Posts Tagged ‘Batangas-Manila Natural Gas Pipeline Project I (BatMan I)’

PPP taps Dutch firm for Batangas-Manila pipeline framework

Manila Bulletin, 13 March 2014

By Myrna Velasco

 

Dutch firm Rebel Group International B.V. has been tapped by the Public-Private Partnership (PPP) Center as consultant to draft the implementation framework for the proposed 105-kilometer Batangas-Manila pipeline project.

According to the Department of Energy (DOE), the signing of the consultancy agreement was concluded Friday (March 7) with the PPP Center and state-run Philippine National Oil Company.

The PNOC was assigned by government to take the lead in implementing the pipeline project that will stretch from Batangas to Manila.

The Netherlands-based consultant, according to the energy department, is expected to deliver the outcome of its feasibility study on the BatMan pipeline project until next year.

Preliminarily, the design being considered would be for government to offer it under public-private partnership (PPP) arrangement or it can also be done as a purely private sector undertaking.

The required investment for the pipeline will be $150 million to $170 million, based on previous calculations of both the DOE and project consultants.

The pipeline project will need anchor load to justify its viability to lenders – hence that will be among those to be assessed by the Dutch consulting firm.

It was gathered from sources at the PPP Center that one of the major concerns to be addressed in the project’s implementation would be right-of-way (ROW) problems primarily along the areas to be traversed by the gas pipeline.

Previous studies undertaken by the Japan International Cooperation Agency (JICA) had indicated that around 82 barangays will be straddled by the BatMan pipeline, inferring then that such implementation component will be a tricky one.

The Japanese agency emphasized that there will be “difficulty levels of ROW acquisition” and this could gobble up substantial amount of time and effort in the entire chain of carrying out the project.

The study noted the “need to move illegal people in the railways.” For all the communities that will be affected, it was propounded that the government and or the project-sponsors must “need to obtain endorsement from all municipalities.”

Beyond the ROW concerns, the other main points considered by JICA in its proposed gas pipeline route selection delve on: the current status and future plans of land utilization as well as those of buried or above ground facilities; applicable construction technique; and the current status and future plans of road, railway, bridges and rivers.

It was specified however that “ROW allocation, incentive or contractor’s mark-up and contingencies, are not included in the cost estimation of the pipeline EPC (engineering, procurement and construction) on 2011 study.”

The anchor load for the pipeline’s construction will be industry end-users along the economic zones in Batangas and Laguna; as well as the 850-megawatt Sucat thermal power plant which has been proposed for repowering with fuel conversion to gas.

The study indicated though that “the gas conversion of Sucat power plant would be a future issue;” primarily on gas supply sourcing.

 

Natural gas pipeline plan proceeding to feasibility study

Business World, 12 march 2014

By Claire-Ann Marie C. Feliciano

 

PHILPPINE National Oil Co. (PNOC) has tapped a Netherlands-based firm as advisor for its proposed Batangas-Manila (BatMan) 1 natural gas pipeline project.

The Private-Public Partnership (PPP) Center, in a statement on Tuesday, said Rebel Group International BV will act as transaction advisor for the project. “The Rebel Group will undertake the feasibility study for BatMan 1 and provide PNOC transaction advisory support until the project’s financial close,” the statement read. “This will be funded through the Project Development and Monitoring Facility managed by… PPP Center.”

The center said ceremonial contract signing was held Monday.

Zenaida Y. Monsada, director of the Energy department’s Oil Industry Management Bureau, said in June last year that the study will determine project cost and route of the pipeline, among others. The pipeline was initially estimated to cost as much as $2.1 billion.

It involves a 105-kilometer pipeline that will channel natural gas to markets along its route from Batangas, Laguna, Cavite, and eventually to Metro Manila.

 

PNOC contracts Dutch firm as advisor in $2.1B Batangas-Manila pipeline

GMA News, 12 March 2014

 

The Philippine National Oil Company (PNOC) has contracted with the Netherlands’ Rebel Group International BV to provide transaction advisory services, to be funded by the Public Private Partnership (PPP) Center, for the $2.1 billion Batangas-Manila 1 (BatMan 1) natural gas pipeline project.

PPP Center executive director Cosette Canilao and Rebel Group team leader Vivek Sharma led the contract signing on Monday, witnessed by PNOC president and chief executive officer Antonio Cailao.

The Rebel Group will now undertake the feasibility study for the BatMan 1 and provide PNOC transaction advisory support until the project’s financial close.

PNOC has ramped up its plan to develop the natural gas industry by building a series of network pipelines in Luzon as part of efforts to reduce the country’s dependence on oil.

Part of the network is the 105-kilometer pipeline from Batangas to Manila, which will also supply natural gas to Laguna and Cavite. — DVM, GMA News

 

Euro firm tapped as advisor for Batangas pipeline project

ABS-CBN News, 11 March 2014

 

MANILA, Philippines – A European company has been hired by state-run Philippine National Oil Company (PNOC) as an advisor in the Batangas-Manila (BatMan) 1 natural gas pipeline project.

The firm, Rebel Group International BV of Netherlands, will be tasked to undertake a feasibility study and provide transaction advisory services for the project.

Public Private Partnership (PPP) Center executive director Cosette Canilao and Rebel Group team leader Vivek Sharma led the contract signing, which was held on Monday and witnessed by PNOC president and chief executive officer Antonio Cailao.

The 105-kilometer pipeline from Batangas to Manila will be constructed to transport and supply natural gas to targeted markets in Batangas, Laguna, Cavite, and Metro Manila.

The PPP project is part of PNOC’s plans to improve the natural gas industry by building a series of network pipelines in Luzon.

