Philippines looks to China to build up LNG

The Philippines' Department of Energy (DOE) is in talks with two Chinese firms to build LNG infrastructure in the island nation, local media reported. DOE director Jesus Tamang said the department has held discussions with gas distributor Xinao Gas and Chinese operator Synergy International Resources Group about supplying LNG and developing a pipeline.

He said both companies are looking to expand their presence in the Philippines, the Philippine Star reported. Hong Kong-listed Xinao has been in prior discussions with state-controlled Philippine National Oil Company's exploration arm for the development of the Bataan-Manila gas pipeline. Synergy signed a deal with the DOE in 2005 to develop $200 million worth of natural gas storage and refilling facilities, the newspaper said.

The DOE is also planning to build an integrated Bataan LNG terminal and several LNG-fired power plants, the Star said.