MORE COMPRESSED NATURAL GAS STATIONS

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MORE COMPRESSED NATURAL GAS STATIONS: 10.

Mdm Ho Geok Choo asked the Minister for the Environment and Water Resources whether the Government will further encourage the establishment of more compressed natural gas (CNG) stations beyond the current three stations and upcoming two stations this year.

The Minister for the Environment and Water Resources (Assoc. Prof. Dr Yaacob Ibrahim): Sir, diesel vehicles are a major source of fine particulate matter or PM2.5, which is a key air pollutant of concern in Singapore. To address this, the National Environment Agency (NEA) has introduced the more stringent Euro IV emission standards for new diesel vehicles from 1st October 2006. We have also facilitated the adoption of CNG vehicles as a cleaner alternative to diesel vehicles

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through the Green Vehicle Rebate (GVR) scheme since 2001, and the exemption of CNG vehicles from special tax, which is levied in lieu of a fuel tax.

In addition, NEA has supported private sector efforts to develop the CNG refuelling infrastructure through providing co-funding for the start-up costs through its Innovation for Environmental Sustainability Fund. As Mdm Ho pointed out, there are now three CNG refuelling stations – at Jurong Island, Mandai and Jalan Buroh – and I understand this is expected to increase to five by the end of this year with the opening of a station at Serangoon North, and another one at Toh Tuck. NEA has provided co-funding for the Jurong Island and Mandai stations, as well as the upcoming Serangoon station.

While the Government can facilitate the private sector's initial efforts, the further expansion of the CNG refuelling infrastructure has to be driven by the private sector, taking into account their commercial considerations, to be sustainable. We are encouraged by the private sector initiatives in setting up refuelling facilities in Jalan Buroh and the planned station at Toh Tuck. On our part, the Government has extended the GVR and the special tax exemption for CNG vehicles until the end of 2011.

Technologies to reduce vehicular emissions are also improving and we could see more technologies which are viable alternatives to petrol vehicles, such as Euro V diesel cars which have comparable PM2.5 emissions to petrol cars, and even electric vehicles which have no tailpipe emissions. We are monitoring such developments and will take them into account when reviewing our incentives for clean transport.

Sir, we want to reduce pollutant emissions from the transport sector in a cost-effective manner, without prescribing

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any particular technology. With the continued efforts of the public and private sector as well as support from the community, we hope to see, over time, a larger population of environmentally-friendly vehicles on our roads.