RP, Korea sign 3 accords on energy

The Philippines has signed three agreements with the South Korean government to further strengthen bilateral cooperation in the energy sector, Energy Secretary Raphael P.M. Lotilla said yesterday.

He said two memorandum of understanding were inked with Korea’s Ministry of Commerce, Industry and Energy (MOCIE) Minister Lee Hee-Beom. The MOUs aim to assist the Philippine government in its power development programs and accelerate the country’s barangay electrification program.

Another agreement was signed between Philippine National Oil Co. (PNOC) and Korea Gas Corp. (Kogas) aiming to promote the development of the country’s downstream natural gas industry.

The signings were part of South Korean President Roh Moo-Hyun’s state visit to the Philippines.

Under the MOU on power development, MOCIE through the Korea Electric Power Corp. (Kepco), will expand the existing Ilijan power plant in Ilijan, Batangas City as a merchant facility.

Lotilla said his department will assist in securing necessary clearances and permits and facilitating discussions among stakeholders to realize the construction and operation of the additional Kepco capacity.

To accelerate the country’s barangay electrification program, Kepco has committed to energize 500 barangays through a $15-million grant over a five-year period. This is on top of the 202 barangays Kepco energized last year.

As of end-October, only seven percent of the 41,945 barangays all over the country have yet to be energized.

For the development of the country‚s downstream natural gas industry, PNOC president Eduardo V. Manalac and Kogas president Lee Soo Ho have commited to enhance cooperation in the downstream natural gas industry given Kogas‚ strength in the gas business both in Korea and overseas.

Under the MOU, both parties agreed to share information on the gas industry, including managerial and technical information and potential business opportunities in both countries.

The MOU would enable both countries to jointly study and assess possibilities of cooperation for potential business opportunities, technical studies, training and patents and licensing.

Natural gas is considered as the fuel of the 21st century and ranks as the most environmentally-friendly fuel.

Department of Energy (DOE) data show that the demand for natural gas will pick up in the coming years. By next year, upon commissioning of the anticipated mother-daughter CNG refueling station by Shell Philippines, at least 200 buses fueled by natural gas are expected to ply the Manila-Batangas and Manila-Laguna route.