RP, ASCOPE to sign gas pact

RP, ASCOPE to sign gas pact

SINGAPORE (Dow Jones): State-owned Philippine National Oil Co. and the Asean Council on Petroleum, or ASCOPE, will sign a memorandum of agreement in the first quarter of next year for the Philippines to participate in the proposed trans-Asean gas pipeline, according to the Philippine Star Monday.

Energy Secretary Vincent Perez said Philippines' involvement in the pipeline would enhance economic integration among Asean members, including the Philippines.

The Asean pipeline would also be connected to the Philippine Malampaya gas field, which is scheduled to begin production Oct. 1.

Perez said a task force on the trans-Asean gas pipeline was organized in November 1999, and a working group to study the Asean gas pipeline interconnection was formed in April 2000.

The initial draft of the interconnection plan was completed in October last year and is scheduled to be finalized this year, the Star said.

The plan identified seven new possible gas interconnections that would require 4,200 kilometers with total investment pegged at US$7 billion, the Star reported.