PNOC keen on LNG hub in Batangas
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by Land Asia Listings
- February 10, 2017
- Real Estate Updates
- 0
Updated February 9, 2017 – 12:00am
http://www.philstar.com/busine
MANILA, Philippines – State-run Philippine National Oil Co. (PNOC) is keen on pursuing plans to develop liquefied natural gas (LNG) facilities in its property in Mabini, Batangas, its top official said.
“We will put up storage facilities there for the LNG because it is faster,” he said.
Lista said LNG facilities planned in the area include the 200-megawatt (MW) power plant and floating storage and regasification units (FSRU).
The PNOC official said they are in talks with three foreign partners for possible government-to-government partnership.
PNOC’s Mabini property called the Energy Supply Base (ESB) comprises 19.22 hectares, of which 10.55 are leased to its unit PNOC-Exploration Corp., 4.27-hectares are rented by Petron Corp. as bulk plant while the remaining 4.4 hectares are hilly/eroded portions.
Plans for the LNG development is dependent on whether Petron Corp. will negotiate to extend its lease contract with the state-run corporation. Lista said.
Petron’s lease contract is set to expire on Aug. 31, 2018. The country’s largest oil refiner was owned by PNOC until it was privatized in a public offering in 1994.
If it decides not to renew its contract, Petron has to start complying with Department of Environment and Natural Resources (DENR) and Coast Guard rules of clearing the said property a year before its contract lapses.
However, if Petron decides to extend its lease contract, PNOC will have to find an alternative location for the planned LNG hub, the company official said.
Last year, DOE Secretary Alfonso Cusi said the government would spearhead the establishment of an LNG terminal to ensure supply amid the impending end of contract of the Malampaya deep water gas-to-power project in 2024.
The government will also provide an emergency source of power when the Luzon grid loses supply due to plant outages. This will be done through PNOC, DOE’s corporate arm.
