Philippine Government to Construct Bat-Man Gas Pipeline

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--The final study for the 105-kilometer Batangas-Manila (Bat-Man) gas pipeline in the Philippines is scheduled to be released this month.

The national government has made a final decision, after a period of blowing hot and cold on the project, to construct and operate the pipeline, which will deliver natural gas from Southern Luzon to Greater Manila, enabling the optimum number of end users to benefit from the service provided by the project.

Jose M. Layug Jr., the Energy Undersecretary, said: "Based on studies, we saw the most optimal model is for the government to operate the pipeline, so there will be open access for all entities and no monopoly."

The pipeline was originally planned by the Energy Department to supply a proposed 600-megawatt (MW) power plant. This represents demand covering Luzon Island. The second and third phases will be constructed by the private sector. Following this plan, other future projects will be able to source their gas requirements from the pipeline. Gas supply for the Batangas facility is piped in from the Malampaya natural gas project in offshore Palawan.

Bidding for the engineering and procurement contract for the pipeline will begin in the first quarter of 2013, and construction will also start in 2013. The project is scheduled to take three years to complete. The government is considering including the project in the country's public-private partnership program, which has created interest among private companies.

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