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.
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