Rungas Industries, a subsidiary of Rungas Group of Companies has collaborated with United Group of Egypt and has 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, and establish a strong position in the Composite LPG Cylinders Market.
As per the firm, the Egyptian Government has already allocated 28,000 square meters of land for the $30 million projects in Alexandria, the home of the Egyptian Gas Industrial Park.
The facility will produce 200,000 LPG Composite Cylinders for domestic use (cooking) and 130,000 CNG cylinders for vehicles and automobiles.
Similarly, Rungas Industries along with Amtrol-Alfa Worthington of Portugal, are providing the technology and technical know how to set up the type III LPG Composite Cylinder Facility, dedicated to domestic use while the CNG cylinders produced will be used for vehicles across Egypt.
Both the products will be exported from Egypt to the neighbouring Arab countries and also will serve the North and Eastern African markets (benefitting from international trade agreements that are already in place)
The Egyptian Government has made this mandatory for Rungas and their partner United Group to set up the facilities only after an extensive product research was carried out. Also, an Egyptian delegation will visit the Amtrol facility in Portugal to carry out a compliance inspection to ensure that cylinders met all standards for cylinder production in Egypt.
Dr. Engineer Hassan Ahmad Ab Elimagied, the vice chairman and managing director of the National organisation for Military production executed the contracts on behalf of the Egyptian Government and provided his support verbally for the project.
Lanre Runsewe, the CEO of Rungas Industries and the group Chief Executive Office of the Rungas Group of Companies, stated that the partnership with the Egyptians, along with the ongoing launch plans for the setting up a state of the art LPG Composite in Nigeria, will help Rungas in being a continental force.
“Rungas has been an agent of Amtrol Alfa – Worthington, promoting LPG composite cylinders across the West Africa sub-region – whilst operating an import and supply model. We have been supplying composite cylinders to Oil Major and Independent retailers across 10 states of Nigeria – clients are Oando, MRS, Forte Oil, Ultimate Gas and Sublime to name but a Few”, he added.
He mentioned about the approval that the company has received from the Ghana Standards Authority to supply and distribute to the Ghanaian market, Amtrol Composite LPG Cylinders and are in the process of gaining regulatory approvals in Cameroon and Cote D’Ivoire.
Runsewe stated that these particular Type IV CNG Composite Cylinders produced would be the first of its kind in Africa, Asia, and Middle East continents. He mentioned the LPG composite cylinders would be in two sizes – 60 litres for domestic use and 80 litres for the public vehicles.
He also stated “CNG is important for the Egyptian Government because of the need to run on cleaner fuel also to meet IMF condition which advised the country to reduce fuel subsidy”.
The Ministry of Armed Production has actually engaged with CNG operators who currently import the product from India, China, and Italy to embrace this new development.
Runsewe mentioned that the project should start from September 2019 and the production of the LPG composite cylinders is expected to start within nine months from September 2019, while the launch of the CNG Composite Cylinders may take about 18 months.