Downstream Natural Gas Industry to Need P330-B in Investments
Byline: MYRNA M. VELASCO
The Department of Energy (DoE) has estimated that the magnitude of investments needed to fully develop the countrys downstream natural gas infrastructure would reach a whopping R330 billion.
The natural gas facilities would range from new power plants; high pressure pipelines; liquefied natural gas (LNG) terminals and compressed natural gas (CNG) refilling stations.
The proposed high-pressure pipelines alone would require an investment of R23.4 billion while the distribution pipelines would be needing R30.4 billion capital outlay.
As planned, the government will need to attract investors for the proposed 100-kilometer high pressure gas transmission pipeline stretching from the landing facility of Shell Philippines Exploration B.V. (Spex) in Tabangao, Batangas to prospective users in Metro Manila; including the Sucat facility which was proposed for conversion into a 500-megawatt natural gas-fired facility; serving an anchor load.
State-owned Philippine National Oil Company-Exploration Corporation (PNOC-EC) is eyeing to position itself as operator the facility; which is due for commercial operation in 2007. The construction of the pipeline, however, is envisioned to be undertaken by consortium of private investors.
The other pipeline projects are the 130-150 km Bataan-Manila (BatMan2) due for completion in 2008; 35-km Sucat to Malaya thermal power plant spurline targeted for completion in 2010; 35-40 kilometer undersea high pressure gas transmission pipeline from the Bataan peninsula to Metro Manila or Cavite province via Manila Bay (BATCAVE) due in 2012; and the 40-kilometer gas pipeline along the Edsa-Taft loop in Metro Manila to be integrated with refilling stations. …