Page 8 - GLNG Week 43 2022

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Philippines prepares for

entry into LNG sector

PHILIPPINES THE Philippines will next year mark its entry set to come on stream during the first quarter of
into the world of LNG with the opening of three 2023 with a 5mn tonne per year (tpy) capacity in
LNG terminals that will enable the country to Batangas Province. Gas delivered to the terminal
reduce carbon output in line with its green will fire the 1,200-MW Ilijan power plant. AG&P
energy goals and also to replace natural gas that will supply LNG from the Middle East and Aus-
now comes from the Philippines’ dwindling tralia with short- and long-term agreements. The
Malampaya gas field, which will be depleted by plant was originally planned to begin operations
2027. this year, but supply issues resulted in a delay.
The three regasification terminals will be AG&P has a 15-year agreement with the
operated by Singapore-based Atlantic, Gulf and UAE’s ADNOC Logistics and Services for the
Pacific (AG&P), the Philippines’ First Gen Cor- supply, operations and maintenance of the float-
poration and Energy World Corporation, which ing 137,000 cubic metre capacity vessel.
is Australia-listed. The Department of Energy Manila-based First Gen was due to open its
(DOE) has approved the installation of another FSRU in early 2023, but it asked BW Gas to delay
three terminals, which should come into opera- delivery of the vessel, which will also be located
tion in about three years. in Batangas. The facility is now scheduled to start
Manila is looking to import enough LNG to operations during the second half of 2023. Gas
generate 3,000 MW of electrical power, but it is supplies will go to First Gen’s power generation
entering the LNG market when prices are high facilities and third-party users in the Luzon grid.
and cargoes are sometimes hard to come by. Energy World has lined up a 3mn tpy FSRU
The Malampaya gas field is a key source of and is building a 650-MW power project in
energy for the Philippines but its reserves are Quezon Province that will open in the first
running low and no exploration of other possible quarter of 2023. Energy World is 100% owner
nearby gas reservoirs have taken place because of its Hub Terminal, which is designed for both
of offshore territory disputes with China. With import and export. The terminal will be able to
a new government in power in Manila, media supply enough gas to support up to 3,000 MW
reports say it is likely that negotiations between of gas-fired power plants, the company says.
China and the Philippines on offshore rights will Third-party clients will also have access to the
soon resume. terminal.™
The AG&P terminal (Philippines LNG) is

P8 www. NEWSBASE .com Week 43 27•October•2022