Iran Pens Agreements for Production of CNG-Fueld Cylinders

The director of the CNG project at the National Iranian Oil Products Distribution Company announced the signing of two major agreements with domestic firms active in vehicle gas conversion, saying the contracts—worth a total of US$23 million—will help save about 161 million liters of gasoline annually.

According to the National Iranian Oil Products Distribution Company, Saeid Rahman-Salari said that as part of the 14th administration’s fuel optimization and CNG expansion plans, two new contracts have been signed with new technology-based firms (NTBFs) to produce gas cylinders from sheet metal and convert 45,000 gasoline-powered cars to dual-fuel systems.

He added that, alongside the launch of eight new CNG stations in the provinces of Isfahan, Gilan, East Azarbaijan, West Azarbaijan, Sistan and Baluchestan, Khorasan Razavi, and Tehran, a US$13 million contract was signed with the NTBF company Behineh Sanat Isfahan to produce sheet-based cylinders and convert 25,000 gasoline cars to dual-fuel systems. The project is expected to save more than 91 million liters of gasoline annually.

Rahman-Salari said another US$10 million contract was signed with the NTBF Shahab Gas-Souz Qom to convert 20,000 gasoline cars using fourth-generation gas kits. The project will save more than 70 million liters of gasoline per year. Combined, the two projects will save about 161 million liters annually.

He emphasized that signing these contracts marks a major step toward achieving the 14th administration’s broader goals of fuel management and clean energy development. Relying on domestic NTBFs, he said, has boosted national capacity for manufacturing gas conversion equipment and significantly reduced dependence on imports.

Rahman-Salari added that the contracts align with efforts to promote clean fuels, curb gasoline consumption, and support domestic innovation. Converting 45,000 gasoline-powered vehicles to dual-fuel systems, along with expanding CNG stations, will play a key role in reducing gasoline use, lowering environmental pollution, and supporting national production. - Shana