MANILA, Philippines — State-run Philippine National Oil Co. (PNOC) wants to tap the services of the Asian Development Bank (ADB) as consultant for its planned $2-billion liquefied natural gas (LNG) terminal.
PNOC president Reuben Lista said in an interview yesterday they are in talks with ADB to provide technical consultancy in pushing for the country’s LNG hub, as recommended by the agency’s technical working group (TWG).
“We are negotiating with ADB,” he said. “They are going to present a proposal this week. The TWG coordinated with them. It is the TWG that recommended ADB.”
Before ADB, PNOC explored with International Finance Corp. (IFC), a member of the World Bank Group, the development of a comprehensive terms of reference (TOR) for the conduct of the detailed feasibility study on the use of banked gas and its assistance in forging the most appropriate business arrangement for the LNG project.
However, talks between PNOC and IFC fell through.
PNOC has received three unsolicited proposals from three international firms namely Korea Electric Power Corp. (Kepco), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC).
These proposals are currently being assessed by PNOC’s TWG. Once the assessment is complete, the proposals will be evaluated by the consultant, which could be ADB if talks materialize, Lista said.
“If it’s ADB, ADB will check the offer. Is it really attainable? Will we really make money?” he said.
In the event none of the offers qualify based on the TWG’s and the consultant’s evaluation, PNOC will bid out the LNG terminal.
“If none of the offers will pass according to our evaluation, then the consultant will then make a terms of reference for a solicited proposal,” Lista said.
PNOC was tasked to put up an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts (MW).
It is looking to build the LNG hub by piecemeal, starting with a floating storage and regassification unit with power plant (FSRU-PP) completed by 2020.
The FSRU-PP project, which will have an initial capacity of 200 megawatts (MW) and scalable to 800 MW, is expected to address the country’s emergency power needs in times of natural calamities.
Phase 2 of the project will include onshore facilities such as a five metric tons per annum (MTPA) storage units, regasification, power plant and distribution/redistribution.
Cusi earlier said the LNG hub is expected to start construction in 2018, aiming to become an LNG hub for Asia, complementing those in Japan and Singapore.
The project is being targeted to take advantage of the growing gas demand in the region and to secure gas requirements ahead of the Malampaya depletion by 2024.
The Malampaya gas project supports the 3,500 MW demand of gas-fired power plants in Luzon.