Callandra LCNG eyes opening of six refilling stations middle of next year

August 26, 2009 10:50 am 

MANILA, Aug. 26 —- Local energy firm Callandra Liquefied CNG Fuels Corp. is targeting to open six CNG (compressed natural gas) refilling stations middle of next year.

Randall Antonio, president of Callandra LCNG said they are now holding negotiations with both local and foreign banks for the needed US$ 160 million budget for the compressed natural gas projects in the country.

He said 70 percent of their investment will be from banks and the 30 percent will be provided by the investors of Callandra which are based in London and the United States.

The six CNG refilling stations will be constructed in Manila, Las Pinas, Pasig, Quezon City, Pasay and Monumento while the CNG processing plant will be set up in Batangas.

The stations serve the needs of CNG-run buses in the country. Government targets around 200 buses to run on CNG this year.

On the other hand, Antonio asked the government to support and extend financial assistance to the CNG by using the royalties from natural gas projects and bring the price of CNG by as much as 40 percent lower than diesel prices.

“In all practical essence, costing should be subsidized by somebody. Maybe the government or Shell (as operator of the Malampaya gas to power project),” he said.

Last year, the Department of Energy (DoE) accredited Callandra as the first company to participate under the Natural Gas Program for Public Transport (NGPPT) to offer compressed natural gas (CNG) to the transport sector.

CNG, according to Mr. Antonio will be supplied from the Malampaya gas field but Callandra is also looking at importing natural gas from other countries like Indonesia, Malaysia, Iraq and Qatar.

Presently, there are 24 buses that uses CNG under the pilot project of Shell Philippines, which also operates the first CNG facility in Batangas. (PNA)

/V3/MSN/

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