ADB TO STUDY VIABILITY OF NATURAL GAS PROJECT

(ADB) will study the viability of (LNG) project in the Philippines,

In a recent interview, Dr. Yongping Zhai, head of the ADB’s Energy Sector Group, said the regional lender would “conduct a proper demand analysis to determine the demand for natural gas.”

“Based on that [ analysis], you can then consider the global LNG supply situation,” he added, saying this included considering the pricing and the contract to be entered into.

“[ M] y colleagues within ADB would advise [ the] government on how to best structure these two...” Zhai said.

ADB “is in a good position” to assist the government in un-

local and international well.

In January, ADB signed a contract with the Philippine National Oil. Co ( PNOC) to act as a transaction advisor for the project, in Batangas province’s San Pascual town.

Under the accord, the lender, through its Office of Public-

clients Private Partnership ( OPPP), would guide the state- run oil firm in all aspects of the project, including awarding and executing the final project agreements.

In May, ADB approved a technical assistance loan worth $ 2 million ( P105.9 million) for the project.

According to ADB, the project will serve as a hub for imported

smaller components. It would also re-gasify LNG and provide electricity to neighboring islands.

“The project is envisaged to consist of a 5- million ton per annum LNG terminal, including storage units, re- gasification facilities, a power plant, loading/ unloading area for LNG carriers, and supporting infrastructure,” the institution had said.

The ADB would provide transaction advisory services ( TAS), which can strengthen the outcomes of infrastructure projects by improving sector engagement, technical design, and implementation.

“TAS will promote the sustainability of infrastructure by emphasizing operations and maintenance, and ultimately leveraging private sector investments more effectively,” ADB had said.