Doubts loom on availability of cheap natural gas
October 11, 2004 | 12:00am
Bus companies which purchased 140 new units running on compressed natural gas (CNG) are now in trouble after the Malampaya consortium has aired doubts on its capability to supply CNG at low prices as promised.
In a recent meeting with the bus companies, representatives from the Malampaya consortium composed of Shell Philippines Exploration B.V., Shell Philippines LLC, ChevronTexaco Malampaya LLC, and PNOC Exploration Corp., reportedly disclosed that they will be unable to sell CNG at the agreed price of not more than P10 per liter in the first few years.
Prior to the purchase of the buses, the companies were told that Malampaya could sell CNG to them at P4 to P5 lower than the prevailing price of diesel. Diesel is now being sold at more than P21 per liter.
But the consortium reported recently that they want a "return on investment" or ROI from the hefty amount they would invest in putting up CNG refilling stations in strategic locations in Metro Manila.
An officer of one of the bus companies bewailed the consortium’s move, saying that it was a breach of promise by the government through the Department of Transportation and Communications (DOTC), the Department of Energy and the Malampaya consortium.
The officer, who requested anonymity, said that the assurance of cheap CNG and the promised priority status in the granting of franchises for lucrative routes were what enticed them to make a huge investment in buying the expensive brand-new bus units running on CNG from China.
"We will suffer losses because of this sudden change. They can‘t just make such changes. This is very unfair," The Star source said.
Five major bus companies — HM Transport, First CNG Inc., Greenstar Express, NGV Adbus Corp. and RRCG Transport Systems Co. — purchased 140 CNB buses from two Chinese bus manufacturers Anhui Ankai Automobile and Zhengzhou Yutong Company last August.
The deal was one of those signed by President Arroyo during her state visit to China.
The DOTC sees the Natural Gas Vehicle Program for Public Transport (NGVPPT) as a way to encourage bus companies to modernize their fleets and at the same time push them towards using bus units that run on cheaper fuel that is more environement-friendly.
CNG is supposed to be provided by the Malampaya natural gas field in Palawan now owned by the Malampaya consortium. — Rainier Allan Ronda
In a recent meeting with the bus companies, representatives from the Malampaya consortium composed of Shell Philippines Exploration B.V., Shell Philippines LLC, ChevronTexaco Malampaya LLC, and PNOC Exploration Corp., reportedly disclosed that they will be unable to sell CNG at the agreed price of not more than P10 per liter in the first few years.
Prior to the purchase of the buses, the companies were told that Malampaya could sell CNG to them at P4 to P5 lower than the prevailing price of diesel. Diesel is now being sold at more than P21 per liter.
But the consortium reported recently that they want a "return on investment" or ROI from the hefty amount they would invest in putting up CNG refilling stations in strategic locations in Metro Manila.
An officer of one of the bus companies bewailed the consortium’s move, saying that it was a breach of promise by the government through the Department of Transportation and Communications (DOTC), the Department of Energy and the Malampaya consortium.
The officer, who requested anonymity, said that the assurance of cheap CNG and the promised priority status in the granting of franchises for lucrative routes were what enticed them to make a huge investment in buying the expensive brand-new bus units running on CNG from China.
"We will suffer losses because of this sudden change. They can‘t just make such changes. This is very unfair," The Star source said.
Five major bus companies — HM Transport, First CNG Inc., Greenstar Express, NGV Adbus Corp. and RRCG Transport Systems Co. — purchased 140 CNB buses from two Chinese bus manufacturers Anhui Ankai Automobile and Zhengzhou Yutong Company last August.
The deal was one of those signed by President Arroyo during her state visit to China.
The DOTC sees the Natural Gas Vehicle Program for Public Transport (NGVPPT) as a way to encourage bus companies to modernize their fleets and at the same time push them towards using bus units that run on cheaper fuel that is more environement-friendly.
CNG is supposed to be provided by the Malampaya natural gas field in Palawan now owned by the Malampaya consortium. — Rainier Allan Ronda
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