OIL giant Pilipinas Shell Petroleum Corp. is in talks with possible partners for the development of its liquefied natural gas (LNG) facility.
Shell Philippines country chairman Edgar Chua said they have already talked to a number of local and foreign companies before coming out with a final investment decision (FID).
Besides possible partners, Chua said they are also constantly coordinating with the government through the Department of Energy (DOE).
The FID, Chua added, will be issued by the company once they are done with the negotiations.
“As soon as we complete discussions with government and prospective partners,” he told reporters when asked on a timeline for the issuance of an FID.
He pointed out that investors are dilly-dallying in developing gas-fired plants and LNG facilities because there is no guarantee that they could dispatch power.
To address the problem, Chua said they working with the DOE to include the Energy Regulatory Commission (ERC) in at least reviewing the policy on dispatching power.
“Instead of looking at the generation cost for a plant, they should look at it from a portfolio view,” he added.
Shell had earlier announced that it planned to build LNG facilities to fuel power plants with a combined generating capacity of up to 5,000 megawatts (MW).
The project is planned to be constructed in phases.
In 2013, the company announced its decision to start a front-end engineering and design for an LNG import facility in Batangas.
The government is encouraging investors to develop LNG as this is considered the most viable option to ensure a cleaner and more sustainable fuel mix for the country.
Chua said Shell is also pushing for an energy mix policy that would spur development of the LNG industry.