Philippines to bid US$2.1 billion natural gas project

One of the largest renewable energy projects in the Philippines has caught the attention of at least 10 foreign investors.

Phase 2 of the government’s US$2.1 billion natural gas pipeline project will extend from Batangas province south of Manila to Subic Bay in Zambales province to the north. It will also include an integrated liquefied natural gas (LNG) terminal in Bataan province (adjacent to Zambales) and the building of several LNG-fired power plants.

Private sector participation starts with Phase 2. Phase 1 involves the construction of a US$200 million Batangas to Manila gas pipeline.

Undersecretary Jose Layug Jr. of the Department of Energy said investors await the bidding for the construction of a receiving terminal for natural gas and to supply natural gas. He said that among these companies are Mitsubishi Corporation of Japan, AXI LNG Gas of Canada, Mitsui Co. Ltd. of Japan and ENI S.p.A of Italy.

Layug pointed out that private firms will build the receiving terminal, which can either be a floating storage receiving unit or an onshore terminal, and will offer the supply LNG. The last phase of the master plan involves building power plants running on LNG.