(The Philippine Star) | Updated March 18, 2017 - 12:00am
MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) has received a number of proposals for the development of a liquefied natural gas (LNG) terminal aimed to ensure power supply ahead of the anticipated depletion of the Malampaya gas facility by 2024, its top official said yesterday.
Majority of the offers came from foreign companies interested in investing in the country’s LNG sector, PNOC president Reuben Lista said in a briefing yesterday.
He said the state-run firm received three offers from firms based in Singapore, two from Korea, seven from China, six from Japan, two from Turkey, one from UAE, two from Spain and one from Australia.
Meanwhile, only three offers are from Filipino companies.
PNOC has set end-April as deadline to accept offers for the LNG development, Lista said.
“We will study all offers… We gave them until end-April to submit all proposals. Then we will shortlist it,” he said.
“We will choose what will bring the best benefit to the country and to our people and of course, allow them to recover the cost of development. This is a continuing project… this can go as much as 800 megawatts (MW),” Lista said.
The LNG terminal will consist of an initial 200-MW power plant, storage facilities, liquefaction and regasification units.
Lista said the development of the facilities with off-shore regasification units would take 2.5 to three years while one with an on-shore facility would add another 1.5 years to complete.
“Our optimistic dream is to finish the terminal by 2019, meaning it is completed and operational…our pessimistic dream is 2020,” he said.
Once completed, the output will be used to serve Philippine Economic Zone Authority (PEZA) areas and provide electricity supply to the poorest of the poor, the PNOC chief said.
Last year, DOE 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 deep water gas-to-power project in 2024.
The government will also provide an emergency source of power when the Luzon grid loses supply due to plant outages. This will be done through PNOC, DOE’s corporate arm.