Rungas Industries, a subsidiary of Rungas Group of Companies in collaboration with United Group of Egypt secured an executive partnership with the National Organisation for Military Production (Egyptian Government) to produce and assist with the distribution of LPG (Liquefied Petroleum Gas) and CNG (Compressed Natural Gas) Composite Cylinders.
The Egyptian Government has already allocated 28,000 square meters of land for the $30 million project in Alexandria; which is the home to the Egyptian Gas Industrial Park. The facility will be producing 200,000 LPG Composite Cylinders for domestic use (cooking) and 130,000 CNG cylinders for vehicles and automobiles.
Rungas in conjunction with a Portuguese cylinder manufacturing company are providing the technology and technical know how to set up the type III LPG Composite Cylinder Facility which will be dedicated to domestic use whilst the CNG cylinders produced will be used for vehicles across Egypt. Both products will be exported from Egypt to neighbouring Arab Countries as well as serve the North and Eastern African markets (benefiting from international trade agreements that are already in place).
The Egyptian Government have mandated Rungas and their partner United Group to set up the facility after an extensive product research was carried out and Amtrol facility in Portugal was visited by an Egyptian delegation to carry out a compliance inspection to ensure that cylinders met all standards for cylinder production in Egypt.The Vice Chairman and Managing Director of the National Organisation for Military Production – Hassan Ahmad Ab Elimagied executed the contracts on behalf of the Egyptian Government and provided his support verbally for the project.
The Type IV CNG Composite Cylinders that would be produced would be the first of its kind in Africa, Asia and Middle East continent and would be in two sizes – The LPG Cylinders would have a capacity of 60 Litres for domestic use and the cylinders for the public vehicles would be 80 Litres.
CNG is important for the Egyptian Government because of the need to run on cleaner fuel and also to meet IMF condition which advised the country to reduce fuel subsidy”.
The ground-breaking for the project was in February 2020 and it is projected that production of LPG cylinders is expected to start within nine months from the groundbreaking date whilst the launch date for the CNG Composite Cylinders is in 18 months.
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