PNOC to sell Batman LNG project in 1st half

State-owned Philippine National Oil Co. (PNOC) is confident it could bid out the $100 million Batangas-Manila (Batman I) liquefied natural gas (LNG) project within the first half of 2008, a ranking energy official said.

“We are optimistic that we could bid Batman I within the first six months of the year,” the official, who requested anonymity, said.

The official said PNOC will be discussing the project in a special planning session next week.

According to the official, the company will push through with Batman I despite the decision of President Arroyo to defer the implementation of the second phase of the project, Bataan-Manila (Batman II).

“Nothing should be affected (by the deferment) of the Batman II project.  The investors for Batman I are still interested,” a ranking energy official said.

Early this week, President Arroyo put on hold some infrastructure projects funded through official development assistance (ODA) amid the controveries hounding the ZTE deal.  Included in the deferred projects in the power sector are the P7.2 billion Batman II and P5.75 billion in Angat Water Utilizaton and Aquaduct improvement.

“Logically, it is paramount to start the project with Batman I first since it would be coming from Malampaya.  Its a logical sequence.  We don’t think, the deferment would affect the first phase of the project,” the official said.

Investors that have ealier expressed interest to join the Batman I project are from Thailand, China, Japan and Russia.

Earlier, it was reported that the PTT of Thailand and Japanese power firm Marubeni Corp. are still keen on the possibility of putting up an LNG terminal in the Philippines.

Marubeni has been very active in the Philippine energy sector, having participated in several governments power projects. It has partnered with Tokyo Electric Power Corp. (TEPCO) and bought US-based Mirant Corp.’s assets in the Philippines at $3.4 billion.

Earlier reports said Russian power firm Gazprom is also interested in the LNG project of the country.

Gazprom, on the other hand, is the largest Russian company and biggest extractor of natural gas in the world.  With sales of $31 billion in 2004, it accounts for 93 percent of Russian natural gas production and controls 16 percent of world’s gas reserves.

Another prospective investor in the LNG project  is Petrochina, one of China’s largest companies, is engaged in a broad range of activities related to petroleum and natural gas.

Batman is a priority energy sector project of the government and has been declared by the National Economic Development Authority (NEDA) as a  project of national significance.

PNOC-EC, tasked to undertake the project, had already secured the environmental compliance certificate (ECC) for the project in March 2004.

The pipeline system aims to extend the use of Malampaya natural gas to potential users in the industrial, commercial, transport and residential sectors.