Natural gas buses receive greenlight

Two public transport buses that have been on a trial run on compressed natural gas in HCM City since May will continue to operate after the gas supplier reversed a decision to stop supplying fuel due to losses.

PetroVietnam Southern Gas JSC (PV Gas South), the CNG supplier, had planned to stop supply from the middle of this month if at least 20 gas-fuelled buses are not operated.

The Alliance of Bus Co-operatives, one of the two operators of the CNG buses, has sought a loan subsidy from the city People's Committee to invest in more CNG buses that cost VND2 billion (US$106,000) each, almost double that of a diesel bus.

Duong Hong Thanh, deputy director of the Department of Transport, said the People's Committee had approved a subsidy to the Sai Gon Passenger Transport Company – the other operator – for buying 21 CNG buses but the Government has yet to make a final decision.

PV Gas South built a gas station in Ba Ria-Vung Tau Province with an annual capacity of 50 million cubic metres and a sub-station in HCM City's Tan Binh District that can supply 50 buses a day, according to Doan Van Nhuom, the company's general director.

"Our company loses money if it transports the gas from Ba Ria-Vung Tau Province to the city just to supply two buses," he said.