PNOC sets sights on industrial parks

By Lenie Lectura – October 16, 2024
from Business Mirror

The Philippine National Oil Co. (PNOC) has proposed a P750-million self-generating industrial park project in two off-grid islands.

“We intend to pilot this concept in two off-grid islands—Tawi-Tawi and Dinagat, and the idea is industrial disbursal.

As we know 70 percent of industrial activities in the counties are basically concentrated on perhaps three provinces in north of Manila and three provinces south of Manila. That is where all industrial activities are and that is also where land is very costly, labor is costly so the idea is to also support industrial disbursal objectives,” said PNOC President Oliver Butalid during a budget hearing.

The land, he said, will be provided by the provincial government.

Butalid also proposed modular liquefied natural gas (LNG) facilities to power the industrial parks.

“We want to create baseload capacity 24/7 there using LNG modular generators. In fact, we’ve had meetings already with both Petronas and Pertamina and they are willing to support this project by delivering small scale LNG if this project will proceed,” he told Senator Sherwin Gatchalian who presided the hearing.

The modular LNG generators would have a four-megawatt capacity.

“PNOC will serve as a catalyst. We will invest only in the first few megawatts and once proven it is sustainable; we are certain that there will be more private investors. So that’s our role, to open opportunities for players to come in underserved areas,” said Butalid.

PNOC was asked to submit a feasibility study to prove that its proposal will not compete with the private sector.

In August 2023, PNOC said it intends to transform its 19.2-hectare property in Mabini, Batangas into an integration port in preparation for offshore wind (OSW) power development in nearby service contract areas.

Butalid said during a budget hearing that this plan is part of the agency’s 5 “high-impact initiatives” for 2024.

“PNOC aims to be a key player in underserved segments of the broad energy industry. Our vision statement communicates that point that we will be a niche player and focus on activities that will impact a long-term energy supply for our nation.”

The PNOC is a government-run corporation mandated to provide and maintain an adequate and stable supply of oil in the country.