ADB unit keen on supporting LNG hub project
The Asian Development Bank is keen on supporting the proposed $2-billion integrated liquefied natural gas terminal project in the Philippines, a bank official said last week.
“I think the LNG business may be potentially for ADB to come back (to), but the private sector [arm of] ADB. ADB has two lending [arms]―sovereign or government to government, then we have this commercial based private sector department,” said Yongping Zhai, ADB chief of energy sector group, sector advisory service cluster, sustainable development and climate change department.
ADB’s private sector department stopped funding energy projects in the Philippines in recent years, but it was an active participant in the sector during the privatization of National Power Corp.
The Philippines plans to put up its first integrated LNG hub in preparation for the eventual depletion of the Malampaya natural gas in northwest Palawan.
“I understand given the current natural gas supply’s expected shortage in next 5 to 10 years, the LNG would be an option for the Philippines to supply power to meet the requirement,” Zhai said.
He said the ADB private sector department would be “very keen to see what will be the lending opportunities related to the whole supply chain of LNG business.”
“I think again our private sector people could be…a stakeholder because building LNG terminal, you have pipeline, you have off-taker, who will buy this LNG. Whole chain may require different entities to compact ADB in different ways,” he said.
State-run Philippine National Oil Co. also tapped ADB for technical assistance for its LNG venture.
The ADB official said the bank was in a good position to advise PNOC on its planned LNG facility, specially on the LNG supply, pricing and contracts.
“I am very supportive…to push this for security of the country,” he said.
PNOC received seven offers from Korea Electric Power Co., Lloyds Energy Group, China National Offshore Oil Corp., Energy World Corp., First Gen Corp., PT. Jaya Samudra Karunia and PT PGN LNG Indonesia/PT Bosowa Corporindo with local partner MOF Corp. for the proposed LNG hub.
The Energy Department separately received interest from 10 companies to put up LNG facilities.
Among the interested parties are Cleanway-Filipino and Resiro of the UK, Tokyo Gas of Japan, First Gen, China National Offshore Oil Corp., PNOC, Vires Energy Corp. and Carmine Energy Ltd. Pte. with partner Golar Energy.