The Philippines government has received expressions of interest from four companies for its proposed liquefied natural gas hub since the Department of Energy issued its downstream gas industry policy, writes Amanda Battersby.

Japan’s Tokyo Gas, state-owned China National Offshore Oil Company (CNOOC), First Gen Corporation of the Philippines and a partnership of local company Cleanway and Resiro — said to be of the UK.

“There are already four companies. They have not submitted their formal petition or application but there have been four preliminary conferences,” said Energy Assistant Secretary Leonido Pulido.

“They submitted... for the construction, establishment of the LNG integrated facility but excluding the pipeline.”

Those players that want to pursue the estimated US$2 billion project will next have to submit a formal application and comply with the process laid down in the Philippine Downstream Natural Gas Rules (PDNGR).

“We are all concerned about what to do for our power plants that rely on Malampaya gas that will be exhausted soon. In order to assure that there will be supply, the solution was to come up with the PDNGR,” said Pulido.

The regulations cover the location, design, construction, expansion, rehabilitation, modification, operation and maintenance of natural gas facilities.

Pulido said he believes the DoE’s evaluation of these LNG import and regasification project proposals will prove faster than that of the unsolicited proposals that were sent to state-owned Philippine National Oil Company.

CNOOC and First Gen both submitted such proposals to PNOC as did Energy World Corporation, Jaya Samudra Karunia, Lloyds Energy, Korea Electric Power Company and a consortium of PGN, Bosowa Corporindo and MOF Corporation although Kepco's submission is understood to have not been acceptable.

DoE officials remain upbeat about groundbreaking later this year for the ambitious LNG to power project and completion by 2024 yet some industry sources question whether this timeline will be feasible.

PNOC or its upstream subsidiary PNOC Exploration Corporation will have the option to acquire a stake in the touted LNG import project, according to a local source, although the PDNGR allows the related power plant to be 100% foreign owned.

Weekly

Four eye Philippine LNG hub