PGMA’s Speech during the 1st Year Anniversary of the Malampaya Deep Water Gas-to-Power Project and the Government’s Natural Gas Vehicle Program for Public Transport last October 16, 2002 at the Energy Center Compound, Fort Bonifacio, Metro Manila

"A year ago, we opened the door of Malampaya deep water gas-to-power project. Malampaya is a partnership between Shell, Chevron and PNOC (Philippine National Oil Co.). Kaya dito natin sine-celebrate ang ating anniversary sa PNOC compound. The use of the Malampaya gas reduced the dependence of our power sector on petroleum.

Now, on its first anniversary, we want to move a step forward in independence, not only the independence of the power sector but also the transport sector.

First and foremost…the other day when I visited Toyota to listen to their expansion plans, where they will produce transmission for the Japanese market, they donated to the Office of the President a vehicle that runs only one half on gasoline. It runs one half on gasoline and one half on battery power. This is an important vehicle. That is why I am lending it to the Department of Energy (DOE) so that they can propagate, demonstrate and let people know about its availability because that reduces our dependence on fuel gasoline.

I am also pleased today to let you know that since Malampaya has been operating- Sta. Rita, San Lorenzo and Ilijan- all of these gas plants are using Malampaya gas with a combined capacity of 2,700 megawatts have contributed 18 percent of our energy requirements. And if there should be, which is not likely, a crisis of supply from the Middle East, Malampaya can even provide up to 25 percent of our requirements. Versatility is imperative in the long-term.

And besides energy self-sufficiency, the good thing about Malampaya is that the energy that they are providing us is clean energy. And it is a good new way of thinking. So much so, that in the Johannesburg Summit, the Malampaya project got an award as an outstanding investment on sustainable development.

And now we have a relevant twin event to reduce our dependence on oil and also to bring about clean fuel for our transport sector.

The DOE has converted a diesel engine Isuzu Hi-Lander vehicle to a 100 percent natural gas engine unit. That is the first natural gas vehicle or NGV in the country. This is part of the conversion of three more vehicles, two shuttle buses in the December 2001 and January 2002 and a Nissan patrol vehicle in January 2002. Then PNOC jointly with Petronas developed the Enviro 2000 taxi units. This is Filipino resourcefulness at its best. And we want to have all of these on the ground, on the streets, on the road so that we can be less dependent on oil but also more in keeping with clean sources of energy.

And so I congratulate the people of this pioneering venture, the DOE, PNOC and Petronas Malaysia, those who developed these vehicles.

And now I want to promote the transport sector with this kind of fuel- the environment-friendly compressed natural gas. Accordingly in order to promote the use of compressed natural gas, we are doing the following policy initiatives.

One, the DTI (Department of Trade and Industry) will classify the natural gas conversion kits as spare parts. Therefore, the tariff will only be one percent.

The BOI (Board of Investments) will also enhance the existing package for natural gas conversion kits, original engine manufacturers and other related-facilities for more incentives from the BOI.

Third the DOTC (Department of Transportation and Communications) through the LTO (Land Transportation Office) will consider as having complied with emission standards those who use natural gas.

Fourth, the LTFRB (Land Transportation Franchising and Regulatory Board) will grant three franchises for natural gas bus fleets, two for the Batangas-Manila route and one for the Batangas-Bicol route.

And I understand there is already a bus company that intends to undertake a pilot project involving up to 100 buses next year using compressed natural gas.

I am asking also Shell, Caltex Chevron-Texaco, and First Gas to construct CNG refilling stations and related facilities. And I am asking the Malampaya consortium to supply natural gas for transport at one half the price of diesel.

Fifth, the DENR (Department of Environment and Natural Resources) shall fast track the issuance of the ECC (environment compliance certificate) needed for the natural gas facilities and refilling stations.

Sixth, the DBP (Development Bank of the Philippines) will establish a financing window to promote the use of natural gas vehicles and related infrastructure facilities.

Seventh, the DOST (Department of Science and Technology) will promote and develop locally manufactured conversion kits.

Eight, according to MMDA (Metro Manila Development Authority) chairman Bayani Fernando we will consider opening C5 for buses but only for buses using CNG.

The DOE will spearhead all these efforts. That is why it has turned over to me today the natural gas policy and regulatory framework. This is part of the long-term plan of the Doe which is the holistic energy plan for our country for the next decade.

So once again we congratulate Malampaya, all the partners Shell, Chevron and PNOC and to all the movers and shakers of our new natural gas transport program more power to you. 

Thank you."

A PUBLIC SERVICE OF EXCALIBURCNG HAULING, STORAGE & DISTRIBUTION, INC.