MANILA, Philippines — Businessman Gregorio Araneta remains optimistic his planned Energy City LNG project in Bataan will soon move forward even as the Department of Energy continues to push for the development of an LNG hub in Batangas.
On the sidelines of the annual stockholders meeting of Philweb, a company which Araneta also chairs, he said the planned LNG facility in Bataan would be developed in phases starting with an initial phase that would have a capacity of 600 megawatts and an investment of roughly $1.2 billion.
He said the project is “the single biggest investment” by Japanese investors in the Philippines this year apart from the government’s proposed railway project, which is also being supported by the Japanese.
Gregorio Araneta Inc. (GAI), Araneta’s holding company is the proponent of the ambitious Energy City LNG project, which is envisioned to be located in the Bataan industrial park of PNOC-Alternative Fuels Corp. (AFC).
GAI’s partners in the project are Japanese giants Mitsui and Osaka Gas.
The unsolicited proposal was submitted to PNOC for approval as far back as 2012 to supply the power needs of Luzon when the Malampaya gas thins out in 2022.
PNOC and GAI had entered into negotiations for the leasing rates for the property.
However, when President Duterte was elected into office, the PNOC and the Department of Energy said they wanted to open the project to other proposals.
LNG is natural gas that has been converted into liquid for ease of storage or transport.
The government and some of the country’s energy players have stressed the need to have an LNG facility in the country especially with the looming depletion of Malampaya gas.
PNOC president Reuben Lista has said PNOC would be studying all offers to make sure the government would not be put at a disadvantage.
He also said PNOC preferred to have an LNG terminal in Batangas instead of Bataan because there were existing power plants in the province that could be off-takers of the terminal’s output.
Despite this situation, Araneta is optimistic his proposal will move forward, noting that GAI has already made payments to PNOC.