PGMA's Speech during the First Year Anniversary Celebration of the Malampaya-Camago deepwater gas to power porject and launching ceremony of the natural gas for public transport program

PGMA's Speech during the First Year Anniversary Celebration of the Malampaya-Camago deepwater gas to power porject and launching ceremony of the natural gas for public transport program

Department of Energy Compound, Makati City (16 October 2002)

GOOD MORNING.

SECRETARY VINCE PEREZ; SECRETARY LARRY MENDOZA; MMDA CHAIRMAN BAYANI FERNANDO; PNOC CHAIRMAN SERGE APOSTOL; THE OTHER UNDERSECRETARIES WHO ARE HERE, ART VALDEZ OF DOTC; DEMETRIO IGNACIO OF DENR; EMMANUEL DE DIOS OF DOE; PEDRO AQUINO OF PNOC; OUR FRIEND FROM SPECS, JEREMY CLIFF; OUR INVESTORS AND FRIENDS OF THE ENERGY SECTORS; YUNG MGA LIDER NG TRANSPORT SECTOR SI CLAIRE AT LAHAT NG MGA BUS OPERATORS; AT JEEPNEY OPERATORS NA NARITO:

SALAMAT MULI DAHIL PUMAYAG SILA NA HINDI MUNA MAGTATAAS NG PRESYO NG TRANSPORTASYON. ANG HINIHINGI LAMANG NILA SIKAPIN NAMAN NATIN NG BUONG -- KUNG SINONG MAKANGYARIHAN SA PRESYO NA HINDI LUMAMPAS SA 15.50 ANG PRESYO NG DIESEL.

KAYA ITONG ARAW NA ITO, ETO ANG ATING SINISIKAP NGA NA MAISIGURADO NGAYON AT SA MGA MAS MATAGAL NG PANAHON. A YEAR AGO WE OPENED THE FLOW OF MALAMPAYA DEEP WATER GAS TO POWER PROJECT TO ITS ON-SHORE PLANT IN BATANGAS. MALAMPAYA IS A PARTNERSHIP BETWEEN SHELL, CHEVRON AND PNOC. KAYA, DITO NATIN SINE-CELEBRATE ANG ANNIVERSARY SA PNOC COMPOUND. THAT EVENT REDUCED THE DEPENDENCE OF OUR POWER SECTOR ON PETROLEUM.

NOW, ON THIS FIRST ANNIVERSARY WE WANT TO MOVE A STEP FORWARD IN INDEPENDENCE NOT JUST THE INDEPENDENCE OF THE POWER SECTOR BUT THE INDEPENDENCE OF THE TRANSPORT SECTOR.

SO, FIRST AND FOREMOST WHAT I DID WAS TO, IN ORDER TO PROPAGATE THAT THERE IS A VEHICLE THAT DOES NOT RELY COMPLETELY ON GAS, GASOLINE, THE OTHER DAY WHEN I VISITED TOYOTA TO LISTEN TO THEIR EXPANSION PLANS WHERE THEY WILL PRODUCE TRANSMISSION FOR THE JAPANESE MARKET, THEY ALSO DONATED TO THE OFFICE OF THE PRESIDENT A VEHICLE THAT RUNS ONLY ONE HALF ON GASOLINE. IT RUNS ONE HALF ON GASOLINE, AND ONE HALF ON THE BATTERY POWER. SO, THIS OH ITS RAINING, I'LL RUSH MY ANNOUNCEMENTS. THIS AN IMPORTANT NEW VEHICLE SO I'M LENDING IT TO THE DEPARTMENT OF ENERGY SO THAT THEY CAN PROPAGATE AND DEMONSTRATE AND LET PEOPLE KNOW ABOUT ITS AVAILABILITY BECAUSE THAT REDUCES OUR DEPENDENCE ON FUEL GASOLINE.

