Philippine Energy News

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Sunday, May 07, 2006

DoE lists 3 more Chinese companies likely to invest in CNG facilities here

Manila Bulletin
May 8, 2006


At least two to three more Chinese firms are being eyed by the Department of Energy (DoE) to invest in compressed natural gas facilities in the country.

But DoE director Mario C. Marasigan noted that the project proposals are still being evaluated, "we need more documentation from them."

Since these are not formally considered as parties yet, the energy official stressed that he is constrained from divulging their identities at this point.

If ever, these expected investments will add up to earlier proposals by another Chinese consortium Synergy; US-based firm Callandra and the plan of Korean firm Samsung Heavy Industries Co. to tie up with Philippine National Oil Company for a CNG mother-daughter facility.

Synergy for one has committed 0-million investment; but implementation has yet to take off.

"Synergy already has a business plan," Marasigan said. Its feasibility study was due March 1 this year. Covered in its proposed project blueprint are CNG refueling system that includes mother-daughter refilling stations, mobile refueling facility and other facilities as deemed necessary.

With the astronomical rise in global oil prices, the government is pushing ahead the implementation of its self-devised natural gas fuel shift for public transport.

The pilot CNG mother-daughter stations with integrated refilling facilities have already been facing delays in commercial operation schedule.

To position natural gas for long-term use of the transport sector, it was noted that more advanced infrastructure should also be set in place, such as pipelines, to support the program.

The promotion and increased utilization of alternative transport fuels such as natural gas is all in keeping with the government’s goal to lessen the country’s dependence on imported fuel; especially at the regime of surging global oil prices.

The energy department takes in the responsibility of providing assistance in the preparation of relevant study on the viability of investments in the Natural GasVehicle Program for Public Transport (NGVPPT). Department Circular No. 2004-04-004 provides tha( participants in the government-devised NGVPPT are required to file an application for certificate of accreditation (CA) fromthe DoE.

Qualified applicants can be categorized as either engaged in the manufacturing or assembly,operation, retrofit or conversion and CNG refueling station operation for natural gas-fired vehicles.

The DoE also previously issued Department Circular No. 2005-07-006 setting open access to the naturalgas sourced or produced from future or existing petroleum service contracts such as the Malampaya andthe San Antonio, Isabela gas fields.

Upon commissioning of theanticipated motherdaughter CNG refueling station by Shell Philippines, at least 200 buses fueled by natural gas are expected to ply the ManilaBatangas and Manila-Laguna route. (MMV)

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