THE SENATE has questioned the budget proposal of over P500 million for Philippine National Oil Co. (PNOC) at a hearing for the Department of Energy’s budget presentation for 2018.
Senator Sherwin T. Gatchalian, chairman of the Senate committee on energy, asked why PNOC, the commercial arm of the Department of Energy (DoE), is asking for funds for a proposed liquefied natural gas (LNG) integrated facility without first coming up with a feasibility study.
“We asked them to defer it [budget presentation first] because if you look at the budget, P505 million new allocation for an LNG terminal, but this LNG terminal wala (still has no) pang feasibility study,” he told reporters.
“How can we allocate P500 million for something that we don’t know if it will make money or not because it was explained to us that P500 million will be used to invest in an LNG terminal,” he said.
He said if the government will invest in a project, it should earn returns from it.
“Give us first the feasibility study, explain to us this vision of LNG terminal or LNG hub and let’s see if its feasible for the government,” he said, partly in Filipino.
In June, Energy Secretary Alfonso G. Cusi said his department was looking at the construction of a common LNG receiving and distribution infrastructure, which he said could result in making the country as an “LNG hub” for Southeast Asia.
Mr. Cusi said the facility would cost around P100 billion and is targeted to be completed by 2020, which should give the country enough lead time and safeguard it ahead of the anticipated depletion of the Malampaya gas find in 2024.
He said the facility would have an initial 200-megawatt power plant, storage facilities and liqeufaction and regasification units. The plant’s output is aimed to serve the country’s economic zones, he added.
The DoE has a proposed budget of P2.65 billion for 2018, which Mr. Gatchalian said does not have substantial changes from the previous year.
The budget is composed of allocation for operations amounting to P1.87 billion, support to operations at P449 million, and general administration and support at P392 million.
Compared to 2017, the proposed budget increased only by 0.05% or about P1.33 million. — Victor V. Saulon
