1. .. 1 st NATIONAL CONFERENCE & EXHIBITION ON CNG & RELATED INDUSTRIES 2008 Olympic Hotel, Tehran, Islamic Republic of Iran, 2 nd – 4 th August 2008 ANGVA & NGV IN ASIA PACIFIC LEE GIOK SENG EXECUTIVE DIRECTOR ASIA PACIFIC NATURAL GAS VEHICLES ASSOCIATION (ANGVA)

2. 2 CONTENT  ANGVA  NGV IN ASIA PACIFIC

3. 3 THE ASSOCIATION

4. 4 ASIA PACIFIC NATURAL GAS VEHICLES ASSOCIATION (ANGVA).. Secretariat Office: Level 2, Block A, Lot 3288 & 3289 Off Jalan Ayer Itam, Kawasan Institusi Bangi 43000 Kajang Selangor MALAYSIA Tel: 603 8926 1798 Fax: 603 8926 1834 Email: angva@angva.organgva@angva.org Website: www.angva.org  ANGVA is the NGV industry association serving NGV stakeholders in the Asia Pacific region.  ANGVA defines the Asia Pacific region as countries in the United Nations Asian Regional Group and the Australasia.

5. 5 ANGVA COVERAGE AREAS – ASIA PACIFIC REGION (UNITED NATIONS ASIAN REGIONAL GROUP AND AUSTRALASIA) ██ Asia Pacific Region – 58 Countries

6. 6 COUNTRIES IN ANGVA’S ASIA PACIFIC REGION Country 1 Afghanistan 16 Iraq 31 Nauru 46 Syria 2 Australia 17 Japan 32 Nepal 47 Taiwan 3 Bahrain 18 Jordan 33 New Zealand 48 Tajikistan 4 Bangladesh 19 Kazakhstan 34 Oman 49 Thailand 5 Bhutan 20 Kiribati 35 Pakistan 50 Timor-Leste 6 Brunei Darussalam 21 Kuwait 36 Palau 51 Tonga 7 Cambodia 22 Kyrgyzstan 37 Papua New Guinea 52 Turkmenistan 8 China 23 Laos 38 Philippines 53 Tuvalu 9 Cooks Island 24 Lebanon 39 Qatar 54 United Arab Emirates 10 Cyprus 25 Malaysia 40 Republic of Korea 55 Uzbekistan 11 DPR of Korea 26 Maldives 41 Samoa 56 Vanuatu 12 Fiji 27 Marshall Islands 42 Saudi Arabia 57 Vietnam 13 India 28 Micronesia 43 Singapore 58 Yemen 14 Indonesia 29 Mongolia 44 Solomon Islands 15 IR of Iran 30 Myanmar 45 Sri Lanka

7. 7 VISION AND MISSIONS OF ANGVA  VISION  To make natural gas the transportation fuel of choice.  MISSION  Assisting members in their NGV business.  Reducing emissions and greenhouse gases.  Optimising the use of indigenous fuel.  Establishing a platform for harmonising standards.  Encourage development of NGV technology and refuelling infrastructure.

8. 8 OBJECTIVES OF ANGVA OBJECTIVES 1.Provide forum for discussions. 2.Promote development of sustainable and profitable market. 3.Encourage development of NGV technology and refuelling infrastructure. 4.Advance knowledge and learning, and stimulate research. 5.Collect, analyse and disseminate information. 6.Promote standards for safety and uniformity of practices. 7.Organise conferences, exhibitions, seminars, workshops, fora, and trainings.

