LISTED Philippine National Oil Co.-Exploration Corp. (PNOC-EC) has earmarked more than P100 million to roll out its retail compressed natural gas (CNG) business.

Based on the Department of Energy’s (DOE) report, PNOC-EC has allotted P102.9 million out of its P400-million budget this year to establish a CNG retail network for public utility buses within two years.

The report added that PNOC-EC will take over the CNG refilling station of Pilipinas Shell Petroleum Corp. in Mamplasan, Biñan, Laguna as well as the main station in Pilipinas Shell’s Tabangao, Batangas facility.

Upon completion of the infrastructure support, the DOE is considering the use of imported liquefied natural gas (LNG) as fuel to achieve its target of 1,000 CNG buses in the short term.

The Japan International Cooperation Agency and the World Bank are preparing a master plan for the development of the natural gas industry, according to the DOE. The master plan will be finalized by September this year.

Energy undersecretary Jose Layug Jr. earlier said several foreign companies have expressed interest in building needed natural-gas facilities in the country under the Aquino administration’s Public-Private Partnership (PPP) program,

Interested to build liquefied natural-gas terminals, pipelines or even gas-fired power plants include First Pacific Capital of Australia, ENN Energy Holdings of China, Synergy International of Hong Kong, SKE & C of South Korea, Korean Western Power, three India-based companies, BW Ventures, Hyundai Merchant Marine of Korea, Energy World of Australia, Philippine National Oil Co., GN Power, First Gen Corp., and Abacus Consolidated Resources/ENI-Saipem of Italy.

Layug added that they are completing the master plan for natural gas industry development through the technical assistance of the Japan International Cooperation Agency and World Bank by year-end.

“After we have completed the master plan and if results are favorable, then we will conduct public bidding for such infrastructure next year. We are hoping a PPP project will put up the needed natural-gas pipeline, LNG terminal, an anchor load power plant running on LNG by 2012,” he said.

Layug earlier detailed that the master plan will involve building a pipeline infrastructure, an LNG hub that will include regasification and storage units, and as ancillary to the pipeline infrastructure. It will also include putting up compressed natural-gas terminals for transport.

He was, however, quick to emphasize that the natural gas from the Malampaya deepwater gas power project will not be tapped.

Layug explained that the master plan aims to provide the needed infrastructure for LNG imports, which is expected to be much cheaper.

“Globally, the price of LNG is going down. We will import LNG, there is a lot of supply and the Philippines is being looked at by the international LNG industry as a potential market,” he said.

Layug said the country could potentially source its LNG requirements from Indonesia, Malaysia, Qatar, the US and Australia.

Energy Secretary Jose Rene Almendras earlier pointed out the need to come up with a new master plan for the downstream natural gas industry.

(Paul Anthony A. Isla)