Natural gas expansion hit by obstacles

posted on: May 13 2011 10:35 by The Reporter. Viewed 613 times.


Since early last year, natural gas stations have been selling this promising alternative fuel in the Dominican Republic. It is hoped natural gas will alleviate the burden of high oil prices. But a barrage of obstacles have limited the selling of the fuel to just three places nationwide.

65 licenses were granted by the government to sell natural gas, including permits for workshops to convert vehicles over and import the equipment needed for vehicles to move to the new fuel.
40 new natural gas operations are expected to be operating along main roads across the country, with 15 installation workshops.

Many however are skeptical of the progress from the government. “Many people in the government have obstructed the project: Environment and Industry and Commerce,” said Ramón Pérez Figuereo, president of the CNTU.

Perez Figuereo said that the procedures for granting permits are the main impediments that are so far stopping the widespread use of natural gas. All activities related to natural gas must obtain the approval of the Ministries of Industry and Commerce (MIC) and the Environment, in addition to the consent of the municipal government and the Ministry of Public Works for land and construction issues.

Management of this fuel requires special care to avoid accidents, so the MIC has put in place special requisites for operators selling it and carrying out vehicle modifications.
Unlike Liquefied Petroleum Gas (LPG), natural gas is stored at a compression close to 230 atmospheres, requiring handling equipment that can withstand the high pressure, said Salvador Rivas, director of the Non-Conventional Energy department of the MIC. However, he recognizes that the Ministry of Environment is taking a long time to issue the permits.

Miguel Pereira, owner of Talleres Pereira, states that the natural gas equipment should be made of steel. The storage cylinder should be constructed as one piece and should be an inch thick. Regulators and hoses should also be made of steel to withstand the 3,000 pounds of pressure, according to Pereira.

Salvador Rivas added that the government is interested in extending the use of this fuel and so it can soon say this is “the great year of natural gas.”

Stations selling natural gas are saturated by the user demand. Queues are never ending. Fuel supplies last for an average of two hours and consumers have to travel from distant parts of the city for supplies.
However, these obstacles have not stopped Miguel González  from converting his vehicle to use natural gas. His main motivation for doing so, he said, was the rising price of oil.

González said that he decided to make the change, despite the high costs of installing the necessary technology. He says his daily route to work used to cost him RD$ 600 in fuel, but now it’s down to RD$ 200.
González also believes that there are vested interests hindering the success of natural gas in the country.

As yet, most of gas stations and conversion workshops have not commenced operations, but are expected to begin within two months or so.

The Department of Industry and Commerce is conducting a census of vehicles using natural gas. This is to determine whether conversion facilities are being made in the authorized workshops and exactly how many vehicles now using the fuel.

Imports of natural gas amount to about 1 million cubic meters a year, only by the generation company AES Dominicana, importing from Trinidad and Tobago.

During a speech on March 17, the government ordered the conversion of public transport vehicles, as the Bonogas subsidy applies to the purchase of natural gas. When converted, savings of RD$ 7,000 million annually are expected.

But Perez Figuereo explains that it is not generally possible to convert them to run on natural gas, because these public transport vehicles are mostly old and in disrepair.

Miguel Pereira explained that vehicles that are to be converted must pass through a series of tests to determine if the engine supports the use of this gas and the high pressure involved.