Philippines Considers LNG Import Receiving Options
Shell Keen on Bringing LNG to the Philippines
Shell, as operator of the Malampaya project, supplies gas to 3 power plants that generate around 2,700 megawatts (MW) of electricity in Luzon Island in the Philippines, Laura Saguin, Chief Science Research Specialist at the DOE’s Natural Gas Management Division told the APAC Small & Mid-Scale LNG Forum in Singapore in May.
“One solution we see is in increasing the supply of natural gas, the cleanest-burning fossil fuel, to help the Philippines meet its growing energy requirements with less cost and less impact on the environment. One of the major advantages of LNG-fired power lies in the lower upfront capital cost and shorter build time of the ultra-efficient combined cycle gas turbine power plants,” Chua added.
To achieve this, the Philippines government needs to introduce policies that encourage LNG investments, Chua said. These include:
- a clear energy mix spelling out the contribution of LNG, coal, renewables and oil to the country’s power generation. This will ensure that as demand grows, each energy source grows proportionately and the balance of cost, environment and health considerations is also maintained
- government’s support and encouragement to develop an LNG infrastructure such as import terminal and gas pipelines to allow more customers access to natural gas
- enforcing air emission regulations in the power sector which will ensure the best available technology is chosen such that power demand is met in a sustainable way without detriment to the air quality, ensuring a firm foundation for a livable society
Shell revealed in July 2013 that it has commenced a technical feasibility study into the viability of building a LNG import terminal, possibly a floating storage regasification unit (FSRU), near its refinery in Tabangao, Batangas. Gas from the terminal would be supplied to power plants, industrial users and transport, adding more power supplies to the Philippines.
Given the urgency to plan ahead to meet future energy demand, the Philippine authorities are mindful of the potential need to import LNG due to resource depletion at the maturing Malampaya gas field after 2024. The project – which has been in operations since 2001 and owned 45 percent by Shell and Chevron Corp. each and 10 percent by Philippine National Oil Company-Exploration Corp. (PNOC EC) – has now entered into the next development stage. Phases 2 and 3 of the project are intended to keep production levels that currently exist at the Malampaya field.
“Shell is looking to build a FSRU in Batangas,” Senior Scientific Research Specialist Vivian Panes at the DOE’s Natural Gas Management Division told Rigzone.
Other LNG Projects
Concerns about dwindling gas supply at the Malampaya field has encouraged local power company First Gen Corp. to look elsewhere for energy supply to meet a projected increase in demand from its power plants, including those in operations and under construction.
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