Philippine National Oil Co. is in talks with several foreign companies including Osaka Gas Ltd., Samsung Group and China Petroleum and Chemical Corp. to build an integrated liquefied natural gas terminal and power plant in Batangas province.
“Because they know that LNG is the fuel of the future, their best bet is to partner with PNOC like what is practiced in other countries particularly Singapore [for] an integrated system,” PNOC president Ruben Lista said.
Officials of Osaka Gas, a Japanese energy supplier, recently met with Lista to explore a possible LNG joint venture. Samsung executives also met with Lista to discuss a potential joint venture project, he said.
Executives of China Petroleum or Sinopec, a state-owned petroleum and petrochemical enterprise, also met with Lista for a joint venture in energy projects.
“Also Singapore and two more others [have expressed interest to partner with PNOC for LNG],” Lista said.
Lista said PNOC was keen on developing a 19.4-hectare energy supply base property in Mabini, Batangas and transform it into an integrated LNG facility.
Lista said they could bring the LNG facility into operations within 24 months from groundbreaking.
“We will put up some more LNG storage facility there…because it’s faster and they do not need to develop any other infrastructure,” Lista said. A part of the property or around 4.1 hectares is currently leased to Petron Corp.
Petron is using the PNOC property for its Batangas terminal for an annual lease of P475,000, which Lista said was very low compared to its actual estimated fair market value. Petron’s lease will expire in August 2018.
“I do not know if they [Petron] are interested because they have not offered anything,” Lista said.
Lista said PNOC would pursue the LNG integrated facility and a 200-megawatt power plant in the area which was said to be the “most ideal site” for its development.
“You’re talking about 5 mmbtu [million British thermal units]. We can also put the banked gas there,” he said.
The Batangas facility will serve as a storage facility for imported LNG which PNOC can sell to other industries.
The Energy Department earlier asked PNOC to put up the LNG facility that would serve as a power security asset.
