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    Shell, DOE to launch natural gas
    program for buses with free ride
     
    By Paul A. Isla
    Reporter
     

    FINALLY the government’s Natural Gas Vehicle Program for Public Transport (NGVPPT) will materialize with the scheduled commercial operation of 11 compressed natural gas (CNG) buses on Monday.

    Pilipinas Shell Petroleum Corp. and the Department of Energy will kick off the NGVPPT with their Libreng Sakay (Free Ride) project.

    Mario C. Marasigan, DOE Director for Energy Utilization and Management Bureau said that for two weeks now, some of the buses have been running within the Batangas City area.

    “But we will jumpstart the program of Libreng Sakay with the 11 buses on June 24,” said Marasigan.

    Technical issues have delayed the full development of CNG as a public-transport fuel, a change widely seen as boosting savings on imported fuels like gasoline and diesel.

    Pilipinas Shell Petroleum Corp. remains the only company with a CNG fuel station, which it launched in October last year. It is located at the northbound Biñan service station of the South Luzon Expressway.

    “The CNG buses have yet to run,” Nicky M. Hidalgo Jr., KL CNGBUS Transport Corp. vice president for public relations, had told reporters a month ago. He added Shell has not been supplying the fuel due to technical problems. Apparently that problem is now resolved.

    Hidalgo said they have 12 CNG-fired bus units under the program and that they have already invested P5 million per bus.

    “Originally, we have been accredited to bring in 40 CNG-fired bus units,” said Hidalgo, implying that the supply delay had also delayed full use of their company’s quota.

    In October President Arroyo said Shell’s daughter station will soon help lessen the country’s dependence on imported oil, as well as carbon emissions in accordance with the Kyoto Protocol.

    Plans were to sell CNG at P14.52 a cubic meter to bus companies.

    The CNG-powered buses will ply the Laguna-Cubao/Lawton and Batangas-Cubao/Lawton routes under the seven-year pilot program.

    The clean, indigenous gas is extracted from the Malampaya well, 80 kilometers northwest offshore Palawan, compressed at a mother station in Batangas and transported to the Biñan daughter station.

    “The government has encouraged this project, not because of its economic implications, but also out of its commitment to reduce air pollution,” according to Edgar O. Chua, country chairman of Shell Group of Companies in the Philippines.

    Shell is committed to push for the use of natural gas. “Shell has found success developing CNG in other parts of the world and it is our intention to do the same in the country,” Chua added.

    Supposedly operational by September 2005, Shell CNG operations were deferred to June this year due to “technical problems” in the mother station located in Tabangao, Bantangas, and the daughter station in Biñan.

    The CNG bus program provides incentives to participants, including income-tax holiday for pioneering projects qualifying; zero rate of duty on imported equipment, facilities, parts and components; preferential and exclusive franchises from LTFRB on newly-opened routes; accelerated issuance  of environment compliance certificates; and affordable and commercially tenable financial packages from GFIs, among others.

    The DOE has accredited seven bus operators that committed to acquire 185 CNG buses by  yeared: HM Transport Inc., 80 units; RRCG Transport System Inc., 20 units; KL CNG Bus Transport Corp., 40 units; Pascual Liner Inc., 20 units; Greenstar Express, 10 units; Biñan Bus line, five units; and CNG Vehicles Corp., 10 units.

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