Thailand promoting CNG use for vehicles

Jan. 10, 2001
Thailand, which uses its considerable gas reserves to meet a third of its total commercial petroleum requirement, is promoting natural gas as vehicular fuel. The cabinet-approved plan would promote natural gas vehicles (NGVs). About 60% of Thailand's commercial petroleum demand is used for transportation.


BANGKOK�Thailand, which uses its considerable gas reserves to meet a third of its total commercial petroleum requirement, is promoting natural gas as vehicular fuel.

The high oil price is prompting use of compressed natural gas (CNG) in the kingdom's transportation sector. Thai energy planners have wanted more CNG use in vehicles for nearly a decade, but were thwarted by low oil prices and the high cost of CNG vehicles.

The cabinet-approved plan would promote natural gas vehicles (NGVs). About 60% of Thailand's commercial petroleum demand�904,200 b/d in the first 9 months of 2000�is used for transportation.

Thai energy authorities want to substitute 10% of the total oil demand in transportation sector with natural gas in the next 5 years through a program estimated to cost 959 million baht ($22.83 million).

The plan would promote CNG for taxis, buses, and garbage trucks, and CNG filling stations in Bangkok and its suburbs.

To spearhead the drive, the Petroleum Authority of Thailand (PTT) and the state-managed Energy Conservation Fund are providing up to 44 million baht to modify 1,100 Bangkok taxis into CNG vehicles at no charge.

About 58,000 taxis operate in the Thai capital. About 70-80% of them use LPG, the price of which is heavily subsidized.

The CNG program would install a gasoline-CNG system costing 40,000 baht/vehicle on selected taxis. Conversions will begin this month.

Also, 270 million baht will be spent to convert up to 300 Bangkok buses, and 160 million baht for 250-300 garbage trucks of the Bangkok Metropolitan Administration, all by mid-year. And, 420 million baht will be used to buy 70 new CNG buses.

About 190 million baht will be spent to build five CNG filling stations in Bangkok and nearby provinces as well as modernizing the country's only existing CNG filling station in Rangsit, in Bangkok's northern outskirts.

By 2005, the plan calls for as many as 30 CNG filling stations to be built along existing gas transmission or distribution lines.

PTT has pledged to price CNG at 50% less than diesel and 60% less than gasoline to offset the costs of CNG conversions and new CNG vehicles.