The Asian Development Bank (ADB) has been engaged by the Philippines government to advise on the US$2 billion liquefied natural gas import hub project that state-owned Philippine National Oil Company (PNOC) has been tasked with undertaking via a joint venture, writes Amanda Battersby.

PNOC had earlier confirmed that it was in talks with the ADB regarding technical advice — and perhaps also funding — for the proposed LNG hub project.

PNOC originally received seven unsolicited bids for the LNG import project. Two of the seven were initially discounted because of non-compliance with the tender process although Lloyds Energy then resubmitted its application before the deadline.

The six proposals that remain on the table are from Lloyds, China National Offshore Oil Corporation, First Gen Corporation, Jaya Samudra Karunia, Energy World Corporation and a consortium of PGN LNG, Bosowa Corporindo and MOF, according to local sources.

However, is not currently certain whether all of these bids will all continue to the next vetting stage after the initial evaluation.

Meanwhile, a PNOC official also claimed that there might still be an opportunity for other players to enter the bidding after these existing proposals have been evaluated.

Phase one of the project is expected to involve a floating storage and regasification unit sited at Batangas on the main island of Luzon that could come into operation as early as 2020. Future plans are said to include a 200-megawatt power plant that would be fuelled by regasified volumes.

ADB’s Office of Private-Public Partnership (OPPP) will advise and assist PNOC in all aspects of the project, including the award and execution of the final project agreements.

The Philippines government is aiming this year to break ground on the project and have it fully operational within six years when Shell’s Malampaya gas field is expected to start declining.

The Philippines Energy Secretary has made no bones about the government’s aim of turning the Philippines into an LNG hub but the country today has no such imports and only limited gas pipeline infrastructure.

“The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource,” said OPPP official Siddhartha Shah.

“It will also increase energy access and create new demand in the power, transportation and industrial sectors in Luzon and in neighbouring islands.”

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ADB help to boost LNG hub