PPP to check natgas pipeline viability

CLARK FREEPORT ZONE—The probability of constructing a natural gas pipeline from Batangas to Manila is set to be determined this year, Zenaida Monsada, director of the Oil Industry Management Bureau of the Department of Energy (DOE), said on Thursday.

Monsada said the Philippine National Oil Co. (PNOC) has tapped the Public-Private Partnership (PPP) Center to conduct a feasibility study for the proposed Batangas-Manila (Batman 1) natural gas pipeline.

The DOE official said the study is targeted for completion within the year or by the first quarter of next year.

“The study will also include the terms of reference for the bidding, the engineering, procurement, and construction of the project,” Monsada said.

The 105-kilometer Batman 1 natural gas pipeline is estimated to cost between $100 million to $150 million and is eyed for completion between 2015 and 2017, if proven feasible.

The project, which will be undertaken by the state-owned PNOC, is seen to jumpstart the natural gas industry in the country.

The idea is to tap the PPP Center’s pool of international consultants who can “provide an international perspective” for the project, the energy official said.

PPP Center Executive Director Cosette Canilao said the PPP Center will tap funds from the agency’s Project Development and Monitoring Facility (PDMF).

The fund is intended to be used for the preparation of pre-feasibility, feasibility studies, and tender documents for PPP projects, and assistance in the bidding process.

“PNOC has tapped the PDMF to undertake study and structuring of the Batman project, for a possible PPP,” Canilao said.

The PPP Center was tasked under the Executive Order No. 8 series of 2010 to facilitate the coordination and monitoring of the PPP programs and projects in the country.

source:  Malaya