Callandra eyes Shell's compressed natural gas station

MANILA, Philippines - Oil refiner Pilipinas Shell Petroleum Corp. may enter into a sales agreement with Callandra Liquefied CNG Fuels Corp. for a possible buyout of its compressed natural gas (CNG) refilling station in Mamplasan, Laguna.

Callandra president Randall Antonio told reporters over the weekend that they are now in serious discussions with Shell on the possibility of acquiring the facility.

“We actually have a standing offer, proposal to take over and buy out the Mamplasan station. There are ongoing talks,” Antonio said.

If the purchase pushes through, Antonio said they would apply the latest CNG technology in the facility.

“We will rehabilitate and we will prove that the technology is viable,” the Callandra official said. “We want   to show and demonstrate that the program is viable.”

Antonio said the parties are also seeking the approval of the Department of Energy (DOE) to properly check all legalities.

Antonio did not reveal the possible purchase price of the Mamplasan CNG refilling facility.

It would be noted that the Mamplasan facility’s project cost then was placed at $6.2 million.

Aside from a refilling station for CNG-run buses inaugurated in March 2008, a CNG refilling facility for sedans had also been put up at a Shell station in Mamplasan in April 2008.