US$ 2.1 billion Bantangas-Manila pipeline project delayed

The Philippine government has pushed back the timetable for the construction of the Bantangas to Manila (BatMan) natural gas pipeline, as the Department of Energy (DOE) conducts more studies on the planned facility.

Jericho L. Petilia, Secretary of the DOE, told reporters that it would take at least 16 months to complete feasibility studies on the Bantangas-Manila on the natural gas pipeline. According to Zenaida Y. Monsada, Director of the department’s Oil Industry Management Bureau, the detailed feasibility study will include the actual project cost, the route of the pipeline and all other necessary information.

After this, the government will have to bid out the project, which may take up to three years to complete. According to Petilia, the pipeline may not be in place until 2018. The DOE initially estimated the study to be completed within the first quarter of 2014, and estimated completion of the pipeline by no later than 2017.

Philippine National Oil Co was supposed to undertake the feasibility studies for the pipeline, but the task was transferred to the Public-Private Partnership Centre, which has a pool of international consultants.

Bantangas-Manila pipeline

The estimated value of the BatMan project is US$ 2.1 billion. This cost would cover the entire value chain from the receiving terminal, the pipeline and the power plants.

The project will be implemented in three phases. Under phase 1, which will be led by PNOC National Oil Corporation, the government will construct a US$ 200 million 105 km gas pipeline. This will transport and supply natural gas to targeted markets located along its route from Batangas, Laguna and Cavite, and eventually to Metro Manila.

The second and third phases will involve the construction of a receiving terminal and a 600 mW power plant to serve as anchor load. The last two phases will be auctioned off to interested private sector parties.

The BatMan project is aimed to develop the country’s natural gas industry, reducing its dependence on oil.

Royal Dutch Shell Chief Financial officer, Simon Henry, said “I think it is right that the Bantangas-Manila pipeline is built because, for many decades, it will be part of the Philippines’’ energy infrastructure”.

Edited from various sources by Hannah Priestley-Eaton

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