PNOC studying small-scale LNG in Bangsamoro
The Philippine National Oil Co. (PNOC) is keen about pursuing the development of small-scale liquefied natural gas (ssLNG) projects in Bangsamoro Autonomous Region in Muslim Mindanao.
According to PNOC president Oliver Butalid, the move may help the region replace the diesel power plants of the National Power Corp. with LNG in remote areas.
“[This would] reduce generating costs and lower subsidies shouldered by all Filipino electricity users,” he told reporters recently.
Butalid said PNOC will not invest in the LNG generating units, but its focus will be on bringing small-scale LNG or gas supplies to Mindanao.
“We’ll undertake a study to determine costs and returns,” the official said.
This month, the agency released a project up for bidding as it looks for consultancy services involving small-scale LNG development in the Bangsamoro.
The prefeasibility study, it said, would assess the technical, financial, regulatory and environmental aspects of LNG deployment.
Based on the document, PNOC said building the Bangsamoro’s small-scale LNG sector would “enhance energy security, reduce diesel reliance, and support economic growth.”
“This initiative will provide cleaner, more reliable, and cost-effective energy to key industries and communities while ensuring environmental sustainability,” it said.
“A core component is the deployment of modular and scalable ssLNG infrastructure tailored to remote and off-grid locations. By integrating ssLNG facilities into existing and prospective power plant facilities, PNOC can develop the ssLNG market demand in the [Bangsamoro] region,” the agency added.
Pilot sites
PNOC also identified pilot locations of the project, including Tawi-Tawi, Basilan, Jolo and Polloc. The state firm said these areas were picked given their “economic potential, logistical significance, and urgent energy needs.”
Some of the sectors that could benefit from this initiative include fisheries, manufacturing and trade.
“PNOC also aims to support the development of self-generating industrial parks to boost economic growth in the region, serving as anchor loads for LNG demand and further supporting the viability of ssLNG infrastructure,” it said.
