ISOLATED ARMENIA LEADS THE WAY IN USING CLEANER CAR FUEL
by Mariam Harutunian

Agence France Presse — English
December 3, 2006 Sunday 3:47 AM GMT

Cut off from world energy markets, the mountainous state of Armenia
is making a virtue of adversity and may be leading the world in using
cleaner car fuel, officials say.

While the European Union is looking at 2020 before 10 percent of
vehicles there will use alternative fuel, in Armenia up to 30 percent
of cars already run on clean compressed gas, officials here say.

This statistic includes about 45,000 private cars and 90 percent of
public transport.

Such high levels of clean fuel use are due "to the fact that Armenia,
which has no energy resources of its own, is trying to use the most
affordable alternative fuel," said Pavel Siradegian, a transport
ministry official.

In this the ex-Soviet republic appears be leading a trend. Around
the world some five million vehicles are run on compressed natural
gas and liquefied natural gas, according to the United States energy
department’s Internet site.

Natural gas vehicles are just as safe as conventional petrol
and diesel-fuelled ones and produce lower harmful emissions, the
department says.

In Armenia, the switch has its origins in the 1991 collapse of the
Soviet Union.

Before then, Armenia got petrol from its oil-rich neighbour
Azerbaijan, but after the two countries plunged into a war over the
Armenian-populated enclave of Nagorny Karabakh, Armenia cut ties with
both Azerbaijan and Turkey.

Armenia buys its gas from Russia for 110 dollars (77 euros) per 1,000
cubic metres, with 84 percent of the population having access to gas
at home.

The gas used for cars is three or four times cheaper than petrol and
half the price of diesel fuel "and so people convert to gas of their
own accord," Siradegian said.

The gas containers are usually imported from Russia or Italy and are
installed in the car’s trunk at licensed centres — an operation that
costs the equivalent of 700 to 1,000 dollars (530-760 euros).

"Even with such high installation prices it’s cheaper to use gas than
petrol. A 20-litre-canister of petrol would cost some 17 dollars,
while topping up with gas costs only four dollars," said the head
of Yerevan’s Ultra taxi service, Aram Hachian, who has converted all
his cars.

"If we used petrol, many people here wouldn’t be able to afford a
taxi," he said.

Armenia currently has 140 filling stations equipped with gas
compressing equipment.

"Drivers have no fear of being left without fuel," Siradegian said.

But some admit the choice has been forced on them.

"If I were rich, I’d fill my car with petrol because gas is bad
for your engine and it is not very nice carrying an 80-kilogramme
container in your trunk," said one Yerevan resident, 37-year-old Artem.

At the country’s environment ministry, officials hail the benefits
of increased gas use after the damage done to the environment in
the 1990s.

"Switching to gas has been a real salvation for… Armenia, whose
forests suffered very much during the energy crisis," said environment
official Martin Tsarukian.

"Gas-using cars emit half the amount of nitric oxide than petrol-driven
cars," he said. "Conversion to gas was an economic necessity, but
there have been ecological benefits as a result."

The ministry is aware that the popularity of compressed gas could be
time-limited if the country pulls itself out of economic hardship —
the average salary is currently 100 dollars a month.

But it is now looking at ways of ensuring drivers stick to compressed
gas — for example through tax benefits.