Above: Port of Spain (CJ Photo)

By the Caribbean Journal staff

Trinidad’s state-owned Natural Gas Company will be investing TT$500 million ($78 million US) to develop the first phase of a compressed natural gas plan for all vehicles in the country, the government announced Thursday.

The five-year plan, part of a two-phased plan, will start with the conversion of 17,500 vehicles, including maxi-taxis, buses and government vehicles, among others.

“CNG has been an alternative to gasoline and diesel as we have a significant natural gas reserve,” said Energy Minister Kevin Ramnarine. “However previous plans to do this have never bore fruit.”

The second phase of the project, as yet unapproved, would involved the construction of 22 CNG stand-alone stations, according to Ramnarine.

“The benefits is a saving in subsidy for the Government. In 2012 the fuel subsidy was TT$404 billion,” he said. “If we reduce this subsidy we can do other things. It would also free up the fuel usually use locally for export. Also, CNG is a low carbon fuel, also known as a green fuel.”

When both phases are completed, the price of CNG would be lowered to around $1.00 per liter, down from a current rate of $1.07 per liter.