Challenges to Manufacturers and Suppliers of NGV Equipment and

Products

by

Lee Giok SengExecutive Director

NGV China 20147th – 9th May 2014

New China International Exhibition Centre, Beijing, China

Asia Pacific Natural Gas Vehicles Association (ANGVA)

Trade association for NGV industry.

Vision: “To lead and promote Asia Pacific NGV industry towards sustainable growth”.

Promote natural gas as an environmentally friendly, economically viable, and energy security fuel for the Transport Sector.

Provide platforms for development and promotion of NGV markets. Website: www.angva.org

Natural Gas Vehicles

Natural gas was first used as a transportation fuel in Italy in the 1930s after World War II. Around 80 years ago.

Worldwide there are around 18.1 million natural gas vehicles and 24,400 refuelling stations in 83 countries.

Most of the natural gas vehicles are located in the Asia Pacific region.

Examples of NGV Refuelling Stations

Examples of CNG Trailers

Examples of LNG \ LCNG Refuelling Stations

Estimated Number of NGV Vehicles in Asia Pacific and Top Ten NGV Countries Worldwide (Jan ‘14)

IR o

f Ira

n

Pakis

tan

Argen

tina

Brazi

l

China

India

Italy

Colom

bia

Uzbek

ista

n

Thaila

nd0

500000

1000000

1500000

2000000

2500000

3000000

3500000

40000003500000

2790000

2288161

1754000

15770001500000

823000

456900

450000441185

Nu

mb

er

of

Ve

hic

les

Top Ten Natural Gas Vehicles Countries

No.

CountryTotal

Vehicles

No. of Station

s

Remarks

1 IR of Iran 3500000 2074 Sept ‘13

2 Pakistan 2790000 2997 Mar ‘13

3 China 1577000 2800 May ‘13

4 India 1500000 724 Feb ‘13

5 Uzbekistan 450000 213 June ‘13

6 Thailand 441185 491 Jan ‘14

7 Bangladesh 220000 585 Apr ‘13

8 Malaysia 56000 176 Jan ‘14

9 Japan 42590 314 Mar ‘13

10 Korea 35872 190 Jan ‘12

11 Myanmar 30005 51 May ‘12

12 Tajikistan 10600 53 Dec ’07

13 Kyrgyzstan 6000 6 Dec ’07

14 Indonesia 6366 14 Jan ‘14

15 Singapore 5300 3 Dec ‘11

16 Australia 3500 51 Oct ‘11

17 United Arab Emirates

2800 17 Jan ‘14

18 Vietnam 462 7 July ‘12

19 New Zealand 201 14 Dec ‘10

20 Philippines 61 2 Oct ‘11

21 Kazakhstan 3200 10 Dec ‘11

10681952 10869(Source: Asian NGV Communications & GVR magazines & Others)

Natural Gas Vehicles

NGV Stations

World ~18.1 million

~24,400

Asia Pacific

~10.7 million

~10,870

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

0

1000

2000

3000NGV Stations

No

. of

Sta

tio

ns

(Source: Asian NGV Communications & GVR magazines & Others)

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500000

1000000

1500000

2000000

2500000

3000000

3500000

4000000

Natural Gas Vehicles

Pakistan

Iran

India

China

Bangladesh

Uzbekistan

Thailand

Japan

Malaysia

Republic of Korea

Myanmar

Tajikistan

Kyrgyztan

Australia

Indonesia

Singapore

United Arab Emirates

New Zealand

Philippines

Vietnam

Kazakhstan

No

. o

f V

ehic

les

Status of NGV in Asia Pacific Region - 21 Countries at Various Stages of Development and Growth (Jan ‘14)

IEA’s Golden Age of Gas Scenario (GAS) Projected 70 Millions NGVs by 2035

(Source: International Energy Agency (IEA) presentation to the press, London, 6 June 2011)

IEA’s Golden Age of Gas Scenario (GAS) projected total 70 million natural gas vehicles by 2035.

World Health Organization (WHO) Classified Diesel Engine Exhaust As Carcinogenic

Note: Group 1 - The agent is carcinogenic to humans:This category is used when there is sufficient evidence of carcinogenicity in humans.

WHO: Diesel E

ngine Exhaust Is

Carcinogenic. It In

creases Risk for L

ung

Cancer.

Opportunities and Challenges for Manufacturers and Suppliers

Equipment manufacture

rs & Suppliers

Opportunities

CNG(Fuel) STATION VEHICLE

Challenges

After Sales Services and Supports

National Standards & Regulations

Safety

Training of local personnel

Local assembly/ manufacturing

International Standards & Regulations

QualityISO 9001, ISO 14001, etc

ISO, ECE R110, ASME, API, etc

Company specifications

10th August 2010. Korea.Natural gas bus exploded, injuring 17, in Seoul.

13th August 2010. Singapore.Natural gas bus on fire.

20th October 2011, Jakarta.TransJakarta CNG Bus Exploded While Refuelling.

Safety Incidents

23rd May 2013, Pakistan16 school children and 1 teacher killed in CNG van fire due to gasoline leakage.

16 Nov 2012, IndiaWater tanker’s CNG cylinder exploded while refuelling at NGV station.

Conclusion

1. Worldwide there are around 18.1 million natural gas vehicles (NGVs) and 24,400 refuelling station. Around 10.7 millions of these vehicles and 10,870 of these refuelling stations are located in the Asia Pacific region.

2. The NGV markets in the region is growing steadily however different countries have different market sizes and growths.

3. There are good opportunities for manufacturers and suppliers of equipment to sell their products locally and internationally, however there are challenges that they need to overcome for long term development and sustainability of the NGV businesses.

THANK

YOU

Asia Pacific Natural Gas Vehicles Association (ANGVA)

Email: angva@angva.org Website: www.angva.org