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Thursday, 18 February 2021

Fill ‘er up

Are natgas filling station operators getting a package of incentives? Builders and operators of the natural gas filling stations that will be part of our transition to a natgas-fuelled economy may see a package of incentives courtesy of the CBE, according to statements from an executive at Natural Gas Vehicles Company (Car Gas) to the local press. Car Gas, which says it will build 170 NG filling stations this year at a cost of about EGP 2.5 bn, expects financial aid from an as-yet announced program that will be launched by the central bank, the Oil Ministry and the MSME Development Agency, says Car Gas chief marketing officer Ahmed Hafez. We’re waiting for callbacks from all three agencies and hope to have more for you on Sunday.

This isn’t the first time we’ve heard of a potential program for operators. CBE Governor Tarek Amer said at the Go Green Exhibit last month that the CBE plans to make some EGP 5.3 bn in subsidized funds available to banks to back the construction of as many as 287 new natural gas filling stations.

The only program announced so far will help car owners transition to natgas engines. Under the program, the CBE will make EGP 15 bn available for banks to loan out to car owners wanting to swap cars more than 20-years old for new, dual-fuel models (background here and here). Borrowers would pay a fixed 3% rate with repayment periods of 7-10 years. The CBE initiative comes in addition to the EGP 1.2 bn set aside by the MSME Development Agency last year.

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