PNOC-EC allots P400M for 2-yr nat gas program

MANILA, Philippines - State-run Philippine National Oil Co. Exploration Corp. (PNOC-EC) will spend P400 million in the next two years as the country bids to fasttrack its natural gas program for public vehicles.

PNOC-EC, which is into indigenous oil, gas and coal exploration and production, formalized yesterday its role as the lead agency in the natural gas vehicle program for public transport (NGVPPT).

“What we earmarked is P400 million. This year is P62 million to upgrade existing facilities and build another daughter station,” said Joseph Omar A. Castillo, vice-president for business operations of PNOC-EC.

Castillo said funds will come from internally-generated cash.

The company signed three memoranda of agreement “for the transfer to PNOC-EC of the lone set of mother and daughter CNG stations in Batangas and Laguna, which are owned by Pilipinas Shell Petroleum Corp.”

In a disclosure, PNOC-EC said it also took over the gas sales contract with the Malampaya consortium from Pilipinas Shell. It also agreed to provide CNG to bus operators.

Castillo said PNOC-EC will complete the takeover of the Mamplasan CNG refilling station in Laguna and storage facility in Batangas in the next six to nine months.

PNOC-EC will still have to finalize plan for takeover and conduct a bidding for equipment, Castillo said.

“When we are finally the one to operate Mamplasan, we are half the price [for CNG] if diesel is P48 per liter,” Castillo said.

PNOC-EC said it plans to build another CNG station at the Philippine Ports Authority in Batangas.

“As long as [bus operators] keep importing CNG buses and they get the franchise, we will build the stations,” Castillo said, adding that each station will cater to 20-30 buses.

The Department of Transportation and Communication (DOTC), for its part, will fasttrack the awarding of franchise to CNG buses, said Transport Undersecretary Efren Moncupa.

To date, there are 34 CNG buses with franchise plying the Manila-Laguna route. But 27 CNG buses, of which 20 will ply the Manila-Batangas route, still do not have franchise to operate.

“The DOTC has agreed...we will start processing the 27 buses for EDSA,” Moncupa said.

The NGVPPT was formally created with the signing and implementation of Executive Order 290 in February 2004.

CNG bus operators have been criticizing the government’s lack of effort to promote the utilization of natural gas in the transport sector which, according to them, could prevent fare hikes and at the same time help attain a cleaner environment.

“We are going to be aggressive in this program. We will aim for 200 CNG buses. The pilot project is until 2018,” Castillo said.

“The lower cost of CNG, as opposed to diesel and gasoline, is one of the major reasons in utilizing this fuel,” DOE said in a statement.

“Aside from this advantage, CNG buses are also exempt for the number coding traffic scheme,” DOE added.

To date, the six accredited CNG bus operators are HM Transport, Inc., RRCG Transport System, Inc., KL Transport, Inc., Greenstar Express, Binan Bus Line, and N. Dela Rosa Liner.