More foreign firms show interest in gas pipeline proj

More foreign contractors have expressed interest to bid for the construction of the proposed $100-million Batangas-Manila (Batman I) gas pipeline project of the PNOC-Exploration Corp. (EC), an energy official said over the weekend.

Energy undersecretary J.V. Emmanuel de Dios told The STAR that some Dutch and Czech contractors have informed him of their plan to participate in the pipeline project.

He said among these firms are Nacap, a Dutch contractor that built the Ilijan gas pipeline, and some members of Czech Gas Associations.

"I met with some pipeline companies of Czech Gas Associations. They are willing to bid for the project," he said.

Earlier, various contractors like the Belgian firm Tractebel, Petronas of Malaysia and British company Advantica also indicated their interest to join the pipeline project.

De Dios, who is in charge of all the natural gas-related activities in the country, said EC is planning to complete the Batman pipeline project by 2007.

"The company is discussing with its financial advisor, ABN Amro for the financing requirement of the project," he said.

ABN Amro is expected to come up with a financial plan for the pipeline project in the next few weeks.

EC, a subsidiary of the state-owned Philippine National Oil Co. (PNOC), signed recently 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.

The MOU allows EC to 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 liquefied natural gas (LNG) Import Terminal as part of an integrated energy complex in Mariveles, Bataan.

Based on initial plan, EC will have to raise some $70 million to $80 million (through loan or equity) to finance the project.

EC was granted recently by the Department of Energy (DOE) a permit to construct and operate a natural gas pipeline from Batangas to Manila (Batman I).

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 from Batman I. These firms 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-MW Sucat I and 600-MWLimay diesel-fired power plants into natural gas facilities.

Apart from 100-km Batman I, the government is planning to construct two more gas pipeline from 150-km Bataan to Manila (Batman II) and 40-km Batangas to Cavite (Batcave).