Thursday, November 01, 2007 2 foreign firms mull investing in natural gas pipeline
TWO foreign firms have indicated interest to build up and develop the Batangas-Manila (Batman 1) gas pipeline project.
Rafael del Pilar, president of the Philippine National Oil Company-Exploration Corp. (PNOC-EC), said PetroChina Company Ltd. and Gazprom of Russia are seriously considering to invest in the natural gas pipeline.
"PetroChina and GazProm of Russia went to us and looked at studies (for Batman 1)," del Pilar said.
Based on the Batman project, the government wanted to extend the use of the Malampaya natural gas to not only the three power facilities in Batangas, but also to energize other power facilities in Metro Manila and provide natural gas to the transport sector.
Batman 1 spans 100 kilometers while Bataan-Manila (Batman 2) covers 140 kilometers. The construction of Batman 1 is expected to start in 2009 while Batman 2 in 2012 with a total investment of US$700 million.
"PetroChina has more advanced studies and they're offering definitive proposals that they will submit," added del Pilar.
PetroChina is engaged in exploration, development and production of crude oil and natural gas; refining, transportation, storage and marketing, including import and export, of crude oil and petroleum products; production and sale of chemical products; and transmission, marketing and sale of natural gas while Gazprom is involved in natural gas, gas condensate and oil prospecting, production, transmission, processing and marketing both inside and outside Russia.
Meantime, del Pilar explained that the memorandum of understanding (MOU) sealed between PNOC and Thailand's PTT Public Company Ltd. for a feasibility study of Batman 1 and 2 do not prevent them from entering into other joint ventures for the project.
"That's an MOU between PTT and PNOC. We're now conducting the feasibility study since steel prices have increased. The MOU will not limit us from entering into other ventures with other possible partners," del Pilar said.
Under the MOU, the feasibility study covers the natural gas pipelines and the construction of a liquefied natural gas (LNG) terminal. The results of the study will be available on the first quarter of 2008. (MSN/Sunnex)
