The proposed 3.0 million tons per annum (mtpa) liquefied natural gas (LNG) import terminal of Shell Energy Philippines is targeting to supply the gas requirements of two power plants in Central Luzon; as well as a major petrochemical facility in the country.
According to Energy Secretary Alfonso G. Cusi, the targeted off-takers or gas purchasers of the Shell LNG terminal will be the proposed power plant in Subic, and another one in Mariveles, Bataan.
The petrochemical plant to be supplied by the LNG import facility will be the JG Petrochemical Corporation of the Gokongwei group, which currently has existing 81-megawatt power plant and is working for a 30 to 40MW capacity expansion.
The energy chief added the gas import facility will be sited in Tabangao, Batangas, the previous refinery turned into world-class oil import terminal of affiliate Pilipinas Shell Petroleum Corporation (PSPC).
For the power plant venture in Subic, one of the proponents eyeing to develop a gas-fired facility is that of Redondo Peninsula Energy Inc. (RP Energy), a joint venture of Meralco PowerGen Corporation and Aboitiz Power Corporation.
The blueprinted 600-megawatt plant is shifting its technology use to gas from the original development plan that should have leaned on coal technology deployment.
The Shell facility is one of the five projects granted notice-to-proceed (NTP) by the DOE – including those of the joint venture of First Gen Corporation and Tokyo Gas Co. Ltd.; US firm Excelerate Energy; the Batangas Clean Energy Inc. venture of billionaire Lucio Tan and American firm-partner Gen X Energy; and most recently had been that of Atlantic Gulf & Pacific Company (AG&P).
All proposed LNG import facilities will have their base in Batangas; where the country’s gas-fired power plants of more than 3,200MW capacity are located. These electric generating assets provide roughly 30-percent of Luzon grid’s power demand.
As noted by Energy Assistant Secretary Leonido J. Pulido III, “with Malampaya’s depletion estimated to occur in the next few years, there is an urgent need to attract more investments in the downstream LNG industry.”
He stressed “the timely implementation of these proposed LNG projects shall facilitate for the entry of LNG in the country.” The service contract for the Malampaya field will expire in 2024.
Pulido further said the development of these LNG facilities is aligned with the energy security goals of the country, not just for power-related applications but also in expanding the use of such fuel to other end-users in the industrial, commercial and residential sectors.