Iran signs agreement to equip 400 CNG fuel stations

Iran has inked a tripartite memorandum of understanding (MoU) to establish and equip 400 Compressed Natural Gas (CNG) fuelling stations, Shana reported on September 11.

The agreement, signed between the National Refining & Distribution Company of Iran, Khatam al-Anbiya Construction Headquarters (the Islamic Revolutionary Guards Corps (IRGC) construction arm), and the Iran Aircraft Manufacturing Industrial Company (HESA), aims to bolster the nation's CNG infrastructure.

The collaboration is a joint venture between the Ministry of Oil and the Ministry of Defence and Armed Forces Logistics.

The deal seeks to expand the CNG industry's infrastructure, emphasising the maximisation of the use of the gas system over that of petrol filling stations.

The goal is to increase the share of clean CNG fuel in vehicles' fuel mix.

The initiative will be spearheaded by Jalil Salari, CEO of the National Refining & Distribution Company, Nasrollah Nazarian, head of Khatam al-Anbiya Construction Headquarters, and Afshin Khajeh Fard, chairman of HESA.

The signing ceremony took place at the HESA factory in Isfahan.

These CNG stations will have modern amenities such as metering systems, dryers, compressors, storage tanks, distributors, and control panels.

The expansion of the CNG industry has been a priority for successive Iranian governments and continues to be on the agenda for the 13th administration under President Ebrahim Raisi.

The refining and distribution Deputy has taken the first step in this direction by signing a contract to produce 45,000 dual-fuel vehicles in November 2021 in collaboration with the National Distribution Company and the Iran Khodro Industrial Group.

Based on the $20mn (at the free market exchange rate) collaboration agreement, Iran Khodro will manufacture 45,000 gas-based vehicles, of which 40,000 will be taxis and 5,000 will be vans.