Sukhin and PNOC plan to construct a mother station and two mobile daughter refilling stations for compressed natural gas (CNG) buses.
DOE Secretary Raphael Lotilla said CNG will reduce the transport sectors dependence on oil-based products.
The energy chief said about 35 CNG-run buses will start plying the Metro Manila routes by next month and another batch of 165 buses by December 2005.
The CNG-run buses would eventually increase to about 2,000 under the governments expanded CNG program.
Sukhin Energy and PNOC has formed a joint venture company called SEgas Inc. to provide CNG infrastructure to the Philippine transport sector. The formation of the joint venture will be supported through a tripartite agreement with the DOE.
Under the MOU, PNOC will provide the leased lands for Sukhin Energys CNG mother station and two mobile daughter refilling stations, which will be shipped from the Ukraine. This combination of equipment is capable of supporting the refilling of up to 200 buses.
Sukhin Energy is also working with the Makati City local government to implement the supply and conversion of the citys vehicle fleet to CNG.
The City of Makati is assisting Sukhin to deploy CNG infrastructure within the area and coordinating with bordering cities to employ CNG as a cleaner alternative fuel.
Sukhin Energy is studying the process of deploying fixed and mobile units to support the conversion and future requirements of the city.
Sukhin Energy has over 30 years experience in the design, building, deployment and operation of proven CNG equipment technology and methodologies.