At least 15 major infrastructure projects worth over P222 billion are expected to be awarded before the end of President Aquino’s term in June 2016.

The PPP Center has identified a total of 50 projects that can be undertaken through the PPP scheme.

 

DOE urges Shell, First Gen to consider LNG supply partnership

The Philippine Star, 19 September 2013

By Irish C. Gonzales

 

MANILA, Philippines – The Department of Energy has urged global oil and gas giant Royal Dutch Shell plc and Lopez owned First Gen Corp. to explore a possible supply partnership that could jumpstart the country’s liquefied natural gas (LNG) industry.

The planned Batangas-Manila (BatMan 1) natural gas pipeline faces delays and may not be in place in five years, Energy Secretary Jericho Petilla said.

As such, Petilla said these industry giants should look into supplying their natural gas to other takers even without the pipeline yet.

“I wouldn’t count BatMan to be in place in the next five years. That’s the timetable of PNOC (Philippine National Oil Co). To do the feasibility study, it would take about 16 to 18 months and then three months to convert this into a commercial (project). And then it would be bid out. The construction will happen in the next two to three years. If you look at the timeline, it is really going to take too much time,” Petilla said.

Earlier, the DOE said it was looking at starting the construction of BatMan 1 between 2015 and 2017.

In July, Shell announced its decision to proceed with the front-end engineering and design (FEED) for a LNG import facility in Batangas.

First Gen, on the other hand, can be an LNG customer given its planned 1,300 megawatts of natural gas facilities in the next five years.

State run, PNOC has tapped the Project Development and Monitoring Facility (PDMF) to study the feasibility of constructing the pipeline.

The PDMF is a revolving pool of funds from the Philippine government and the governments of Australia and Canada under a capacity building technical assistance project from the Asian Development Bank (ADB) to enhance the investment environment for the Aquino administration’s Public-Private Partnership (PPP) program.

The PPP Center will be conducting the study with the help of the Japan International Cooperation Agency (JICA), to be completed possibly by the end of the year or within the first quarter of 2014.

Petilla said industry players such as Shell should take into consideration every available usage of LNG in coming up with their respective LNG plans.

“They should maximize every available usage of LNG and not rely on just one. BatMan is just one,” Petilla said.

Initially, a 105-kilometer transmission pipeline under the Batangas-Manila natural gas pipeline project will be constructed to transport and supply natural gas to targeted markets located along its route from Batangas, Laguna, Cavite and eventually to Metro Manila.

Included in the project is the construction of a LNG receiving plant and the installation of compressor stations, metering stations, valves as well as control stations.

 

Transpo, natural gas projects get pre-feasibility funds

28 January 2013, Rappler.com

 

The Project Development and Monitoring Facility (PDMF) Board approved 4 transportation and natural gas projects to obtain access to pre-feasibility funding this year.

Under the PDMF, these projects will be assisted in pre-investment activities such as the preparation of feasibility studies, bid process management, and advisory services until financial close.

In a statement on Monday, January 28, the PPP Center said the 4 projects that were granted access to the fund are the:

  • Plaridel Bypass Toll Road Project
  • Manila-Makati-Pasay-Paranaque Mass Transit System
  • Philippine National Railways (PNR) North and South Lines Development and Extension
  • Batangas-Manila Natural Gas Pipeline Project I (BatMan I)

“Our directive for this year is help implementing agencies to carry out what is dubbed as ambitious projects that will have a massive and positive impact on the country’s economy,” PPP Center Executive Director Cosette V. Canilao said.

Transport sector

The Plaridel Bypass Toll Road Project will convert the Plaridel bypass road into a toll highway, which will involve road expansion, construction of additional interchanges, flyovers, toll plazas and other miscellaneous works.

The Plaridel bypass road is currently being constructed through the initiatives of the DPWH. Once constructed, the 24.61 km-road stretch will traverse 5 Bulacan municipalities, Balagtas, Guiguinto, Plaridel, Bustos, and San Rafael.

The Manila-Makati-Pasay-Paranaque Mass Transit System Project, on the other hand, is foreseen to interconnect the 4 cities starting from the C5-32nd Street roadway to EDSA-Buendia-Makati Avenue-Ayala Triangle-Buendia roads.

It will cross the PNR Buendia Station, LRT 1 Buendia Station to CCP Complex and Mall of Asia to EDSA Ayala completing the loop up to Makati Ayala Triangle.

The PNR North and South Lines Development and Extension Project will upgrade the PNR railway systems. It will cover the entire PNR Mainline North and South Lines including branch lines of Tarlac-San Jose in the north, and Calamba-Batangas in the south.

“The PDMF-funded study will also look into possible extension of the north line to Cagayan. An important feature of the project is the plan to revive freight operations.This will provide a convenient, affordable and environment-friendly alternative transportation for people and their goods,” the PPP Center said.

Natural gas

The PPP Center said the Philippine National Oil Company (PNOC) aims to develop the natural gas industry of the country by building a series of network pipelines in Luzon.

This will be started through a 105-km transmission pipeline under the Batangas-Manila Natural Gas Pipeline Project I (BatMan I). It will transport and supply natural gas to targeted markets located along its route from Batangas, Laguna, Cavite and eventually to Metro Manila.

“Included in the project is the construction of a liquefied natural gas (LNG) receiving plant and the installation of compressor stations, metering stations, valves as well as control stations and SCADA systems,” the PPP Center said.

The PDMF is a revolving fund managed by the PPP Center. The amount spent for projects’ pre-investment studies are reimbursed by the winning bidder to the PPP Center only after the project is awarded. - Rappler.com