Press Release
October 13, 2007

Jinggoy mulls RP-Australia LNG terminal for fuel supply to Asia

Senate President Pro Tempore Jinggoy Ejercito Estrada yesterday urged the national government to study the possibility of establishing a terminal in the country to receive liquefied natural gas (LNG) from Australia and sell the fuel domestically and to the rest of Asia .

This, after the Australian government approved the large-scale development of LNG at its northwestern coast's Gorgon territory by Chevron Corp. Exxon Mobil Corp. and Royal Dutch Shell PLC, the product of which would be supplied mainly to Asian nations.

LNG is a safe fuel widely used in several countries in transportation, generating electricity and in domestic cooking and heating, and is declared as the cleanest burning fossil fuel as it produces less emissions and pollutants than either coal or oil. Its abundant reserves in the earth are estimated to be capable of powering the whole world for several years to come.

LNG is considered as the new "gold rush," being a viable and economically-rewarding alternative to the diminishing supply of petroleum. Japan is the number one consumer of LNG among all countries of the world.

"This is a very great development in the exploration and promotion of clean energy that could be an alternative to oil. It is even a great economic potential for our country if we could maximize the opportunities and involve in the industry itself as an active player and not just as a consumer," Estrada said.

The Gorgon fields, discovered in 1981, represent Australia 's largest known untapped gas resource, and about a quarter of the country's known gas reserves. The fields have certified gas reserves of over 40 trillion cubic feet - enough to power a city of one million people for 800 years.

The project would develop 10 million metric tons of LNG a year, to be supplied mainly to Asia . The Australian government said the project could generate at least 2.5 billion Australian dollars, or $1.9 billion, a year in revenue.

"The Philippine government could build in the country a LNG 'receiving terminal' of its own, or under a co-operative arrangement with Australia , for the Gorgon plant's product. The terminal, in turn, could sell the LNG to local consumers as well as to those in other Asian nations," Estrada said.

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