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The
Department of Energy (DoE), Pilipinas Shell Petroleum
Corporation (PSPC) and the Malampaya consortium composed of
Shell Philippines Exploration B.V. (SPEX), Shell Philippines
LLC, Chevron Texaco Malampaya LLC and PNOC-Exploration
Corporation (PNOC-EC) today signed a memorandum of agreement
(MoA) formalizing their cooperation in the implementation of
a compressed natural gas (CNG) for public transport pilot
project.
 The
agreement was signed by Energy Secretary Vincent S. Perez (left
photo), Spex managing
directors Jeremy Cliff and Peter Van Driel, Chevron Texaco
vice-president Karl L. Cottrell, PNOC-EC president Rufino B.
Bomasang and PSPC president Eliseo B. Santiago.
"This
agreement is a milestone in our effort to develop the
downstream natural gas industry. We are setting new
standards in air quality in the transport sector with the
use of CNG-fuelled buses. But more importantly the
agreement will eventually give our commuting public lower
transport fares because natural gas will be sold at a
significantly lower price than the prevailing cost of
diesel," Secretary Perez said.
Under the
agreement, the Malampaya consortium will sell CNG to PSPC at
a price significantly lower than the prevailing diesel pump
price for the next seven years from the operation of the
refueling system.
The seven-year
pilot project aims to study and evaluate the commercial
viability, technical requirements and market demand of
CNG-fueled public utility buses. The pilot project
supports
the Natural Gas Vehicle Program for Public Transport
(NGVPPT) launched by President Gloria Macapagal-Arroyo last
October 16, 2002. The NGVPPT endeavors to promote the
use of natural gas in the transport sector to help ensure
fuel supply security and diversity as well as improve air
quality.
Specifically,
the project will provide participants with experience and
knowledge in operating CNG-fueled buses and CNG-related
infrastructure. Under the agreement a so-called
mother-daughter refueling system will be established given
the absence of a natural gas pipeline that will transport
the natural gas from onshore gas plant in Batangas to the
end-user in Metro Manila.
SPEX, in behalf
of the Malampaya Consortium, will finance the design,
construction and operation of a CNG "mother"
station located within the Malampaya onshore gas plant in
Batangas.
 PSPC,
on the other hand, will finance the design and construction
of a "daughter" station in Batangas City or
Laguna. The mother will serve the CNG requirements of
the daughter station, which in turn can supply the gas needs
of about 70 to 200 CNG-fed public utility buses.
At present, RRCG
Transport Systems, Inc. and Philtranco, which have franchise
operations plying the routes of Batangas-Manila and
vice-versa, are expected to use the Malampaya gas as fuel
source.
 RRCG
has recently received P87 million funding support from the
Development Bank of the Philippines (DBP) for the purchase
of 20 brand new CNG-fired buses. Philtranco, for its
part has committed to acquire 100 CNG-fueled buses.
The refueling
system was expected to be operational last February 2004. |
