PNOC pursues natural gas tieup with Petronas

The decision of Malaysia-based Petrolian Nasional Berhad (Petronas) to stay out of the Philippines’ first naphtha cracker project will not affect its plan to be Malaysia-based Petroliam Nasional Berhad (Petronas) partner of Philippine National Oil Co. in pushing for the development of the country’s natural gas industry, PNOC president Thelmo Cunanan said yesterday.

Cunanan said they are looking at the possibility of forging a partnership with Petronas to put up natural gas refilling stations in some parts of the country.

He said PNOC has just renewed its lease agreement with Petronas for the use of CNG-run vehicles of the Malaysian oil firm for another year.

In June last year, PNOC signed a memorandum of understanding (MOU) that will allow PNOC to lease six units of Enviro 2000, an environment-friendly, energy efficient and economical natural gas vehicle (NGV).

This is in line with the government’s thrust to use cleaner fuel in the transport sector. Among the first transport companies that signified interest to use CNG in its vehicles is California Bus Lines which is contemplating on acquiring at least 100 units of NGVs in the second half of 2003 as the conversion and use of NGVs are expected to be intensified within this period up to 2012.

"President Arroyo wants us to accelerate the setting up of refilling stations since some transport groups have agreed to use compressed natural gas (CNG) in their vehicles in the next few months," Cunanan said.

Cunanan said they are planning to construct the CNG refilling station in the 1,000-2,000 square meter property of PNOC in Fort Bonifacio. He said they expect to start the construction of the said station by middle of this year.

According to Cunanan, PNOC will be sending a technical group to the Visayas region to study the prospects of putting up another refilling station in the area.

He said a number of bus operators – (Metro Manila Bus Operators, Integrated Metro Manila Bus Operators Association, Southern Luzon Bus Operators, Inter City Bus Operators, Provincial Bus Operators) – have signed a manifesto to express their advocacy to the government’s Natural Gas Vehicle Program for Public Transport.

The utilization of natural gas in transport is also in parallel with the Clean Air Act which mandates to reduce pollution in the country by requiring oil companies to lower sulfur, aromatics and benzene content of diesel and gasoline fuel for vehicles within a period of two to three years.

Aside from PNOC, Shell Philippines Exploration B.V., Lopez-controlled First Gas Power Corp., and Petron Corp. will spearhead the establishment of refilling stations and related facilities to meet the projected gas demand for NGVs.