MANILA – Six companies that aim to put up liquefied natural gas (LNG) terminals in the country will be investing PHP82.93 billion or around USD1.61 billion, Department of Energy (DOE) Assistant Secretary Leonido Pulido III said.
During the LNG Opportunities in the Philippines 2021 webinar of the Norwegian Embassy in Manila and PunoLaw Wednesday, Pulido presented the six proposed LNG infrastructure development in Luzon that will augment the country’s natural gas supply as Malampaya gas field is quickly depleting.
In his presentation, FGEN LNG Corp. is investing PHP13.28 billion for an interim floating storage and regasification unit (FSRU) LNG terminal in Batangas City.
The facility, which is cleared to construct its ancillary facility, is expected to be completed by the third quarter of next year.
It will have a capacity of 5.26 million tons LNG per annum (MTPA).
Other FSRU LNG terminal projects that will also rise in the second half of 2022 include the 4.4-MTPA project of Excelerate Energy L.P., with investments amounting to PHP6.39 billion; the 3-MTPA LNG terminal of Atlantic Gulf & Pacific Company of Manila, Inc., with project cost amounting to PHP15.33 billion; and the 3-MTPA project of Shell Energy Philippines, Inc. worth PHP2.52 billion.
Pulido said these projects have secured notice to proceed (NTP) from the DOE.
Batangas Clean Energy, Inc. is eyeing to invest PHP37.55 billion for a 3-MTPA LNG storage and regasification terminal in Batangas City.
The project has secured NTP from the DOE, and it is expected to be delivered by the fourth quarter of 2025.
Energy World Gas Operations Philippines, Inc. will also put up a 3-MTPA LNG storage and regasification terminal in Quezon Province, with investments amounting to PHP7.41 billion.
Aside from these six firms, Pulido said another company expressed its interest to build a new LNG terminal in the country.
He said the upcoming LNG projects in the country will not only stabilize the natural gas supply in the domestic market, but will also support DOE’s vision to make the Philippines as the LNG hub in Southeast Asia.
“It is the hope of the Department of Energy and the Secretary of Energy that the Philippines, maybe one day, becomes a sub-regional hub for liquefied natural gas,” he added.
Pulido said these LNG terminals will facilitate the country’s access to LNG imports.
Currently, the country cannot import LNG as there is no existing infrastructure to store imported natural gas, he said.
The Philippines is expected to outsource LNG in the coming years with the Malampaya gas field depleting by 2024, Pulido said.
Malampaya is currently the country’s only LNG source. (PNA)