State-owned Philippine National Oil Company (PNOC) plans to establish a new subsidiary, PNOC Pipeline Corporation (PNOC-PC) to undertake development works at the $2.1bn Batangas-Manila (BatMan 1) natural gas pipeline project.
Energy Undersecretary Jose M. Layug Jr. said PNOC was planning to undertake one of the three components of the project, specifically the construction of the 105-kilometer pipeline that will run from Batangas to Manila, reports the Philippine Daily Inquirer.
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The news site quote Layug as saying, "We have looked at models worldwide and we can see that most of the gas pipeline infrastructure are owned by governments, primarily to ensure open access.
"Right now, the reason why [the government is] building the pipeline is because initially, we would get the supply from the remaining gas from the Malampaya gas project off Palawan, which hopefully will be more economical especially for the industrial market," Layung added.
PNOC-PC hopes to own and operate the pipeline, for which tenders will be announced in the first quarter of next year.
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