NEWSFLASH

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PALAWAN NATURAL GAS LINK TO SUBIC READIED

Subic Special Economic Zone, May 26, 1998 - President Ramos yesterday led the ground-breaking ceremonies for the concrete Gravity Substructure of the Camago-Malampaya gas-to-power project, a multibillion-dollar undertaking aimed at energy security and reduced oil imports.

At ground-breaking rites here, the Chief Executive said the vital power project started from oil explorations off the seas of Palawan which began in the late 70's and led to the natural gas discoveries in Camago and Malampaya.

"This gravity substructure will play a vital part in the production of 500 million standard cubic feet per day of natural gas and 20,000 barrels per day of condensate to power our nation in the new millennium," the President said.

"Speedy development of the country's gas reserves will translate into lower electricity rates compared to the use of distillates," he said, adding that customer savings are estimated to reach $2.2 billion.

The President pointed out that the energy project will also boost government revenues by around $8.1 billion within a spread of 20 years. The province of Palawan, the main source of this natural gas, stands to receive about $2.1 billion during that same period.

"With the project's potential private investment portfolio of about $4.8 billion, the world has been watching whether or not the Philippines has gained the capability and the political will to implement and actualize such a huge investment," he stressed.

According to the President, the government has convinced the petroleum investors that the Philippines has shown that it is willing to share the risk of such investments as a gesture of its own faith and confidence in its partners.

"To foster energy security and reduce costly oil imports, the Ramos administration has been instensifying the exploration, development and utilization of our indigenous energy sources such as oil, natural gas, hydro and geothermal sources," the President said.

The government saved $276.6 million with higher utilization of these indigenous sources of energy. The President said the country also gained in terms of new job opportunities created by the upstream and downstream operations of the various processes involved in developing the country's natural gas sector.

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