LNG

The Philippines has entered the LNG importer list in a low-key way after years of planning as a cool-down cargo was delivered to Subic Bay for the Floating Storage Unit (FSU) “Ish” as part of the commissioning of the first LNG terminal in Batangas Bay and a second vessel for a separate project is scheduled to arrive in July.

First Gen Corp. of the Philippines has chosen BW LNG of Singapore to provide a floating storage regasification unit (FSRU) for its LNG import terminal project at Batangas in Luzon.

Energy World Corp., the Australian-listed power project developer in southeast Asia, has managed to get its liquefied natural gas and power venture on the South Sulawesi coast of eastern Indonesia back on track after a ruling from regulators.

First Gen Corp., the largest provider of gas-fired power in the Philippines, has chosen Australia-based McConnell Dowell as its engineering contractor for an interim floating import terminal at Batangas City to help guarantee the Asian nation's energy security as a major domestic gas field depletes.

First Gen Corp., the largest provider of gas-fired power in the Philippines, has received the go-ahead from the Filipino Department of Energy to develop its proposed interim floating LNG facility in the port area of Batangas City as it awaits construction of a permanent onshore terminal.

First Gen said its wholly-owned subsidiary FGEN LNG was given final clearance by the regulators for an application filed in March 2020.

The Filipino utility said it would now start work in the fourth quarter of 2020 on modifying an existing jetty and building onshore gas receiving capability at its complex in Batangas City.

In parallel with the construction phase, FGEN LNG is preparing to issue a binding invitation to tender for a floating storage and regasification unit (FSRU) upon completion of its ongoing non-binding process.

Three FSRU providers, Singapore-based BW Gas, Greek-owned shipping company GasLog LNG and Norway’s Hoegh LNG have expressed interest in concluding a charter agreement for the FSRU that will provide storage and regasification services to the interim project.

FGEN LNG said the deployment of an FSRU would allow the introduction of LNG to the Philippines as early as the third quarter of 2022 to serve the natural gas requirements of existing and future gas-fired power plants of FGEN LNG affiliates as well as third parties.

The company said it believed the project would play a critical role in ensuring the energy security of the northern Philippines and the capital Manila on Luzon island, particularly as the nation’s domestic Malampaya natural gas resources run down just as the gas-fired power plant network begins to expand.

The company has a joint venture with Tokyo Gas in jointly developing the LNG hub in Batangas province to meet the nation’s growing gas-fired power needs.

First Gen and Tokyo Gas held a ground-breaking ceremony 18 months ago for the onshore terminal that has been designated an “Energy Project of National Significance,” in recognition of its importance to national grid security.

The only other completed regasification facility in the Philippines is at Pagbilao in Quezon province where Australia-listed Energy World Corp. has a facility linked to its 100-percent owned 650MW gas-fired power project. LNG imports will only begin when the power plant is built.

“We are thankful to Energy Secretary Alfonso G. Cusi, and to the Downstream Natural Gas Review and Evaluation Committee of the DoE, for the support and guidance that they have provided during the evaluation process,” said First Gen Executive Vice-President and Chief Commercial Officer Jonathan C. Russell.

FGEN LNG believes the project will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines, particularly as the Malampaya gas field is expected to be less reliable in the future.

The company already operates four gas-fired power plants with an aggregate capacity of about 2,000 megawatts.

These are the 1,000-MW Santa Rita plant, the 500-MW San Lorenzo facility and the 414-MW San Gabriel and 97-MW Avion plants.

First Gen said the arrival of LNG in the Philippines would encourage new power plant developments and more industrial and transport users seeking a cleaner replacement for polluting fuels.

The company concluded that it expected the continuing reduction in supply from the Malampaya gas field up to the expiration of contracts in 2024.

First Gen Corp. of the Philippines plans fast-track the LNG and power hub near Batangas City with the interim use of a floating storage and regasification unit to be able to receive LNG as early as the third quarter of 2022 and guarantee energy security for the capital Manila.

Energy World Corp., the Australian-listed LNG and power project developer in southeast Asia, is making more progress on its Indonesian and Philippines ventures, including the Sengkang LNG production plant, as it successfully completed the installation and start-up of two gas compressor units.

Energy World Corp, the Hong Kong-based and Australian-listed liquefied natural gas projects developer, said it had been given a Philippines permit to operate its LNG hub and terminal in Pagbilao in Quezon Province and would now complete some other facilities.

The company’s shares on the Australian Securities Exchange jumped 3.57 percent on January 2 on the news of the permit award from Manila.

EWC said the permit was handed over by the Secretary of Energy of the Philippines, Alfonso G. Cusi.

“The permit forms an update to the original permit documentation and provides for a further construction period of 24 months,” said EWC.

EWC explained that the permit would enable the start of operations of the first LNG storage tank to be aligned to the commercial start-up of the associated 650 megawatts gas-fired power plant and the completion of other facilities, including a second LNG tank.

“This permit demonstrates the continued strong support from the DOE for our LNG hub terminal at Pagbilao and will further enhance our program to bring affordable LNG to the Philippines for power generation, town gas and transportation,” said EWC founder and senior director Stewart Elliott.

Construction work at Pagbilao has seen the completion of the LNG terminal jetty and regasification infrastructure as well as one storage tank.

EWC is also building a small-scale liquefaction plant in Indonesia where it has a natural gas production-sharing contract.

The company's project involves a 315MW gas-fired power plant at Sengkang on the South Sulawesi coast of eastern Indonesia with an affiliated LNG production plant with output of 2 million tonnes per annum.

EWC is also expecting to be granted a 20-year extension to its Indonesian gas production-sharing contract.

Tokyo Gas has confirmed the signing of an agreement with Philippines power company First Gen Corp. to jointly develop a liquefied natural gas import terminal hub project in Batangas province to meet the gas-fired power needs of the capital Manila and the surrounding region.

Energy World Corp., the Hong Kong-based and Australian-listed LNG developer, reported mixed preliminary full-year results as it progressed with its Philippines LNG and power hub and small-scale liquefaction plant at Sengkang in Indonesia where its production sharing contract is expected to be renewed.