Shell’s CNG refilling stations face delay

The Department of Energy (DOE) is expecting a slight delay in the construction of the mother-daughter compressed natural gas (CNG) refilling station of Pilipinas Shell Petroleum Corp.

"The rolling out of the mother-daughter CNG station may be delayed by two months. It may be ready by August 2005. So the fielding of CNG buses seen to happen in June this year will be delayed," Energy Undersecretary Peter Abaya said.

He said if 30 buses would be ready to fly the Metro Manila route by August, the remaining 270 buses will be ready by the end of this year. The DOE expects around 300 buses running on CNG to start servicing Metro Manila this year.

Abaya also revealed that aside from Shell, the Ukraine-based Sukhin Energy is also planning to put up a mother station in a still undisclosed location. Shell is putting up a mother CNG refilling station in Batangas and one daughter station in its South Luzon Expressway gas station.

According to Abaya, Sukhin’s plan to construct a mother station is yet to be finalized. Originally, Sukhin is just planning to put up two to four CNG daughter stations.

The Shell group is pouring in some P350 million for the construction of the mother-daughter refueling stations. Shell will sell CNG from its affiliate Shell Philippines Exploration B.V. (SPEX) at 40-percent discount compared to diesel.

For the first 18 months, Shell has agreed to sell CNG at P14. 52 per cubic meter based on a P56-to-a-dollar exchange rate. The price would change every 18 months, depending on the foreign exchange rate at that time. But overall, the discount would be within the 40-percent range.

Shell has signed agreements with five bus companies for refueling services for a total of 200 CNG-run buses, which would increase to about 2,000 under the government’s expanded CNG program.

Sukhin Energy and Philippine National Oil Co. (PNOC) has formed a joint venture company called SEgas Inc., to provide CNG infrastructure to the country’s transport sector.

Under the deal, PNOC will provide the leased lands for Sukhin Energy’s CNG mother station and two mobile daughter refilling stations which will be shipped from the Ukraine. This combination of equipment is capable of refilling up to 200 buses.

The joint venture will expand as required by the industry and as agreed by Sukhin Energy and PNOC.

Sukhin Energy is also working with the Makati City local government to implement the supply and conversion of the city’s vehicle fleet to CNG.

Makati is assisting Sukhin to deploy CNG infrastructure within the city and coordinating with bordering cities to employ CNG as a Cleaner Alternative fuel.

At present, 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 30 years experience in the design, building, deployment and operation of proven CNG equipment technology and methodologies.