SUMMARY
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MANILA, Philippines – The Lopez group plans to spend over $100 million to convert one of its oil pipelines into natural gas.
It wants to convert its 117-kilometer Batangas-to-Manila white oil pipeline, which is currently non-operational, to provide industrial and large power users with an alternative power source other than fuel oil, said First Gen Corp. President Francis Giles Puno.
First Philippine Industrial Corp (FPIC) owns the pipeline. First Gen and FPIC are units of the Lopez group’s First Philippine Holdings Corp. First Gen is a power generation company.
The pipeline was shut down due to a leak in 2010. Before the incident, the facility supplied over 50% of petroleum products to the Pandacan depot.
The planned conversion will deliver up to 300 megawatts of power in industrial areas near Pandacan. FPIC hopes to finish fixing the pipeline in two to 3 years.
Converting the pipeline is cheaper than building a new one, said Puno. “When we develop more demand, then you can build a brand new one. Using the existing pipeline accelerates your ability to deliver gas to industrial users.”
FPIC has another pipeline—the 105-km Batangas-to-Sucat black oil pipeline, which delivers bunker fuel.
“There are two so you can theoretically convert one line and keep the other line operating,” noted Puno. – Rappler.com
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