Market - (C) 2008 MISL