CNG investments in RP seen to reach $100 M

Over $100 million worth of new investments are expected to be poured into the country’s compressed natural gas (CNG) industry, a top executive from a global energy company said.

During the CNG-NGV (Natural Gas Vehicle) Philippines Forum 2008 attended by leading international CNG players, potential investors from the United States, Canada, Korea, China, India, Singapore, Thailand and Malaysia have signified interest in the development of CNG particularly in the transport sector, said Lev Zaidenberg, chief executive of US firm Energtek Inc.

The companies that attended the forum include Energtek Inc.; IMV Industries Ltd.;  Shanghai Diesel Engine Co. Ltd.; OMB Saleri S.P.A.; Oasis Engineering; Asia Pacific Natural Gas Vehicles  Association; Beijing Landi Renzo Autogas Systems Co. Ltd.,Youngdo Ind. Co. Ltd., PTT PLC; Petronas;PT Citra Nusantara Gemilang; CNG Services International Inc. and Smart Energy.

Zaidenberg told reporters at the forum that he sees investments for the conversion program of tricycles to CNG-run vehicles and the setting up of licensed garage CNG filling stations alone could reach over $100 million.

Energtek was able to convert the first batch of tricycles to run on CNG in July 2008 in Isabela, using natural gas sourced from the San Antonio field of the PNOC-Exploration Corp.

The company, he said, is now looking at the possibility of bringing in CNG Lite system, a technology that Energtek uses, to Cebu.

CNG Lite is a complete energy supply solution for small vehicles powered by the so-called adsorbed natural gas technology, which enables hi-tech and cost-effective storage of natural gas by maximizing the quantities of gas stored in a tank.

CNG greatly reduces the infrastructure, fueling, and energy costs of supply solutions to consumers where no pipeline or refueling infrastructure is present. 

Zaidenberg said they are still in preliminary talks with Cebu local government officials for the project.

According to Zaidenberg, they would also be able to bring in their technology to Metro Manila and other provinces if they could get firm commitment on where to source their natural gas requirement.

He said they are still in the initial stages of discussions with the Malampaya consortium for the possible supply of gas to support Energtek’s expansion program.

He said Energtek is also negotiating with two microfinance banks to provide financing to tricycle drivers who will opt to avail of their technology.

The conversion, he said, would amount to $500 per kit. “This is the reason why we are arranging microfinancing for those who would want to convert their vehicles into CNG-run,” he said.

He said they would also be studying the feasibility of offering the same technology to marine transportation.