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A
READER, Jorge Rillona, raised several questions
regarding compressed natural gas, or CNG. He wrote:
“Andy,
I read
your article today in the BusinessMirror and noted your
mention of CNG for alternate fuels. Last week I finally
decided to drop everything I was doing and drove down to
the only CNG fueling station I know, the Shell station
on the South Super Highway near Mamplasan Exit in
Laguna, to basically find out, ‘Hey, I’m a consumer.
Can I buy CNG from you?’
And the
answer to that question was basically ‘yes’...BUT that’s
only ‘if the government will allow you.’ Huh? So our own
government is STOPPING us citizens from purchasing a
product that comes from our own country? I think you
should go down there yourself, or maybe go to the DOE
(Department of Energy) and ask them some really key
questions:
§
Why is a
private company like Shell not allowed to sell CNG to
the general public?
§
Why are
there ‘propriety documents’ that the public is not
allowed to see, which is basically a government “check
list” of all the certificates and documents and other
things that are needed to buy CNG?
§
Why are
these 200 (rumored number) Chinese-made buses the ONLY
vehicles allowed to buy CNG?
§
Why were
only five (rumored number) bus companies out of all the
bus companies allowed to buy these CNG buses?
§
There is
some mention of a ‘pilot program’ of seven years. Why
seven years? In other parts of the developed world, I
can take my car in and have it converted and start using
CNG in less than seven days, not seven years. But here,
the government has a chokehold on CNG for seven years
and they are in effect ‘regulating’ its use and
distribution.”
I
forwarded the letter to Director Mario Marasigan of the
Energy Utilization Management Bureau, and here’s his
reply:
“Hi,
Sir,
Here is
my response to the queries of your reader:
1)
There is only one CNG (daughter) refilling station in
the country. This works in tandem with a mother station
located in Tabangao,
Batangas
City.
2) The
said CNG mother-daughter stations were established to
jump-start the government’s Natural Gas Vehicle Program
for Public Transport, or NGVPPT, with the pilot phase
involving some 200 buses plying the Batangas-Laguna-Metro
Manila routes. Seven bus companies applied and were
accredited under the pilot phase where 185 buses are
committed. However, only 22 buses are currently in the
country and only 11 units have passed the rigid (safety)
tests and certified to refill CNG at the daughter
station. While it is true that these CNG buses are from
China, there is no exclusive supply agreement for the
buses, the bus operators are free to choose their
suppliers and we have received offers from Korea, India,
the US and Europe. Malaysia has likewise offered to
supply CNG light vehicles, which they use for taxi
operation in their country.
3) The
NGVPPT pilot phase is not designed for full commercial
operation yet and only accredited buses are allowed to
refill CNG at the daughter station primarily due to
safety consideration and because it is our very first
time to adopt CNG technology. We do not have complete
expertise yet, even if the same is relatively mature in
other countries. The pilot phase also aims to provide us
the technical and economic feasibility of implementing
the NGVPPT. All of the above-cited conditions in
implementing the pilot phase are contained in a formal
agreement among the current key players in the NGVPPT.
4) The
price of CNG of P18+/kg (P14.52 per normal cubic meter
or liter-diesel equivalent to be exact) is in accordance
with the above-cited agreement. Such CNG price was
determined in 2003 when diesel was still in the vicinity
of P22 to P25/liter and was aimed at no less than 30
percent lower than diesel. The same shall be offered to
accredited bus operators for seven years under the pilot
phase. The actual startup of the pilot phase, however,
was delayed for more than two years and price
adjustments could not be effected, with due
consideration to bus operators who have ordered their
buses since 2005. These buses lay idle for more than two
years but operators have to pay their amortizations for
their loans. Moreover, I wish to point out that the
tariff structure for CNG is currently based on power
generation (main user of CNG) and not for transportation
(similar to the auto-LPG, which is primarily based on
household use). The pilot phase should be able to
provide us more appropriate tariff and price structure
for NGVPPT.
5) We
cannot offer CNG to all consumers at this time and we
require all bus operators to use OEM buses. We cannot
accommodate repowered/retrofitted vehicles due to lack
of service facilities and providers in the country and
with utmost consideration to safety. The introduction of
the NGVPPT through the pilot phase should capacitate not
only the government (particularly the regulatory
agencies) but also the private sectors providing
appropriate services and facilities. Unlike auto-LPG,
which has been in the country for more than 10 years
(particularly in Cebu), NGVPPT is indeed new to us.
6) We
have recently accredited a private-sector NGVPPT
participant. The company, based on its business plan,
will put up at least nine CNG refilling stations in
Metro Manila. Its operation shall be beyond the scope
of the pilot phase and in full commercial basis, wherein
they can offer CNG to all potential consumers. The CNG
price, however, will be based on their contract supply
agreement.
I am,
however, curious about your reader’s intention of
filling up at the Mamplasan CNG station. So far, we have
not received any information on CNG vehicle technology
in the country except those covered by the NGVPPT and
some demonstration units from Korea, India and Malaysia,
which are currently housed in the DOE. It should be
noted that auto-LPG vehicle technology is different from
CNG vehicle technology—the components of fuel LPG and
CNG are not the same. The fuel systems are likewise
different because LPG is in liquid form, while CNG is
compressed gas, which will require a fuel cylinder that
can withstand pressure between 200 and 300 psi. If he
has one, he should register it appropriately and have it
tested by the Bureau of Fire Protection.
Best
regards and more power!” |
