CNG transport program in limbo
Oct 09, 2011 (The Manila Times - McClatchy-Tribune Information Services via COMTEX) -- OPERATORS of
compressed natural gas-run buses are complaining that the nascent business -- touted as a solution to rising
transport fares caused by higher oil prices --risks running out of fuel given the Aquino administration's failure to
make good on promised assistance.
In a statement, the CNG bus operators said government has nothing to show for as far as the Natural Gas for
Vehicle Program for Public Transport is concerned since the opening of a lone refilling station in Binan, Laguna in
2008.
"Since the opening of the station, no major developments were attained as the only station was found to be
harboring inherent technical defects that hampered and hampering the success of the pilot," they said.
The facility was put up by Pilipinas Shell Petroleum Corp. under a pilot CNG project inked with the Department of
Energy, wherein the former agreed to supply the gas needs of up to 200 buses.
Because of technical inefficiencies and the reluctance of Shell to upgrade the facility, government had tapped
state-led Philippine National Oil Co.-Exploration Corp. to operate and upgrade the refilling station and build
another one in Batangas.
"This government move was considered a second wind of the bus operators to recover [their] losses," the
group said.
Since the announcement, the group has yet to hear from PNOC-EC.
"PNOC-EC discovered that it is not so easy to succeed as station operator being confronted with several
interwoven issues both legal and political. The requisite mandate from the government was yet to be obtained
and the Gas Supply Agreement being held by [Shell] is not yet transferred. PNOC-EC still waits with its technical
plans and ready budget like a cactus waiting for drops of rain in desert summer," the bus operators said.
Fuel for the CNG project was supposed to come from the Shell-operated Malampaya gas field in Palawan. The
field provides gas to three power plants in Luzon with a combined capacity of about 2,700 megawatts.
A fleet of 100 CNG buses would require only one megawatt for a year based on industry estimates.
"This locally sourced fuel is not dependent on the demand-supply fluctuations of world oil prices. This is the
solution to the stability of fare costs that contributes to inflation which the majority of the poor Filipinos share as
instantly than anybody else," the group said.
As part of the NGVPPT, bus operators committed to bring in as many as 2,000 CNG-fed units provided the
government would guarantee adequate supply of the alternative fuel.
Only 35 out of 60 existing CNG buses are running because Shell's refilling station had been mired by lack of fuel
and unreliable operations.