Two liquefied natural gas terminal projects with a combined cost of nearly P29 billion are up for completion next year, according to the Department of Energy.
In a webinar organised by the Economic Journalists Association of the Philippines, energy undersecretary Felix William Fuentebella said the LNG terminal projects would augment the declining supply of the Malampaya natural gas project in northwest Palawan starting next year: “Hence, we are moving forward with the LNG facilities. We have the First Gen LNG facility in Batangas which is still on track to be finished by the end of September 2022 and the floating storage unit or LNG facility of AG&P. This is going to be completed by second quarter of 2022.”
FGEN LNG Corporation, a wholly-owned subsidiary of First Gen Corporation, is developing an LNG terminal to increase its ability to supply LNG and serve the natural gas requirements of gas-fired power plants. The company was granted a permit to construct its LNG project by the DOE.
FGEN LNG is investing around P13.28 billion ($260 million) for the LNG facility with a capacity of 5.26 million tons per annum. The project was 19.95 percent complete as of end June, according to the DOE data.
Atlantic Gulf and Pacific Company of Manila Inc and Osaka Gas is developing a P15.33 billion ($300 million) LNG terminal with a capacity of 3 million tons per annum to supply the 1,200 MW Ilijan natural gas power project. It was granted a notice to proceed by the DOE on February 24, 2021 for a period of six months or until August 23, 2021.
Osaka Gas will provide technical support for the development, operation and maintenance of the AG&P project. Both LNG terminal projects are located in Batangas City.
Meanwhile, Aboitiz Power Corp is studying a 1,000 MW natural gas power plant as part of its expansion programme for the next 10 years, its top executive said.
“For baseload, we are shifting our focus to gas. We have early feasibility studies and within the next 10 years, we are open to building one gas plant with a capacity of 1,000 MW, unless a cleaner technology proves to be the more viable option,” Aboitiz Power president and chief executive Emmanuel Rubio said.
Rubio said gas is the most competitive option for baseload today: “But we are still nine years away and if there is still going to be an alternative to gas which is cleaner or more cost-competitive then we will go for that option and I think there will be.”
Rubio added the 1,000 MW gas power plant can address the baseload requirement of Manila Electric Co by 2030.
For more information visit www.firstgen.com.ph
