Monthly consumption of CNG falls 40% in Iran

June 9, 2020 - 15:5

TEHRAN- Consumption of compressed natural gas (CNG) in Iran dropped 40 percent during the first month of the current Iranian calendar year (March 20-April 19) from its preceding month, IRNA reported.

According to Mohammad-Hossein Bagheri, the acting operator of National Iranian Oil Refining and Distribution Company (NIORDC)’s CNG projects, the consumption of the mentioned fuel declined due to the travel restrictions following the coronavirus outbreak.

“With the reduction of restrictions and the reopening of most businesses, we are expecting an increase in CNG consumption and a return to pre-corona levels,” Bagheri told IRNA.

Noting that CNG in the country had increased to nearly 24 million cubic meters (mcm) back in February following the implementation of the gasoline rationing scheme, the official said following the coronavirus outbreak and implementation of restrictions on travel in March, average CNG consumption fell to 20.8 mcm per day.

According to the official, CNG consumption increased again in the second month of Ordibehesht (April 20-May 19) after the travel bans were lifted.

Iran’s CNG consumption stood at 19 mcm per day before the implementation of the fuel rationing scheme.

In mid-November 2019, the Iranian government started rationing of subsidized gasoline and increased fuel prices as it plans to use the revenue for supporting underprivileged families.

There are currently 2,400 CNG stations across Iran that supply 22 percent of the country’s fuel basket.

Iranian Oil Ministry considers CNG as the national fuel, therefore, in order to increase the share of this fuel in the country's energy basket, it is planned to turn 1.46 million public vehicles into dual-fuel cars, which can increase CNG consumption by 10 mcm per day.

Back in May, NIOPDC announced that the necessary infrastructure is prepared for developing the CNG sector to be able to distribute 30 mcm per day of gas across the country.

“The Oil Ministry and National Iranian Oil Products Distribution Company have created the infrastructure for the development of the CNG industry, only in the conversion sector development measures should be taken,” an official with the company told Shana.

Hamid Qasemi Dahcheshmeh noted that Oil Ministry has been supportive of the industry since very beginning through supporting the production of CNG-powered engines and converting automobile plants to produce dual-fuel cars in this regard.

"In the previous years, 920,000 vehicles were converted through the Oil Ministry’s direct contracts,” he added.

EF/MA

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