Osaka Gas firm on talks with Meralco for $2-B power plant

MANILA, Philippines - Osaka Gas Co. Ltd., Japan’s second largest natural gas supplier, hopes to complete a feasibility study on a planned $2-billion, 1,500 megawatt (MW) gas-fired power plant project with Manila Electric Co. (Meralco) by year-end.

The Japanese company is also open to forming new partnerships to invest in the liquefied natural gas (LNG) industry of the country, a ranking company official said.

Osaka Gas is currently in discussions with Meralco for a possible integrated LNG facility, which will have its own terminal and a power plant.

Osaka Gas chairman representative for Southeast Asia Yoshihiko Kimata said the Japanese LNG supplier and Meralco are “communicating periodically” and talks are “still in progress.”

“(It’s) not on a standstill but it’s going on. I don’t know when it will be finalized,” he said.

He, however, indicated the study could be completed by year-end.

“[It could be finished] maybe within the year but it can also take more time,” Kimata said.

In February, Meralco chairman Manuel V. Pangilinan said the power distributor is in talks with Osaka Gas for a possible development of a LNG facility.

LNG is natural gas that has been converted into liquid for ease of storage or transport.

He said the possible joint venture with Osaka Gas includes a regasification facility or LNG terminal, which will convert imported LNG to natural gas for delivery to the power plant.

Osaka Gas sees the potential of LNG in the Asia Pacific region, particularly in the Philippines, taking the chance to attend the Asia Pacific Economic Cooperation’s (APEC) 12th Energy Ministerial Meeting (EMM12), which was hosted by the Philippines.

“We are looking into the possibility of investing here but it is so competitive. Many companies are looking for opportunities and we are one of them,” Kimata said.

“Thats why we came here, to communicate with other people and to let them know about our activities,” he added.