AND I'M ALSO PLEASED TODAY TO LET YOU KNOW THAT SINCE MALAMPAYA HAS BEEN OPERATING, NOW STA. RITA FIRST GAS, SAN LORENZO GAS, ILIJAN ALL OF THESE GAS PLANTS ARE USING MALAMPAYA GAS WITH THE COMBINED CAPACITY 2700 MEGAWATTS. AND THEREFORE THEY CONTRIBUTE 18 PERCENT OF OUR ENERGY REQUIREMENTS. AND IF THERE SHOULD BE A WHICH IS NOT LIKELY, A CRISIS OF SUPPLY FROM THE MIDDLE EAST, MALAMPAYA CAN EVEN PROVIDE UP TO 25 PERCENT OF OUR REQUIREMENTS. VERSATILITY IS IMPERATIVE IN THE LONG TERM.

AND ASIDE FROM ENERGY SELF -SUFFICIENCY THE GOOD THING ABOUT MALAMPAYA, IS THAT THE ENERGY THEY ARE PROVIDING US IS CLEAN ENERGY. AND ITS A GOOD NEW WAY OF THINKING.

SO MUCH SO, THAT... NAKU! TALAGANG BIBILISAN KO NA ITO UMUULAN... IN SO MUCH SO THAT IN THE JOHANNESBURG SUMMIT THE MALAMPAYA PROJECT GOT AN AWARD AS OUTSTANDING INVESTMENT ON SUSTAINABLE DEVELOPMENT.

AND NOW WE HAVE A RELEVANT TWIN EVENT TO REDUCE OUR DEPENDENCE ON GASOLINE, ON OIL AND ALSO TO BRING ABOUT CLEAN, CLEAN FUEL FOR OUR TRANSPORT SECTOR.

IS THIS ON THE ROAD THIS DIESEL ENGINE ISUZU HIGHLANDER VEHICLE? THE ONE THAT AH, OK THE DOE HAS CONVERTED A DIESEL ENGINE ISUZU HIGHLANDER VEHICLE TO A 100 PERCENT NATURAL GAS ENGINE UNIT. THAT'S THE FIRST NATURAL GAS VEHICLE OR NGV IN THE COUNTRY. WHERE'S THAT? PARKED OVER THERE. OKAY. IT SHOULD HAVE BEEN HERE. BUT ANYWAY WHAT DO I EXPECT, I ONLY TOLD VINCE PEREZ ABOUT THIS YESTERDAY AFTERNOON.

ANYWAY, THIS WAS FOLLOWED BY THE CONVERSION OF THREE MORE VEHICLES, TWO SHUTTLE BUSES, THERE; TWO SHUTTLE BUSES IN DECEMBER 2001 AND JANUARY 2002 AND THE NISSAN PATROL SERVICE VEHICLE, OVER THERE IN JANUARY 2002. THEN PNOC JOINTLY WITH PETRONAS DEVELOPED THE ENVIRO 2002 TAXI UNITS, THIS ONE. SO, THAT'S WHY WE HAVE OUR TRANSPORT SECTOR HERE. THIS IS FILIPINO RESOURCEFULNESS AT ITS BEST. AND WE WANT TO HAVE ALL OF THESE ON THE GROUND, ON THE STREET, ON THE ROADS SO THAT WE CAN BE LESS DEPENDENT ON OIL, BUT ALSO MORE IN KEEPING WITH CLEAN SOURCES OF ENERGY.

SO, I CONGRATULATE THE PEOPLE OF THIS PIONEERING VENTURE -- THE DOE, UNDER SECRETARY VINCE PEREZ, PNOC UNDER SERGE APOSTOL AND PETRONAS MALAYSIA, THOSE WHO DEVELOPED THESE VEHICLES.

AND NOW, I WANT TO PROMOTE FOR THE TRANSPORT SECTOR THIS KIND OF FUEL, THE ENVIRONMENT- FRIENDLY COMPRESSED NATURAL GAS.

