Published August 29, 2017, 10:01 PM By Myrna M.
Velasco
The Senate has held off
deliberations on the proposed budget of state-owned Philippine National Oil
Company (PNOC) due to lacking submission of its feasibility study on planned
liquefied natural gas (LNG) terminal and related gas infrastructure projects.
“We had to defer because if you look
at the budget, there’s that provision for P505 million as new allocation for
LNG terminal but it does not have a feaasibility study yet,” Senate Committee
on Energy Chairman Sherwin T. Gatchalian said.
He indicated that they cannot just
fly blind in approving an enormous amount “for something that we don’t know if
it will make money or not.”
Gatchalian opined that if the
government would invest that P500 million for LNG terminal as stipulated in the
state-run firm’s proposed budget, “we want to make sure that they will generate
profit from it.”
He added that, at this point
“there’s no feasibility study to prove that the planned investment is
worthwhile or not, so that is our request – that they give us first the
feasibility study and they must explain to us the vision of that LNG terminal or
LNG hub, then we’ll have to see if that is feasible or not.”
PNOC had cast multi-tiered ventures
for the “rebirth” of the country’s gas market that will be anchored this time
on value chain development of LNG facilities.
Its major planned projects include a
power plant of 200-megawatt capacity and LNG terminal with associated
facilities and distribution networks.
The board of the state-run firm
postponed last month its decision to come up with a shortlist on prospective
investors on its planned LNG integrated terminal.
PNOC Board Chairman and Energy
Secretary Alfonso G. Cusi told reporters that they had to defer a decision as
they want to carefully examine first what are the options they could have on
the proposed venture.
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