PHILIPPINE National Oil Co. (PNOC) said it plans to build a logistics center servicing the offshore wind power industry in Batangas, part of its slate of five major projects for 2024.
“We have five high-impact initiatives for 2024, the first two pertaining to our two properties, in Batangas and Bataan,” PNOC President and Chief Executive Officer Oliver B. Butalid told the House appropriations committee on Wednesday.
For 2024, PNOC has an operating budget of P2.21 billion, of which 64.82% will be allotted for capital outlays, including a solar photovoltaic (PV) system for government entities, and the development of the Batangas offshore wind power logistics port.
About P552 million will be set aside for maintenance and other operating expenses for off-grid power generation facilities, electric vehicle charging stations, and a Bataan terminal for liquefied natural gas (LNG).
The PNOC’s 2024 proposed corporate operating budget will be entirely funded by internally generated funds, Mr. Butalid said.
Mr. Butalid said the PNOC hopes to transform its 19.2 hectare-property in Mabini, Batangas into a dedicated port for offshore wind power projects in nearby service contract areas.
“The redevelopment of this strategically located port will take about two years, just in time for the first offshore wind turbines to be launched in 2026,” he said.
He added that PNOC will also develop the remaining available land at its Bataan Industrial Park as a liquefied natural gas terminal.
“Having LNG in Bataan will not only improve access of this fuel source to more users but will provide energy security,” Mr. Butalid said.
The PNOC said it also intends to gain first-mover advantage in the vehicle charging station industry by seeking locations along major highways.
PNOC will seek to increase its footprint in underserved segments of the energy industry, Mr. Butalid said, adding that the company will pursue opportunities where it can be more efficient than the private sector.
“Our mission is to complement… in areas that the private sector can be more effective, PNOC will not operate there,” he said.
Separately, the Energy department said late Wednesday that it is seeking a budget of P2.59 billion for 2024, up 16.7% from its 2023 allocation.
Energy Secretary Raphael P.M. Lotilla said the department needs the additional funding for programs to develop renewable energy.
Some P1.25 billion of the DoE’s proposed budget will go to maintenance and other operating expenses, while P700.85 million will pay for personnel services. Capital outlays will total P645.46 million, representing 25% of its proposed budget.
The proposed 2024 national budget is P5.768 trillion, up 9.5% from this year’s P5.268-trillion spending plan.
The government has set a target for renewable energy to account for 35% of all power generated by 2030, rising to 50% by 2040.
In 2023, the DoE’s spending priorities were total electrification, renewable energy development, energy efficiency and conservation, and alternative fuels and technologies. — Ashley Erika O. Jose