João Das Neves General Director Autogás SA Mozambique
INDEX 1. Autogás History 2. Natural Gas as an alternative fuel 3. Mozambique transport fleet 4. Impact of the Natural Gas on transports 5. Challenges to implement the project 6. Conclusions
Autogás history Autogas started its operations in 2008 The company is a Public and Private sector initiative with 3 shareholders: PETROMOC, INDICO ENERGIA, IGEPE. Currently Autogas operates 2 Natural Gas filling stations in Maputo and Matola cities. Three other new filling stations are being installed now in partnership with PETROMOC.
Autogás history The project employs directly currently 24 workers, and about 120 indirect, all Mozambicans, including the engineers and management. The conversion of vehicles is done by 4 independent conversion centers in Maputo which have been trained and promoted by Autogas (Sound City + Auto Enpex + Auto Sococ + BlueR) This pioneering project proved to be successful and Autogas is now looking into expanding its activities gradually.
Natural Gas as an alternative fuel Mozambique is becoming a large explorer of Natural Gas. Currently Natural Gas is being explored by SASOL in Temane and Pande and soon the other operators will have the Gas available from the North of Mozambique. The pipeline brings the Gas from Temane and Pande till Matola = It is readly available. Natural Gas (Methane) has a complete Combustion = Less emissions to the atmosphere = Better environment. To allow consumers a quick comparison in fuel prices, the term Equivalent Litre (Leq) was choosen.
Natural Gas as an alternative fuel CH4 2O 2 CO 2 2H 2 O (Natural Gas) Oxygen Carbon Dioxide Water ENERGY Methane Natural Gas burns more completelly when compared with conventional fuels C4H10 13 x 2O 2 4CO 2 5H 2 O ENERGY Petrol Oxygen Carbon Dioxide Water
Natural Gas vehicles in the world Ranking Country Estimated Fleet Filling Stations Ranking Country Estimated Fleet Filling Stations 1 Iran 2,859,386 1,574 45 Chile 2,247 15 2 Pakistan 2,850,500 3,285 46 Moldova 2,200 14 3 Argentina 1,900,000 1,878 47 Poland 2,100 32 4 Brazil 1,694,278 1,725 48 United Arab Emirates 1,751 2 5 India 1,100,000 571 49 Finland 1,100 13 6 China 1,000,000 1,350 50 Slovakia 823 7 7 Italy 779,090 790 51 Greece 702 2 8 Ukraine 390,000 285 52 Portugal 586 5 9 Colombia 348,747 614 53 Mozambique 519 2 10 Thailand 300,581 426 54 Norway 394 10 11 Uzbekistan 300,000 133 55 Luxembourg 369 7 12 Armenia 244,000 297 56 Nigeria 345 3
MT/L Retail Fuel prices in Maputo
Current fleet and fuel analyses 500 Thousand vehicles is the current country fleet and this number is growing rapidly. About 67% of this vehicles are in the great Maputo. Mozambique annual fuel consumption: 700 Million Liters Diesel + 230 Million liters Petrol Diesel and Petrol used in Mozambique are imported. CNG price is only MT 17.75 vs MT 47.52/L Petrol (63% cheaper)
Fleet and fuel consumptions forecast
Impact of Natural Gas in the transportation in Mozambique Autogas aims at 10% of the total fleet to run on natural gas, equivalent to aprox. 80 thousand vehicles in 2020 and an annual fuel consumption of Aprox 400 Million Equivalent liters. Autogas is currently undertaking a study about how to use the natural gas in railway trains, which may add tremendous impact on the CNG consumption if successful. The biggest direct impact of the CNG is the reduction of the operational cost and the accessibility to the communities to cleaner and more affordable ways of transport.
Impact of Natural Gas in the transportation in Mozambique The reduction of importation of fuels replaced by CNG = Less hard currency expenditure for the country (Better Macro-economy). Reduction of the subsidies that the Government pays to keep imported petrol and diesel prices affordable. Aprox US$ 150 Million per year Greater control of the transportations costs = mitigate the slippery effects of the international crude prices.
4. Impact of Natural Gas in the transportation in Mozambique -25% In a fleet of vehicles, if the fuel represents 37% of the globalcosts, Natural Gas can reduce the global transport cost by aprox. 25%
Challenges to implement this project Significant initial investment required to provide the convenience and comfort of a well spread distribution network in the entire country. Technology transfer to provide technical assistance to the fleet of NGV vehicles and the distribution network by Mozambicans. Government policies and laws that clearly and practically drives the country towards the use of Natural Gas in the transportation. Geographic incentive to allow filling station in areas of the country were the return on the investment is long term. Importation of new vehicles readly produced ex-factory to run on CNG.
Conclusions Natural gas is already a feasible and cheaper fuel alternative in Mozambique providing the communities affordable transports. It is important to expand to national level = better for everyone. The economy benefits from reduction of fuel importation costs (currently already aprox US$ 2.5 Millions per year) In 2020 aprox: US$ 150 Millions per year. Significant less CO 2 emissions = healthier population. Great investment is required from both Government and private sector at structural and functional levels to speed up the expansion to national level.
Contacts For further information, please kindly contact: João Das Neves neves@autogas.co.mz Autogás SA Phone: +258 84 614 0011 Fax: +258 21 020 010