Latin America is one of the most important regions, which in the future will have a significant impact on the global energy market.
The compressed natural gas (CNG) market began to develop in Brazil after 1992, with the creation of the gas station network and the adoption of a federal law providing for the use of methane for taxi services and buses. The development of CNG was largely highlighted in the big cities of Rio de Janeiro and São Paulo.
A decisive moment for this branch was in October of 2016, when the Brazilian company Petrobras adopted a market policy of fuel prices, which allowed CNG to compete with gasoline and ethanol.
In 2018 in Brazil the total number of vehicles operating on natural gas constituted 1.86 million (approximately 2% of the fleet of vehicles), and the number of CNG filling stations was 1.8 thousand. Every year more than 100,000 vehicles are converted to methane use.
Sales of compressed natural gas in Brazil reach 6.25 million cubic meters per day. Annual consumption of CNG as fuel for vehicles exceeds 2 billion cubic meters.
Incentive measures include the following:
- Drivers who use CNG as fuel have the advantage of a 60% reduction in vehicle property tax.
- Prohibition of the use of diesel fuel on light and medium passenger vehicles.