DOE says industry clamoring for natural gas pipeline

Manila Times.net
Published : Saturday, December 03, 2011 00:00 Written by : Euan Paulo C. Añonuevo


INDUSTRIES are clamoring for the development of the country’s downstream gas industry to allow them to access a cheaper fuel source.
Department of Energy Undersecretary Jay Layug said industrial demand for natural gas alone stood at 600 megawatts.


“The study validated that there appears to be demand. There is sufficient demand to put up [a] pipeline,” he said, referring to a Japan International Cooperation Agency (JICA) study launched on Thursday.


The interest in natural gas, he said, was brought about by its relatively lower cost compared with diesel and other oil-based fuel.


Government is mulling the construction of a pipeline that would connect natural gas receiving terminals in Batangas to Sucat in Metro Manila. The facility aims to make natural gas available to households, industries and even the transport sector.


Government initially eyed the construction of a natural gas-fed plant as an “anchor load” to make the construction of the pipeline feasible. To help the government develop the natural gas industry, JICA commissioned a study of potential infrastructure projects.


Based on the JICA study, the 100-kilometer pipeline would require $150 million in investments.
Layug said the JICA study endorsed the construction of receiving terminals to support the establishment of the downstream natural gas market.


“Our next step is to review comments of everyone and form a technical working group with other agencies if need be and validate. The final study will be submitted by January,” he added.