DOE backs 2 firms’ gas aggregation scheme B L L @llectura
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HE Department of Energy (DOE) fully supports the proposed gas aggregation strategy of Razon-led Prime Infrastructure Capital Inc. and Lopezled First Gen Corp. as this will result in lower electricity prices for consumers amid the UkraineRussia war that has already led to a spike in international gas prices. “That’s what we are trying to prevent from happening in terms of spikes in the price of imported LNG, and the plan is to blend the lower price of Malampaya natural gas with the imported LNG so that we can soften the impact or the volatilities of imported LNG.
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By 2026 or 2025, if we are lucky, there will be more LNG supply coming on stream globally and therefore the expectation is that prices of LNG will soften as well,” Energy Secretary Raphael Lotilla said during an online interview with One News. Prime Infra and First Gen have confirmed that they are already in discussions to develop a gas aggregation framework meant to make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG. It said the framework would provide least-cost solution for consumers, enhanced energy security and competitive market for power generation. It would also complement ongoing commercial develop-
ment of “new indigenous natural gas fields.” Prime Infra had stressed that the proposed framework would also tap the Malampaya consortium’s expertise in the natural gas market and would lead to reliable and lowest cost supply of clean gas to the country’s power plants. The gas aggregator framework “establishes a resilient and efficient natural gas supply chain,” Prime Infra president and CEO Guillaume Lucci earlier said, adding that the proposal “would ensure a stable and sustainable baseload power supply.” First Gen, for its part, is developing an integrated LNG and regasification terminal in its energy complex in Batangas City.
Prime Infra, through its subsidiary Prime Energy Resources Development B.V., is a member of the Malampaya consortium. It holds a 45-percent operating stake in the Malampaya gas-to-power project. Other members of the consortium are UC38 LLC (45 percent) and PNOC Exploration Corp. (10 percent). President Ferdinand R. Marcos Jr. has extended the consortium’s service contract for 15 years or until February 22, 2039, ensuring the continued production of the Malampaya gas field, which delivers around 20 percent of the country’s electricity requirements. Under the terms of the extendS “DOE,” A
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NEDA BOARD OKS NAIA REHAB, 2 KEY PROJECTS www.businessmirror.com.ph
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Thursday, July 20, 2023 Vol. 18 No. 276
P. | | 7 DAYS A WEEK
B S P. M @sam_medenilla
L S. M @lorenzmarasigan
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HE National Economic and Development Authority (Neda) Board led by President Ferdinand R. Marcos Jr. approved on Wednesday three new infrastructure projects, including the proposed rehabilitation of the Ninoy Aquino International Airport (NAIA).
MY BACKYARD , MY PLANET A clean-up initiative took place at The Las Piñas-Parañaque Critical Habitat and Ecotourism Area (LPPCHEA), also known as the Las Piñas-Parañaque Wetland Park, on Wednesday, July 19, 2023. The initiative, jointly spearheaded by Planet CORA (Communities Organized for Resource Allocation) and Uniqlo, is part of their commitment to sustainability by 2030, with a key focus on realizing the goal of Zero Waste. This will be achieved by reducing, replacing, reusing and recycling materials used in the process of delivering clothes to customers, organizers said. NONIE REYES
BALISACAN: “We are in a hurry to improve the—to address the issues there in the terminal because as you have noted, tourism is one of the main drivers of the Philippine economy in the coming years and want to ensure that tourists come here and have a good experience.”
In a press briefing in Malacañang after their 7th meeting, Neda Director General Arsenio M. Balisacan announced the board gave the go-ahead for the solicited proposal to rehabilitate, operate, expand and transfer the NAIA. He noted they expect the winning bidder for the P170-billion public-private partnership to be announced within the year. The P170-billion figure is way below the unsolicited proposal of a consortium of business tycoons S “N,” A
PEZA SEES BAN ON NCR ECOZONES LIFTED WITHIN ’23 B A E. S J
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HE temporary ban on ecozones within Metro Manila should be lifted within the year to pave the way for the development of new Information Technology (IT) centers in the region, according to the Philippine Economic Zone Authority (Peza). “Ecozones in Manila are mostly IT. We met with the PMS, [Office of the President] OP...so they’re inclined to support our position that the moratorium AO 18 is effectively superseded by the [Corporate Recovery and Tax Incentives for Enterprises] CREATE law,” Peza
Director General Tereso O. Panga told reporters on the sidelines of the launching of Executive Order No. 18 recently. The Peza chief hopes the moratorium on ecozones within Metro Manila will be lifted within the year as the CREATE law should prevail over the AO 18. Panga said Peza has already endorsed around 10 or 20 projects to the Office of the President for Metro Manila locations. He added that the OP has been receptive to Peza, as the investment promotion agency “lacks spaces” to offer to new entrants in the Information and Communications Technology (ICT) Business.
Section 2 of Administrative Order (AO) No. 18, signed by former President Rodrigo Duterte in 2019, ordered Peza to “no longer accept, process or evaluate applications for the establishments of ecozones in Metro Manila immediately upon the effectivity of this Order and until such moratorium is lifted.” This specific provision in the Order was imposed to complement strategies and policies on rural development.
Countryside devt
MEANWHILE, Panga said once the C A
Deadline set for idle land inventory for 4PH
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RESIDENT Ferdinand R. Marcos Jr. has set the deadline for the completion of the inventory of idle lands which will be covered by the government’s Pambansang Pabahay Para sa Pilipino Program (4PH). Marcos said the list should be submitted to the Department of Human Settlements and Urban Development (DHSUD) within 60 days from the issuance of Executive Order (EO) No. 34. The President issued EO 34 on July 17, 2023 through Executive Secretary Lucas P. Bersamin. “The inventory of lands shall include government-owned idle lands or lands that have not been used for the purposes for which they have been originally reserved or set aside for at least 10 years, and on which no improvements
have been made by the owner as certified by the concerned LGU, pursuant to Section 8, Paragraph 2 of Republic Act No. 7279 [Urban Development and Housing Act of 1992], as amended, and Sections 5.II [d] and 24 of RA No. 11201 [the law that created the DHSUD],” Marcos said in the new EO. The new order covers concerned government agencies and instrumentalities, including government-owned or -controlled corporations and local government units (LGU). “The Land Registration Authority [LRA] shall assist these agencies in the preparation of their respective inventories by providing a list of C A
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