Tender launched for US$2 billion LNG project in the Philippines
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The Philippine National Oil Company (PNOC) is seeking a joint-venture partner to design, build, finance, operate and maintain a liquefied natural gas (LNG) hub in Batangas Bay, located in Batangas province on the Luzon island of the Philippines. The project could cost up to US$2 billion.
The hub will consist of a regasification terminal, storage, power plant, and other related infrastructure. It will deliver the first LNG facilities in the Philippines.
The development of the project is motivated by the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country. The hub is envisaged to supply the existing five natural gas-fired power plants in Batangas province, as well as future gas-fired power plants in Luzon and potentially neighbouring islands.
PNOC also intends for the hub to meet industrial, transport and household demand for natural gas, and potentially export to neighbouring countries in the Asia Pacific region.
Interested parties are invited to submit Letters of Interests to participate in the selection process for the project. PNOC has also published eligibility documents, which must be completed and submitted by 21 December 2018. A Pre-Eligibility Conference will be held on 16 November 2018.
Participants declared eligible will be invited to submit technical and financial proposals for the project, though the planned schedule for the issuing of invitations and reception of proposals is unknown. The Asian Development Bank (ADB) is supporting PNOC in tendering the project as transaction advisor.
In April this year, the Philippines' Energy Minister announced that the government aims for the hub to be in operation by 2020, following the disclosure that production at the Malampaya field is projected to plummet to a third of its current capacity by 2024, supplying only 1,000 MW.
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