PNOC studying six proposals for LNG plant

Posted on July 21, 2017
http://www.bworldonline.com/content.php?section=Economy&title=pnoc-studying-six-proposals-for-lng-plant&id=148600

THE Philippine National Oil Co. (PNOC) is evaluating six proposals from six countries to build an integrated liquefied natural gas (LNG) facility estimated to cost $2 billion ahead of submitting these to the Department of Energy (DoE) by month’s end, an official of the company said.

“We have offers from China, Japan, South Korea, Indonesia, Singapore and the United Arab Emirates,” Arwin L. Ardon, PNOC technical adviser, told reporters on Thursday on the sidelines of IBC Asia’s Power and Electricity Week, a two-day conference at Solaire Resort and Casino in Parañaque City.

He said the six proponents have all submitted proposals for what he called a “megaproject” with several components, including gas storage facility with a capacity of five million tons per annum (MTPA) and a power plant with an initial capacity of 200 megawatts (MW) but scalable to 1,000 MW.

Mr. Ardon said the June 30, 2017 deadline for project submission yielded the six proposals, down from the 55 entities that have previously signified interest in what has now become a government-to-government project.

Aside from the storage facility and the power plant, the proponents submitted proposals for an integrated facility with components for liquefaction, regasification, and a floating storage regasification unit (FSRU), he said.

He added the FSRU allows for the distribution of the stored gas to off-grid areas currently served by more expensive diesel-fueled power plants.

Mr. Ardon said PNOC’s estimated five MTPA is planned to respond to the needs of the natural gas-fired power plants in the country, namely the four plants in Batangas City owned and operated by First Gen Corp. and one in Ilijan, Batangas City run by Kepco (Ilijan) Corp.

The capacity will come in phases and is timed for the expiration of the supply contract of Kepco with the Malampaya gas platform in 2022 and that of First Gen in 2024.

After the DoE selects the winning proponent, the next step would be to evaluate the project cost, which will involve the National Economic and Development Authority, as well as the Department of Foreign Affairs.

DoE Secretary Alfonso G. Cusi has said that the planned LNG infrastructure is aimed at making the country a hub for the energy resource in Southeast Asia. The facility is planned to be built on a property in Batangas owned by PNOC.

Mr. Ardon said PNOC has three options for site of the LNG facility -- in Bauan or Mabini, Batangas, or Limay, Bataan -- all owned by the DoE’s project implementation arm. He also said that the company was in talks with National Development Co., which has a property in the area adjacent to the gas power plants in Batangas City. -- Victor V. Saulon