Energy department meets Italian firm on CNG investment

MANILA, Philippines - Energy Secretary Angelo T. Reyes recently met with top executives of Italy-based BRC Gas Equipment, which manufactures and markets liquefied petroleum gas (LPG) and compressed natural gas (CNG) systems for vehicles. A statement Wednesday of the Energy department noted that Italian firm has expressed interest in participating in the government’s current initiatives to help drivers and operators of public utility vehicles cope with the continuing rise in prices of transport fuels via use of alternative fuels. The statement said BRC is known for equipment and kits for CNG and LPG conversion, and undertakes serial production of bi-fuel vehicles — or those which can run with either natural gas or gasoline — for major automobile makers. The company has a wide network of dealers and workshops on LPG/CNG systems in more than 60 countries, including Argentina, Pakistan, Korea and Brazil. Regulations In a phone interview, Energy Management and Utilization Bureau chief Mario C. Marasigan said that while the government welcomes any qualified investor in the Energy industry, BRC has yet to discuss a detailed investment plan in LPG and CNG conversion projects in the country. But he explained that the government, led by the Energy department, is now formulating the regulatory framework for new technologies needed for the development of alternative fuels to be introduced in the country. He said that they hope to finalize the guidelines within six to 12 months. Support infrastructure Aside from the Energy department, BRC executives had also met with Pilipinas Shell Petroleum Corp. and bus operators to explore the feasibility of constructing CNG mother and daughter stations using a hydraulic compressor system that allows full refilling of buses with CNG in just two minutes — from the current duration of about 15 minutes — to augment the government’s Natural Gas for Vehicle Program for Public Transport (NGVPPT). The NGVPPT is a project that aims to demonstrate the viability of using CNG for public transport units. Under the pilot phase of the project, one mother and one daughter CNG stations located in Batangas and Laguna, respectively, have been constructed to support 200 CNG buses. The government targets 2,000 CNG buses by 2010 which will require more of such support infrastructure. President Gloria M. Arroyo recently directed the allocation of P1 billion from Department of Transportation and Communication’s Special Vehicle Pollution Control Program to fund environmentally sustainable transport projects, particularly those that use alternative fuels. — A. Austria, BusinessWorld