26 companies interested in PNOC’s LNG project


TWENTY-SIX companies have submitted unsolicited proposals to develop the liquefied natural gas (LNG) field within the service contract of State-run Philippine National Oil Co. (PNOC) in Mabini, Batangas, a PNOC official said.

The companies include seven from China, six from Japan, three from Singapore, two from South Korea, two from Turkey, one from the United Arab Emirates, one from Spain, one from Australia and three from the Philippines, PNOC President Reuben Lista said in an interview on Thursday.

PNOC is in talks with foreign partners for possible government-to-government deals to put up LNG facilities, including a 200-megawatt (MW) power plant and floating storage and regasification units (FSRU), Lista said.
“We will have already a target date by end of April to have a shortlist. By then we will evaluate the unsolicited proposals,” he said.

In line with Department of Energy (DoE) guidance and in coordination with the Philippine Economic Zone Authority (PEZA), the power output from the project would support PEZA industries, Lista said.

This will be done automatically, because PNOC wants to help industries. The rest will go to the poorest of the poor, he added, but did not elaborate.

The projected is expected to be completed in 2019. “It is our mission. That’s our optimistic dream, by 2019 … already standing and operational,” Lista noted. A more pessimistic view is finished the project by 2020, he said.
The proposed project takes around 2 to 3 years, but it would take 4 years if it includes an onshore component, Lista said.

“We are not dictating the terms. We are not making any term of reference, because it would not be an unsolicited proposal if we put the terms of reference, depending on expertise and commercial computation of those who are going to put up the offer,” he said.

“We are just saying that we want a power plant, storage facility, liquefaction, regasification and how we can distribute this to SPUG areas if possible, inter island, and compressed natural gas in every gas stations,” he added.

SPUG is the Small Power Utilities Group.

Last year, then-Energy Secretary Alfonso Cusi said the government would spearhead the establishment of an LNG terminal to ensure supply amid the impending end of contract of the Malampaya gas-to-power project in 2024.

The government will also provide an emergency source of energy to the Luzon grid when the power supply drops due to plant outages. This will be done through PNOC as a DoE corporate arm.


Please follow our commenting guidelines.

Comments are closed.