Filtered By: Money
Money

LNG sector is next 'battleground' for the private sector


The liquefied natural gas (LNG) sector is the next "battleground" among the private sector as the government tries to head off the depletion of natural gas supply from the Malampaya offshore platform

"We are looking at LNG which, we believe, is the next battleground for the private sector," Michael T. Rodriguez, managing director of Macquarie Infrastructure and Real Assets, said during the AVCJ Private Equity and Venture Forum in Makati City on Wednesday.

On Tuesday, the Department of Energy (DOE) held the first public consultation to fine tune the draft Philippine Natural Gas Regulation (PNGR), the policy framework which will guide the development of the natural gas industry.

Last month, Energy Undersecretary Felix Fuentebella cited the need to expand the country's LNG capability to accommodate and import shipments.

"By 2024, the Malampaya gas field is expected to be depleted until 2027. There is a need to expand its facilities for LNG expansion and importation, and for further exploration," he said.

Rodriguez noted the private sector can handle the undertaking on its own. "There's no need for the government to get involved, because this is the purchase of gas," he said.

"In this case, we're buying gas overseas and feeding it into mainly privately run power plants. So it's really a good argument to go private-to-private," he emphasized.

But the government will still have to exercise its regulatory power over the industry.

"The government can come in to help with policy and implementation," Rodriguez said.

Bonnie Banzon, head of project finance at BPI Capital Corp., said the private sector is willing to work hand in hand with the government.

"The private sector is willing to join forces with the government. There is an urgent need for government and private sector to join hands and build the first LNG plant in the Philippines," he said.

In June, Energy Secretary Alfonso Cusi said the Philippines is eyeing to make the Philippines the LNG hub of Southeast Asia.

"We are really looking forward to the development of the first LNG plant in the Philippines," Banzon said.

Other companies interested in the project are the International Finance Corp., Aboitiz Power, Energy Development Corp., GE Philippines Inc., IE Singapore, Japan Bank for International Cooperation, Marubeni Philippines Corp., Metro Pacific Investments, Mitsui & Co. (Asia Pacific Pte. Ltd.), National Power Corp., and Shell Philippines Exploration B.V. — VDS, GMA News

LOADING CONTENT