PNOC-EC to undertake Batman project — Perez

Energy Secretary Vincent S. Perez said over the weekend that it will be the PNOC-Exploration Corp. (PNOC-EC) which will undertake the Batangas-Manila (Batman I) project.

"I remembered that President Arroyo mandated PNOC-EC to take the lead in developing Batman I while maximizing the private sector participation," Perez said.

Perez’s statement clears up the confusion on which company will undertake the gas pipeline project which is projected to be completed by 2007.

Many investors are willing to take active participation in Batman I. For one, First Gas Power Corp. (FGPC) of the Lopezes said it is willing to undertake the construction of the project.

PNOC-EC, so far, is the only company granted provisional permit to construct the proposed natural gas pipeline.

FGPC operates gas-fired power plants in Batangas- Sta. Rita and San Lorenzo which in turn sell power to Manila Electric Co. (Meralco). PNOC-EC, on the other hand, is a member of the $4.5-billion Malampaya Deep Water Gas to Power project which supplies natural gas to FGPC.

Both PNOC-EC and FGPC are interested to construct the $100-million, 80-kilometer gas pipeline Batman I, traversing from Batangas to Manila. The firms, so far, have not shown any interest in building the other two proposed gas pipelines- Bataan to Manila (Batman II or Robin); and Batangas to Cavite (Batcave). FGPC is undertaking a roadshow to seek strategic partners that would be willing to share with the company a 60 percent loan and 40 percent equity partnership scheme for the gas pipeline project.

Aside from PNOC-EC and FGPC, other firms that have signified interest to construct and operate the proposed gas pipeline are Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc. and Korean Electric Power Co. (Kepco),, Mashhor of Brunei, Chevron Texaco and Shell Philippines Exploration B.V.