By Danessa Rivera (The Philippine Star) | Updated July 23, 2017 - 12:00am
MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) is deliberating on six proposals for its planned liquefied natural gas (LNG) terminal for submission to the Department of Energy (DOE) by end of the month.
The company has received six proposals from China, Indonesia, Japan, Singapore, South Korea and the United Arab Emirates (UAE) to co-build the LNG hub, PNOC’s head of LNG team and technical adviser Arwin Ardon said.
He said all proposals include storage, liquefaction, regassification, a power plant, and distribution facility as part of the LNG terminal.
These proposals will be reviewed and will be submitted to the DOE, which has the final say on the project, by July 30, Ardon said.
Once PNOC receives the final decision from DOE, it will start another review on the project, this time on the project cost.
“We’re looking at $2 billion for the LNG terminal. On where we will source financing for that, we are looking to NEDA (National Economic and Development Authority). Since foreign countries are involved, we’re looking to Department of Foreign Affairs (DFA), Department of Budget and Management (DBM) and Department of Energy (DOE), who will form an inter-agency committee reviewing this particular mega project,” Ardon said.
PNOC was tasked by the DOE to develop an integrated LNG receiving and distributing facility with a reserve initial power plant capacity of 200 megawatts.
It is looking at a government-to-government partnership for the project, using $640 million worth of banked gas and land as forward equity, PNOC president Reuben Lista said earlier.
Once government finalizes the partner for the LNG project, Energy Secretary Alfonso Cusi said groundbreaking for the LNG terminal can happen as early as 2018.
When completed, the Philippines will not only secure continuity of power supply but also meet its goal of becoming Southeast Asia’s LNG hub.
The Malampaya gas field is expected to be depleted by 2024. Currently, around 3,200 MW of power plant capacity is dependent on the country’s sole natural gas source.