Thailand’s state-owned oil and gas conglomerate (PTT) expects CNG will account for up to 10% of all fuel used in the country’s transportation sector within five years, according to a report in the Bangkok Post picked up by Dowjones. Currently, natural gas for vehicles accounts for less than 0.5% of all fuel used for transportation.

PTT plans to invest THB10 billion (approximately $254 million) to develop facilities and infrastructure to accommodate the anticipated rise in consumption of natural gas for vehicles.

The investments include a new gas pipeline, expansion of service stations to fuel gas-powered vehicles to 120 sites from the current 27 sites and subsidies to keep the retail price of natural gas for vehicles around 60% of the cost of gasoline.

Natural Gas Vehicles (NGV) made their debut in Thailand in 1984 in a experimental program that converted a number of Bangkok buses and tuk-tuk taxis. Technically, the experiment was a success. Practically, the lower cost of motor fuels and the high costs of modifying engines to NGV fuelling at that time made the program not economical.

Increasing concern about air pollution and rising oil costs have now made NGV more of a policy priority.