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Oriental Petroleum eyes LNG terminal with JG Summit in Batangas
LISTED Oriental Petroleum and Minerals Corp. is considering building a liquefied natural gas (LNG) plant in the Philippines, a senior company official said.
“It’s one area [being looked at]… the group of Gokongwei, they have a petrochemical plant in Batangas,” Oriental Petroleum Senior Vice President — Operations and Admin Operations Apollo Madrid told The Manila Times in an interview.
Madrid was referring to the 250-hectare JG Summit Petrochemicals Group complex in the province that houses a naphtha cracker plant and a polymer plant.
The naphtha cracker plant of JG Summit Olefins Corp. (JGSOC), a first in the Philippines, is designed to produce 320,000 metric tons (MT) of ethylene and 190,000 MT of propylene annually. The plant produces ethylene, propylene, pyrolysis gasoline, and mixed C4.
On the other hand, the polymer facility of JG Summit Petrochemical Corp. (JGSPC) has three plants with total nameplate capacities of 510,000 metric tons per year — 160,000 metric tons per year for each of its two polyethylene (PE) plants and 190,000 metric tons per year for its polypropylene (PP) facility.
Both JGSPC and JGSOC are units of JG Summit, one of the biggest conglomerates in the country.
Last week, the Department of Energy (DoE) said seven companies have expressed interest to build an integrated LNG plant in Batangas.
These are China National Offshore Oil Corp., First Gen Corp., Japan’s Tokyo Gas Co. Ltd., the partnership of local firm Cleanway and United Kingdom-based Resiro, Carmine Energy, Vires Energy Corp., and state-owned Philippine National Oil Co. (PNOC).
Madrid earlier said they have yet to submit for approval the proposal to build an LNG facility after stockholders approved an amendment in the company’s secondary business purpose, allowing it to invest or engage in the business of power generation.
“LNG can be used for power generation,” he added.
With the amendment of its secondary business purpose, Oriental Petroleum said it intends to embark in the exploration, development, utilization, and commercialization of renewable energy (RE) sources including biomass, solar, wind, hydropower, geothermal and ocean energy resources.
Shareholders also approved the extension of Oriental Petroleum’s corporate term to another 50 years as its original term is set to expire on December 22, 2019.
“Within the year, we’ll probably start thinking of the projects that we will invest into. We will look at possible areas where we can get into power generation, conventional or non-conventional,” Madrid said.
He said the country is growing so fast and power investments are needed to complement the growth of industry.
“We’d like to generate power and contribute to the growth of the industry. We have almost sufficient power…but at the rate we’re growing, we need some more,” he said.
Oriental Petroleum is a local exploration and production company engaged in upstream petroleum activities in the country. Its petroleum operations are located mostly in offshore Northwest Palawan.
Its three subsidiaries are Linapacan Oil and Gas Power Corp., Oriental Mahogany Woodworks, Inc., and Oriental Land Corp.
Shares of Oriental Petroleum ended flat at P0.01 each on March 28.