Two new CNG stations to open

World's second biggest to be built in Bukit Timah; Serangoon North's set for Feb opening
Christopher Tan, Straits Times 1 Dec 08;

DRIVERS of cars which run on compressed natural gas (CNG) can expect more competitive prices when two new refuelling stations open in the next few months.

One station will be in Serangoon North, and the other - to be the world's second biggest - will be in Old Toh Tuck Road, in the Bukit Timah area.

For Mr Wong Chee Wei, who drives a Chevrolet Optra Magnum CNG, the Serangoon North station is good news. It is not far from his Aljunied home, which will save him a long drive to the Mandai station. The 34-year-old customer service representative said: 'I only wish it could have opened earlier.'

About 3,300 vehicles here use CNG, up from virtually none before 2006. They are mainly cars and taxis, granted tax breaks for being environmentally friendlier than their petrol or diesel counterparts.

Besides the station in Mandai Link, the only other CNG stations are in Jalan Buroh and on Jurong Island; the latter is not an option unless motorists work in the high-security area. The Mandai and Jalan Buroh stations often see long queues.

Smart Energy, which owns the Mandai station, is building the one in Serangoon North. 'The roof is up,' said managing director Johnny Harjantho. 'We expect it to open for business in February.'

The station will have eight pumps, with provision for another eight, and costs about $12 million.

The other new station, a 38-pump affair in Old Toh Tuck Road, is being built by bottled cooking gas supplier Union Energy. Worldwide, it is second in size only to a new 44-pump facility in Bangkok.

Construction of the $13 million facility is expected to start in February. A Union Energy spokesman said it is expected to open early in the second half of next year, possibly in July.

Mr Alexander Melchers, who chairs Singapore's newly-formed CNG Committee - a body representing nearly 20 companies in the CNG business here - said the increased competition would lower the fuel price. The gap between CNG and petrol rates can be expected to widen.

The two stations do not have any incentive to lower prices quickly now, since long queues are snaking out of them, noted Mr Melchers.

Meanwhile, CNG prices are set to fall today.

Mr Harjantho said the rate will fall to $1.39 per kg, from $1.48 now. Petrol now costs $1.603 for a litre of 92-octane before discount. A kg of CNG gives the mileage of about 1.3 litres of petrol.