1

Argentina´s NGV Program

4th & 6th December 2003

Jorge DoumanianTechnical Director

UNFCCC-COP 9 Milan, Italy

ARGENTINA

Natural Gas in Argentina, a Mature Gas CountryNatural Gas in Argentina, a Mature Gas Country

A 48 % penetrationA 48 % penetration of natural gas in theof natural gas in the primary energy matrix primary energy matrix Abundant gas reserves. (Abundant gas reserves. (17 years, 764 BCM)

A transmission grid covering the entireA transmission grid covering the entire country. country.

Utilities provide gas service to exclusiveUtilities provide gas service to exclusive regions. regions.

Regulated gas transmission andRegulated gas transmission and distribution. distribution.

Unregulated gas production Unregulated gas production (46 BCM per year). (for local consumption & exports)(for local consumption & exports)

Secretary of Energy & ENARGAS

5% 2% 5%

41% 48%Oil Natural Gas

HidraulicNuclear Others

3

Argentina at the NGV´s WorldArgentina at the NGV´s World

IANGV The GVR October 2003

*ENARGAS August 2003

World Total 3,157,009

vehicles

1,062,575 converted vehicules 1,062,575 converted vehicules (15% of the total number(15% of the total number

of vehicles in the country)of vehicles in the country)

1,113 - filling stations spanning the entire country -1,113 - filling stations spanning the entire country -

1,583 - conversion shops -1,583 - conversion shops -

7,5 MM tons of CO2 reduction (estimated)7,5 MM tons of CO2 reduction (estimated)

2,000 MM m2,000 MM m3 3 -- annual sales -annual sales -

1,3MM1,3MM T.O.E market participationT.O.E market participationSecretary of Sustainable

Development & Ambiental Policies

Origin of the Argentine NGV ProgramOrigin of the Argentine NGV Program

NGV Program started in 1985 NGV Program started in 1985 (2 filling stations and 600 (2 filling stations and 600 cars).cars).

Basic motivation: substitution of liquid fuels.Basic motivation: substitution of liquid fuels. 2 MM T.O.E with NGV in a 10 years period

Goverment as planner and private implementation. Goverment as planner and private implementation.

Driver: price differential between CNG and gasoline.Driver: price differential between CNG and gasoline.

NGV Program was favoured by macro-economic NGV Program was favoured by macro-economic factorsfactors

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Achievements

Argentine NGV ProgramArgentine NGV Program

A mature and reliable

systemDecrease in the cost of

conversionsWidely used in different type of light

duty vehicles

NGV filling stations along

the whole country

Industrial development &

Technology

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Lessons To Learn

Formal planning as a

Methodology

Argentine NGV ProgramArgentine NGV Program

Tax & prices policies

Approach for Trucks &

Buses Conversion

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Argentine NGV ProgramArgentine NGV Program

From the Present to the Future

Extension of the Program to Trucks & Buses

Technological challenges

Promotion Measures & Subsidize Program

Competitiveness of the NGV

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NGV 2004 NGV 2004 “Road to a better world”

http://www.ngv2004.com

October 26th - 28th, 2004

9th IANGV (International Association for Natural Gas Vehicles) biennial Conference and Exhibition

9Secretary of Energy & ENARGAS

16%

67%

17%

Natural GasGasoline

Diesel - oil

Fuels MarketFuels Market

Gasoline 1.4 MM T.O.EDiesel-oil 5.5 MM T.O.ENGV 1.3 MM T.O.E

Argentine Gas MarketArgentine Gas Market

Diesel-oil

452.961 513.835630.548

755.671879.587

1.062.575

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1998

1999

2000

2001

2002

Aug

ust

2003

Argentine NGV Progression 1998-2003Argentine NGV Progression 1998-2003

*ENARGAS August 2003

Converted vehicles by typeConverted vehicles by type

*ENARGAS August 2003

Light Duty Vehicles

87 %

Others 0,5%Pick

Ups10%Taxis2,5%

Strong Technical & Safety Standards.Strong Technical & Safety Standards.

Main Technical & Control Carachteristics of the System that Main Technical & Control Carachteristics of the System that support the NGV Programsupport the NGV Program

http:www/enargas.gov.ar

Converted vehicles are subject to periodic Converted vehicles are subject to periodic inspections. inspections.

Equipment and materials require certification.Equipment and materials require certification.

Conversion shops and labor are subject to Conversion shops and labor are subject to verification. verification.

Strict safety rules are established for filling Strict safety rules are established for filling stations. stations.

0,78

0,28

0,26

0,78

0,29

0,25

0,8

0,29

0,26

0,85

0,32

0,27

0,92

0,42

0,29

0,9

0,41

0,29

0,91

0,42

0,3

1

0,49

0,3

1

0,53

0,33

0,57

0,4

0,13

0,62

0,44

0,17

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

1,8

2$/Lt.

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Gasoline Diesel-Oil CNG

Average price diferential CNG-Gasoline-DieselAverage price diferential CNG-Gasoline-Diesel

Secretary of Energy