Page 12 - AsianOil Week 43 2022

AsianOil SOUTHEAST ASIA AsianOil

Philippines prepares for

entry into LNG sector

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

NEWS IN BRIEF

India’s EIL reportedly signs EPC Subsea 7 wins sizeable Asia- output at Mahakam dropped to 505
Once a major gas-producing block,
contract for execution of Mongol Pacifc contract MMSCFD earlier this year, a company
spokesperson said. Production was expected
Refinery Project Offshore installation company Subsea 7 said to hit an average 524 mmscfd this year.
Monday it had won a sizeable contract in
"We have implemented more effective,
Engineers India Limited (EIL) has Asia Pacific. efficient, and faster drilling in finding new
reportedly signed an engineering, Subsea 7 defines a sizeable contract oil and gas resources," said Pertamina Hulu
procurement and construction (EPC) as being between USD 50 million and Mahakam General Manager Krisna, adding
agreement with the Mongolian government USD 150 million. Engineering work will that government incentives, including VAT
for the execution of the Mongol Refinery start immediately, and offshore activity is exemption, helped the company increase its
Project. scheduled for 2024 and 2025. investment.
EIL, the project management consultant, "No further details are disclosed at this New wells from Mahakam's North Sisi and
said it achieved a critical milestone with the time due to contractual obligations," Subsea North Nubi fields, which started operation
signing of the contract in Ulaanbaatar, on 7 said. in recent months, contributed to the higher
October 28, psuconnect.in reported. output, Krisna said, adding the company
Mongol Refinery is to have a 1.5mn would continue to invest in new wells.
tonne/year crude throughput. The project Pertamina says gas output Indonesia's gas distribution in the
is drawing on a line of credit funded by the January to September period stood at
Indian government. improves at Mahakam block 5,353 mmscfd, below the government's
Mongolia presently meets its diesel, 5,800 mmscfd target, due to delays in
gasoline and jet fuel demand with imports Natural gas output at Indonesia's Mahakam several major projects, upstream oil and
from neighbouring countries. block rose to 590mn cf/day in October, the gas regulator SKK Migas said earlier this
state energy company Pertamina said last month.
week, as the operator boosted drilling.

P12 www. NEWSBASE .com Week 43 31•October•2022