Indonesian oil giant keen on US$1-B LNG project in the Philippines
PT Pertamina, an Indonesian state-owned company is eyeing the Philippines for a US$1 billion development of liquefied natural gas (LNG) regasification.
According to Trade Secretary Ramon Lopez, Indonesia’s 2nd biggest oil producer has chosen the Philippines for its regasification project due to, among other factors, economic stability.
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“PT Pertamina has expressed their confidence in the country’s economic stability and business environment,” Lopez said, adding that the country is open for LNG investors.
Lopez added that Basuki Trikora Putra, Pertamina corporate marketing director expressed the giant petroleum firm’s willingness to offer its integrated LNG solutions through either floating storage and regasification unit (FSRU) or land-based LNG regasification plant and LNG supply investment after the trade chief and Pertamina officials met on January 29.
“Having a long experience as one of the world leading LNG global players, we would like to share the same experience in the Philippines. We are really keen to invest in the Philippines,” Putra said.
After the Department of Trade and Industry, PT Pertamina is also set to meet with officials of the Board of Investments (BOI), Department of Energy (DOE) and Energy Regulatory Commission (ERC) to learn about the country’s plans and policies on energy and investment.
PT Pertamina has six refineries with a combined production capacity of one million barrel of oil/day. In 2017, the firm has expanded its clout in the energy industry as a world-class national energy company through the acquisition of French oil and gas company Maurelet Prom (M&P). Through a subsidiary, PT Pertamina International EP, Pertamina became the majority shareholder of M&P with 72.65% of shares last February 2017. Through its majority shareholding in M&P, Pertamina became strong in 12 countries spread over four continents. By 2025, Pertamina eyes to produce 650,000 boe (barrel of oil equivalent) per day from its international operations, as part of Pertamina’s production target of 1.9 million boe/day by 2025.
Lopez reiterated that the Philippine government aims to accelerate investments in the areas of manufacturing, transport, energy, technology and infrastructure to strengthen its development on industry and service sectors.
Currently, an LNG terminal in Quezon province, along with a 650-megawatt power plant complex provided by an Australian firm, Energy World Corp. is nearing its completion.
A similar project in Batangas received a notice to proceed issued by the DOE in January. Its proponent, Tanglawan Philippines Energy Inc, is a joint venture between Chinese state firm CNOOC (China National Offshore Oil Corp) and Phoenix Petroleum Philippines Inc.