CNG bus owners urge DOE to speed up natural gas program

MANILA, Philippines -  Owners of buses running on compressed natural gas (CNG)-run bus owners are urging the Department of Energy (DOE) to strive harder in pushing for the use of natural gas in the transport sector.

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.

“The bus operators are willing to retain the current fare prices without anticipating future application for fare increases as the CNG is priced at P18.38 per kilo. This locally sourced fuel is not dependent on the demand supply fluctuations of world oil prices. This is the solution to the stability of fare costs that contributes to inflation which the majority of the poor Filipinos share as instantly than anybody else,” the group said in a statement.

The group said up to now, there are issues that have yet to be resolved by the government with regard to the use of natural gas-run vehicles.

“In April 2008, a daughter station for the refilling of CNG buses was opened in Mamplasan Biñan, Laguna. This Mamplasan station supplies natural gas to the CNG dedicated buses that participated in the Natural Gas for Vehicle Program for Public Transport’s (NGVPPT) pilot project. The natural gas being sourced from Malampaya in Palawan was identified by the government as possible fuel for buses and through an Executive Order the pilot project was implemented,” the group said.

The DOE signed an agreement with Pilipinas Shell Petroleum Corp. (PSPC) for a pilot CNG project for the transport sector. The test period which started several years after the agreement was signed or in 2008, was supposed to run for seven years and would have involved 200 CNG-run buses.

Under the agreement, PSPC agreed to put up the mother-daughter stations and supply its gas needs of up to 200 buses for the duration of the pilot program.

Shell had expressed interest to “back-out” from the second phase of the project, which involves additional CNG mother and daughter stations. Due to birth pains, the PSPC’s pilot test for CNG had encountered a number of technical problems.

“As the government through DOE confirmed the technical inefficiencies of the station and the reluctance of PSPC to upgrade the system (PSPC operates the station), PNOC-EC was tapped as new station operator and build another station in Batangas and upgrade the current station. This government move was considered a second wind of the Bus Operators to recover its losses,” they said.