Philippine Natural Gas Sector Draws Foreign Players

Australia, Italy, China, Hong Kong and South Korea companies are taking interest to invest in the highly capital-intensive Philippine natural gas sector. According to the Department of Energy, the companies are expressing interest in building either liquefied natural gas (LNG) terminal, pipeline or a gas-fired power plant.

The companies include Energy World from Australia; ENN Energy Holdings from China; Synergy International of Hong Kong; ENI-Saipem of Italy; and SK Engineering and Construction Co. Ltd., Korean Western Power, BW Ventures and Hyundai Merchant Marine from South Korea, Energy Undersecretary Jose M. Layug Jr. disclosed.

In addition Layug said three Indian companies are taking interest in helping the Philippine government put up the necessary LNG infrastructure. Layug, however, did not disclose the name of the Indian companies.

“We are completing our Master Plan for Natural Gas through technical assistance from Japan International Cooperation Agency (Jica) and World Bank by yearend. After we complete the plan, and the results are favorable, then we will conduct public bidding for such infrastructures next year,” Layug noted.

The Energy Department initially estimated that $5 billion in fresh investments would be needed to fully develop the country’s downstream natural gas industry. The country’s natural gas resources are estimated at 2.135 trillion cubic feet of natural gas.

Source: Daily Inquirer