Philippines greenlights seventh LNG project, gears up for gas imports

Energy World

27/01/2023 03:56

MANILA, Jan 27 (Reuters) - The Philippines' Department
of Energy said on Friday it has approved a $67-million LNG
import terminal project, the country's seventh such facility, as
it gears up for the launch of its liquefied natural gas industry
this year.
    The DOE said in a statement it has issued a notice to
proceed to Samat LNG Corp, which plans to construct a
small-scale LNG terminal in Mariveles municipality in Bataan
province, about 60 kilometres (35.2 miles) north of the capital
Manila.
    The Southeast Asian country will need to rely on LNG imports
to fuel gas-fired power plants with a combined capacity of more
than 3,000 megawatts, as output from its Malampaya gas field in
the South China Sea is expected to continue declining and be
depleted by 2027.
    Aside from importing LNG for power generation and transport
sectors, the Philippines is also ramping up efforts to discover
new indigenous gas resources, as it seeks to phase out
coal-fired power plants. 
    Under its proposal, Samat LNG aims to begin commercial
operation by the first half of 2024, with a capacity of
200,000-400,000 tonnes of LNG annually. It plans to supply gas
to fuel small-scale power producers, manufacturing companies,
and transport fleets. 
    Three of the government-approved LNG import terminal
projects are expected to begin commercial operations this year,
including those of Singapore-based Atlantic, Gulf and Pacific
and Philippine power producer First Gen Corp  FGEN.PS .
    Australia-listed Energy World Corp's  EWC.AX  LNG terminal
is also almost complete, according to Laura Saguin, head of the
DOE's natural gas management division. 
    Energy Secretary Raphael Lotilla, in an interview with
Reuters in October, said allowing LNG imports should not be seen
as a disincentive to renewable energy development, which the
government has been supporting. 
 (Reporting by Enrico Dela Cruz; Editing by Kanupriya Kapoor)
 ((enrico.delacruz@thomsonreuters.com))