According to the annual report by British Petroleum – Statistical Review of World Energy 2019 – Iran has 32 trln m3 of natural gas stored. More than 4.5 million vehicles use compressed natural gas as fuel. Iran Petro Energy Information Network reports that in 2019 Iran reached 2,500 compressed natural gas stations across the country.
According to NIORDC data in 2020, the daily consumption of CNG reached 24 mln m3, but this figure is more than 8 billion m3 per year. This factor is linked to the increase in the price of gasoline set by the Government of Iran.
Gasification of vehicles in the country was started in 2001 due to major out-of-tax on gasoline imports, external sanctions, and worsening environmental situation in large cities.
The Government has adopted measures to stimulate transport on the basis of CNG, which focuses on:
- stimulating the production of compressed natural gas vehicles by Iranian companies
- subsidies for the conversion of public transport and taxi service on the basis of GNC
- financing in the construction of infrastructure
- stimulating the location of the production of compressor equipment
Iran’s Ministry of Oil considers CNG to be the national fuel, so to increase the share of this fuel in the energy sector, it is planned to convert 1.46 million public transport into double-fuel vehicles, which could increase the consumption of CNG up to 10 million m3 per day.