P-Noy urges investments in natural gas pipelines

BAUAN, Batangas, Philippines  – President Aquino urged investors yesterday to consider the country’s natural gas pipeline projects to be established within the next three years as his administration strives to create a more attractive business environment.

“We have begun a number of projects, many of which may be of some interest to you. For one, we are planning the establishment of three natural gas pipeline projects within the next three years, primarily in Luzon, amusingly named BatMan 1 (Batangas to Manila), BatMan 2 (Bataan to Manila), and BatCave (Bataan to Cavite), with the energetic Gov. Vilma Santos-Recto, Batgirl is also present and we continue to support the exploration, development, and utilization of natural gases,” the President in a speech during the load out ceremony of the Atlantic, Gulf and Pacific Co. of Manila or AG&P here.

Seen to be the largest natural gas development project in the country, the BatMan 1 project was also deemed to be lucrative, although capital-intensive, as it consists of putting up the 100-kilometer BatMan 1 pipeline, a liquefied natural gas terminal and a 600-megawatt power plant.

Energy Secretary Jose Rene Almendras indicated that the pipeline project could be offered under the public-private partnership program being pushed by the Aquino administration.

Almendras said the government plans a third-quarter auction for the proposed $1.2 billion project and that terms of reference were being finalized.

The pipeline, originally set to run 100 kilometers from Batangas up to Sucat in Parañaque, will now be extended to Quirino Highway in Quezon City and include “distribution pipes,” Almendras said.

An “anchor load” - the 650-megawatt Malaya thermal power plant which will be converted into a natural gas-fed plant - will connect to the pipeline and the fuel will also be utilized by the transport sector.

The project will draw its supply from the Malampaya deepwater natural gas project off Palawan, which already provides fuel to three power plants in Batangas.