Our reliance on imported CNG cylinders may soon be coming to an end, with the Egyptian arm of India’s Everest Kanto Cylinder working on establishing the country — and also continent’s — first factory producing compressed natural gas (CNG) cylinders, according to a statement (pdf) from financial backer National Bank of Egypt. The factory planned for the Suez Canal Economic Zone will produce a range of cylinders, including those for vehicles, medical uses, and various industrial and energy uses.

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The project is being backed by a EGP 954 mn loan from the National Bank of Egypt, who say that the project will help support nation-wide localization efforts, cut down imports, and bolster energy security

The facility should also end up being a big help to the government’s efforts to convert cars to run on natural gas, especially with a recent pledge from the Finance Ministry that it will soon cover 70% of the conversion cost, which current stands at roughly EGP 17-17.5k using an imported cylinder. The government has given itself a target of converting 1.5 mn cars to run on natural gas.

Production is expected to kick off at the end of the year, with 60% of production going towards meeting local demand and 40% being earmarked for export.

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