Tehran Hosts ANGVA 2017
South Pars Output to Help Iran Boost CNG Use
From October 31 to November 2, the Iranian capital hosted the first biennial conference and exhibition of the Asia Pacific Natural Gas Vehicles Association (ANGVA).
Like the previous ones, ANGVA 2017 was also aimed at promoting the use of gas-powered engines instead of those fueled by gasoil and gasoline in order to contribute to cleaner air.
Iran’s minister of petroleum said in his speech to the opening of the conference that development of more phases of the giant offshore South Pars gas field would help the country further develop its compressed natural gas (CNG) industry.
Bijan Zangeneh said since 2013, despite international sanctions, Iran has managed to complete its South Pars gas field phases and bring its gas production capacity of 850 mcm/d.
“This increase will continue and we will soon cross 1,000 mcm/d,” said the Iranian minister.
He said that the conference would also help Iranian CNG industrialists develop cooperation with international companies.
Zangeneh added the ANGVA 2017 conference and the exhibition provide a good opportunity for Iran to showcase its achievements in the compressed natural gas industry.
Zangeneh said the necessity of energy management in recent years has forced many countries in the world to consider using alternative fuels, particularly in their transportation sector.
He said Iran’s Ministry of Petroleum in 2000 adopted policies to include CNG in its fuel mix.
The Iranian minister said nearly 24.5 million gas vehicles are operating in the world, the bulk of which belongs to Asia.
Zangeneh said from 1994 to 2016, the CNG industry has seen a significant growth in the Asia Pacific region
With its 34 tcm gas reserves, he said, Iran ranked the first in terms of gas reserves.
Zangeneh said the growth of natural gas use has exceeded the use of liquid fuels in recent years.
Natural gas has become the main source of energy for all sectors of Iran’s economy.
The Iranian minister said plans were under way for the country’s gas exports to increase to 40 bcm a year.
The minister said Iran’s abundant gas reserves had facilitated plans for replacing fuels with CNG.
Zangeneh said the use of CNG and other low-carbon fuels were among missions assigned to the Iranian Ministry of Petroleum under the country’s Energy Vision,
MOP Supports ANGVA
Iran’s deputy minister of petroleum for international affairs and commerce Amir-Hossein Zamani-Nia said at a brief speech at the opening that he Ministry of Petroleum supports conferences like ANGVA.
“The Ministry of Petroleum supports such conferences. The long-term strategy is to promote natural gas vehicles,” Zamani-Nia said.
He, however, said there were some challenges which needed to be removed.
Zamani-Nia said the ANGVA policymaking council in cooperation with Ministry of Petroleum, Ministry of Industry, Mine and Trade, Ministry of Foreign Affairs, National Iranian Oil Products Distribution Company (NIODPC), National Iranian Gas Company (NIGC), CNG associations and the private sector would prepare the ground for a better future.
“We have great potential for CNG industry and we are making efforts for progress,” he said.
CNG Saves Iran $25bn
The head of National Iranian Oil Products Distribution Company (NIOPDC) said the government has so far invested $3 billion in developing compressed natural gas industry in the country.
Mansour Riahi said more than $25 billion had been saved due to the use of CNG in the country.
He said that 58 bcm CNG had been used since the CNG use project was launched in 2000.
Riahi said 2,400 CNG filling stations had been built in the country, adding that transfer of technology and indigenization of CNG knowhow and boosting manpower for CNG use in the country were among measures taken with regard to the CNG use in Iran.
He said the achievements of CNG use in Iran included diversification of the fuel mix through defining alternative fuels and changing paradigm of fuel use in the society, boosting energy security, standardization, and periodical inspection of CNG stations, 36,000 direct and indirect jobs, and establishment of domestic manufacturing committee.
Riahi said financial support for designing and producing gas-powered engines, dual-fuel car production, and supporting private sector are among other objectives realized so far.
He also pointed to restrictions and missing links in the CNG industry, saying the absence of after-sales services and the lack of inspection of cars, absence of R&D in the supply and distribution chain, paying attention to development of heavy gas vehicles, imbalanced growth of CNG share in the fuel mix.
