Algeria Eyes Iran's NGV Capabilities
Algeria could learn from Iran’s experience of diversifying its economy, Algeria's industry and mines minister Abdessalem Bouchouareb told state news agency APS on May 17 on his visit to Iran. Iran is not only a leading car producer, but also of natural gas vehicles (NGVs) in particular.
He visited the ‘Saipa’ and ‘Khodro’ car plants which, reported APS, plan to open two similar plants in Algeria with private investors. Bouchouareb said that models produced there can be equipped with compressed natural gas (CNG) engines, ideally suited to Algeria’s strategy of expanding the use of CNG and LNG as transport fuels.
APS later reported that ten Algeria-Iran automotive industry agreements were signed: one between Algerian group Tahkout and Saipa on a 75%-25% basis is to build up to 15 factories in Tiaret, west of Algiers, at a cost of up to $300mn, including some making CNG-fuelled cars; another is for a joint venture of Algerian private group Rahmouni and Khodro to build CNG-fuelled cars at two new factories to be built in Algiers and Relizane. Iran's Press TV also reported the agreements, although it described them as memos of understanding (MOUs).
The minister also visited the ‘Mapna‘ gas turbine factory, with which he also wished to set up a partnership; a delegation from Algeria’s energy and industry ministries should follow up his visit to look at how such a partnership could be established, he said.
Khodro (otherwise known as Ikco) is Iran’s largest car manufacturer, with Saipa the second largest. Both were established in the 1960s and expanded in the 1970s by making French cars (Peugeot, Renault) under licence. Khodro also makes buses and trucks.
On May 18, Khodro announced it will resume car production in Syria, making 2,000 there next year.
Iran had 3mn NGVs, narrowly ahead of Pakistan (2.9mn) and Argentina (2.14mn), Brazil (1.74mn) and China (1.58mn), according to end-2012 data from the International Association of Natural Gas Vehicles (IANGV) which put Algeria in 69th place with just 125 NGVs.
But China had over 4mn NGVs in mid-2015, according to the Asia Pacific NGV Association, so is now believed to be the world’s top NGV market.
Mark Smedley