By Christopher Tan, Senior Correspondent

Five years after the first and only compress natural gas (CNG) refuelling station opened on Jurong Island, the race is now on between two parties to see which one will open the CNG kiosks on the mainland.

Smart Energy, an affiliate cab operator of cab operator Smart Taxis, held a groudbreaking ceremony yesterday. at the site of its station in Mandai link. It is targeted to be completed before February next year.

But local oil firm Singapore Petroleum Company (SPC) and gas supplier SembGas may steal its thunder. The Straits Times understands SembGas will set up gas dispenser at SPC's Jalan Buroh petrol station in Jurong - by as early as December.

"We do not see them as competition but rather as a complement to our business" Smart Taxis managing director Johnny Harjantho said, refering to SPC's plan.

"From what we've seen so far, CNG stations actually encourage more people to buy CNG vehicles. In China, every new CNG station that's built is packed in no time."

More gas station are planned.

Smart Energy will have another station in Serangoon North Avenue 5 by the first half of the next year.

SembGas could roll out gas dispensers at other SPC stations too.

Smart Energy will get its gas from Gas Supply, previously the Public Utilities Board.

Its Mandai Link gas station - a stone's throw from Shell petrol kiosk - sits on 60,000 sq ft plot of industrial land with a 15-year lease, with an option for another 15.

Mr. Harjantho expects his first station to cost "below $12 million". It will have eight dispensers, plus an option for eight more.  

The station will have an above-ground storage tank that can hold 2,000 cubic meters of gas on-site. Mr. Harjantho expect to sell gas - at around $1.10 a kg - to drivers of his fleet of CNG cabs as well as to the general public.

There are around 350 vehicles here which can use CNG.