Dubai-based Kampac investing $5-B ‘Energy City’

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Dubai-based Kampac International PLC yesterday announced plans to invest $5 billion in the country for the establishment of an ambitious “Energy City” that would transform the Philippines as one of the world’s largest energy hubs.

 

Charles Ampofo, chairman of Kampac Internationa PLC, revealed this in a speech at the 39th Philippine Business Conference in Manila Hotel that the investment program which will take five years to complete should start by early next year.

According to Ampofo, the project would include a LNG (liquefied natural gas) plant, a petrochemical facility, one water company among others that would boost energy supply in the country.

Ampofo said a country such as the Philippines which is prone to natural disasters needs strategic reserves for fuel.

The planned energy city would employ between 8,000 and 10,000 people including personnel from 20 countries upon completion.

“One of the main reasons to deciding to invest in the Philippines is its democratic economy. In the Asian region, it is known for its  people’s power.  Good governance  is important and gives (investors) confidence,” Ampofo said in his speech.

“The Philippines has become  a hotcake today, because of the growth of the economy , increase in tax collection, investment  grade, all this is good,” Ampofo said. He also cited the Philippines’ investments code and the opening up of the economy making it more investment-friendly.

Another major edge of the Philippines, Ampofo said, is it is strategically located  in the middle of other growing economies in the region.

Given all these positive factors, Ampofo said, “You do not need an economist (to realize) that if you want to invest in a place which has potential, the Philippines presents a better location.”

He said that sustainability on the provision of energy and others from water to fuel must be addressed as the economy grows.

LNG, which is one of the areas of Kampac’s LNG regasification plant, is the cheapest form of energy and the cleanest, he said.

While development can be expensive, he also stressed that every economy has to take a long shot.

“LNG regasification for power generation is cheaper, cleaner and more efficient,” he said.

Also, he said, a country needs a strong petrochemical industry. The Philippines has no upstream petrochemical operation, but mostly mid-stream. The Gokongwei Group’s plan for a naphtha cracker plant is still under construction.

“I can guarantee that investors would locate here because the raw materials are here,” Ampofo said.

Earlier, Atty. Miguel B. Varela, president of the Philippine Chamber of Commerce and Industry said that Kampac had meetings with President Aquino and Vice President Jejomar Binay about his huge investment plan in the country.

Ampofo even signed a memorandum of agreement with the Philippine Chamber of Commerce and Industry for a possible participation in the project.

“This company which has $3.4 billion in annual revenue would be spending billions of dollars for this huge project,” Varela said.

According to Varela, the company was exploring an area somewhere in Laguna where the oil depot can be constructed.

A report by Biofuels Digest also stated that Kampac Oil was negotiating plans to conduct a feasibility study to turn 125 hectares in Bataan into an industrial and energy hub. The land is currently owned by PNOC Alternative Fuels Corp. who is now seeking investors for the industrial park that will help the country meet its biofuels mandate.

This was confirmed by Kampac itself in its website which reported that it had signed a memorandum of agreement with   Authority   of the Freeport Area of Bataan (AFAB) in July 2011 to pursue the development of a super oil storage tank farm facility at the Freeport, among others.

The signing of the MOA is tied with the AFAB’s commitment to providing its stakeholders, specially its locators, abundant supply of energy. In support of the state policy, AFAB ensures that this will be achieved through integrated and intensive exploration, production, management and development of indigenous resources, without sacrificing ecological concerns.

It requires 100 hectares of land in the Freeport Area of Bataan (FAB) for the super oil storage tank farm facility.

The MOA guarantees the partnership’s significant economic and social benefits to the FAB in terms of investment, infrastructure development and employment generation, the website stated.

Kampac International PLC is the holding company of Kampac Oil which has  diversified activities such as Kampac Properties, Kampac Resources, Kampac Flora, Kampac Telecom and Kampac Travel & Tours.

Kampac International PLC is listed on Frankfurt Stock Exchange. The company was established in 1988.

The Kampac Group was established in 1988. From its modest beginning, the group has seen a steady growth over the last decade and now has 17 offices in 13 countries around the globe.

Kampac Oil Middle East’s principal activities include exploration, trading, refining, distribution, oil iInfrastructure development, equipment supplies and oil services, with a global presence in over 13 countries. It said that its oil trading delivery is executed with accuracy and speed and that distinguishes us from its peers. Manila Bulletin