DOE in talks with 2 Chinese firms for pipeline project

MANILA, Philippines - The Department of Energy (DOE) is pursuing talks with two Chinese liquefied natural gas (LNG) firms for the possible development of a pipeline to supply the transport sector.

DOE director Jesus Tamang told reporters that they have been holding discussions with XinAo Gas and Synergy International Resources Group Co. Ltd., both of whom have been signifying keen interest to develop an LNG pipeline and supply LNG and compressed natural gas (CNG) buses.

He pointed out that the two companies are eyeing to expand their presence in Asia, particularly in the Philippines.

“(They) both have (LNG and CNG) technologies and are willing to offer the same to the Philippines,” he said.

XinAo Gas is part of the XinAo Group of China. It has a large business portfolio consisting of both providing natural gas and LNG for residential, industrial and commercial customers, and CNG vehicle refueling stations. XinAo Gas operates gas distribution business in over 60 cities in China.

Synergy International, on the other hand, entered into a memorandum of agreement with the DOE in 2005 to solidify its commitment to develop a $200-million CNG infrastructure.

Based on the agreement, Synergy will construct a CNG refueling system which includes mother-daughter refilling stations, mobile refueling facility and other facilities deemed necessary.

Synergy, headquartered in Schenzen, has over 25 years experience in the design, building, deployment and operation of CNG and LNG.

The Philippine government has been wanting to put up a gas pipeline from Batangas all the way to Subic in Zambales. The first part of this project is the Batangas-Manila gas pipeline (BatMan 1).

The DOE is also planning to build an integrated Bataan LNG terminal and several LNG-fired power plants.

Putting up these vital energy infrastructures will expand the use of natural gas beyond the power sector, making environment friendly, competitively priced and efficient fuel available to the industrial, commercial and transport sectors, and eventually to the households, the DOE noted.

Moreso, other firms have expressed interest on these infrastructure projects.

Energy World International of Australia plans to put up an LNG terminal in Pagbilao, Quezon and a 300-megawatt LNG-fired power plant. The company will source LNG from Indonesia.

“If the terminal is going to be in place in Pagbilao, there will be no stopping the industry and even the transport sector from buying gas from them. You will be seeing provincial buses from Quezon using LNG,” Tamang said.