ADB willing to finance gas pipeline project

MANILA, Philippines - The Asian Development Bank (ADB), which has supported various energy sufficiency projects in the region, is open to extending financial support for the construction of a gas pipeline in the Philippines.

The multilateral funding agency can specifically help the Philippines through loans, an official said.

“What I can share is that ADB has provided the support for other countries like Bangladesh for construction of gas transmission lines,” said Pil-Bae Song, senior advisor and practice leader for energy of ADB’s Regional and Sustainable Development Department.

“If there is a request from the government of the Philippines, as part of the overall country operation plan, that is another thing we may consider,” said Song.

The Philippine government, through the Department of Energy (DOE), wants to implement the Natural Gas Master Plan to diversify the country’s energy sources and address the increasing demand for power given continuous economic growth.

The plan requires a $2.1-billion spending program that includes the construction of an integrated liquefied natural gas (LNG) terminal and several LNG-fired power plants.

It also includes the LNG pipeline from Batangas all the way to Subic, Zambales. The first part of this project is the Batangas-Manila gas pipeline worth around $120-200 million.

Song said the ADB can deal only with the government, hence, it cannot provide financing for the upstream oil activities that are led by private companies.

Last week, oil industry giant Pilipinas Shell Petroleum Corp. signed a deal with the Philippine government for a joint technical feasibility study of putting up an LNG terminal in Batangas.

The DOE wants state-owned PNOC Pipeline Corp. to own and operate the LNG pipeline, which is in line with the government’s plan to reduce the country’s dependence on oil imports.

Song said LNG is a good source of energy especially that new technologies are continuously being developed.

“And I think we have to also support that kind of technology and evolutions to make sure that there is sufficient energy to sustain economic growth,” Song said.

ADB’s energy policy is based on three pillars: providing access to energy, energy efficiency and sustainable energy.

Song said energy will become sustainable and competitive through government-initiated improvements and capacity development.

Last week, ADB concluded its hosting of the 7th Asia Clean Energy Forum that targeted to boost investments, technologies and policies on green energy. It was attended by more than 100 energy regulators from around the world.