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in March this year, and included a new timetable for construction.
“ e project sponsors are eager to continue to move forward with the project and receipt of the requested extension is a necessary step,” Energy Transfer’s chief regulatory officer, Michael Langston, wrote in an August 30 letter to the FERC.
Langston went on to say that a nal invest- ment decision (FID) on Lake Charles LNG was not expected until early 2020 but that the project had progressed in the meantime. According to him, Energy Transfer has spent $300mn on Lake Charles LNG so far and anticipates spending another $150mn before the FID is taken.
Steps that have been taken so far include Energy Transfer and Shell inviting engineering, construction and procurement (EPC) compa- nies to bid on Lake Charles LNG in March. But although some front-end engineering and design
(FEED) work has been awarded, a general con- tractor has yet to be selected.
The 16.45mn tonne per year (tpy) export project is anticipated to cost $12-16bn to build. It involves conversion of an import facility to liquefaction.
ASIA
JGC wins EPC contract for Philippine LNG project
PROJECTS & COMPANIES
PHILIPPINE power utility First Gen has awarded an engineering, procurement and construction (EPC) contract for the Batangas lique ed natural gas (LNG) project to Japanese engineering out t JGC.
JGC will look at modifying an existing jetty in Batangas City’s First Gen Clean Energy Com- plex (FGCEC) so that it can also receive large and small-scale LNG vessels. e jetty is currently used to bring in liquid fuels for First Gen’s nearby dual- ring power plants and the study will look to maintain this functionality.
First Gen, in partnership with Tokyo Gas, is building the $1bn terminal in order to ensure a continuous supply of feedstock for its power plants once supplies from the giant Malampaya gas eld begin to dry up. e gas eld, which fuels about 50% of Luzon’s power requirements, is projected to begin running dry from 2024.
Executive vice-president and COO Jona- than Russell said the conversion project, which would allow for imports via a oating storage regasi cation unit (FSRU) on an interim basis, wascrucialtoensuringthecontinuedoperations of 3,200 MW of gas- red capacity given Malam- paya’s maturation. He added that imports could begin “during the term of President [Rodrigo] Duterte”, which ends in June 2022.
Russel said launching LNG imports ahead of Malampaya’s anticipated decline would have several bene ts, including reducing the amount of liquid fuels the company would have to burn at its dual- ring 1,000-MW Santa Rita, 500-MW
San Lorenzo and 97-MW Avion power plants. He added: “ e early introduction of LNG by [First Gen] would also enable LNG to imme- diately become a fuel choice for any developer that is considering the building of new gas- red power plants with a lower carbon footprint that will support introduction of more intermittent renewables for the Philippines as an alternative to building new coal- red power plants and also o er a potential means for the Ilijan [power] pro- ject to receive gas a er its contract with Malam-
payaendsin2022.”
e award wraps up an EPC tendering phase
that began in 2014 and which drew expressions of interest (EoIs) from 18 companies.
The government declared in August that the proposed terminal was an Energy Project of National Significance (EPNS), as it would require the development of significant infra- structure that would have a positive impact on the environment.
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