Market Trends of MEA Compressed Natural Gas Dispenser Industry
Growing Demand of CNG vehicles Expected to Drive the Market
- The Middle East and Africa region is envisaging a steady growth in the conversion rate of conventional engines into CNG vehicles. It is due to the growing awareness of CNG vehicles' economic and environmental benefits. The region is blessed with high availability of natural gas due to the high growth rate in huge natural gas reserves.
- The countries like UAE, Iran, Turkey, and Egypt are glowing in the CNG vehicles market. Egypt's natural gas production witnessed consistent growth in the last decade, reaching around 67.8 billion cubic meters of natural gas production in the year 2021. Apart from high natural gas availability, the other propelling factor for the CNG vehicles market in the country is the government's initiatives to see consecutive growth in the market.
- For example, in December 2021, the Egyptian Ministry of Petroleum and Mineral Resources invested around EUR 11.3 million (USD 11.8 million) to finance the national program to convert cars to CNG vehicles. The required equipment will be installed in new CNG stations throughout Egypt as part of the program. GASTEC will install 271 dispensers and 100 compressor packages, while NGVC will install 229 dispensers and 100 compressor packages.
- Furthermore, in other countries, the high CNG conversion rate is positively influencing the CNG dispenser market. For example, in UAE, in March 2022, the Emirates Transport Company reported converting around 900 CNG vehicles in 2021. The total number of CNG vehicles in the country reached 11,000 vehicles since the conversion started in 2010.
- Such developments are expected to propel the CNG dispensers market in the region in the coming years.
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Iran to Witness Significant Growth
- Iran made remarkable progress in the development of CNG-based transportation. According to the International Association of Natural Gas Vehicles (IANGV), Iran ranked third for the number of CNG vehicles in the world after Pakistan and Argentina in 2022. It is due to the high availability of natural gas and initiatives taken by automotive companies and government authorities.
- Natural gas production in the country rose to 256.7 billion cubic meters in 2021 after witnessing consistent growth. The CNG vehicles are expected to increase the unfolding scene, too. It is due to the efforts made by the Iranian government to boost CNG vehicle production.
- For example, in December 2022, the Ministry of Petroleum instructed the National Iranian Oil Products Distribution Company (NIOPDC) launched a plan to manufacture 45000 CNG vehicles in the country. The authority signed an agreement with Iran Khodro, one of the country's leading automakers. They intend to convert all gasoline-powered public vehicles, taxis, vans, pickup trucks, and passenger cars to CNG vehicles.
- The National Iranian Oil Refining and Distribution Company (NIORDC) announced that around 165,000 public transport vehicles had been converted into duel-fuel cars (gasoline or CNG). All this was made possible with the help of the CNG programs implemented so far.
- Such developments are expected to make Iran include a significant share in the CNG dispensers market shortly.
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