Shell Still Keen on Natural Gas

Pilipinas Shell, the country’s second largest oil refiner and retailer, is prepared to make additional investments in the downstream natural gas sector, but the government must first put in place the pipeline infrastructure needed to make the business less risky, Edgar Chua, Shell country chairman, said.

natural gas buses

“If that time comes, we can always come back and set up the downstream infrastructure if we want to participate,” Chua said.

“When the infrastructure is there, then it’s an easier decision, we can just say we want to come back and build a network of CNG (compressed natural gas) refilling stations,” he added.

Shell was among the major stakeholders in the Natural Gas Vehicle Program for Public Transport (NGVPPT) created under Executive Order 290 in February 2004.

Shell operates the Mamplasan CNG refueling station, the country’s only such refueling site for transport, which serves about 30 buses plying the Batangas-Manila route. The station is part of the pilot program for NGVPPT,

Chua said the pilot program encountered problems because of the absence of a pipeline to deliver gas from import terminals to the refueling station.

“We have met our commitment, although we have encountered problems in keeping a steady supply because of the infrastructure. The purpose of that pilot is to determine the feasibility of putting in a mother and daughter station without a pipeline,” he said.

“Our experience shown that it’s very difficult,” he said.

The NGVPPT was intended to partially liberate the country from unstable world crude prices.

Based on the Department of Energy’s time table, about 200 CNG buses would have been plying the Batangas-Manila route by 2006 and about 2,000 CNG buses was suppose to be on the road, supported by 10 CNG refueling stations directly operational, by 2007.

Only about 30 buses are running on CNG up to this date.

The DOE said that it is set to come out with the rules governing the bidding process for natural gas infrastructure by three months.

Energy Secretary Jose Rene Almendras said that by that time, the World Bank and Japan International Cooperation Agency would have completed the feasibility study they are conducting for the development of natural gas facilities, including import terminals, pipeline and power plants.

(source: Business Insight)

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