Business World Online
Posted on September 02, 2015 06:47:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
THE P10.528-billion Batangas-Manila (BatMan) Natural Gas Pipeline Project may face delays after the Department of Energy (DoE) sought more time to discuss the details of the project.
Melita V. Obillo, director of the DoE’s Oil Industry Management Bureau, told reporters that going forward with the critical natural gas infrastructure depends on some technical matters being firmed up.
“The DoE still has a lot of questions to the technical advisor. The advisor has to answer that before the project progresses,” Ms. Obillo said in a text message.
She was referring to Dutch firm Rebel Group International BV, which was tapped by the Public-Private Partnership (PPP) Center to serve as the advisor for the project.
Earlier this year, then Energy Secretary Carlos Jericho L. Petilla said that further evaluations are needed prior to the rollout of the BatMan project.
Mr. Petilla had said there were questions on the design of the project, as well as the prospective off-takers for the natural gas that will pass through the facility.
The BatMan natural gas project involves the construction of a 121-kilometer transmission pipeline that will transport and supply natural gas to targeted markets located along its route from Batangas, Laguna and Cavite, and eventually to Metro Manila.
This is part of the state-run Philippine National Oil Co.’s (PNOC) efforts to develop the country’s natural gas industry and reduce its dependence on imported fuels.
This project is included in the pipeline of infrastructure projects under the government’s flagship PPP program.
In July, the project National Economic Development Authority -- Investment Coordination Committee (NEDA-ICC) approved the project.
As a next step, the project was due for elevation to the NEDA Board -- headed by President Benigno S. C. Aquino III -- for confirmation.
The DoE originally wanted to secure the NEDA Board approval this year of a rollout early next year.
But Ms. Obillo recognized that this target may be hard to meet given the remaining concerns that have to be addressed.
“We are not sure if the project can move forward this year,” the official said.
“It will be discussed in the next board meeting of PNOC,” she added, noting that no schedule has been set for the meeting.
This was confirmed by PPP Executive Director Cosette V. Canilao, who said via text that “the DoE wants to explore additional structures.”
She added that it will not be removed from the PPP pipeline of projects but only from the presentation to the next NEDA Board meeting.
Officials from NEDA were not immediately available when sought for comment and further details.
Ten PPP deals cumulatively worth P189 billion have been awarded since the infrastructure program was launched in the third quarter of 2010. source
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