Philippines: First Gen still interested in LNG 'megaproject'

Philippines: First Gen still interested in LNG 'megaproject'

FIRST GEN Corp. remains keen on working with state-led Philippine National
Oil Co. (PNOC) to build an integrated liquefied natural gas (LNG) project
after the government said it is open to accepting unsolicited proposals for
the facility.

First Gen President and Chief Operating Officer Francis Giles B. Puno told
reporters last week the Lopez-led company is "excited" about the $2-billion
LNG project.

"We will continue to pursue it... We will be interested," Mr. Puno told
reporters last week.

Energy Secretary Alfonso G. Cusi, who chairs the board of PNOC, told
reporters last week the government will open the project to unsolicited
proposals. The PNOC, which was evaluating offers from six countries, missed
a target to forward a recommendation to the Department of Energy (DoE) by
the end of July.

The PNOC has received proposals from China, Japan, South Korea, Indonesia,
Singapore and the United Arab Emirates.

Before the LNG facility became a government-to-government project, the PNOC
has been swamped with unsolicited proposals from 55 domestic and foreign
entities.

In the past, First Gen, along with Phinma Energy Corp. and Shell companies
in the Philippines, had expressed plans to put up an LNG facility.

First Gen had even offered 40% of its proposed $1-billion LNG regasification
terminal in Batangas to prospective investors. The company has several
plants running on natural gas, mostly sourced from the Malampaya gas find.

The LNG "megaproject" has several components, including gas storage facility
with a capacity of five million tons per annum (MTPA) and a power plant with
an initial capacity of 200 megawatts (MW) but scalable to 1,000 MW.

In June, Mr. Cusi said the DoE was planning the construction of a common
receiving and distribution infrastructure for LNG, considered the "cleanest"
of all fossil fuels, that is aimed at making the country a hub for the
energy resource in Southeast Asia. The facility is planned for a property in
Batangas owned by PNOC.

Mr. Cusi previously said the facility would cost around P100 billion and
targeted for completion by 2020, which should give the country enough lead
time ahead of the anticipated depletion of the Malampaya natural gas find
starting in 2024. The offshore Palawan platform supplies gas to several
power plants in Batangas. It powers up to 20% of the country's electricity
requirements.

The DoE is sticking to its target of breaking ground on the LNG project in
2018 despite the delay.

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Link to Original Article:
http://www.bworldonline.com/content.php?section=Corporate&title=first-gen-st
ill-interested-in-lng-megaproject-&id=149353

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com