Chinese firm plans 100-km gas pipeline

posted January 09, 2017 at 08:20 pm
by  Alena Mae S. Flores
A Chinese company submitted an unsolicited proposal to build the 100-kilometer Batangas-Manila natural gas pipeline that is now under evaluation by state-owned Philippine National Oil Co.

PNOC president Ruben Lista said the Chinese company’s unsolicited proposal, which included a free carry equity for the government in the project, would be “subject to Swiss Challenge.”

Lista said the Chinese company planned to utilize BatMan gas pipeline for liquefied natural gas and liquefied petroleum gas.

Lista said the government was reviewing its options in building the gas pipeline and other proposals with the National Economic Development Authority.

The government previously planned to bid out BatMan gas pipeline for private sector participation.

The Public Private Partnership Center earlier tapped Rebel Group International BV as transaction advisor for BatMan natural gas pipeline in behalf of PNOC.

The PPP Center was tasked under Executive Order No. 8 series of 2010 signed in Sept. 9, 2010 (then as  Build-Operate and Transfer Center) to facilitate the coordination and monitoring of the PPP programs and projects.

BatMan 1 natural gas pipeline is estimated to cost between $100 million and $150 million.

Pilipinas Shell Petroleum Corp. earlier offered to take an equity stake in BatMan 1 gas pipeline to fast-track the development of the natural gas industry but previous energy officials said it would be “most optimal” for the government to own and operate the pipeline.

Conglomerate San Miguel Corp. also expressed interest in BatMan 1 project.

The Japan International Cooperation Agency earlier expressed interest to fund BatMan 1 project. 

Jica conducted a study on the prospects of the Philippine natural gas sector.  The study found that there was a 600-megawatt demand from industries located along the pipeline. 

Jica said demand from these industries, excluding additional demand from power generation firms, would justify the construction of the pipeline.

Topics: Chinese firm , 100-kilometer Batangas-Manila natural gas pipeline , Philippine National Oil Co. , PNOC
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