Egypt eyes CNG Cylinders’ local production + export with new facility

Egypt eyes CNG Cylinders’ local production and export with new facility: The Egyptian arm of India’s Everest Kanto Cylinder is working on establishing the country’s and Africa’s first factory producing compressed natural gas (CNG) cylinders, according to a statement (pdf) from financial backer National Bank of Egypt (NBE). NBE is backing the full cost of the project via an EGP 954 mn loan.

What we know: Production at the facility is set to kick off at the end of the year, with 40% of the facility’s products earmarked for exports and the remaining 60% pegged to meet local market demand, according to the statement. The factory is planned to be located in the Suez Canal Economic Zone and will produce a range of cylinders, including those for vehicles, medical uses, and various industrial and energy uses.

The rationale: The project will help support nationwide localization efforts, cut down on imports, and bolster energy security. It is also expected to support the government’s efforts to convert 1.5 mn 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 currently stands at roughly EGP 17-17.5k using an imported cylinder.