Doe Natgas Investment Kit 2010

8/6/2019 Doe Natgas Investment Kit 2010

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NATURAL GAS INDUSTRY

Natural gas will connue to be one of the countrys strategic fuel alternave to oil as it will add to energy security

posion and sustainable development as the country moves away from oil.

Natural gas from the Malampaya offshore gas field in Palawan has become the countrys major fuel for power

generaon. It is ulized for power generaon by three power plants located in Batangas namely; the 1,200 MWIlijan, 1,000 MW Sta. Rita and the 500 MW San Lorenzo gas-fired plants. In 2008, the three power plants consumed

a total of 123,604 MMSCF generang about 19,603 GWh of electricity. This accounts for approximately 44 percent

of the total power generaon mix in the Luzon grid and at least 34 percent of total gross generaon naonwide.

In support of the governments expanded use of natural gas for non-power, the Pilipinas Shell Petroleum

Corporaons refinery is now using natural gas for its refinery fuel. Likewise, the use of compressed natural gas

(CNG) in public ulity buses is strongly being pursued by the government.

Given the projected contribuon of natural gas to the countrys energy security and environment agenda, the

government is determined to pursue development of the natural gas industry to make gas available to a wider

base of customers by 2011. With the long term goal of tapping this clean energy for applicaons other than power

generaon, the government will provide an enabling environment to encourage greater private sector parcipaon

in its development.

Gas Supply and Market Potential

The hydrocarbon potenal of the Philippines is sll under explored and the proven gas reserves in the Malampaya

gas field is esmated at 2.7 trillion cubic feet (TCF). Further, assessment of the petroleum resources in the

Philippines indicates potenal gas resources of up to 25 TCF. While 16 sedimentary basins in the country have been

idenfied, the proven reserves so far are in the Northwest Palawan basin where the Malampaya gas field is located.

The recently declared addional supply of natural gas available from Malampaya has sparked more interest from

industry players and potenal buyers of gas. The Philippines is strategically situated within the internaonal LNG

trade route and thus could potenally source its gas imports from its gas-rich neighbors in the Asian region.

The use of natural gas in all sectors of the economy is connuously promoted taking advantage of the latest and

most efficient technologies e.g. conversion of oil thermal plants, greenfield power plants, in cogeneraon, district

cooling, CNG, crop drying and industrial estates, etc.

Infrastructure Requirements

The development and or expansion of the downstream natural gas market heavily relies on the necessary

infrastructure. This includes the construcon of a gas transmission and distribuon pipeline networks including

their related facilies such as LNG terminals, CNG refilling staons and their respecve ancillary facilies that

would enable exisng and new gas supplies to be developed and linked to the potenal demand centers. The

following are the idenfied crical gas infrastructure projects that will be constructed primarily in Luzon where

demand concentraon for natural gas is projected to be highest in the next ten years.

IPO factsheet_for out.indd 30 11/28/2009 12:4


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NATURA

LGAS

Potenal Market

KEY INFORMATION

Descripon

80100 km high-pressure gastransmission pipeline that will servicetheconverted Sucat thermal plant;

ecozones and industries alongthe route. The project is planned tobe implemented byzones:

Zone1: Batangas-Bian(2011);Zone2: Rosario-Bian (2013); and Zone3: Bian-Sucat(2013)

Locaon Tabangao, BatangasSucat, Paraaque (Metro Manila)

850 MWSucatPower Plant for conversionto natural gas firing or natural gas requirementequivalent to41MMscfd

Non-Sucat consistofecozones and industries along the pipeline route with an esmated natural gas

requirement of45.5 MMscfd

Esmated Project

Cost (in billion pesos)Php 5.88

Developer (% equity) PNOC, openfor private sector partnership

Target Compleon 2010-2013

StatusRevival ofdiscussionswith industrial estate developers, large industrial manufacturing plants and dedicated

power developers, LGUs and other stakeholders to firm up gas market

1) Batangas to Manila Natural Gas Transmission Pipeline (BatMan 1)

KEY INFORMATION

DescriponAn80 km high-pressure pipelinethat transport gasto industries, ecozones and transport sector along the

pipeline route from Batangas to Bian, Laguna.

Locaon Batangas toBian, Laguna

Potenal Market Ecozones, industries and transport sector alongthe pipeline route from Batangasto Bian, Laguna

Esmated Project


Developer (% equity) PNOC, openfor private sector partnership

Target Compleon 2011

StatusRevival ofdiscussionswith industrial estate developers, large industrial manufacturing plants and dedicated

power developers, alongthe Batangas-Bian legto firm up gas market.

1.1 Zone 1 : Batangas - Bian

KEY INFORMATION

DescriponA35 km high-pressure pipeline that transport gasto industries, ecozones in Rosario and Bian

(RoBin) and also links Batman1 and Batman2.

