CNG chokehold affecting dealers, drivers

President of the Petroleum Dealers Association Robin Narayansingh says the government should rethink its decision to promote the use of compressed natural gas (CNG) as the operating cost for service stations has become unsustainable.

This, he said, may be the reason why some service stations which sold CNG may not be doing so at this time.

CNG is an eco-friendly, affordable alternative to gasoline. It costs most drivers $14 for a full tank, but Narayansingh said service station owners are sometimes left with a monthly electricity bill, at industrial rates, of over $20,000.

It’s an issue the association and its members have been highlighting since 2019.

Narayansingh said the association complained to the government and an agreement was reached in 2020 to have government cover the cost of electricity for two years.

One year later, Newsday was told there are approximately 7000 CNG vehicles in TT.

Newsday initially contacted Narayansingh after several drivers complained about the unavailability of the CNG service at some fuel stations for months, and in some instances even more than a year.

These include the NP stations at Beetham Gardens and Rushworth Street, and the Unipet station at Brentwood, Chaguanas.

When asked if he was aware of the situation, Narayansingh called on the government to forget about making CNG the future of gas in TT.

Local dealers sell a CNG-ready car for between $165,000- $180,000. For other vehicle owners wishing to convert to CNG, the cost for the equipment and installation is around $15,000.

It's worth the switch as one owner of a CNG car, who lives in San Fernando and works in Port of Spain, explained to Newsday that a full tank lasts two days. In contrast, the driver of a Suzuki Ignis with a 1.2 litre engine using super gasoline, traveling the same distance daily, spends between $100 and $120 for a full tank every three days.

Narayansingh said if the volume of users does not increase significantly, service station owners may have to ask government to review the $1 per litre price for CNG when the arrangement to cover electricity bills come to an end.

The National Gas Company (NGC) is the supplier and distributor of CNG in TT.

NGC is currently constructing a $30 million station powered by 320 solar photo voltaic panels at Preysal, Couva. The station is expected to be ready by the end of March. It is being built with ten pumps for super and premium gas, and ten for CNG. The station will also be fitted with two spots for charging electric vehicles.

NGC communications manager Roger Sant told Newsday the demand is rapidly increasing and there isn't a shortage of CNG.

Responding to other questions by Newsday, Sant said CNG is accessible at 21 stations across TT – four of which are under construction and will be open at the end of 2021, and one station is awaiting approval to begin supplying. He said of the 21 pumps nationwide, nine pumps are operating and accessible.

Pumps at PTSC, South Quay; PTSC, Cove, Tobago; and NGC warehouse, Pt Lisas are private fleet stations.

Discussions to set up CNG for public use in Tobago is underway.

Sant admitted four CNG pumps are down. These are: NP Beetham, NP Mt Lambert, Peaks Unipet, Tacarigua and Unipet Brentwood, Chaguanas. The equipment at these pumps are to be upgraded while others need repairs. He said NGC has the equipment in stock. The repairs and upgrades are to be done by the station owners.

NGC is also exploring sites in Sangre Grande, Longdenville, Penal and La Brea.

Sant said despite covid19 restrictions, sales grew by 24 per cent in 2020. Similarly, in 2019, CNG sales grew by 106 per cent over the previous year (compounded annual growth is 56 per cent).

Saleema Sattar, dealer at the NP Carrousel station in Cocoyea, San Fernando, told Newsday while she has faith that more people will convert to CNG, she is worried that the rate at which drivers are converting may not be fast enough.

"Everybody has to make a profit. If we don’t make a profit we can’t pay our rent, we can't pay the people who work for us. So we have to be in a position to pay our expenses, and that’s the problem with the CNG.

“We are unable to move the volume of fuel so as to make a decent profit or even pay the most basic bill which is the electricity and labour."

A subsidy on electricity to stations supplying CNG is one solution, Sattar suggests. She said she has faith in the CNG industry and wants to see it succeed.

“As a dealer, I have no problem selling CNG if the government says ‘You can run a station but you must sell CNG just as much as you sell liquid fuel.’ Our problem is we shouldn’t be losing in the process.”