Philippines: Shell Considers to Take Part in BatMan 1 Pipeline Project

According to Busines Inquirer, Royal Dutch Shell is considering if it needs to involve in the planned $2.1 billion Batangas-Manila (BatMan 1) natural gas pipeline project of the Philippine government.

In an interview at the Shell Eco-Marathon Asia 2012, CFO of Shell, Simon Henry said that this consideration was part of a study being conducted for the proposed $1-billion LNG terminal in Tabangao, Batangas.

He said: “We would certainly like to see [BatMan 1 pipeline] built because that would create markets. Part of the feasibility work we’re doing is whether we need to take part in that or whether customers or the government will take it up”.

“I think it is right that the Batangas-Manila pipeline is built because, for many decades, it’ll be part of the Philippines’ energy infrastructure”.

Shell is conducting feasibility studies for the LNG terminal. If the studies show the terminal practicable, Shell could start importing and providing gas for Philippine companies starting 2016.

“We think, eventually, that LNG will come to the Philippines. For us, we’d like to be first. But we need to be competitive, we have to get the cost right. Power stations will become [our] major customers, and to invest in power stations is necessary, not for Shell, but for our customers, and that will drive the long-term demand”, CFO of Shell said.

The regasification facility must have a capacity of “three to five million tons per year of LNG” if Shell wants this project to be economic, Simon Henry said.

[mappress]
LNG World News Staff, July 09, 2012