Cusi approves new NTP for Tan’s LNG project

Published April 12, 2020, 12:00 AM

by manilabulletin_admin

By Myrna M. Velasco

Energy Secretary Alfonso G. Cusi has issued a new notice-to-proceed (NTP) to Batangas Clean Energy Inc., the proposed onshore liquefied natural gas (LNG) import terminal of billionaire Lucio Tan to be sited at Pinamucan Ibaba in Batangas City.

Energy Secretary Alfonso G. Cusi (Source:
Energy Secretary Alfonso G. Cusi (Source:

Batangas Clean Energy is the corporate vehicle of the Tan group’s LNG venture, which has been pro¬posed for a capital outlay of US$735 million.

“There is a new NTP award given to Batangas Clean Energy, which is also completing its permitting requirements,” the DOE has announced.

Although with the ongoing enhanced community quarantine (ECQ) in Luzon, it was indicated that the project’s take-off from blueprint will likely experience delays.

As propounded, the LNG terminal will cater to proposed 1,100 megawatts of gas-fired power capacity that shall be sited proximate to the import facility – and these are primarily industries, such as the Tan group’s distilleries as well as a petrochemical complex in Batangas.

The proponent firm will be undertaking the project with American firm Gen X Energy, which is affiliated with private equity firm The Blackstone Group.

The capacity of the LNG import facility has been proposed at 3.0 mtpa, which is seen enough to cater to its targeted market of more than 1,000 megawatts of power capacity.

Other than the targeted markets in Batangas, the sponsor-firm is similarly eyeing to join the competitive selection process (CSP) to be undertaken by giant power utility firm Manila Electric Company (Meralco) this year.

To note, Meralco is targeting to launch its bid for greenfield capacity of 1,200 megawatts capacity this first half – and that is being eyed by the country’s LNG players as a key market they could prospectively corner for their projects.

For the Batangas Clean Energy venture, the targeted completion date is year 2025, hence, the project proponent still has a lot of time leeway on permitting as well as on strategizing for its target market.

The flurry of LNG ventures in the country is rooted from anticipations that the gas output of the country’s Malampaya field will already decline by year 2022, compounded by the facility’s service contract lapse in 2024.