PNOC extends deadline for Batangas-Mla gas pipeline bids

The Philippine National Oil Co. (PNOC) has extended by one month the deadline for the submission of bids for the proposed $100 million Batangas-Manila (BatMan) gas pipeline project.

PNOC-Exploration Corp. (EC) vice president Rafael del Pilar said the July 12 deadline for local and foreign companies interested in submitting technical and financial bids for the Front End Engineering Design (FEED) of the project will be moved to Aug. 12.

"The bidders asked for a one-month extension from the original deadline of July 12. Many of them have requested for more time to study the details involving the project," the PNOC official said.

Under the FEED, the technical details of the project will be drawn together with the acquisition of relevant field data such as geotechnical and route alignment information.

The PNOC subsidiary was granted a permit by the Department of Energy to construct the pipeline, which it is targeting to operate by early 2007.

The proposed gas pipeline will involve the construction of a 100-kilometer main natural gas transmission system from Batangas province to southern Metro Manila, a 35-km spur line to the industrial areas in Rosario, Cavite, and sub-transmission pipelines designed to serve potential gas users in the said areas.

Del Pilar said 11 foreign and local firms have expressed interest in that are participating in the exercise.

"Majority are foreign firms that have already established their presence here in the Philippines," Del Pilar noted.

Among the interested companies are First Gas Power Corp. (FGPC), 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.

The gas pipeline system has been classified as a "priority project" in the energy sector by the National Government and has, in fact, been declared a "project of national significance" by the National Economic and Development Authority (NEDA).

Early last year, PNOC-EC started the process of acquiring right-of-way for the project with the end view of maximizing the use of government properties in designing the pipeline route.

PNOC-EC said it has obtained the support of and is in close coordination with other concerned government agencies and private entities such as the Toll Regulatory Board, Philippine National Construction Corp., STAR Infrastructure Development Corp.and the Department of Public Works and Highways for the project.