PNOC’s $1.26-B LNG facility seen operational in 6 yrs

The Philippine National Oil Co. (PNOC) is targetting the completion of its $1.26 billion Bataan-Manila (Bat-Man) liquefied natural gas (LNG) II terminal by 2012, official documents showed.

PNOC-Exploration Corp., one of the subsidiaries of PNOC, will undertake the project, which is expected to produce 180 million standard cubic feet of LNG daily.

Based on initial plans, the LNG terminal would be capable of powering up to 1,600 megawatts (MW) in power plant capacity. Of this, 600 MW could be used for Limay A and B power plants in Bataan and 1,000 MW for a greenfield natural-gas power facility.

Bat-Man II is intended to be integrated with an LNG project. It would be a receiving terminal for the proposed Bat-Man I natural gas pipeline project.

A memorandum of understanding (MOU) for this was signed between PNOC and Korea Gas Corp. (Kogas) in December 2005.

The MOU establishes areas of cooperation that include exchange of information on the gas industry of countries, joint technical study, research and development and potential business opportunities.

Early this month, PNOC president Peter Aquino Jr. invited state-owned oil companies from the ASEAN region to join PNOC in the construction of the LNG receiving terminal in Bataan.

Aquino said the invitation to PNOC counterparts in the ASEAN was extended by the Philippine government during the recent Regional Oil Company Leadership Round Table held in Jiangsu, China.

The PNOC chief said aside from the LNG terminal, PNOC has also invited potential investors for the construction of the Bat-Man I project.

Bat-Man I is a priority energy sector project of the Philippine government and has been declared by the National Economic Development Authority (NEDA) as a project of national significance.

PNOC-EC began early in 2003 the process of acquiring rights-of-way for the project to maximize the use of government properties in designing the pipeline route.

It has also 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.

The pipeline system aims to extend the use of the Malampaya natural gas project in Palawan to potential users in the industrial, commercial, transport and residential sectors.