EWC Gets Permit to Develop Pagbilao LNG Hub (Philippines)

The Directors of Energy World Corporation Limited (EWC) are pleased to announce that EWC has recently received from the Secretary of the Department of Energy of the Republic of the Philippines a permit for the development, construction and operation of a Liquefied Natural Gas Hub Terminal and Re-gasification Facility (LNG Hub Terminal) on Pagbilao Grande Island, Quezon Province, the Philippines. The permit is for a period of 25 years which can be extended.

The LNG Hub Terminal will be used to facilitate the distribution of natural gas to three main markets;

1) A proposed 2 x 150MW CCGT power plant which EWC will build to serve as an anchor buyer of the LNG;

2) Distribution of LNG to other power producers in the region;

3) Distribution of LNG & CNG for use as vehicle fuels.

The Hub Terminal will supply gas to the proposed 2 x I50MW CCGT power plant which EWC will build in later phases of the development. The power plant will be designed to accommodate the latest high efficiency and environmentally friendly technology available for gas turbines, thus enabling the Philippines to be a leader in this field. It will be one of the most efficient power producing plants in South Asia which, when combined with the fuel gas from the Hub Terminal, will allow highly competitive priced power to be generated and sold from the plant.

The strategic location of the Hub Terminal, which sits along international LNG trade routes, will help the development of an Asian LNG “spot market”. EWC also has the flexibility to acquire cargoes of LNG from the international “spot market” as well as from EWC’s own gas fields in Indonesia, Australia or its interests in Papua New Guinea.

Under confidentiality agreements we have received very strong interest from financiers and industrialists in the Philippines to co-invest and develop the Hub Terminal.

The LNG Terminal will be built in two phases; phase one will include a 130.000 cubic meter LNG storage tank, re-gasification facility, jetty, and supporting infrastructure; phase two will include an additional 130,000 cubic meter LNG storage lank. The site is adjacent to the existing Pagbilao Power Plant which has a 230kv switchyard in place, and sheltered deep water berthing for ocean- going vessels.

Construction of phase one of the Hub Terminal is planned to start before June this year and commercial operation is planned for 2012-2013. The capital cost for the Hub Terminal is expected to be approximately USD100 million for phase one and USD70 million for phase two.

The Directors are of the opinion that this Hub Terminal, which is the first of its kind in the Philippines as well as Asia, will be a significant milestone in the development of the Philippines’ natural gas industry. It will also pave the way to provide clean and green energy to the archipelago and form another strategic step in the Company’s business plan to increase the supply and availability of LNG to Asia through new markets.

Shareholders requiring any further information in connection with this announcement should contact the undersigned.

Source: Energy World Corporation, January 31, 2010;