Two liquefied natural gas terminal projects with a combined cost of nearly P29 billion are up for completion next year, the Department of Energy said Wednesday.
Energy Undersecretary Felix William Fuentebella said in a webinar organized by the Economic Journalists Association of the Philippines 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,” Fuentebella said.
FGEN LNG Corp., a wholly-owned subsidiary of First Gen Corp., 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 Feb. 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.
“Although the papers of First Gen are more complete, they are on their way to be online, commercially available by September or third quarter of next year whereas AG&P…I was informed they are on track, eyeing completion earlier in the second quarter next year…However, [AG&P] documents are still for completion with other agencies for their permits,” Fuentebella said.
Meanwhile, Aboitiz Power Corp. is studying a 1,000-megawatt natural gas power plant as part of its expansion program 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 in the same webinar organized by EJAP.
Rubio said gas is the most competitive option for baseload today. “But were 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 said.
He said the 1,000-MW gas power plant can address the baseload requirement of Manila Electric Co. by 2030.
“The basis for that 1,000 MW as gas or whatever technology, hopefully greener technology that can be cost competitive and as competitive as gas will be considered for that 2030 delivery of what we know is a 1,200-MW CSP of Meralco,” he said.
