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Malaya Business Insight, a Philippine national newspaper, has recently reported that Kampac International, a company based in Dubai which works in oil and gas trading, exploration and production, refining, and oil Infrastructure development has entered talks with the Philippine government to develop a $5 billion Energy City in the country.
At the 39th Philippine Business Conference, Charles Ampofo, the chairman of Kampac, gave a speech in which he announced that his company would invest $5 billion over five years to develop the Energy City, which would include a Liquid Natural Gas (LNG) plant, and a petrochemical facility.
The project, to be developed in Southern Luzon, to the South of Manila, would employ between 8,000 and 10,000 people once completed.
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The Philippines, located in South East Asia, near to China’s growing economy and its insatiable hunger for oil and gas; Japan’s increased demand for LNG since the shutdown of its nuclear power sector; and not a million miles away from India, who has begun to look abroad to feeds its own developing economy; is perfectly positioned to take advantage of the increasing petrochemical demand in the region. Combined with the political and economic stability of the country, and the government’s attempts to create an investment friendly environment, the Philippines offers one of the best locations for investment and energy development in the world.
Ampofo stated that “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.
The Philippines has become a hotcake today, because of high economic growth, increases in tax collection, and investment grade rating.”
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He is also confident that other investors will appreciate what the Philippines has to offer and will follow Kampac to invest in the country and help develop its petrochemical industry. “I can guarantee that investors would locate here because the raw materials are here,” he said.
Ampofo has already signed a Memorandum of Agreement with the Philippine Chamber of Commerce and Industry, and has agreed to attend separate meetings with both the President Benigno Aquino, and the Vice President Jejomar Binay.
By. Charles Kennedy of Oilprice.com
Charles is a writer for Oilprice.com