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Friday, July 18, 2008

 

DOE, private sector to put up CNG stations

 
THE Department of Energy plans to team up with the private sector to establish compressed natural gas (CNG) refilling stations in Metro Manila.

Mario Marasigan, Bureau of Energy Utilization and Management director, said the department is planning to put up one or two CNG refilling stations.

He said that this move is in response to the lack of such facilities for the alternative fuel, which the government is promoting to mitigate the effects of high oil prices on the transport sector.

On Wednesday, President Gloria Arroyo announced a P500-million fund to be culled from the value-added tax imposed on oil for the conversion of public transport vehicles to liquefied petroleum gas (LPG) and CNG use.

LPG and CNG are relatively cheaper than regular fuels, with CNG available from the Shell-operated Malampaya natural gas field.

Shell is also the only company operating a CNG refilling station in the country in its pilot project in Biñan, Laguna, that caters to a handful of buses running on the alternative fuel.

Industry officials said that unless a pipeline that will deliver the Malampaya’s supply across the country is put up to minimize costs, the petroleum sector would be hard pressed putting up CNG refilling stations.

Because of this, “government intervention” is needed through the proposed partnership with the private sector to put up the stations, Marasigan said .
-- Euan Paulo C. Añonuevo

  
 

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