LGUs back PNOC-EC’s $100-M Bat-Man pipeline

The construction of the $100-million Batangas-Manila I (BatMan I) gas pipeline by the PNOC-Exploration Corp. (EC) has gained support from the affected local government units (LGUs) in the area, a top company official said.

"What we are trying to do now is to talk to the LGUs to settle the right-of-way issues. We are conducting public consultations to get the approval of those that will directly be affected by the project. So far, they have been very cooperative," EC president Rufino Bomasang told The STAR.

While in discussions with the LGUs, Bomasang said they are also waiting for the recommendation of their financial advisor, ABM Amro, on the preferred scheme to raise the fund for the project.

"Our financial advisor is still working out what’s the best structure and where will we get the money and how much will be the loan component," he said.

The EC official said they are still considering private participation in the project. "We welcome them. The policy of the government is to allow private companies to participate in this kind of project," he said.

But Bomasang said since they have been mandated and already has the permit to construct the pipeline, EC might as well take the lead in the construction of the 100-kilometer pipeline facility.

Energy Undersecretary J.V. Emmanuel de Dios, in an earlier interview, said more foreign contractors have expressed interest in bidding for the project.

He said some Dutch and Czech contractors have informed him of their plan to participate in the pipeline project. These firms are Nacap, the Dutch contractor that built the Ilijan gas pipeline, and some members of the Czech Gas associations.

Various contractors like Belgian firm Tractebel, Petronas of Malaysia and British company Advantica have earlier indicated their interest in joining the pipeline project.

De Dios, who oversees all the natural gas-related activities in the country, said EC is planning to complete the BatMan I pipeline project by 2007. ABN Amro is expected to come up with a financial plan for the project in the next few weeks.

Aside from EC, there are at least five foreign firms that have expressed keen interest in constructing and operating the proposed gas pipeline. These firms are Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc. and Korean Electric Power Co. (Kepco).

Apart from the 100-km BatMan I, the government is planning to construct two more gas pipelines – the 150-km Bataan to Manila (BatMan II) and a 40-km stretch Batangas to Cavite (BatCave).