Strong demand expected for CNG cars

Christopher Tan, Straits Times 18 Jan 08;

Dealers gear up for sales with 2 new CNG stations set to open; they also plan to introduce cars that can run on both gas, petrol

WITH a pair of compressed natural gas stations poised to open within the next two months, car dealers are gearing up to sell vehicles that can run on the cheap, clean-burning fuel.

General Motors, Ford, Fiat and Citroen dealers are working to introduce cars fitted with kits which will allow them to run on either the gas - known as CNG - or petrol.

Meanwhile, some importers have already started selling such vehicles, including Car Times in Kampong Ubi.

'With petrol prices so high, I think demand for CNG cars will be very strong,' said managing director Eddie Loo.

New cars which run on gas are eligible for a 40 per cent rebate on registration fees.

This translates to savings ranging from $6,500 for a Toyota Corolla to $81,000 for a Bentley Continental GT. Retrofitting the cars to run on gas starts at around $3,000.

Compressed gas is also much cheaper than conventional petrol.

It costs about 80 cents for the equivalent of a litre, versus $1.90 for petrol. For a car that travels 20,000km a year, that translates to about $2,000 in savings.

A gas-powered car emits about 20 per cent less carbon dioxide than one that runs on petrol. It also produces less carbon monoxide, nitrogen oxides and hydrocarbons.

Mr Alvyn Ang, general manager of operations at Cycle & Carriage, said his company has converted one Citroen C5 for a feasibility study, and findings have been favourable.

'It's feasible,' he said, but did not reveal when he would start selling CNG Citroens.

Vantage Automotive managing director Say Kwee Neng is exploring the option of converting the Ford S-Max seven-seater.

'We're looking at the technicalities, and are in talks with Ford Motor,' he said. 'From an environmental perspective, it is really encouraging.'

Fiat distributor TTS Eurocars plans to bring in a range of bi-fuel Panoramas in June.

While authorised agents are mulling things over, parallel importers have already started selling converted cars. One, Pinnacle Motors, collected about 80 orders over the weekend, but is facing a dilemma: a shortage of conversion kits.

Meanwhile, customers who have collected their new 'green' cars seem happy.

Businessman Frank Phuan, 31, bought a bi-fuel Toyota Harrier SUV from Car Times for $105,000, some $7,000 less than a petrol-only model.

'It's a pretty good deal,' he said. 'I live in Jurong East, so I'm just five to 10 minutes away from the new CNG station coming up in Jalan Buroh.' The station is expected to open later this month, with another one coming up in Mandai Link next month.

He said a full tank of gas costs him $10 and gets him close to 200km, whereas a tank of petrol costs him $125 and gives him about 500km.

The Land Transport Authority warned that converted cars must comply with technical requirements on safety, performance and emissions. These requirements are issued to the companies doing the conversions.

'It is an offence to modify the fuel system of a vehicle without LTA's approval,' an LTA spokesman said. 'First-time offenders are liable to a fine of up to $1,000 or a jail term of up to three months.'

The two new CNG refuelling stations coming up in the next few weeks are just the start. Industry observers expect another to start pumping by the third quarter.

The authorities envisage six in the near term.

That should be good news to the 1,000 or so owners of gas vehicles here.

There is currently only one station in Singapore and it is on tightly guarded Jurong Island.