We spoke with Jaime Aguilar, deputy manager of heavy transport at Cálidda, who talked about common myths about CNG and the typical customers of a fuel that seeks to reduce carbon emissions.
Natural gas for vehicles (NGV) is making its way as an alternative fuel: by 2022, the research group Global Industry Analysts estimated that 25.2 million automotive units would be running on this fuel. By 2030, the goal is to reach 42.3 million vehicles, registering a cumulative growth of 6.7% between 2022 and 2030.
According to NGV Journal, the markets with the highest presence of CNG vehicles in 2022 were Iran (4 million) and China (3.9 million). In Latin America, Argentina is in fourth place worldwide with 2.4 million; followed by Brazil (1.7 million) and Colombia (500,000) in sixth and eighth place respectively.
According to the consultancy firm Mordor Intelligence, natural gas is up to 50% cheaper than gasoline or diesel, which means direct savings for consumers. Latin America is also a key player in natural gas production, as countries such as Bolivia and Peru have significant reserves.
In the latter country, one of the main distributors is Cálidda, a company that holds the state concession to supply natural gas to the department of Lima and the port of Callao. Its main shareholder is Grupo Energía Bogotá, a major player in the energy sector in Colombia, Peru, Brazil and Guatemala.
“Our success in heavy transport is due to the fact that it is a sustainable technology that significantly reduces CO2 emissions by almost 30% and particulate matter by more than 99%,” said Jaime Aguilar, deputy manager of heavy transport at Cálidda, at the Sustainable Transport convention held in Lima last week.
The executive also highlighted the company's strategic alliances with companies in the agricultural and mining sectors, as well as with bottling companies and public transport in the Peruvian capital.
NGV IN PERU
To illustrate the results, Aguilar mentioned that if a CNG bus travels 5,500 kilometers per month, the annual savings reach US$ 18,000 per unit. If we apply this model to a fleet of 10 units, the savings generated would allow the purchase of an additional bus. On the other hand, in trucks, the savings are close to US$ 7,000 per unit and an additional unit can also be purchased if the model is used in a fleet of ten vehicles.
“Basically, what we see in the cost breakdown is that fuel consumption is drastically reduced by using natural gas and all components remain fixed. There is only a small variation if we talk about the technical reductions that affect after-sales,” said Aguilar.
As an additional example, the Cálidda spokesperson presented the case of a CNG tugboat operating on the Lima-Antamina route. It traveled a distance of 897 kilometers, carrying a load of 32 tons of liquid waste. The savings and performance exceeded expectations by saving 36% of fuel, compared to diesel, approximately S/. 700 per trip (US$ 186).
Another factor that Aguilar highlighted is the security that CNG guarantees. Using it does not allow fuel theft, which generates an additional saving of close to 8%. As for the autonomy of the vehicles, CNG units could travel more than 900 kilometers without needing to be recharged, which facilitates operations outside the Peruvian coverage area, which on the coast extends from Piura in the north to Ica in the south. While in the Peruvian highlands, it extends from Cajamarca to Cusco.
It should be noted that although this coverage area has an infrastructure of 350 stations with CNG availability, the truth is that the adoption of natural gas still has a long way to go. As an example, 60% of the total diesel in Peru is consumed here. Although in parallel, the activation of CNG vehicles has not stopped increasing: in 2023, 1,350 heavy transport units were activated, including buses and trucks, in Lima and Callao alone.
It is expected that by 2024 there will be more than 1,500 new units in operation, and next year, 2,000. Among other figures, it can be mentioned that in the 12-meter public transport bus segment in Lima, 40% are operated with CNG.
Regarding incentives for corporations and transporters to undertake the transition from diesel to CNG, Cálidda offers low-interest loans to acquire new units. For its part, the Energy Social Inclusion Fund (FISE), an entity created by the Peruvian government to bring energy to the country's vulnerable populations, has also supported CNG users in recent years.
“We must also highlight that natural gas is a regulated fuel. The price of NGV in Peru is not managed by Cálidda or a real institute. It is managed by the State through Osinergmin. That is why it remains stable and will remain so in the coming years,” said the deputy manager of heavy transport.
MYTHS AND SCOPE OF CNG
Jaime Aguilar denied some myths linked to NGV. To begin with, he declared that natural gas does work on high-altitude routes, since there are currently units that cover stretches between Lima and the Andean city of Huancayo, without any problem, despite the fact that altitudes of 3,000 or 4,000 meters above sea level are reached.
Along the same lines, Aguilar denies that natural gas wears out engines, since the Metropolitano, the rapid transit bus system in Lima, operates under this system and its units have already traveled more than a million kilometers, without the need for the engine to undergo a repair process. Regarding Cálidda's most recent partners in the implementation of CNG vehicles, the following stand out.
"In agriculture, we have Deepwater. We know that this logistics operator has a natural fleet and many of these units serve agro-exporting companies. It has a fleet of more than 14 units with which it also saves natural gas. Meanwhile, in steel transportation, we work with Barcino, the transporter of Aceros Arequipa, which has 52 CNG units that it transports from its plant to other destinations," he told AméricaEconomía .
On the other hand, the assistant manager highlights that 26% of all concrete mixers are natural gas and in fact, the Peruvian manufacturer Unicom already has a fleet of more than 250 natural gas units for the distribution of concrete. In turn, in the food and beverage sector that were encouraged by the transition, the AJE Group, Alicorp and Arca Continental, the Coca-Cola bottler in Peru, stand out.
Although Aguilar acknowledges that public transport has been the sector in Lima with the greatest acceptance of NGV. “We are talking about a sector that needs these savings to provide a quality service, but unfortunately it does not have many sources of financing. From the private sector, we and the Camisea Consortium have a financing plan, which grants a US$ 45,000 interest-free loan so that public transport companies can buy buses that run on natural gas. This also applies to changing the engine, thanks to the FISE program.”
Given the growth of NGV in this sector, Aguilar calls on the Urban Transport Authority of Lima and Callao (ATU) to maintain the licenses for the operation of public transport routes for more years. The next point would be a package of temporary benefits. That is, natural gas units not paying income tax, import guarantees, as well as lower rates on Lima tolls.
“By 2030, we aim to have a penetration rate of over 60-70% in public transport and also to make significant progress in freight transport, both in tractor-trailers and natural gas trucks. Although there are many opportunities to continue to popularize gas in the countries of the region,” said Aguilar.