ACCORDINGLY, IN ORDER TO PROMOTE THE USE OF COMPRESSED NATURAL GAS, WE ARE DOING THE FOLLOWING POLICY INITIATIVES:

ONE, THE DTI WILL CLASSIFY NATURAL GAS CONVERSION KIT AS SPARE PARTS. THEREFORE THE TARIFF WILL ONLY BE ONE PERCENT.

TWO, THE BOI WILL ALSO ENHANCE THE EXISTING PACKAGE FOR NATURAL GAS CONVERSION KITS, ORIGINAL ENGINE MANUFACTURERS, AND OTHER RELATED FACILITIES. SO MORE INCENTIVES FROM THE BOI.

THIRD, THE DOTC, THROUGH THE LTO, WILL CONSIDER, AS HAVING COMPLIED WITH A MISSION STANDARD, THOSE WHO USE NATURAL GAS.

FOURTH, THE ONE OTHER RED TAPE REMOVED. OKAY FOURTH, THE LTFRB, DANTE LANTIN IS HERE. YON. VERY GOOD FRIEND OF THE TRANSPORT SECTOR THEY ALWAYS THEY ALWAYS COME TO A GOOD CONSENSUS. THE LTFRB WILL GRANT THREE FRANCHISES FOR NATURAL GAS BUS FLEET-- TWO FOR THE BATANGAS-MANILA ROUTE. ANG TAWAG PALA DOON NGAYON AY BATMAN ROUTE, BATANGAS-MANILA EH. AND ONE FOR THE BATANGAS-BICOL ROUTE. AND I UNDERSTAND THAT THERE'S ALREADY A BUS COMPANY THAT INTENDS TO UNDERTAKE A PILOT PROJECT INVOLVING UP TO 100 BUSES NEXT YEAR USING COMPRESSED NATURAL GAS. I AM ASKING ALSO SHELL, CALTEX, CHEVRON, TEXACO AND FIRST GAS TO CONSTRUCT CNG REFILLING STATIONS AND RELATED FACILITIES. AND I AM ASKING THE MALAMPAYA CONSORTIUM TO SUPPLY NATURAL GAS FOR TRANSPORT AT ONE HALF
THE PRICE OF DIESEL. THAT'S GREAT HA.

FIFTH, THE DENR SHALL FAST TRACK THE ISSUANCE OF THE ECC NEEDED FOR THE NATURAL GAS FACILITIES AND THE REFILLING STATION. DEMET? OKAY. GOOD.

SIXTH, THE DBP WILL ESTABLISH A FINANCING WINDOW TO PROMOTE THE USE OF NATURAL GAS VEHICLES AND RELATED INFRASTRUCTURE FACILITIES.

SEVENTH, THE DOST WILL PROMOTE AND DEVELOP LOCALLY MANUFACTURED CONVERSION KIT.

EIGHTH, ACCORDING TO MMDA BAYANI FERNANDO, HE WILL CONSIDER OPENING C-5 TO BUSES, BUT ONLY FOR BUSES THAT USE CNG. NOW WHERE IS THAT?

THE DOE WILL SPEARHEAD ALL THESE EFFORTS. THAT'S WHY IT HAS TURNED OVER TO ME TODAY THE NATURAL GAS POLICY AND REGULATORY FRAMEWORK, AND THIS PART OF THE LONGER TERM PLAN OF THE DOE WHICH IS THE HOLISTIC ENERGY PLAN FOR OUR COUNTRY FOR THE NEXT DECADE.

SO ONCE AGAIN, WE CONGRATULATE MALAMPAYA, ALL THE PARTNERS, SHELL, CHEVRON AND PNOC WHERE WE ARE HOLDING THE CELEBRATION TODAY ON THE FIRST ANNIVERSARY, AND TO ALL THE MOVERS AND SHAKERS OF OUR NEW NATURAL GAS TRANSPORT PROGRAM, MORE POWER TO YOU.

THANK YOU.

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