PNOC taps PDMF for pipeline study

MANILA, Philippines - State-owned Philippine National Oil Co.  (PNOC) has tapped the Project Development and Monitoring Facility (PDMF) to study the feasibility of constructing the Batangas-Manila (BatMan) natural gas pipeline, officials said yesterday.

The PDMF is a revolving pool of funds from the government and the government of Australia under a capacity building technical assistance project from the Asian Development Bank (ADB) and the Canadian government to enhance the investment environment for the Aquino administration’s Public-Private Partnership (PPP) program.

The PPP Center will be conducting the study with the help of the Japan International Cooperation Agency (JICA).

Zenaida Monsada, director of the Department of Energy’s Oil Industry Management Bureau, told reporters the sidelines of the Industry Emergency Response 2013 forum that the feasibility study aims to determine the best mode for the project, the timetable, as well as the engineering details.

 â€œThe study should be completed within the year or first quarter next year,” she said.

PPP executive director Cosette Canilao confirmed the project.

 â€œPNOC has tapped PDMF to undertake study and structuring of the BatMan project for a possible PPP,” Canilao said.

Industry sources said the study, which could start within 45 days, would help determine the procurement mode for the project – whether as a PPP project or via the official development assistance (ODA) mode.

Aiming to reduce the country’s dependence on oil, PNOC is gearing to ramp up its plan to develop the natural gas industry of the country by building a series of network pipelines in Luzon.

Initially, a 105-kilometer transmission pipeline under the Batangas-Manila natural gas pipeline project will be constructed to transport and supply natural gas to targeted markets located along its route from Batangas, Laguna, Cavite and eventually to Metro Manila.

Included in the project is the construction of a liquefied natural gas (LNG) receiving plant and the installation of compressor stations, metering stations, valves as well as control stations.

If the feasibility study yields positive results, bidding for the project could happen within two years, government sources said.