The Asian Development Bank (ADB) said on Tuesday it has signed an agreement with the Philippine National Oil Company (PNOC) to act as transaction advisor for the Philippines’ first LNG hub project in Batangas.
The transaction advisory services agreement was signed by Takeo Koike, Officer-in-Charge of ADB’s Office of Public-Private Partnership (OPPP), and Reuben S. Lista, President and Chief Executive Officer of PNOC at a ceremony in Manila.
“The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource,” said Siddhartha Shah, Principal PPP Specialist. “It will also increase energy access and create new demand in the power, transportation, and industrial sectors in Luzon and in neighboring islands.”
Given the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country, PNOC is developing a robust and sustainable gas supply strategy through the establishment of an LNG hub in Batangas, ADB said in its statement.
Under the agreement, ADB’s OPPP will advise and assist PNOC in all aspects of the project, including the award and execution of the final project agreements.
The project, which could cost up to $2 billion, will consist of a regasification terminal, storage, power plant, and other related infrastructure.