Riahi referred to decisions which needed to be taken for the development of CNG industry, saying due to the attractiveness and potential of the country and the CNG industry’s strategic position, the CNG business development should be pursued.
The CNG industry is now mature, he said, adding that it should not hit the point of no return.
He said that due to an increase in the share of CNG in the fuel mix from 23% to 35%, establishing an Asia-Pacific CNG hub was to be pursued seriously.
Iran Enjoys Good CNG Standing
The chairman of ANGVA 2017 said valuable measures have been undertaken and proper infrastructure has been provided for using CNG as fuel in Iran.
“In order to achieve gas-fueled vehicles, in cooperation with universities and foreign consultants, we have managed to design such vehicles and mass produce them in line with commercialization,” Mostafa Mir-Salim said.
He added that the plans have been delayed; however, saying the delay was ignorable.
Mir-Salim, member of the Expediency Council, said Iranian automakers were initially reluctant to manufacture such vehicles because of its weak market.
“A problem was that we were worried for distribution of natural gas. But today when we have reached 2,400 CNG filing stations it becomes clear that many activities have been done by the public and the private sector” he said.
On the issue of manufacturing equipment, over recent years, “we have used domestic capabilities to reach a good status on the global scale”, he added.
However, he added there is some equipment whose manufacturing is not possible in the country.
“We have to make efforts so that we would be able to indigenize them. The infrastructure for this purpose is ready in the country and we need the support of government, particularly, Ministry of Petroleum and Ministry of Industry, Mine and Trade,” said Mir-Salim.
“Over these years, we have had cooperation with many foreign companies within the framework of agreements, most of which have turned into reality,” he said.
“Now, we have reached the stage to be on equal footing with foreign parties in terms of CNG,” he added.
Mir-Salim said “God-given reserves like natural gas are important”, adding that using these resources would need knowhow and technology.
“We have to make efforts for this purpose and such conferences would be instrumental,” he added.
Mir-Salim said a country like Iran where natural resources are abundant, using green fuel is a must.
“Since 1982, CNG industry work has started and has taken big strides. Until 2010, there were 450,000 gas vehicles in the country and we made good success.”
He said due to the slow and downward trend, annual gas vehicle production has reached 150,000.
“We have to find the reason behind this slowdown because one of options for fighting air pollution is using CNG provided that the vehicles be gas-fuelled,” he said.
“Given the current 20 mcm/d of CNG consumption, we can build bigger capacities and we need to revise our fuel mix,” he said.
“As far as safety and environment are concerned, we have to be more advanced and reach international car production standards,” said Mir-Salim.
CNG Transport Share to Reach 35%
The vice-chairman of ANGVA said 90% of CNG equipment in Iran is domestically manufactured and the natural gas share in the transportation sector needs to increase.
ANGVA vice-chairman Amir Khaki said the increase in the share of natural gas and transportation sector and motivating gas vehicles market were the main objectives of the conference in Tehran.
Transforming vehicles manufactured at plants, using gas engines and increasing their mileage are among goals of the Tehran gathering.
Khaki referred to hybrid CNG cars, saying one of the important objectives is to focus on producing these cars instead of hybrid-gasoline cars.
Renovation of public transportation sector, development of gas distribution to villages, establishing export network in ANGVA countries and creating a decision-making center between gas stations and cars are among the goals of the conference.
Khaki said Iran makes up 17% of the world’s gas vehicles fleet, adding that 8% of CNG stations are located in Iran.
Since the start of CNG project in Iran, 58 bcm compressed natural gas (CNG) has been consumed in the country.
CNG is the most expensive form of gas, he added.
Khaki said CNG is four times more costly than the gas consumed at households and factories, adding that it shows the significance of this gas.
Khaki said the government had so far provided the required infrastructure for CNG industry, adding the private sector is currently obligated to take action to bring about an increase in demand for CNG.
Khaki said familiarity with cutting edge technologies was an ANGVA approach, adding that it would be appropriate for foreign companies to get familiar with the potential of Iran and ANGVA members.