However, this policy faces a difficult reality: there is fuel but a lack of gas pipeline systems and supply stations; there are conversion solutions, but there is no financial support mechanism…
At the “Korea–ASEAN Workshop on Natural Gas Vehicles” held in Ho Chi Minh City last week, Mr. Hyong Luu Jeon, Deputy Director of the Transport–Environment Bureau (Korean Ministry of Environment), stated that using compressed natural gas (CNG) costs only about 50% compared to diesel, while emissions are reduced by 35% for hydrocarbons, 62% for oxides, and 9% for carbon monoxide…
Agreeing with this view, Dr. Pham Xuan Mai, Head of the Transportation Engineering Faculty – Ho Chi Minh City University of Technology, calculated that the price of 1 ton of CNG is USD 318, equivalent to only 53.5% of the price of gasoline and 42% of diesel. Each CNG bus in operation for one year saves USD 8,308 in fuel compared to diesel.
With 10,000 buses in Ho Chi Minh City, if all switch to CNG, the city could save USD 83.08 million annually. Thus, in about three years, Ho Chi Minh City would save USD 250 million – enough to convert diesel buses to CNG (according to the Southern Liquefied Gas Joint Stock Company, the cost of each conversion kit is USD 25,000).
Therefore, converting diesel buses to compressed natural gas not only helps reduce environmental pollution but also saves money, lowers transportation fares, and improves the competitiveness of the economy.
Thanks to these benefits, Mr. Duong Hong Thanh, Deputy Director of the Ho Chi Minh City Department of Transport, said that the city would gradually convert large (B80) and medium-sized (B55) diesel buses to CNG.
According to the plan, during 2009–2010, the Department of Transport will convert and put into operation 38 CNG buses on routes No. 30 (Tan Huong Market – Suoi Tien) and No. 91 (Western Bus Station – Thu Duc Agricultural Wholesale Market), and by the end of 2010, 800 more buses are expected to use this fuel.
However, the plan has stalled. In mid-2008, Ho Chi Minh City imported two CNG buses from South Korea, followed by two more imported by Cuu Long Petroleum Transport Services Joint Stock Company. But for over a year, these buses have only operated successfully in “demonstration mode” using the limited initial CNG fuel pre-filled abroad.
As of July 2009, only two CNG fuel stations in Ho Chi Minh City and Ba Ria – Vung Tau have been put into use, and only on a trial basis.
Currently, PetroVietnam Gas Corporation is the sole supplier of CNG in Vietnam, through two subsidiaries: CNG Vietnam Joint Stock Company (operational since 2008), with a Phase 1 capacity of 30 million m³/year and Phase 2 capacity of 250 million m³/year; and Southern Liquefied Gas Joint Stock Company, which is investing in a CNG compression plant in My Xuan A Industrial Park, Ba Ria – Vung Tau Province, with an initial capacity of 10 million m³/year, serving industrial facilities and the transport sector…
However, while there is fuel, the lack of pipeline infrastructure and supply stations remains a problem.
According to Mr. Le Thanh Ha, Deputy General Director of Cuu Long Petroleum Transport Services Joint Stock Company, aside from strict fire safety requirements, the land cost alone for a CNG supply station is very high, requiring capital support, clear regulations and technical standards for refueling and compressing gas from relevant authorities.
Therefore, the conversion of diesel buses to CNG remains stalled.
Moreover, converting existing buses to CNG requires one of three solutions: installing a conversion kit to the engine, replacing the engine with a CNG engine, or purchasing new buses.
In this situation, many believe installing conversion kits or replacing engines are feasible due to lower costs. However, according to Mr. Phung Dang Hai, Director of the Ho Chi Minh City Transport Cooperative, engine conversion or kit installation are only temporary solutions, as inconsistent engine components can lead to reduced operational efficiency. Thus, buying new buses would be more effective.
Currently, the “National Target Program on Economical and Efficient Use of Energy” (in operation since 2007) has a fund of USD 350 million to support enterprises wishing to convert to clean energy sources, along with a USD 50 million loan (supported by Japan) at an interest rate of 6.9%/year, repayable over 20 years, for the same purpose.
However, according to Mr. Huynh Kim Tuoc, Director of the Ho Chi Minh City Energy Saving Center, these funding sources have yet to be deployed to businesses.
(Sai Gon Giai Phong 18/11)
