PNOC eyes small-scale LNG development in BARMM
STATE-RUN Philippine National Oil Co. (PNOC) is targeting the development of small-scale liquefied natural gas (ssLNG) projects in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) to supply energy to remote areas.
“This initiative will provide cleaner, more reliable, and cost-effective energy to key industries and communities while ensuring environmental sustainability,” PNOC said in its terms of reference.
This, however, requires 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 BARMM region. PNOC will focus on gas supplies and making gas available to marginal and peripheral markets using ssLNG,” the firm said.
PNOC is looking at Tawi-Tawi, Basilan, Jolo, and Polloc as pilot locations due to their economic potential, logistical significance, and urgent energy needs.
“These areas will test ssLNG applications for industries like fisheries, manufacturing, and trade, aligning with regional development strategies, including the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area (BIMP-EAGA) framework,” PNOC said.
Asked for further details, PNOC President and Chief Executive Officer Oliver B. Butalid said that the company would not invest in LNG-generating units but will focus on logistics to bring ssLNG to Mindanao.
PNOC will undertake a study to determine the costs and returns for the project, he said in a Viber message.
“We hope to replace NPC (National Power Corp.) diesel power plants with LNG in off-grid areas to reduce generating costs and lower subsidies shouldered by all Filipino electricity users,” Mr. Butalid said.
The state-run firm wants to engage a consultant for a pre-feasibility study to assess the technical, financial, regulatory, and environmental aspects of ssLNG deployment and to guide investment decisions. — Sheldeen Joy Talavera