Locaon Rosario, Caviteto Bian, Laguna

Potenal Market Ecozones and industries inRosario, Cavite and Bian, Laguna Links Batman1 and 2

Esmated ProjectCost (in

billion pesos)Php 1.47

Developer (% equity) PNOC-EC; open for private sector partnership


Status Zone2ofthe Batman 1 profile

1.2 Zone 2 : Rosario Bian (Robin)



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1.3 Zone 3 : Bian - Sucat

2) Compressed Natural Gas (CNG) Refilling Stations

could even provide supply to Batman 1

pipeline traversing

KEY INFORMATION

Descripon

a) BatMan 2: a 140km high pressure pipeline with possible anchor markets including the Limay combined-

cycle power plant converted into a natural gas-fired plant, economic zones parcularly Subic route. Batman

2 would be fed from an LNG receiving terminal located in the Bataan Peninsula.

b) LNG Terminal: It will serve as receiving, storage and re-gasificaon facilies of imported LNG. Aside from

supplying fuel for power plants, the facility will extend the availability of natural gas in Central Luzon, to the

various economic zones situated in Bataan, Zambales and Pampanga provinces. The LNG terminal would

also ensure sustainable gas supply beyond the life of the Malampaya gas field. This receiving terminal couldprovide for gas supply to Metro Manila via the Bataan-to-Cavite offshore Manila Bay and

Locaon Bataan to Metro Manila

Potenal Market

600 MW Limay Power Plant (94.8 mmscfd)

500 MW Greenfield Power Plant (798 mmscfd)

600 MW Greenfield Power Plant (94.8 mmscfd)

30 MW Angeles City Power Plant (4.7 mmscfd)

116 MW Subic Power Plant (18.33 mmscfd)

50 MW Mabalacat Power Plant (7.9 mmscfd)

150 MW Rosario Power Plant 923.7 mmscfd)

Esmated Project

Cost (in billion pesos)BatMan 2: Php 5.88; LNG Terminal : Php 18.75



Status

Firming up business plan for BatMan 2 and LNG aligned with the plans for BatMan 1

The conduct of Feasibility Study (FS) is for bidding.

Preparing publicaon of Informaon Memorandum on joint venture pursuant to the NEDA Guidelines

for prospecve investors interested to partner with PNOC for the project.

3) Integrated Bataan LNG Receiving Terminal, Natural Gas Pipeline (BatMan 2)and Power Project

KEY INFORMATION

DescriponA 25 km high-pressure pipeline that transport gas to Metro Manila, industries, and ecozones in Bian,

Laguna and Sucat

Locaon Rosario, Cavite to Bian, Laguna

Converted Sucat Power Plant, ecozones, industries along the pipeline route from Bian, Laguna to Sucat.

Esmated Project




Status Zone 3 ofthe Batman 1 profile

Potenal Market

KEY INFORMATION

DescriponMix of nine (9) units ofmother and daughter refilling staons that will provide the CNG requirement of the

transport sector in Metro Manila and neighboring provinces.

Locaon Metro Manila; Batangas; Rosario, Cavite; Bian, Laguna

Potenal Market 1,000 CNG Vehicles by 2014

Esmated Project

Cost (in billion pesos)Php 0.9 for 9 units

Developer (% equity)40% foreign; 60% domesc

Priority for private sector investmentTarget Compleon One unit every year starng 2010 - 2015

StatusThe exisng CNG mother and daughter refilling staons are targeted to provide the pilot 200 CNG Buses

under the Natural Gas Vehicle Program for Public Transport (NGVPPT)



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KEY INFORMATION

DescriponA 40-km undersea high pressure gas transmission pipeline to service the Sucat plant and the co-generaon

needs of industrial zones in CaviteProvince

Locaon Bataan Peninsula to Metro Manila or Cavite Province (BatCave)

Potenal MarketSucat plant and cogeneraon needs of industrial zones in Cavite province will link BatMan 2 and Rosario-Bian

(RoBin) pipeline to provide connuity of supply to Bataan and Metro Manila areas.

Esmated Project

Cost (in billion pesos) Php 1.68

Developer (% equity)Foreign: 40%, Domesc: 60%

Priority for private sector investment


Status No proponent yet

4) Bataan Cavite Transmission Pipeline (BatCave)

5) EDSA Taft Gas Transmission Pipeline (ET Loop)

KEY INFORMATION

DescriponA 40 km city gas pipeline along Metro Manilas main artery (EDSA-Ta (ET) Loop) to service large

commercial users and the transport sector EDSA Ta Loop

Locaon Metro Manila

Potenal Market

Nine (9) retailing staons for public ulity and private vehicles. It is esmated that there will be total 0f

2,600 public vehicles running on CNG by 2020.100 MW esmated capacity requirement for cogeneraon in major commercial building along the loop.

Esmated Project


Developer (% equity)Foreign: 40%, Domesc: 60%

Priority for private sector investment

Target Compleon 2020 or earlier

Status

BatMan 1 which is expected to supply gas to ET loop is expected to be completed in 2013.

Feasibility study to determine the techno-economic viability ofa city-gas distribuon pipeline along the ET

loop is not yet undertaken

NATURAL GAS VEHICLE PROGRAM FOR PUBLIC TRANSPORT (NGVPPT)

The first CNG daughter staon was inaugurated in October 2007 kicked-off the operaon of 26 CNG buses plying

the route of Metropolitan Manila to Laguna/Batangas. This is part of the targeted 200 buses for the 7-year pilot

phase.

The government aims to come up with 1,200 buses by 2015, 2 CNG mother staons and 6 CNG daughter staons.

Based on the inter-modal plan of the Department of Transportaon and Communicaon, the possible locaons for

a CNG Daughter staon is either in Pasay City (near Mall of Asia) or Quezon City (near SM North EDSA).

The investment cost for a CNG refueling staon (mother & daughter) is approximately Php 500 million while the

Original Equipment Manufactured (OEM) bus costs between Php 5 to Php 6 million each and repowering/retrofing

a CNG bus would be around Php 3.5 million.

NATURA

LGAS


Documents

Doe Natgas Investment Kit 2010