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MSMEDA signs 2 contracts of EGP 20m to convert 4,000 cars from operating on diesel fuel to CNG Agency injected EGP 152m in past years to convert 30,500 cars, including 25,500 transport cars, 5,000 passenger cars
The Micro, Small, and Medium Enterprises Development Agency (MSMEDA) signed two contracts worth EGP 20m with Car-Gas and Gastec to convert 4,000 cars from operating on diesel fuel to compressed natural gas (CNG). The contracts come in the framework of the Towards Natural Gas initiative launched by MSMEDA and the ministry of petroleum. The initiative aims to contribute to the national project for the conversion of cars to operate on dual fuel, enhance cooperation in strategic projects with social, economic, and environmental dimensions, implement the state's strategy to rationalise energy consumption, and to decline reliance on liquid fuel. In the past years, Gastec and Car-Gas have financed the conversion of cars to operate on CNG 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. The initiative aims to convert 10,000 cars to operate on CNG, as well as open 50 outlets for oil and lubricants' trade with funding of EGP 100m, which would also create many jobs. In previous years, MSMEDA funded the conversion of 30,500 cars, including 25,500 transport cars and 5,000 passenger cars, with a total of EGP 152m. The cooperation 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, according to a statement issued by MSMEDA.
