Source:  Business Mirror

SEVERAL foreign companies have expressed keen interest in building needed natural-gas facilities in the country under the Aquino administration’s Public-Private Partnership (PPP) Program, Energy Undersecretary Jose Layug Jr. told reporters in an interview on Tuesday.

Among those interested to build liquefied natural-gas terminals, pipelines or even gas-fired power plants, according to Layug, include First Pacific Capital of Australia, ENN Energy Holdings of China, Synergy International of Hong Kong, SKE & C of Korea, Korean Western Power, 3 Indian companies, BW Ventures, Hyundai Merchant Marine of Korea, Energy World of Australia, Philippine National Oil Co., GN Power, First Gen Corp., and Abacus Consolidated Resources/ENI-Saipem of Italy.

Layug added that they are completing the master plan for natural gas through the technical assistance of the Japan International Cooperation Agency and World Bank by year-end.

“After we have completed the master plan and if results are favorable, then we conduct public bidding for such infrastructures next year. We are hoping to do a PPP project that will put up the needed natural-gas pipeline, a liquefied natural-gas (LNG) terminal, an anchor-load power plant running on LNG by 2012,” he said.

Layug earlier detailed that the master plan will involve building a pipeline infrastructure, an LNG hub that will include regasification and storage units, and as ancillary to the pipeline infrastructure. It will also include putting up compressed natural-gas terminals for transport.

He was, however, quick to emphasize that the natural gas from the Malampaya deepwater gas power project will not be tapped.

Layug explained that the master plan aims to provide the needed infrastructure for LNG imports, which is expected to be much cheaper.

“Globally, the price of LNG is going down. We will import LNG, there is a lot of supply and the Philippines is being looked at by the international LNG industry as a potential market,” he said.

Layug said the country could potentially source its LNG requirements from Indonesia, Malaysia, Qatar, the US and Australia.

Energy Secretary Jose Rene Almendras earlier pointed out that the need to come up with a new master plan for the downstream natural-gas industry. “There are also discussions now focused on who will do the new master plan,” he said.

Layug added that the DOE plans to come out with a national program for LNG this year. The government will build the infrastructure, such as the LNG pipeline, storage and the regasification facility.

He stressed that the investors are really keen on investing even without government guarantee. “They just have the money and want to build. Unfortunately, I don’t have it on top of my head, but the amount could be sizable considering the project will include building a pipeline in Batangas to Manila, as well as LNG storage facilities and regasification facilities.

Also, the LNG program will be for the entire country and not just Luzon,” Layug said.