Naturelgaz (a 95.5% subsidiary of Global Investment Holdings), Turkey’s leading non-pipeline natural gas distribution company with an estimated 25% market share in CNG (Compressed Natural Gas) and LNG (Liquefied Natural Gas) with a total sales volume of 173.4 million cubic meters in 2020, signed an agreement with Petrol Ofisi to create synergies in the auto-CNG business. Such co-operation will further strengthen the position of Naturelgaz in the auto-CNG business through expansion of geographical coverage and volume increases while also contributing to the development of the auto-CNG market in Turkey. Furthermore, this co-operation is a perfect fit for Naturelgaz’s strategy to establish an auto-CNG station network on routes critical to heavy-duty vehicle transportation in Turkey.

As per the agreement, the parties will act together to establish new auto-CNG stations in Petrol Ofisi’s or its dealers’ stations with Naturelgaz’ licences, while revenue generation will be shared between the two parties. Currently, the infrastructure of Naturelgaz consists of 9 auto-CNG stations, while the agreement with Petrol Ofisi envisages the establishment of 12 new auto-CNG stations within two years.

Mehmet Kutman, Global Investment Holdings’ Chairman & CEO, stated that: “Although the world is discussing electrical vehicles, CNG usage has been increasing rapidly, especially in heavy-duty vehicles, thanks to its distinctive environmental characteristic. We expect significant growth in natural gas fuelled bus and commercial vehicle market in line with the European Union’s environmental targets. It is inevitable for Turkey to remain unaffected. Turkey will be a regional trade centre and should achieve a cost advantage with its recently discovered natural gas sources. From the economic point of view, once all the buses, semi-trailer trucks and trucks in Turkey convert to natural gas, the import cost of the fuel should reduce significantly, making a c.12 billion TL positive impact on the current account deficit. Furthermore, such transformation should reduce Turkey’s total carbon emission by approximately 10 million tons while eliminating particle emission of fossil fuels. We are very excited to have taken a solid step in our growth strategy. We continue our efforts to serve more customers at more points.”

Commenting on the co-operation, Hasan Tahsin Turan, CEO of Naturelgaz further underlined that “We believe in the growth potential of the auto-CNG market thanks to its economic and environmental advantages. Recent studies imply that natural gas usage in heavy-duty vehicles lead to nearly 25% reduction in both fuel cost and carbon emission. According to NGVA Europe, 25% of light and heavy commercial vehicles and 33% of buses in Europe will convert to natural gas by 2030. In Turkey, only 3,500 buses and heavy commercial vehicles as of 2020 are powered with CNG out of 1,500,000 heavy duty trucks. Production of CNG-fuelled vehicles and conversion of current diesel vehicles to CNG should play an important role in the development of the market in Turkey. As Naturelgaz, we are the largest in this field in Turkey. We have 9 auto-CNG stations in critical logistic routes in Turkey. With Petrol Ofisi – Turkey’s most expansive retail fuel sales network – we are aiming to establish 12 new auto-CNG stations within two years. Looking forward, we believe that this co-operation will solidify our position in the market.”

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