BatMan start seen in Q3

Publicly listed Abacus Consolidated Resources and Holdings Inc. hopes to complete within the third quarter all the requirements needed to jump-start the $1.2-billion Batangas-Manila (BatMan 1) natural gas pipeline project. In a filing with the Philippine Stock Exchange, Abacus said completion of the requirements would “consummate the joint venture agreement with the Philippine National Oil Co. (PNOC).” This will allow the state-run PNOC to conduct a Swiss challenge for the unsolicited proposal it will receive from a consortium composed of Sultan International Holdings, based in Abu Dhabi, local firm Abacus Consolidated Resources and Holdings, and Saipem ENI of Italy. Swiss challenge is a form of public procurement where a government agency that has received an unsolicited bid for a public project or services may publish the bid and invite third parties to match or exceed the unsolicited proposal. According to PNOC president Antonio Cailao, negotiations are still ongoing as the committee formed by PNOC continues to process the proposal of the consortium. The two parties are still consolidating the private sector proposal and the requirements and conditions as set by the government, he added. The consortium plans to put up the 100-kilometer BatMan 1 pipeline—a liquefied natural gas terminal terminal—and a 600-megawatt power plant. These facilities are expected to draw its natural gas supply from the Malampaya deep-water gas-to-power project. Seen to be completed in four years, the BatMan 1 pipeline will deliver natural gas from Tabangao, Batangas, to the decommissioned 850-megawatt Sucat fuel-fired power plant. The winning bidder will convert the Sucat plant, owned by National Power Corp, into a natural gas facility. The government hopes to award the BatMan 1 project within the year. Source: Philstock