A plant to build the country’s first liquefied natural gas (LNG) facility is now open to unsolicited proposals, Energy Secretary Alfonso G. Cusi said on Wednesday.
“Yes, so we can get what is really beneficial for the country,” Cusi said when asked if the government was now considering this approach.
Earlier, the Philippine National Oil Co. (PNOC) received government-to-government (G2G) proposals from China, Japan, South Korea, Indonesia, Singapore and the United Arab Emirates. The state firm was supposed to announce its preferred partner last month. However, a highly placed source said “there was no acceptable proposal” from these six countries.
According to Cusi, the proposals are still being evaluated by the PNOC, which is closely reviewing details on LNG storage, liquefaction, regassification, power plant and distribution channel.
“[The PNOC] is still working on it. It has not yet chosen. They are still working on the LNG framework,” Cusi said.
Cusi did not categorically say if the Philippine government would no longer pursue a G2G approach. He only said the proposals from the private sector “could be possible”.
Groundbreaking for the LNG project, possibly in Batangas, was targeted to happen early next year, with project completion being eyed within the six-year term of President Duterte.
“We will try to make it happen within the target schedule. The important thing is we do it properly to be sure that it can be completed,” he added.
Cusi said the government is aiming to turn the Philippines into a hub for LNG, amid a depletion of natural gas from the Malampaya gas field in Palawan in less than a decade.
“Two objectives. One, is for our national energy strategy when the Malampaya is depleted. Two, we want to put the Philippines in the LNG hub for Asia to complement Japan [and] Singapore. We want to take that opportunity for our country’s economic development,’ Cusi said.”
LNG is natural gas that has been converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is regasified so it can be distributed through pipelines as natural gas.