Excelerate to build LNG terminal in Batangas

EXCELERATE Energy L.P. will start developing a liquefied natural gas (LNG) facility in Batangas province next month, the Department of Energy (DoE) announced on Friday.

The announcement came after the department issued on September 20 the notice to proceed (NTP) to the Texas-based firm to build the facility, a floating storage regasification unit (FSRU) LNG import terminal.

According to Excelerate’s work program, the terminal’s construction and commissioning would take around two years, from October 2019 to June 2021.

“As proposed, by the third quarter of 2021, we are expecting that Excelerate’s FSRU LNG facility will commercially operate. With our continuing efforts to [ ensure] energy security, especially since we are anticipating the depletion of Malampaya gas [reserves in offshore Palawan province], the establishment of LNG facilities bring a promising future for the country,” Energy Secretary Alfonso Cusi said in a statement.

“We look forward to working with the government and private sector for the successful completion of the project that will enable Excelerate to invest in critical infrastructure, allowing the country to continue on its current path of tremendous economic growth,” Excelerate Energy Chief Commercial Officer Daniel Bustos said in a statement on Thursday.

The facility will have a storage capacity of 150,000 cubic meters, to be located about 9.5 kilometers offshore in Batangas Bay to minimize its impact on existing shipping traffic in the area, as well as the coastline.

Excelerate intends to supply natural gas from the floating terminal to existing and new gas- fired power plants that provide electricity to Luzon, including Metro Manila.

“The terminal will utilize Excelerate’s state-of-the-art offshore technology specifically designed to perform in extreme weather conditions, like those of the Philippines, and has been proven at Excelerate’s operations in the Gulf of Mexico, the North Atlantic, Israel and, most recently, the Bay of Bengal,” the company said.

“This abundant and secure source of gas supply will augment the existing gas production from the domestic Malampaya fields, as reserves from these fields begin to deplete,” the company said.

Excelerate has until six months from the issuance of the NTP to comply with the permit to construct (PTC) requirements, such as permits from various government agencies and endorsements from local government units. It also has to provide the proof of financial closing to the DoE.

Upon fulfilling the prerequisites, the DoE will then release the PTC allowing Excelerate to proceed with the construction.