Local investor groups eye CNG refilling stations

A group of local investors has expressed interest in putting up compressed natural gas (CNG) mother-daughter refilling stations, a ranking energy official said.

Department of Energy director Mario Marasigan said a group from the local transport sector has signified interest to pool their resources to construct a CNG refilling station.

But Marasigan said the group has yet to formalize this plan. "They have yet to firm up their plan and will inform the DOE soon," he said.

Marasigan declined to identify the group as their indication to undertake the CNG project is "still on preliminary stages".

Aside from the local group, he said Chinese group Synergy is still keen on constructing CNG refilling stations.

Marasigan said the Shell group has already informed the DOE of its timeline for the construction of the country’s first CNG mother-daughter stations.

"They told us verbally that they would finish the construction by May 2007," he said.

He said commercial operations of the CNG station, would commence by June 2007.

As a pioneer in the upstream natural gas sector, Shell has been given the sole right to pilot test the setting up of mother and daughter CNG refilling stations.

The DOE, however, decided to draw up a set of guidelines that would carry policy declarations on "open access" for CNG-related projects.

Based on the natural gas development program of the government, the DOE will see to it that around 10 CNG refueling stations will be built in two years’ time, or from 2006 to 2007.

Initially, the government will source its natural gas requirement for the transport sector from the Malampaya natural gas project.

The DOE has accredited seven bus companies to initially run about 185 units of CNG buses in the country’s major thoroughfares. These include: HM Transport Inc. (80 units); RRCG Transport (20 units); KL Transport Inc. (40 units); Pascual Liner (20 units); BBL Transport System Inc (five units); Greenstar Express Inc., and CNG Vehicles Corp. (10 units).

The DOE is targeting a minimum of 2,000 buses to a maximum of 3,000 buses running on CNG over the next 10 years.