9. 9 www.angva.org Homepage WEBSITE

10. 10 ORGANISATION CHART OF ANGVA COUNCIL EXECUTIVE COMMITTEE (GOVERNING BOARD) SECRETARIAT COMMITTEES ANGVA SCHOOLS Marketing & Media Committee Head: Guan Saw Membership Committee Head: Sean Blythe Structural & Financial Committee Head: Brenda Smith Technical Committee Head: Fazal Ali Khan Governing Board Members (2007 – 2009) President Dr. Chitrapongse Kwangsukstith (PTT, Thailand) Immediate Past President Datuk (Dr) Abdul Rahim Hj. Hashim (PETRONAS, Malaysia) Senior Vice President Guan Saw (Cummins Westport, China) Treasurer Brenda Smith (Gas Advisers, Hong Kong) Vice Presidents 1.Fazal Ali Khan (LMF, UAE) 2.Sean Blythe (AFT, Australia) 3.Hyo-Sun Pang (KOGAS, Korea) Secretariat Staff Lee Giok Seng (Secretary/Executive Director) Norhafiza Roosli (Executive)

11. 11 Secretariat Staff EXECUTIVE COMMITTEE / BOARD MEMBERS Executive Committee / Board Members

12. 12 59 ANGVA MEMBERS WORLDWIDE (as of July 20 th 2008) NoCountry No. of Members Class ABCD 1Australia5131 2Bangladesh743 3Canada22 4China211 5Hong Kong11 6Indonesia22 7IR of Iran413 8Italy*11 9Japan11 10Malaysia121371 NoCountry No. of Members Class ABCD 11Myanmar11 12New Zealand22 13Pakistan211 14Singapore11 15South Korea9135 16Thailand211 17UAE211 18United Kingdom*11 19USA*211 TOTAL59653214

13. 13 4 ANGVA MEMBERS IN ISLAMIC REPUBLIC OF IRAN (as of July 20 th 2008) NoClassCompanyMain Focal PersonDesignation 1 AGas Khodro Iran CoAlireza Rahnama International Affairs 2 CNoavaran Engineering Co.G. H. Liaghat - 3 CGolchin Barg Company Iraj Mahandesi Khosroshahi Managing Director 4 C Fanavavan Saanat Gostave Paniz Mohammad Ali Ramezani Managing Director

14. 14  Theme: “Natural Gas for Vehicles – Rising to the Challenge”  Host: Donghae City.  Website: www.angva2009.comwww.angva2009.com UPCOMING ANGVA EVENT ANGVA 2009, DONGHAE, KOREA, 27 – 29 TH Oct 2009

15. 15 ANGVA GREEN HIGHWAYS PROJECT II  Objectives:  Create awareness and promote NGV, ANGVA, and NGV Infrastructure along the routes.  Promote harmonisation of Standards and Code of Practices along the routes.  To reach Donghae City in time for ANGVA 2009, 27 th – 29 th Oct 2009.  To be self-funding.  Sponsorships and participations are welcome. Propose Green Highways Project II routes:  Western Route  Iran / UAE - Pakistan – India – Bangladesh - Myanmar – China – Korea.  Southern Route  Singapore / Malaysia – Thailand – Vietnam – China - Korea UPCOMING ANGVA EVENT

16. 16 UPCOMING ANGVA ENDORSED EVENT  CNG-NGV Philippines Forum 2008  Date: 27 – 28th August 2008  Place: Manila, Philippines  Organiser: All Events Group  Website: www.alleventsgroup.com/cng www.alleventsgroup.com/cng

17. 17 NGV IN ASIA PACIFIC

18. 18 20 COUNTRIES HAVE NGV PROGRAMMES

19. 19 CountryNo. of VehiclesNo. of Stations Remarks 1 Pakistan1,700,0001,974 Apr ‘08 2 IR of Iran748,903413 May ‘08 3 India523,074402 Apr ‘08 4 China200,873486 Jan ‘08 5 Bangladesh150,000200 Dec ‘07 6 Thailand71,014185 Apr ‘08 7 Uzbekistan47,00043 Dec ‘07 8 Japan32,691324 Sept ‘07 9 Malaysia32,32575 Apr ‘08 10 Republic of Korea14,323121 Oct ‘07 11 Myanmar10,90020 Dec ‘06 12 Tajikistan10,60053 Dec ‘07 13 Kyrgyzstan6,0006 Dec ‘07 14 Indonesia3,0798 Apr ‘08 15 Australia2,453146 Mar ‘07 16 Singapore3703 Apr ‘08 17 United Arab Emirates3052 Mar ‘07 18 New Zealand28314 Mar ‘07 19 Philippines361 Feb ‘06 20 Taiwan*41 Apr ‘05 Total3,554,2334,477 3.55 MILLIONS NATURAL GAS VEHICLES AND 4500 STATIONS (Source: Asian NGV Communications & GVR magazines & Others)

