DoE plans to revive natgas talks with foreign investors
The Department of Energy (DoE) plans to revive discussions with at least three foreign investors for potential investments in downstream natural gas infrastructure facilities, including high pressure gas pipeline and liquefied natural gas (LNG) terminals.
The prospective capital flows are eyed from Qatar, China and Thailand, documents submitted by DoE to Congress has shown.
Of the three, it was Thai firm PTT that was most vocal then about its planned investments in natural gas facilities in the Philippines. In fact, it has been setting its sight on the 100-kilometer Batangas-Manila gas pipeline.
The energy department indicated that prospects for year 2010 include forward “discussion on investment opportunities in the natural gas sector with potential investors from various countries such as Qatar, China and Thailand.”
The construction of the proposed projects have been deferred for some time as many investors have been timing it on the need for additional power capacity in Luzon to ensure an anchor load for such facilities.
For instance, the proposed Bat-Man pipeline is being hinged on the privatization timeline of the idled 850-megawatt Sucat thermal facility, as the government aligns its eventual fuel conversion into natural gas.
For LNG facilities, the challenge for investors would be to wait for market that can utilize it on massive commercial scale – be it for power or non-power applications.
Onward, the DOE noted that it will pursue conduct of a feasibility study “to evaluate third site of an integrated LNG terminal and power project in Bataan.”
The first letter of intent (LOI) submission for proposed LNG facility was from Hongkong firm Energy World International (EWI) for a combined terminal and combined cycle gas turbine (CCGT) power project with 300-megawatt capacity.
Capital influx on various natural gas infrastructures has long been cast by government on blueprint, but these projects have yet to materialize.
The energy department opined that firmer decision from investors may come if the proposed regulatory framework for the sector may already pass legislation. The proposed Natural Gas bill has long been pending for deliberations in Congress.


