Conversion to autogas to cost about €1,000
The cost of converting petrol or diesel car engines to autogas will be about €1,000, according to Roberto Capelluto, CEO of Gasco Energy Ltd., the company that is to store and bottle liquefied petroleum gas. The company plans to introduce autogas, a...
The cost of converting petrol or diesel car engines to autogas will be about €1,000, according to Roberto Capelluto, CEO of Gasco Energy Ltd., the company that is to store and bottle liquefied petroleum gas.
The company plans to introduce autogas, a replacement fuel for cars, which is a safer, cheaper and a more environmentally-safe fuel, in the near future.
"The conversion from petrol to LPG is based on a technique already well consolidated in many countries. On an average basis, the cost is about €1,000. Since the use of autogas is recommended by the EU authorities for environmental reasons some European governments grant incentives of up to 30 per cent of the conversion costs," Mr Capelluto told The Times Business in an interview.
The company also intends to introduce an underground network of canals to provide LPG to households.
"An LPG network consists of a central storage connected through canals to the customers. The consumption is measured individually by means of meters. This distribution system is very convenient for customers since only real consumption is charged and no action has to be taken by the customer. No orders, no level controls and no maintenance issues," he said.
"This system could be applied to new and existing households. The investment is normally supported by the gas company or the promoter. A one off connecting fee and small management costs related to the meter are charged to the customer such as in the case of other utilities services."
Mr Capelluto said that although the new plant which the company will be building in Bengħajsa will employ the same number of people presently operating at Enemalta's Qajjenza plant, more sales staff will be required mainly for the LPG new development programmes such as autogas and air conditioning.
He refuses to confirm the price tag of €14 - as reported in various sections of the media - as the new price for a gas cylinder saying: "LPG prices are still in the hands of Malta government, but subsidised prices will be removed in the next few years. International market prices and competition will define the price."
The company will be supplied with filled cylinders by Enemalta during the construction period for the new Benghajsa plant which is estimated to last about 36 months. After that, cylinders will be bottled at Gasco's new facilities. "The exact time frame will depend on the time taken to grant us the full development permit," he said.
He is a bit vague about possible changes to the distribution system of gas cylinders, which is to be taken over by Liquigas, Gasco's sister company, in February, saying: "The LPG distribution plan will be based on two major steps. During the first stage there will be few changes in the cylinders' distribution system since we need to have a full understanding of the present system and customer needs. Further on, changes will be implemented such as points of sales and new LPG users."
He disagrees with the critics who say it is almost impossible for another gas plant to be set up in Malta and that one state-owned monopoly (Enemalta) is now been being turned into a private monopoly.
"This is not correct and does not correspond to what the government authorities are implementing in Malta. In fact LPG regulations published several weeks ago provide for a free market where others can come into the market, complying with MRA safety regulations and can compete with Liquigas Malta."
Asked about the Labour opposition's claim that the price negotiated by Enemalta with Gasco was ridiculous and the tender was not awarded to Gasco in a transparent manner, Mr Capelluto said: "It is not the Labour opposition which is claiming this but Charles Buhagiar."
"This statement is unfounded and also incorrect as far as the facts are concerned. It is a grave assertion to make and not at all based on the facts. All the relevant contracts have been made available to Parliament for all to examine," he said, overlooking the fact that Mr Buhagiar is the Labour Party's main spokesman on the infrastructure and capital projects, and therefore speaks on behalf of his party.
The company plans to introduce autogas, a replacement fuel for cars, which is a safer, cheaper and a more environmentally-safe fuel, in the near future.
"The conversion from petrol to LPG is based on a technique already well consolidated in many countries. On an average basis, the cost is about €1,000. Since the use of autogas is recommended by the EU authorities for environmental reasons some European governments grant incentives of up to 30 per cent of the conversion costs," Mr Capelluto told The Times Business in an interview.
The company also intends to introduce an underground network of canals to provide LPG to households.
"An LPG network consists of a central storage connected through canals to the customers. The consumption is measured individually by means of meters. This distribution system is very convenient for customers since only real consumption is charged and no action has to be taken by the customer. No orders, no level controls and no maintenance issues," he said.
"This system could be applied to new and existing households. The investment is normally supported by the gas company or the promoter. A one off connecting fee and small management costs related to the meter are charged to the customer such as in the case of other utilities services."
Mr Capelluto said that although the new plant which the company will be building in Bengħajsa will employ the same number of people presently operating at Enemalta's Qajjenza plant, more sales staff will be required mainly for the LPG new development programmes such as autogas and air conditioning.
He refuses to confirm the price tag of €14 - as reported in various sections of the media - as the new price for a gas cylinder saying: "LPG prices are still in the hands of Malta government, but subsidised prices will be removed in the next few years. International market prices and competition will define the price."
The company will be supplied with filled cylinders by Enemalta during the construction period for the new Benghajsa plant which is estimated to last about 36 months. After that, cylinders will be bottled at Gasco's new facilities. "The exact time frame will depend on the time taken to grant us the full development permit," he said.
He is a bit vague about possible changes to the distribution system of gas cylinders, which is to be taken over by Liquigas, Gasco's sister company, in February, saying: "The LPG distribution plan will be based on two major steps. During the first stage there will be few changes in the cylinders' distribution system since we need to have a full understanding of the present system and customer needs. Further on, changes will be implemented such as points of sales and new LPG users."
He disagrees with the critics who say it is almost impossible for another gas plant to be set up in Malta and that one state-owned monopoly (Enemalta) is now been being turned into a private monopoly.
"This is not correct and does not correspond to what the government authorities are implementing in Malta. In fact LPG regulations published several weeks ago provide for a free market where others can come into the market, complying with MRA safety regulations and can compete with Liquigas Malta."
Asked about the Labour opposition's claim that the price negotiated by Enemalta with Gasco was ridiculous and the tender was not awarded to Gasco in a transparent manner, Mr Capelluto said: "It is not the Labour opposition which is claiming this but Charles Buhagiar."
"This statement is unfounded and also incorrect as far as the facts are concerned. It is a grave assertion to make and not at all based on the facts. All the relevant contracts have been made available to Parliament for all to examine," he said, overlooking the fact that Mr Buhagiar is the Labour Party's main spokesman on the infrastructure and capital projects, and therefore speaks on behalf of his party.