The statement comes after criticism from First Gas Power Corp, which questioned the DOE's issuance of permit to the state-owned PNOC-Exploration Corp without the necessary environmental clearances being given.

Both PNOC and First Gas had expressed interest in the construction of the US$100 million, 80-kilometre gas pipeline - BatMan I - that traverses from Batangas to Manila. When PNOC was issued the DOE permit, First Gas raised the issue that the permit was only valid after the Department of Environment and Natural Resources had given the all clear.

In what seems like a compromise to defuse the situation, the DOE has released a statement that allows for the creation of a consortium that will build the pipeline. First Gas has already stated that it will seek strategic partners willing to share a 60 percent loan and 40 percent equity partnership scheme for the project.

Other firms that had expressed an interest to construct and operate the proposed gas pipeline were Japan Gas Corp, Korean Gas Corp, Petronas, British Petroleum Plc, Korean Electric Power Co, Mashhor, Chevron Texaco and Shell Philippines Exploration B.V.