Small, and Medium Enterprises Development Agency (MSMEDA) signed two agreements
worth EGP 20 million, with Car-Gas and Gastec to convert 4,000 diesel-powered vehicles
to CNG. The contracts come in the framework of the Towards Natural Gas initiative
launched by MSMEDA and the Ministry of Petroleum, reported news agency, MENAFN.
which plans to convert 10,000 cars in total, aims to contribute to the national
project for the conversion of vehicles to operate on dual fuel, enhance
cooperation in the strategic projects with social, economic and environmental
dimensions, implement the state’s strategy to rationalize energy consumption,
and disclaims reliance on liquid fuel.
In the past
years, Gastec and Car-Gas have financed the conversion of vehicles to run on
NMC in cooperation with MSMEDA through providing soft loans to car owners at
low interest and extended repayment periods. The cars are being converted in
the two companies’ branches and stations nationwide. So far, MSMEDA has funded
the conversion of 30,500 units, including 25,500 transport vehicles and 5,000
passenger cars, with a total of EGP 152 million.
between the two parties will be effective in facilitating the conversion
process, reducing the cost of fuel consumption and the expenses of taxis and
transport, as well as in spreading the use of natural gas for cars as more
economical, safer, and cleaner source of energy.