Philippines Considers LNG Import Receiving Options

“Our current gas supply contracts from Malampaya will expire in about 10 years' time, so we are already preparing for a post-Malampaya gas world to provide replacement fuel for our new and existing power plants," First Gen President Francis Giles Puno told reporters Jan. 14, as quoted by Reuters.

First Gen now operates 2 gas-fired power plants in Luzon, the 1,000-MW Santa Rita and the 500-MW San Lorenzo plants. The firm is expanding its natural gas portfolio in the area with the commencement of construction of a third power plant, the 414-MW San Gabriel unit, in January. Depletion of the Malampaya supplies and new gas demand from the upcoming San Gabriel power plants has induced First Gen to consider building its own onshore LNG Terminal, which is estimated to cost around $1 billion and targeted to begin operations in 2019.

“We will pioneer the entry of imported LNG by constructing the country’s first LNG regasification terminal located on land we own adjacent to our power plants here in Batangas City. This strategic asset will have the benefit of providing clean, efficient and reliable energy supply for the country’s future energy needs,” Puno told local daily Philippine Star.

Forward planning suggests that that “there will be an urgent need to import gas … with the Philippines expected to build 1 to 2 LNG import terminals and 1 will definitely located at the Luzon area,” Panes added.

Hong Kong-based Energy World Corp. Ltd. is the only firm with an ongoing LNG project in the Philippines. The firm is building the Pagbilao LNG hub terminal and power plant projects, costing approximately $1 billion, in Quezon province in Luzon.

The entire Pagbilao project consists of several components, according to EWC’s 2013 Annual Report, including:

  • a storage tank with a capacity of 4.59 million cubic feet or 130,000 cubic meters for storing LNG on site
  • a jetty and receiving and re-export terminal for berthing, unloading and reloading LNG ships
  • a regasification facility to convert LNG back to natural gas
  • related support facilities (such as receiving and discharge lines, boil-off gas lines, metering, pumps and compressors)

EWC is concurrently building a 650 MW power plant adjacent to the Pagbilao LNG hub project, which will receive gas from the LNG hub and then sell electricity to the main Luzon Power Grid. The company plans to supply LNG for the Philippines hub project from its own Sengkang gas fields in South Sulawesi, Indonesia.


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