Group plans $1.2-billion gas pipeline in RP

MANILA, Philippines - A consortium composed of a locally-listed firm, an Italian oil and gas contractor, and an Abu Dhabi-based holding company is planning to put up a 100-kilometer natural gas pipeline from Batangas to Manila, an investment that is estimated at $1.2 billion, Malacañang announced yesterday.

Officials from the Sultan International Holdings (SIH) of Abu Dhabi, Saipem ENI of Italy, Abacus Holdings Consolidated Resources and Holdings, and the state-run Philippine National Oil Co. (PNOC) called on President Arroyo yesterday in what Palace officials described was “a move seen to set the stage for the immediate implementation of the project.”

The group was accompanied by Energy Secretary Angelo Reyes, Batangas Rep. Hermilando Mandanas, and PNOC senior vice president Glenda Martinez, a Palace statement said.

The delegation included investment banker Eric Zacks, SIH executive Nicholas Clemens; Abacus president Leonardo Gayao, and Arturo Magtibay and Inky Lukban of the same company; and Saipem ENI officials Favio Russo, Claudio Piccinin, and Marco Dugnani.

Publicly-listed Abacus has submitted its unsolicited proposal to construct the Batangas-Manila (Batman 1) natural gas pipeline for evaluation and competitive challenge by the PNOC-Exploration Corp., including the liquefied natural gas (LNG) terminal. The natural gas is sourced from the Malampaya oil and gas field off the coast of Palawan.

“The proponents also said they planned to build a 600-megawatt power plant to be run from the excess capacity of the Malampaya deep water gas-to-power project. It (consortium) pointed out that the gas supply would justify the setting up of an anchor load or power plant, which in turn, would make feasible the construction of the pipeline,” the Palace said.

“The pipeline project will not push through without the gas supply LNG terminal and power plant,” it said.

Saipem was described as “a world leader in oil and gas contracting service and one of the best balanced turnkey contractors in the oil and gas industry.”

SIH is primarily an investment company with significant global investment interests in the energy, construction and logistics sectors.