StatoilAygazAdnanKay ayYusufSiyalom

Analysis of the Gaseous Alternative Fuel Market in Turkey : 

Analysis of the Gaseous Alternative Fuel Market in Turkey Adnan Kaya, Koç Statoil Yusuf Siyalom, Aygaz 05/12/2005

Contents: 

Contents Company Profiles Liquified Petroleum Gas (Autogas) History of Natural Gas Liquified Natural Gas Activities Compressed Natural Gas Activities Natural Gas Vehicles Predictions

Aygaz Inc.: 

Aygaz Inc. Founded in 1961, Aygaz is Turkey’s undisputed market leader in domestic LPG sector, with 32 percent share of the overall LPG market. In 2004, Aygaz’s LPG sales reached a total of 1 million tons. Being one of the main Koç Group companies in the energy sector, Aygaz has 1.010 employees and more than 2.000 dealers nationwide.

Slide5: 

Founded in April 2004 LNG Distribution with Road Tankers CNG Distribution by Cylinder Trailers Koç Statoil Gaz Co shall become an efficient and profitable marketer of natural gas in the Turkish market with a market share of minimum 10% by 2010. Best known brand in Turkey 150 Co. over 63,000 emp in 23 countries Biggest Co in Turkey, Rev $28Billion Largest Petroleum & Gas Co. in Europe Active partner in the Shah Deniz Broad experience in natural gas supply

Autogas Sales, Turkey: 

Autogas Sales, Turkey 300 %

LPG Cars Converted, Turkey: 

LPG Cars Converted, Turkey

Autogas Market: 

Autogas Market Total autogas consumption of 1.4 million tons More than 1.2 million cars running on autogas None of the vehicles are OEM The majority were converted with first/second generation kits %25 of the total passenger cars use LPG Over 4,500 LPG filling stations spread throughout the country

Market Competition: 

Market Competition Aygaz LPG filling stations; 490, (11%) Mogaz LPG filling stations; 380, (8%) 2005 Market Shares (Sales);

Lessons Learned: 

Lessons Learned Long Term Planning is necessary Control mechanisms is necessary before the market is emerged Commitment from the government is essential Positioning of the alternative fuel has to be made Marketing effort will be supportive to create a customer perception Involvement of OEMs contributes and they should be encourged

Slide11: 

Tofaş-Aygaz Albea Project CAR MANUFACTURER (OEM) LONG-SHORT TERM POLICIES Energy Environmental LPG SUPPLIER CONVERSION KIT MANUFACTURER Sustainable Market

Natural Gas Business: 

Natural Gas Business Started from 1987, 0.5 billion m3 Consumption 2004, 22 billion m3 60% Electric, 2% Fertilizer, 18% Industry, 20% Residential Projection 2010, 40 billion m3 Domestic production (353 million m3, %1.5) Main importers, Russia and Iran

LNG: 

LNG 1 LNG terminal (685,000 m3/hr) Algeria (3.2 billion m3) and Nigeria (1 billion m3) 19.26% of the natural gas supply

LNG Trade in Turkey: 

LNG Trade in Turkey LNG is distributed to industrial customers Algeria (3.2 billion m3) and Nigeria (1 billion m3) 19.26% of the natural gas supply

Natural Gas for Vehicles: 

Natural Gas for Vehicles Filling stations; Tofaş, Ankara, İstanbul (2), İETT Approximately 400 cars Municipality of Ankara agreed to buy 400 dedicated CNG buses from MAN. Some ISO standards are translated, standarts for Filling Stations is not translated

Price Structure: 

Price Structure

Training in Ankara: 

Training in Ankara Organized by the Turkish LPG Association Fuel and LPG distribution companies, universities, automotive industry, government and municipalities, NGOs (ex.Automotive Industry Association) attended Politics and strategies, filling infrastructure and natural gas vehicles were discussed 3 Workshops took place for the active participation of the attendees

Politics and Strategies: 

Politics and Strategies Standarts Control Mechanisms Tax Policies Long Term Strategies Consumption of Natural Gas

Natural Gas Vehicles: 

Natural Gas Vehicles Environmental benefits OEM activities Safety (Customer Awareness from LPG) Municipality vehicles Customer perception Cars using LPG

Filling Stations: 

Filling Stations Standarts and Safety Harmonisation Investment Planning Technical background

Conclusions: 

Conclusions Long Term strategies for NGVs should be defined and declared (Tax, price, energy, environment) Balance between energies should be taken into consideration instead of competition Standarts should be published Expectations from the future market must be known

Conclusions (cont.): 

Conclusions (cont.) Position of CNG must be determined compared to other fuels. Alternative fuel strategies must be prepared OEMs like Fiat, Ford, Iveco should be encourged and supported to be involved Safety should be considered as the first priority Certification is necessary for every part of the value chain Converted vehicles must be registered and periodically inspected