PTT PH starts talks for $2-B LNG project

by Madelaine B. Miraflor August 14, 2016

http://www.mb.com.ph/ptt-ph-starts-talks-for-2-b-lng-project/

PTT Philippines Corp., the local unit of Thailand’s largest petroleum company, already initiated talks with the government and prospective partners for its plan to develop a $2-billion liquefied natural gas (LNG) facility in the country.

PTT Philippines president and chief executive officer Sukanya Seriyothun said the company is still keen to pursue the project, saying the facility may not just be a terminal now but also a power plant.

“Actually, we talked with the Department of Energy already about this plan,” Seriyothun told reporters during the firm’s launch of its large-scale CSR project.

“As everyone knows, it should not only be a terminal alone but also a power plant with an industrial source to connect the station to put the product farther. LNG storage alone cannot last, we should have a connectivity business as well,” she added.

Seriyothun also said that PTT Philippines already discussed with some governors and prospective industrial partners for the said plan.

“We talked with many governors about possible industrial connections but said they also need to talk to the president about this project,”  Seriyothun said. The company first announced that it is planning to invest in an LNG facility in the Philippines in 2014.

Wisarn Chawalitanon, the former PTT Philippines president, said the company may tap a joint venture partner for the development of the facility.  Chawalitanon put the investment for an integrated LNG project with a 500-megawatt (MW) capacity at around $2 billion.

Chawalitanon also added the plant may rise in Subic, also the location of the firm’s existing oil depot.

PTT has the expertise to operate an LNG terminal and power plant.

In 2004, PTT Philippines’ parent firm, PTT Public Co. Ltd., built the first LNG receiving terminal in Thailand.

Seriyothun, meanwhile, said the company is still pursuing its plans to build at least 300 stations in the near term, a strategy that was initiated by Chawalitanon a few years ago.

The company said it will invest at least R3 billion for this venture. As of now, the company has 100 stations nationwide.