MANILA, Philippines - Brunei Darussalam has expressed interest in participating in a natural gas program in Mindanao.
This includes potentially putting up a 300-megawatt (MW) natural gas-fired power plant and a floating storage facility for imported natural gas, the country’s energy chief said.
“We have invited Brunei to have a serious look at liquefied natural gas in Mindanao, to which they have expressed interest,” said Department of Energy Secretary Jose Rene Almendras.
“They said they will come over and study it.”
During the 30th Association of Southeast Asian Nations (ASEAN) Energy Ministers Meeting in Phnom Penh, Cambodia last week, the Philippines had bilateral talks with Brunei.
Almendras said Brunei has made a decision not to be just a supplier of natural gas but also integrate downstream initiatives.
Brunei had 14 trillion cubic feet of proven reserves of natural gas in 2010, ranking 31st in the world, data from the US Energy Information Administration showed. In contrast, the Philippines recorded ony three trillion cubic feet of proven natural gas reserves.
The possible an investment from Brunei will help develop natural gas projects in Southern Philippines, Almendras said, as there are already natural gas power plants in Luzon but no investment commitments for Visayas and Mindanao.
The country also has a $2.1-billion natural gas master plan, which includes he construction of an integrated Bataan liquefied natural gas terminal and several power plants.
In a study, the World Bank said it is feasible to pursue a natural gas project in Mindanao. This will include a power plant that will be fueled by imported natural gas and a floating storage and regassification unit (FSRU).
Almendras said the Philippines encouraged Brunei to invest in a 300-MW power plant.
“And also what is more important is if they do not decide to build the power plant, if they will invest in an FSRU and storage area capacity, we have identified the [most ideal location],” he said.
If the investment pushes through, Almendras said it will mark the first time Brunei will invest into downstream natural gas in Southeast Asia.
“Again, this is all along in focus of trying to find solutions to the Mindanao power shortage, which is to encourage more people to put up generating capacities in Mindanao,” he said.
The Mindanao grid, which needs an average of 1,300 MW, lacks an average of 50 MW to 300 MW resulting in two to four hours of rotating brownouts since January.