MANILA – The Department of Energy (DOE) said on Friday that it issued a notice to proceed (NTP) for the UD67-million liquefied natural gas (LNG) terminal project of Samat LNG Corp. in Barangay Sisiman in Mariveles, Bataan to supply the country's increasing power demand.
The DOE said Secretary Raphael Lotilla signed the NTP in favor of Samat LNG and that the company should comply with the requirements in 12 months from the date of the NTP issuance to proceed with the construction of the LNG terminal.
The new terminal will have a capacity of importing 200,000 to 400,000 tons of LNG annually.
"It is expected to supply LNG to small-scale independent power producers, manufacturing companies, and transport fleets. The LNG will be distributed to its customers by a dedicated fleet of LNG trucks, small LNG vessels, and barges within its neighboring regions," the agency said.
The company targets to begin the commercial operation of the LNG terminal by the first semester of 2024.
DOE added there are currently six ongoing LNG terminal projects developed by Linseed Fiel Corp., FGEN LNG Corp., Luzon LNG Terminal, Inc., Energy World Gas Operations Philippines, Inc., Shell Energy Philippines, Inc. and Vires Energy Corp.
"The DOE has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country," it added.
The DOE said the country is expected to consume natural gas of at least 24,263 megawatts by 2040 in the reference scenario (RES) and 18,883 MW in the clean energy scenario.
It said the demand for LNG is mainly driven by the initiatives of replacing coal and oil-based fuels in power generation.
"Foremost, the government's concern is to ensure enough capacity is supplied through various sources, especially in the coming summer months, to sustain the power supply in the country," it added. (PNA)