Abacus offers to build 100-kilometer Manila-Batangas gas pipeline

MANILA, Philippines - Publicly-listed firm Abacus Consolidated Resources & Holdings Inc. has formally submitted its proposal to construct a 100-kilometer natural gas pipeline from Batangas to Manila (Batman 1).

In a disclosure to the Philippine Stock Exchange, the company said its proposal was submitted to state-owned Philippine National Oil Co.-Exploration Corp. (PNOC-EC).

“The said proposal will be subject to evaluation by PNOC-EC and will undergo the competitive challenge process under PNOC’s JV (joint venture) guidelines and procedures,” the company said.

Abacus was incorporated in 1981 as Piedra Negra Mining Corp., a coal mining company, and publicly listed its shares on Oct. 28, 1987.

A group of businessmen led by Hermilando “Dodo” Mandanas bought out the original majority stockholders in 1989, converted the company into a holding company, and gave it its present name.

Abacus expanded into the leasing of gaming equipment and formed Pacific Online Systems Corp. together with two other partners in 1993. On June 26, 2005, Abacus completed the acquisition of its real estate and financial services businesses through the acquisition of Philippine Regional Investment Development Corp. via a stock swap.

PNOC-EC earlier signed a draft memorandum of agreement PNOC for downstream natural gas development projects, which is still under review by the legal department.

The agreement states that PNOC owns the Batman 1 (Batangas-Manila) and Batman 2 (Bataan-Manila) gas pipeline projects and PNOC assigned the implementation of the projects to PNOC- EC. The Batman 1 gas pipeline covers 100 kilometers while the Batman 2 gas pipeline extends up to 140 kilometers.

Earlier, PNOC-EC said it is eyeing to bid for the 300-megawatt excess capacity from the Malampaya deep water gas-to-power project to support the company’s gas pipeline projects.

PNOC-EC said it would be preparing for the conduct of a feasibility study for the construction of a new power plant that will serve as an anchor load for the Batman 1 and Batman 2 gas pipelines.

PNOC-EC is considering various sites such as Batangas, Laguna or Cavite to construct the new power natural gas facility.

The Batman 1 project has drawn interest from big foreign investors like PTT of Thailand, Japanese firm Marubeni Corp., Russian power firm Gazprom and Petrochina.