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Friday, March 29, 2024

PNOC, Osaka Gas hold talks over big gas project

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Philippine National Oil Co. and Osaka Gas of Japan recently held talks over the proposed liquefied natural gas integrated systems project, the state-owned firm said.

PNOC president Reuben Lista met with Osaka Gas manager Takato Senoo and country representative Kiyoshi Sakiyama on the government’s planned 200-megawatt LNG power plant and terminal.

Osaka Gas is engaged in upstream, midstream and downstream energy projects throughout the world, including LNG terminals, pipelines and independent power projects, particularly in Southeast Asia, Australia and North America.

The Japanese company has stakes in six LNG carriers. Osaka Gas also operates  two world-class LNG receiving terminals, including the Himeji and the Senboku terminal.

Osaka Gas was initially in talks with Manila Electric Co. for the possibility of putting up an integrated 1,500-MW LNG facility but the plan did not push through.

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PNOC, meanwhile, is entertaining over 34 local and foreign companies who expressed interest in the planned integrated LNG project in Batangas.

Lista earlier said he expected the companies to consolidate and form consortiums for the $1-billion to $2.4-billion LNG project.

PNOC will also utilize banked gas from the Malampaya gas project in northwest Palawan as a steady source of fuel for its planned power plant.

Lista said the terminal, meanwhile, can serve the future natural gas needs of the country’s gas power plants in Batangas which currently utilize gas from Malampaya that is expected to be depleted in the next decade.

“We are not competing with the private sector. This project will actually help the private sector. We will assure that there is a source of LNG if and when Malampaya sizzles out,” he said.

Lista said PNOC was willing to offer 60 percent to investors and 40 percent would remain with the government, commensurate to the banked gas equity.

Lista said the LNG project would be done in phases and the power plant could have a capacity of 800 MW.

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