InterAksyon.com means BUSINESS
MANILA, Philippines - Foreign companies are lining up to supply the country's liquefied natural gas (LNG) requirements after government announced plans to put up a pipeline that will make the alternative fuel available to industrial and commercial establishments in Luzon.
Energy Undersecretary Jose M. Layug Jr. said 10 multinational firms have expressed interest to supply the country with LNG.
"Contracting for LNG is long term. The reason why they're asking now kasi timing na rin that they start talking to potential buyers ngayon pa lang," he said.
Among the international companies that are keen on supplying the Philippines are Italy's Eni S.p.A., Japanese firms Mitsui & Co., Ltd. and Mitsubishi Corp., Canada's Advanced Explorations Inc., and unnamed firms from China.
Government plans to put up a network of pipelines from Batangas to Manila - called the Batman 1 Project - within three years.
State-owned Philippine National Oil Co. will lead the construction and operation of the pipeline. The private sector will put up the LNG import, receiving and processing terminals. These suppliers will then use PNOC's pipeline for the distribution of their LNG to industrial customers and power plant operators.
Layug said demand for natural gas is estimated at 600 megawatts, which is roughly half the power requirement of Mindanao.
"All these suppliers are already talking to Meralco and other power plant owners kasi long term naman tinitignan," he said.
The first phase of Batman 1 involves the installation of 100 kilometers of pipeline, while the second phase is the construction of receiving terminals. The third phase is the establishment of power plants.
The pipeline is expected to cost between $150 and $200 million to put up while the other facilities would require $2 billion.
InterAksyon.com means BUSINESS
BUSINESS NEWS
