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NGV Journey in Malaysia: The journey in the NGV story began with a feasibility study in 1984.

Petronas commissioned the study to assess the viability of utilizing natural gas in the transportation sector. The study identified several benefits to the country and consumers. The main one being the secured supply and its environmental friendly characteristics. In 1986-1988, a pilot programme to understand the technology and to lay the frame work for a commercial programme was implemented at the Gas Processing Plant in Kerteh, Terengganu. It involved the construction of one NGV station and the conversion of 21 Petronas owned vehicles to bifuel operation. The result of the pilot programme proved that the use of Natural Gas for Vehicle (NGV) under the Malaysian condition was indeed viable and favorable. Recognizing the great potential for this new industry, the Government gave approval for Petronas to embark on an initial Commercial Programme. The Commercial Programme started in 1991 in the Klang Valley with the objective of identifying and resolving issue to pave the way for the wider implementation of NGV in the country. Natural Gas then has already been made available in certain areas in the Klang Valley through the Natural Gas Distribution System. The main supply of NGV was from the Peninsular Gas Utilization project which supplies natural gas to the west coast of Malaysia. Six station under the Mother-Daughter concept were also established in the Klang Valley. We had to resort to the Mother and Daughter station concept mainly because of limited gas network distribution where the nearest natural gas pipeline was 40 Km away from the city. The targeted vehicles were heavily concentrated within the city. At the same time, conventional station was also established in Miri, Sarawak to leverage on the extensive natural gas distributing network there. All the seven stations were operational by mid 1992 and a total of 930 vehicles were converted to bi-fuel operation. This programme was implemented with the support of the Government NGV Task chaired by the Economic Planning Unit of the Prime Minister Department and with members from the relevant Government departments. The Government introduced two incentives to promote the industry i.e. price incentive whereby the NGV retail price is not to exceed 50% of the price of premium grade Petrol and import duty and sales tax exemption on conversion Kits. The exemption from import duty would ensure a reasonable pricing on the conversion kits. A wide range of issues from approval of facilities and equipment to the certification of NGV technicians were identified through the NGV Government Task Force. The standard MS 1204 for the construction of NGV stations and MS 1096 for vehicle conversion were developed. Certification programme for NGV installers was also established. The public at large came to know the availability of NGV through the promotional activities undertaken and also through word of mouth from friends. The incorrect perception that NGV was "unsafe" was duly corrected and the positive attributes such as the environmental friendliness were reinforced. However at the initial stage, marketing of NGV was a big challenge as we sought to obtain acceptance of the product by customers. The resistance was due to sense of comfort with traditional fuels and skepticism on whether NGV is a reliable product as promoted.

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