State-owned Philippine National Oil Co. is now “open for business” under newly-appointed president Ret. Admiral Reuben Lista.
PNOC has started a study on the feasibility of developing a liquefied natural gas facility to support the Malampaya field in northwest Palawan,
Energy Secretary Alfonso Cusi has directed Lista to study the development of a 200-megawatt LNG facility to serve the requirements of industries.
Cusi said PNOC would study the feasibility of lowering the cost of building the LNG facility.
“We made it a mandate to Admiral Lista (to bring down the cost). Because we cannot ask the private plant operator to bring it down, so the government must find ways how to bring it down so we can attract investors,” Cusi said, adding the integrated LNG facility would take about two years to construct.
Cusi earlier said he directed PNOC to study the development of a 200-MW LNG power plant in Batangas to secure the country’s power reserve needs.
“We’re making a study. I asked PNOC to make a study for a 200-MW LNG that would serve as a buffer stock for government to use in case of shortage of power,” he said.
Cusi said the department was making preparations to ensure the continuity of the operations of the Malampaya facility, which fuels three natural gas plants in Batangas with a combined capacity of 2,700 megawatts.
“We will make that LNG farm in Batangas to supply gas-to-power plants. We (at) initiated the study, but now there are a lot of interest from the private sector. We are open to that. Whatever is best for the country, that’s the direction we will take,” he said.
The department plans to complete the LNG policy framework by the end of the year.
Cusi also assured the construction of the LNG facility should follow the guideline set by the Electric Power Industry Reform Act of 2001.
PNOC, under Lista, meanwhile, has committed to ensuring energy security by providing vital energy infrastructure and strategic reserves for the country.
“With new leadership at its helm, the public can expect change with his hands-on management approach that will ensure optimum returns from its corporate activities, and efficient use of its resources,” PNOC said.