Publicly-listed Basic Energy Corp. has forged a memorandum of understanding (MOU) with Dubai-based Energy Services Group (ESG) to jointly identify and develop opportunities in the oil and gas business, not only within but outside of the Philippines as well.

ESG, with a wide network in the international energy industry, provides engineering, procurement, installation, construction and project management services in oil and gas operations.

In a related development, Basic Energy is also exploring the use of sugarcane, cassava, sweet sorghum and other feedstock for its two planned fully-integrated ethanol plants to make it among the country’s major producers of biofuels.

This should place the company in a strong position to take advantage of the government’s thrust to mandate the increasing use of biofuels for gasoline and diesel engines to reduce the country’s dependence on imported oil, Basic Energy president and COO Oscar L. de Venecia Jr. said.

Basic Energy plans to develop two integrated multiple feedstock ethanol plants with an annual capacity of about 80 million liters.
It would be recalled that Basic Energy is looking at the possibility of partnering up with Metro Pacific Investments Corp. to engage in the production of ethanol and other related alternative fuels.

De Venecia said Basic Energy is eyeing at least three possible sites for its first two ethanol production plants.

One of the areas is a 200-hectare property in the Zamboanga Peninsula using cassava as feedstock, which could increase to a 25,000-hectare plantation in five years.

“But aside from sugarcane and cassava, we will also be exploring sweet sorghum and other higher ethanol-yielding feedstock which would make our ethanol production more efficient,” said De Venecia. 

The company has already approved the proposal of Praj Industries of India for a 10-hectare sweet sorghum trial plantation in its Zamboanga del Norte property to demonstrate the crop’s viability as ethanol feedstock.

RA 9367, or the Biofuels Act of 2006, will make it lucrative for local energy companies to go into biofuels development. Locally-produced ethanol should comprise five percent of all locally-distributed gasoline by January next year, for an annual projected ethanol demand of 309 million liters, based on a study on local biofuel prospects by energy advisory firm Merritt Partners Philippines.

Source: http://www.philstar.com/business/77965/basic-energy-ties-dubai-based-group