Feasibility Study On CNG Development 

Conducted by the Department of Energy (August 2001 - January 2002)

The "Natural Gas Utilization in Transport" project implemented by the Department of Energy (DOE) in cooperation with the Department of Science and Technology (DOST) and the Philippine National Oil Company (PNOC) yielded encouraging results and a positive response from the public. This paved the way for more commendable projects in pursuit of developing a gas market for the transport sector. In line with this, DOE  conducted a "Feasibility Study on CNG Development" as a continuing program for NGV. The project was funded by the Ministry of Economy, Trade and Industry (METI) under the Japan External Trade Organization (JETRO) Global Environment Study Program. The study consisted of two (2) phases.

Phase 1 looked into the development of laws and regulations for NGV promotion in the Philippines. Specifically, the study reviewed secondary data on the basic concept of NGV introduction in Metro Manila, evaluated the existing public transport system in the metropolis, assessed any NGV conversion program and CNG refilling station studies and studied the laws and regulations for NGV that will take into account both the technical and policy aspects of the plan. For the technical aspect, CNG fuel standard, fuel filling station, assembly kit standard and fuel tank standard were assessed while for policy, tax incentives, subsidies and transport fares were evaluated. The project was expected to come up with an NGV program that will lead to NGV commercialization in the immediate future.

Phase 2 of the study involved the establishment of the different businesses in the NGV commercialization in the country. This identified the participation of all the sectors involved in the NGV industry.

Phase 1 of the project was implemented by the DOE and the JGC Philippines while Phase 2 was headed also by DOE in cooperation with other concerned government agencies and the private sector. An assessment of initial data and information gathered by JGC through research was made with the view of developing a program to promote and commercialize NGVs in the country.

A two-day in-house Workshop Program on the Development of Natural Gas Vehicles was conducted last November 6 & 7, 2001 at the Manila Peninsula to establish the milestones and targets for NGV and CNG refilling stations in Metro Manila and to establish key policies and government-private sector initiatives.

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