Total in talks for LNG facility in Bataan

Total Philippines Corp. is in talks with the government for the development of a liquefied natural gas (LNG) facility in Bataan, a top company official said.

"We are looking at the possibility of engaging in the importation of LNG into the Philippines. We are talking with PNOC-Exploration Corp. (EC) and the Department of Energy (DOE) on this," Total managing director and president Jeff Attwood said.

Attwood said the proposed LNG project would complement Total’s aggressive importation activities in the country. "We plan to participate in the re-gasification plant in Bataan," he said.

The Total official, however, recognized the stiff competition since a lot of parties have expressed interest in joining PNOC-EC in the project.

EC, a subsidiary of the state-owned Philippine National Oil Co. (PNOC), recently signed a memorandum of understanding (MOU) with BP Asia Pacific Pte. Ltd. (BP) and GNPower Ltd. Co. (GNP) for the development of the downstream natural gas business in the country.

Based on the MOU, EC will take the lead in developing, financing, designing, constructing, owning and operating the pipeline. GNPower, on the other hand, will develop, finance, design, construct, own and operate the LNG import terminal as part of an integrated energy complex in Mariveles, Bataan.

Initially, EC is looking at the possibility of raising some $70 million to $80 million for the construction of a gas pipeline from Batangas to Manila.

Aside from EC, there are at least five foreign firms that have expressed keen interest to construct and operate the proposed $100 million gas pipeline. These are Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc. and Korean Electric Power Co. (Kepco).

The five foreign gas companies have also signified interest to convert the 300-megawatt Sucat I and 600-MW Limay diesel-fired power plants into natural gas facilities.