20. 20 TOP 10 NGV COUNTRIES IN ASIA PACIFIC

21. 21 TOP 10 NGV COUNTRIES IN THE WORLD

22. 22 NATURAL GAS VEHICLES IN ASIA PACIFIC AS COMPARED TO THE WORLD AND SOUTH AMERICA

23. 23 NGV REFUELLING STATIONS IN ASIA PACIFIC AS COMPARED TO THE WORLD AND SOUTH AMERICA

24. 24 THE GROWTH

25. 25 NATURAL GAS VEHICLES GROWTH IN ASIA PACIFIC (2003 TO 2008)

26. 26 NGV REFUELLING STATIONS GROWTH IN ASIA PACIFIC (2003 TO 2008)

27. 27 NATURAL GAS VEHICLES GROWTH COMPARED TO THE WORLD AND SOUTH AMERICA (2004 TO 2008)

28. 28 NGV STATIONS GROWTH COMPARED TO THE WORLD AND SOUTH AMERICA (2004 TO 2008)

29. 29 THE FUTURE?

30. 30 NGV WILL CONTINUE TO GROW IN ASIA PACIFIC  Present of strong key drivers in most countries in Asia Pacific: 1.Energy 2.Economics 3.Environment  Strong support and commitment from government.

31. 31 NGV WILL CONTINUE TO GROW IN THE FOLLOWING 25 COUNTRIES IN ASIA PACIFIC Countries Currently With NGV 1 Pakistan 8 Japan 15 Australia 2 IR of Iran 9 Malaysia 16 Singapore 3 India 10 Republic of Korea 17 United Arab Emirates 4 China 11 Myanmar 18 New Zealand 5 Bangladesh 12 Tajikistan 19 Philippines 6 Thailand 13 Kyrgyzstan 20 Taiwan* 7 Uzbekistan 14 Indonesia Countries With Good Potential for NGV 1 Vietnam 4 Macau** 2 Cambodia 5 Brunei 3 Hong Kong**

32. 32 3.5 BILLION PEOPLE IN THE 25 COUNTRIES Source: World Bank (except for Taiwan). Total Population = 3.5 Billion. World Total Population = 6.5 Billions

33. 33 1.Energy  More natural gas reserves than oil reserves.  Consumed more oil than produced.  Global oil price continues to increase.  Transportation sector consumed 35 to 40 % of final energy (mainly in the form of gasoline and diesel).  Trans boundary pipelines and LNG supplies ensure reliable supply of natural gas.  Opportunity to use biomethane as renewable and sustainable source. KEY DRIVERS DRIVING COUNTRIES TOWARDS NGV

34. 34 Source: Energy Information Administration, EIA. 1,629 TRILLION CUBIC FEET OF NATURAL GAS RESERVES IN THE 25 COUNTRIES Total Natural Gas Reserves = 1,629 TCF. World Natural Gas Reserves = 6,124 TCF.

35. 35 267 BILLION BARRELS OF OIL IN THE 25 COUNTRIES Source: Energy Information Administration, EIA. Total Oil Reserves = 267 Billion Barrels. World Oil Reserves = 1,292 Billion Barrels.

36. 36 NATURAL GAS & OIL RESERVES IN THE 25 COUNTRIES Source: Energy Information Administration, EIA. Total Oil Reserves = 267 Billion Barrels. Total Natural Gas Reserves in Oil Equivalent = 293 Billion Barrels.

