Official says expanding use of CNG in Iran could save 20m liters of gasoline yearly
Date
12/30/2024 8:23:45 AM
(MENAFN) Ali Mahmoudian, head of the National Association of Alternative Fuels and Related Services, highlighted that expanding the use of compressed natural gas (CNG) in Iran could save 20 million liters of gasoline annually within three years. Speaking at the national conference "Green Prosperity: Energy Innovations and Clean Transportation" on Sunday, Mahmoudian stressed that increasing CNG use would reduce the country’s reliance on gasoline imports and help address ongoing energy challenges.
Currently, CNG accounts for only 17 percent of Iran's fuel mix, which Mahmoudian described as insufficient given the country’s natural gas reserves and its infrastructure's ability to supply 50 million cubic meters of natural gas daily. Despite having 2,500 fueling stations connected to the national gas network, an achievement unmatched globally, the expansion of CNG use has been hindered by unresolved issues and barriers, including regulatory and financial constraints.
Mahmoudian reflected on the role CNG played in stabilizing fuel supplies in the 2000s when gasoline demand surged. However, today the sector faces significant challenges, such as restrictive tax policies, business limitations, and unfulfilled government commitments. He warned that if these issues remain unaddressed, Iran could face a severe fuel crisis, with a projected daily gasoline shortfall of 150 million liters by 2031.
The official also criticized the country’s energy governance, stating that while Iran is rich in natural resources, it underutilizes its energy reserves. He also expressed concern over the proposed 2025 budget, which allocates over 70 percent of funds to current expenditures rather than investing in infrastructure, education, or research. Mahmoudian urged policymakers to prioritize CNG development, pointing out its potential to reduce gasoline imports while providing long-term economic and environmental benefits.
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