Published
By Myrna M. Velasco
State-run Philippine
National Oil Company (PNOC) is still in the process of firming up its targeted
equity take in the planned $2.0-billion integrated liquefied natural gas (LNG)
project of businessman Dennis Uy and China National Offshore Oil Corporation.
“We are still in discussions but both parties
are positively talking,” PNOC President and CEO Reuben S. Lista said on media
queries relating to the looming business partnership.
The government-run firm
has not given details on their parameters of negotiations, but Uy’s Phoenix
Petroleum indicated last week that the banked gas of PNOC is part of the
parties’ discussion agenda.
PNOC said earlier that it would like its banked gas valued in any tie-up deal
for LNG ventures – and such will serve as its equity in the corporate vehicle
undertaking the project.
The company similarly
asserted that it is eyeing a substantial stake in the venture – but not
necessarily a majority shareholder.
Uy and CNOOC’s
Tanglawan Philippine LNG, Inc. was the first project granted a notice to
proceed (NTP) approval by the Department of Energy (DOE) on the country’s gas
market reset post-Malampaya phase.
The integrated LNG
import terminal and gas-fed power plant venture is targeted for commercial
commissioning by year 2023 – a year prior to the lapse of the contract of the
Malampaya consortium.
The government concurs
to forecasts of possible gas extraction’s life cycle end at the Malampaya gas
field, hence, it is lining up LNG importation as an option for the industry.
The country has more than 3,000 megawatts of existing capacity of
gas-underpinned electricity generation, thus, it is very crucial that gas
supply for the country be sustained for the long term.
For the entire
industry, however, gas pricing remains a hurdle and how its seemingly more
expensive cost pass-on proposition be eventually accepted by Filipino consumers
vis-a-vis lower cost but higher carbon emissions technology alternatives.
No comments:
Post a Comment