Philippines to open door to LNG imports next year with 3 terminals

THREE government-approved LNG import terminal projects in the Philippines are expected to begin commercial operations in early 2023, marking the birth of the country’s liquefied natural gas (LNG) industry, a senior energy official said on Tuesday (Sep 27).

The projects are those of Singapore-based Atlantic, Gulf and Pacific (AG&P), First Gen, and Australia-listed Energy World, said Laura Saguin, head of the Department of Energy’s (DOE) natural gas management division.

The 3 terminals are among 6 such projects that the DOE has approved. Three others are expected to come online within the next 3 years, including a project proposed by Shell.

The South-east Asian country will need to import LNG 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 start declining this year.

The Malampaya gas field is expected to run dry by 2027 without any further development to boost its output, according to the DOE.

AG&P’s project, previously scheduled for commissioning in July this year, is slated to begin commercial operation in the first quarter of 2023, Saguin said at an investment summit.

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It will have a capacity of 5 million tonnes per annum (MPTA), with the existing 1,200-MW Ilijan power plant in Batangas province as anchor market.

First Gen, which operates several power plants running on Malampaya gas, has also delayed the launch of its terminal in Batangas to next March from October this year.

Energy World, which has built a 650 MW power plant as an anchor market, aims to operate its 3 MTPA terminal in Quezon province by the first quarter of 2023. REUTERS