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In view of the great gas reserves in Argentina, that have become the basis of the governmental policies on substitution of oil-derived liquid fuel, Mercedes-Benz Argentina launched the first urban bus manufactured in the country that is compressed natural gas (CNG)-fueled. This paper explains the process followed for building the engine, analyzing the alternatives of the combustion cycle and defining the stage of maximum power and minimum consumption for a 1,18 lambda, using conventional technology which is ideal for meeting the current needs of the market. The results of the tests carried out with four vehicles driven by urban bus lines are hereinafter described, defining the performance of the vehicle. Finally, an analysis of the results with respect to the Diesel- engine vehicle enables to reach conclusions on the steps to be taken concerning the evolution of the CNG-propelled urban bus.