Role of the Philippine National Oil Company

To Support the Natural Gas Infrastructure Development in the Philippines

Presentation by: Carina U. Matutina

3rd LNG Supply, Storage &Transportation Philippines Forum 2016 SMX Aura, Manila, Philippines

14 October 2016

PNOC-CompanyBackground

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• CorporatearmoftheDepartmentofEnergy• CreatedthroughPresiden7alDecree(PD)334onNovember9,1973asagovernment-ownedandcontrolledcorpora7on

•  Ini7alpurposeistoaddressna7onalenergysecurityandsustainabilityconcernsinresponsetotheenergy-supplycrisisofthe1970s.

•  Scopeofopera7onwaslaterexpandedbyPD927toincludepromo7ngtheexplora7onanddevelopmentofoilandotherindigenousenergyresources.

• Createdanumberofsubsidiariesinenergydevelopment

Learning

&Growth

Internal

Process

Stakeh

olde

rs

Finan

ce

OUR VISION PNOC by 2030: to have provided vital energy infrastructure, conducive to a balanced

and sustainable growth of the economy

OUR MISSION

Throughtheeffortsandini7a7veofadedicatedandcompetentworkforce,PNOCiscommiPedto:1.Developandimplementagasdistribu7onsysteminthecountry(Sec3PD334,asamended)2.Establishthecountry’sstrategicpetroleumreserve

OUR CORE VALUES

Integrity (Mapagkakatiwalaan): Honest and transparent in dealing with stakeholders Professional Excellence (May mataas na kakayahan): Always seeking continuous improvement; aspiring for high work standards and achievements Accountable and results oriented (May panananagutan) Assuming responsibility for all actions Teamwork (May pagkakaisa) United in purpose Service (Mapaglingkod): Puts the interest of the Filipino people above self

Social

Impa

ct

SoialImpa

ct

Topnotch National Energy Company

Good Governance

Ensure the optimal use of assets

SocialImpa

ct

Operated in an environment of fairness and transparency in our dealing with stakeholders

Develop professional culture and better employee morale

Develop full employee potential

Build operating company capabilities

Ensure sound financial condition

Provided vital energy infrastructure for the development of the energy industry

Malampaya Gas Field Northwest Palawan 2.7 TCF (2001)

1,000 MW Sta. Rita First Gen/ IPP

500 MW San Lorenzo First Gen/ IPP

1,200 MW Ilijan Power Plant NPC IPP (KEPCO)

CNG Pinoy Buses (2008)

Shell Refinery, Tabangao, Batangas

Libertad Gas Field Bogo, Cebu 0.6 BCF (2012)

1.0 MW DESCO (Mine mouth Power Plant), Bogo Cebu

Overview of the Philippine Natural Gas Industry

OnshoreGasPlant

4Source: Department of Energy

…start the development of LNG infrastructure

Current domestic gas resource nearing depletion…

PNOCIniAaAves

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Batangas-to-ManilaNaturalGasPipelineProject(BatMan1)

BatMan1isanaturalgasinfrastructureprojecttobeimplementedbyPNOCcoveringabout122kilometersofpipelinefromBatangastoMetroManila.Thiswillbeusedtodistributenaturalgastotargetedmarketslocatedinthehigh-growthandfastdevelopingareasofBatangas,Laguna,CaviteandMetroManila.

Alignmentwithpolicies,policyiniAaAvesandplans:•  PhilippineDevelopmentPlan•  EnergyReformAgenda•  PhilippineEnergyPlan

ProjectRaAonale

•  Projectbenefitsinclude:•  Enhanceenergysecurity•  Reliableaccesstosaferyeteconomicalalterna7veenergysources•  Increasenaturalgassupplytoboostindustrialdevelopment

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The spur lines will start from the Governor Sta5ons (GS) and connect to three industrial parks: GS1 to Lima Technology Center GS2 to First Philippine Industrial Park GS3 to Laguna Industrial Area

LNG Terminal Projects in Luzon

BATMAN1(BatangasManila)80-100kms.(2013)

EWCLNGTERMINALPROJECT(2015-2016)

AG&PENERGYCITYPROJECT(2017-2019)

BATCAVE(Batangas–Cavite)

40kms(2020)

FIRSTGASLNGTERMINAL

PROJECT(2019/2022)

SHELLFSRUTERMINALPROJECT(2017)

LNGInfrastructure–ValueChain

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From LNG Regasification Terminal Distribution End Users

Createvaluethroughpartnershipandstrategicalliances:-privatesector-bilateral/mulAlateral-industryexperts-otherstakeholders

10

Learning

&Growth

Internal

Process

Stakeh

olde

rs

Finan

ce

OUR VISION PNOC by 2030: to have provided vital energy infrastructure, conducive to a balanced

and sustainable growth of the economy

OUR MISSION

Throughtheeffortsandini7a7veofadedicatedandcompetentworkforce,PNOCiscommiPedto:1.Developandimplementagasdistribu7onsysteminthecountry(Sec3PD334,asamended)2.Establishthecountry’sstrategicpetroleumreserve

OUR CORE VALUES

Integrity (Mapagkakatiwalaan): Honest and transparent in dealing with stakeholders Professional Excellence (May mataas na kakayahan): Always seeking continuous improvement; aspiring for high work standards and achievements Accountable and results oriented (May panananagutan) Assuming responsibility for all actions Teamwork (May pagkakaisa) United in purpose Service (Mapaglingkod): Puts the interest of the Filipino people above self

Social

Impa

ct

SoialImpa

ct

Topnotch National Energy Company

Good Governance

Ensure the optimal use of assets

SocialImpa

ct

Operated in an environment of fairness and transparency in our dealing with stakeholders

Develop professional culture and better employee morale

Develop full employee potential

Build operating company capabilities

Ensure sound financial condition

Provided vital energy infrastructure for the development of the energy industry

EndofPresentaAon

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