Mindanao LNG projects under review by DOE, WB

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THURSDAY, 17 FEBRUARY 2011 18:36 PAUL ANTHONY A. ISLA / REPORTER

SEVERAL proposals to put up liquefied natural gas (LNG) terminals to augment power supply in Mindanao are currently being evaluated by the Department of Energy (DOE).

This is what Energy Secretary Jose Rene Almendras implied when he told reporters that there are proposasl for LNG terminal projects with the World Bank and its private-sector arm, the International Finance Corp. (IFC).

Almendras said there is a proposal for a 300-megawatt LNG terminal to be built in Mindanao.

“The reason for that is Mindanao needs nonhydroelectric-generation capacity. Though there are coal plants being built that will use imported coal, there is also still a call to maintain Mindanao’s green or environment-friendly status,” Almendras said.

He added that LNG is fast to deploy or build, and its supply is readily available and inexpensive.

Almendras added that the IFC is now in talks with some of the potential investors for the proposed LNG facility.

The energy chief pointed out, however, the need to come up with a new master plan for the downstream natural-gas industry.

“There are also discussions now focused on who will do the new master plan,” he said.

Almendras said the Japan International Cooperation Agency is also interested to provide funding for the LNG facility.

Energy Undersecretary Jose Layug Jr. earlier revealed that the DOE plans to come out with a national program for LNG this year.

Layug said the government will build the infrastructure such as an LNG pipeline, storage and the regasification facility.

Layug added that they plan to have these facilities operational by the third quarter of the year. He said the investors are keen on investing even without a government guarantee being issued.

“They just have the money and want to build. Unfortunately, I don’t have it on top of my head, but the amount could be sizable considering the project will include building a pipeline from Batangas to Manila, as well as LNG storage and regasification facilities. Also, the LNG program will be for the entire country and not just Luzon,” Layug said.