37. 37 2.Economics  Prices of Gasoline and Diesel continue to increase.  Government subsidies heavily gasoline and diesel.  CNG/NGV are price lower than gasoline and diesel.  Other incentives were also given. KEY DRIVERS DRIVING COUNTRIES TOWARDS NGV

38. 38 TOTAL GAS PRODUCTION AND CONSUMPTION IN THE 25 COUNTRIES

39. 39 TOTAL OIL PRODUCTION & PETROLEUM PRODUCTS & OIL CONSUMPTION IN THE 25 COUNTRIES

40. 40 3.Environment  Air quality in major cities are deteriorating, major contributors are vehicles.  Vehicles Emission Standards are being tightened in many countries.  Concern with Global Warming / Climate Change. KEY DRIVERS DRIVING COUNTRIES TOWARDS NGV

41. 41 PROJECTED GROWTH OF NATURAL GAS VEHICLES IN ASIA PACIFIC (Low Growth) Total vehicles in 2013 = 5.2 Millions. (addition of around 1.6 millions vehicles from 2008). Assume conservative growth of around 2.5 to 10 % per year.

42. 42 PROJECTED GROWTH OF NGV REFUELLING STATIONS IN ASIA PACIFIC (Low Growth) Total stations in 2013 = 6,500 (addition of around 2,000 stations from 2008). Assume conservative growth of around 2.5 to 10 % per year.

43. 43 PROJECTED GROWTH OF NATURAL GAS VEHICLES IN ASIA PACIFIC (High Growth) Total vehicles in 2013 = 7.35 Million. (addition of around 3.38 millions vehicles from 2008). Assume high growth of 10 to 20 % per year.

44. 44 PROJECTED GROWTH OF NGV REFUELLING STATIONS IN ASIA PACIFIC (High Growth) Total stations in 2013 = 9400 (addition of around 5,000 stations from 2008). Assume growth of 10 to 20 % per year.

45. 45 THE CHALLENGES

46. 46  Major Challenges: 1.Government Support & Policies 2.Gas Supply and Refuelling Infrastructure 3.Technology and Know-how 4.Safety Standard and Enforcement 5.Market Awareness and Education CHALLENGES FACED BY NGV PROGRAMMES

47. 47 1.Government Support & Policies  Strong support.  Transport energy policy.  Clear and consistent policy on NGV.  Incentives given to NGV.  Strong industry / government partnership. CHALLENGES FACED BY NGV PROGRAMMES

48. 48 2.Gas Supply and Refuelling Infrastructure  Tangible economic benefits to all players in the supply chain.  Adequate and stable supply of natural gas.  Pricing mechanism to stations and vehicles clear and consistent.  Adequate price differential between CNG and petrol & diesel.  Adequate number of stations and at strategic locations. CHALLENGES FACED BY NGV PROGRAMMES

49. 49 3.Technology and Know How  Affordable and suitable to local conditions.  High cost of technology and equipment impedes growth of NGV.  Local manufacturing / fabrication can lower cost.  Skilled manpower for planning, implementation, construction, operation and maintenance needed. CHALLENGES FACED BY NGV PROGRAMMES

50. 50 4.Safety Standards and Enforcement  Safety during planning, implementation, operation and maintenance stages.  Safety Standards and Code of Practices.  Safety Management System for refuelling stations and vehicles.  Enforcement of safety requirements.  Safety education and awareness.  Incidents investigation and findings.  Emergency Response Plan. CHALLENGES FACED BY NGV PROGRAMMES

51. 51 5.Market Awareness and Education  Change traditional preference for gasoline and diesel.  Emphasizes on cost savings and environmental benefits.  Address technical limitations of NGV  Address operational and safety issues Education programmes. Awareness programmes. Promotional campaigns. Conferences, Seminars, Fora, Workshops. Formal trainings. CHALLENGES FACED BY NGV PROGRAMMES

52. 52  The NGV markets in Asia Pacific will continue to grow due to Energy, Economics, and Environment requirement.  There are challenges to the NGV industry and each country will face these challenges at different levels, depending on local conditions.  The Asia Pacific Natural Gas Vehicles Association (ANGVA) can be the focal point to facilitate the exchange and sharing of information, knowledge and experiences especially in areas of safety and harmonisation. SUMMARY

53. 53 THANK YOU