Illustrative image (Source: VNA) HCM City (VNS/VNA) - Environmentally-friendlybuses in Ho Chi Minh City could face operating problems as compressednatural gas (CNG) suppliers plan to reduce CNG supply, according tolocal authorities.
Buses running on CNG instead of diesel fuel havebrought economic and environmental benefits to HCM City.
However, in late May, the Southern GasTrading Joint Stock Company announced that it would reduce by 20 to30 percent CNG gas supply for city buses for the rest of the year. It said itneeded to prioritise gas supply for the electricity industry.
The company said it would inform HCM City twohours in advance before it reduces supply so that the city would have timeto adjust bus schedules.
In addition to the reduced CNG supply, thePetroVietnam Gas South Dong Nai Company previously sent an “urgent notice”to several HCM City bus units, saying that gas supply would be terminated ifthey did not sign a new price-increase contract.
Since there were no other gas suppliers,the bus units had to agree to sign the new contract.
The HCM City Management Centre of PublicTransport, under the Transport Department, said the CNG gas supplyreduction would disrupt public transport activities andjeopardise investors’ willingness to invest in CNG buses.
The Department of Transport has urged the SouthernGas Trading Company to not reduce CNG gas supply for city buses in2019.
The department also suggested that theVietnam Oil and Gas Group reserve a stable amount of gas for publictransport and offer it at the same price for electricity production.
About 2,457 buses are in operation in HCM City, 428 of whichuse CNG.
According to the city’s bus renovation investmentroadmap between 2018 and 2020, the city needs an additional 3,121 buses,75 percent of which are expected to run on clean fuel.
For many years, the Southern Gas Trading JointStock Company has been HCM City’s only CNG supplier.
Since the issue concerns many bustransport units, the city's Department of Transport reassured bus owners thatit would collaborate with more gas suppliers.
However, the Southern Gas Trading Joint StockCompany continues to be the only supplier.
According to transport experts, the TransportDepartment should work immediately with the current gas supplier toclarify existing issues.
The department should seek another two tothree suppliers to avoid a monopoly held by the Southern Gas Trading JointStock Company, they said.
HCM City also should draft long-termsolutions to remove challenges for cooperatives that previously agreed toinvest in CNG buses, they said.
In response to this, the HCM City ManagementCentre of Public Transport is working with the Southern Gas Trading JointStock Company to upgrade and relocate existing CNG gas refuel stations toappropriate locations.
The management centre will focus on stabilisingthe supply and price of CNG for public transport on buses.-VNS/VNA
VNA
