DOE upbeat Visayas, and Mindanao LNG mart

MANILA, Philippines - The Department of Energy (DOE) is bullish on the potential of the liquefied natural gas (LNG) market in the Visayas and Mindanao.

DOE director Jesus Tamang said they have received a number of inquiries on the prospects of putting up LNG terminals outside of Luzon, a welcome development since these facilities will be using cleaner fuel.

While most investors are eyeing either coal-fired hydropower plants, some of these projects have been delayed as problems with environmentalists normally crop up.

It would be noted that Alcantara-owned Conal Holdings suffered several setbacks due to the opposition of local communities on its coal-fired power plants in Mindanao.

The Aboitiz Group also resolving issues on the use of water resources for its Mindanao-based hydro projects due to conflicts with local water regulators.

Tamang, however, said there are still no firm commitments from investors to put up LNG facilities outside Luzon but pointed out “some are already evaluating.”

He noted that aside from natural gas, Mindanao could also a god venue for nuclear power plants.

“Visayas and Mindanao should also be looking at natural gas. It’s the best alternative as these areas would really need additional capacity. Alternative fuels and technologies would be a welcome thing for them, for they can look at gas and/or nuclear,” he said.

“In public consultations, it appeared that some proponents in Mindanao expressed interest in having a nuclear power plant in their area,” he added.

He said the Cebu provincial government had expressed willingness to construct an LNG facility in the island.

Four groups are eyeing to build some 2,000 megawatts capacity of LNG facilities in Luzon, particularly in the Bataan area.

These are the Korean consortium of SK E&C, Korea Western Power and Archinet International Inc.; the partnership between state-owned PNOC Exploration Corp. and PTT Public Co. Ltd. of Thailand; Energy World International of Australia; and GN Power of the US.

Tamang said the Korean consortium is planning to build a 480-MW LNG facility which will include an underground terminal and a power plant in Limay and Mariveles, Bataan. Completion of the project is being targeted on 2013.

The PTT/PNOC-EC joint venture, on the other hand, is planning to put up a 1,000-MW to 1,200-MW LNG project also in Limay, to be completed between 2013 to 2015.

Meanwhile, EWI is now in the process of applying with the DOE for the inclusion of its 300-MW LNG facility to the committed energy projects under the Philippine Energy Plan for 2013.

Meanwhile, Tamang said GN Power has not yet updated the DOE of its planned 1,000-MW to 1,200-MW LNG project in Bataan.