Chevron’s Batangas depot to be redeveloped

MANILA, Philippines — The Department of Energy (DOE) is pushing to transform the 120-hectare property in Batangas previously leased out to Chevron Philippines Inc. into the country’s energy city.

The 120-hectare land in San Pascual, Batangas—which Chevron has been using as an oil import terminal—could house the country’s energy city, Energy Secretary Alfonso Cusi said.

This as the DOE has been pushing for the development of the country’s LNG sector to safeguard against the anticipated contract expiration of the Malampaya gas facility by 2024.

“There was a draft executive order studying the possibility of using the property for the energy city. But of course, there are pending issues so the draft was never released,” Cusi said.

“But we have been studying that. We wanted that to become an energy area. We wanted to use that for LNG (liquefied natural gas),” he said.

LNG is natural gas that has been cooled down to liquid form for ease of transport.

The DOE is looking to discuss with the Department of Finance (DOF) its proposal for the property.

“We have to work with DOF… There is a process,” Cusi said. “If that will happen, we will create a master plan for the energy city.”

Last month, the DOF revealed the onerous lease contract of Chevron with a subsidiary of the National Development Co. (NDC).

In exposing the alleged sweetheart deal, the DOF said NDC subsidiary Batangas Land Co. Inc. (BLCI) has been allowing Chevron to occupy the property at only P0.74 per square meter. 

But based on the property’s current market value estimated at about P4.9 billion to P5.3 billion, government only has a rental yield of only about 0.2 percent.