Two liquefied natural gas (LNG) terminal projects being pursued by the private sector are on track to be completed within the year, according to the Department of Energy (DOE).
The government is bent on the timely development of LNG terminals in the country before the contract expiry of the Malampaya natural gas resource by 2024 and its expected depletion.
Rino Abad, director of the Oil Industry Management Bureau, said in an online briefing last week one of the projects is experiencing a slight delay in the delivery of materials while the other one has selected its LNG supplier.
Abad said delay in the delivery of equipment from China and South Korea has hampered the completion of Linseed Field Power Corp., the local unit of Atlantic, Gulf, and Pacific Co.’s LNG terminal project.
“From July 1, they (Linseed) may end up commissioning the regasification terminal instead, on August 1. We will have a physical and actual site inspection (today) May 16…,” Abad said.
The DOE will meet with San Miguel Corp.’s South Premiere Power Corp. to get an update on the timeline of the arrival of the LNG to be supplied to the Linseed terminal.
Abad said under an agreement, Linseed will operate the regasification terminal that will be leased by South Premiere Power which will handle the LNG trading component of the business.
The DOE said First Gen Corp.’s LNG terminal being pursued by subsidiary FGEN LNG Corp. is scheduled for commissioning by end October or beginning of November.
Abad said executives of First Gen and of its LNG supplier, which he declined to identify, earlier this month paid a courtesy call to DOE officials.
“We have a sort of assurance with First Gen since their LNG supply is already available,” Abad said.
The DOE said other proponents of LNG terminals are experiencing headwinds in their projects.
Abad said Shell Energy Philippines Inc. is processing its permitting requirements to secure a notice to proceed (NTP) from the DOE while Vires Energy Corp. is seeking for a possible extension of its NTP. The latter plans to join a power supply bidding of the Manila Electric Co. before proceeding with the development to secure funding.
The DOE said Excelerate Energy and partner Topline Energy and Power Development Corp. are also building a terminal.
Abad said DOE is hopeful of the completion within the incoming administration of the long-gestating Energy World Gas Operations Philippines Inc.’s planned LNG terminal.
All planned LNG terminals are located in Batangas except for Energy World’s which is in Quezon Province.
