ENERGY ALTERNATIVE FUELS

Persian Gulf tensions shift focus to NGV

YUTHANA PRAIWAN

The Energy Ministry will encourage more use of natural gas for vehicles (NGV) to ease the impact of any oil shortage that could result from renewed tensions in the Persian Gulf.

Metta Buntherngsuk, the director-general of the Energy Business Department, said officials were concerned that the Iran-US nuclear dispute could cause fuel shortages in Thailand. The government has initiated a campaign to increase NGV consumption and has said that natural gas resources would be secure in the event of an energy crisis.

The ministry hopes to increase production of NGV, gasohol and bio-diesel to at least 10% of total fuel consumption. It will also launch a campaign to boost consumer confidence in the safety of alternative vehicle fuels, particularly NGV.

He conceded that the state oil company PTT, which plays a key role in encouraging NGV consumption, had failed to persuade personal car owners to switch to NGV because of high engine-modification costs _ up to 50,000 baht per vehicle _ and the limited number of NGV service stations.

The company is now encouraging transport fleet operators to use NGV since trucks and passenger buses consume four to six times more fuel than personal cars. Large vehicle operators could recover their conversion expenses relatively quickly compared with individual car owners.

Daily consumption of NGV nationwide currently totals 17 million cubic feet or an oil equivalent to 3.4 million litres, up from 10 million cubic feet or two million litres in December last year. Gasoline consumption totals 18-20 million litres a day and diesel 53-55 million litres.

To promote NGV consumption, Mr Metta said, the ministry plans to set up a seven-billion baht loan fund for large vehicle operators wishing to convert their fleets to use NGV.

Of the total, five billion baht will be supported by PTT Plc and another two billion baht by the Energy Conservation Fund.

Participants will repay the loans, arranged by PTT, out of the money they pay for NGV. PTT will sell NGV to them for 24.50 baht per kilogramme, with 15 baht going to repay the loan and 9.5 baht going to pay for NGV at the current price. The 24.50-baht rate is equal to the current diesel price.

The target group of borrowers includes the Bangkok Mass Transit Authority and its affiliated private bus operators.

Bangkok Post

Monday April 09, 2007