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NGC to invest $500 million in CNG conversion

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A CNG car kit. Photo courtesy cartalk.in
A CNG car kit. Photo courtesy cartalk.in

June 26, 2013:  

The National Gas Company (NGC) will invest $500 million in developing phase one of a two phased five year CNG plan for all vehicles in Trinidad and Tobago.

Minister of Energy and Energy Affairs, Kevin Ramnarine made the announcement during the weekly post-Cabinet news conference which was held at the Office of the Prime minister in St. Clair.

“CNG has been an alternative to gasoline and diesel as we have a significant natural gas reserve. However previous plans to do this have never bore fruit,” Ramnarine said.

He explained that phase one of the plan would involve the conversion of 17,500 vehicles- maxi-taxis, buses, government vehicles and high mileage vehicles to CNG.  Ramnarine said the cost for the conversion of the vehicles would be covered by the NGC as there will be no cost to the state agencies.
To implement this, the Minister said a subsidiary company of the NGC would be created.

The second phase of the project, which has not been approved by Cabinet as yet, would involve the construction of 22 CNG stand-alone stations and the instillation of CNG pumps in existing stations.

“The benefits is a saving in subsidy for the Government. In 2012 the fuel subsidy was $ 404 billion. If we reduce this subsidy we can do other things. It would also free up the fuel usually use locally for export. Also, CNG is a low carbon fuel, also known as a green fuel,” Ramnarine said.

The Minister also explained that when both phases come on stream the price of CNG would also be reduced. Currently, CNG is priced at $1.07 per liter. Ramnnarine explained that price should drop to $1.00 per liter.



 

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