Batan­gas LNG hub con­tracts to be put up for auc­tion by 2018 — PNOC

Business World - - THEECONOMY - Anna Gabriela A. Mogato

THE Philip­pine Na­tional Oil Com­pany (PNOC) will be putting up the un­claimed ar­eas in the Batan­gas liq­ue­fied nat­u­ral gas (LNG) hub for bid­ding next year if it does not re­ceive any of­fers that sat­isfy the gov­ern­ment’s de­mands by year’s end.

PNOC tech­ni­cal ad­viser for the off ice of the pres­i­dent Ar­win L. Ar­don said dur­ing the 4th LNG sup­ply, stor­age & trans­porta­tion Philip­pines fo­rum in Taguig City that the De­part­ment of En­ergy’s cor­po­rate arm has re­ceived 78 “un­so­licited” of­fers for a joint ven­ture, but only a small num­ber are “se­ri­ous.”

“By Dec. 31, 2017, if there are no [suit­able] of­fers… we will be tak­ing this into a bid­ding next year. There will be terms of ref­er­ence next year if and only if there’s no of­feror who has sat­is­fied the JV ( joint ven­ture) guide­lines,” he added.

Mr. Ar­don also said the PNOC will have to bid out a con­tract for a third-party con­sul­tant, not­ing the “lack of com­pe­tence among the peo­ple within the agency” to draft the guide­lines for pri­vate com­pa­nies to fol­low.

The de­ci­sion to re­sort to an auc­tion in­stead of an un­so­licited pro­posal was due to a De­part­ment of En­ergy dead­line to break ground by 2018.

Once the PNOC finds a part­ner, the first fa­cil­i­ties to be set up will be a thou­sand-megawatt gas-fired power plant, a re­ceiv­ing ter­mi­nal and an ini­tial stor­age area.

Mr. Ar­don said that the PNOC is also con­sid­er­ing us­ing the fa­cil­ity as an LNG trad­ing cen­ter to take ad­van­tage of the coun­try’s “strate­gic” lo­ca­tion.

The Batan­gas LNG Hub, which will in­clude stor­age, liq­ue­fac­tion, re­gasi­fi­ca­tion, and dis­tri­bu­tion fa­cil­i­ties, is lo­cated near a clus­ter of gas­fired plants cur­rently sup­plied by the Malam­paya field, which is ex­pected to be de­pleted by 2024.

Mr. Ar­don said the de­ple­tion of Malam­paya dic­tates the timetable for the LNG hub.

Mr. Ar­don said prices of LNG could fall when the do­mes­tic mar­ket ex­pands, and the fa­cil­ity could also at­tract Filipino en­gi­neers with LNG ex­pe­ri­ence over­seas. —

THE BATAN­GAS liq­ue­fied nat­u­ral gas hub is lo­cated near a clus­ter of gas-fired plants cur­rently sup­plied by the Malam­paya field (photo), which is ex­pected to be de­pleted by 2024.

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