Phl has enough time to finalize LNG terminal project
The Philippines still has enough time to finalize a liquefied natural gas (LNG) terminal project before the Malampaya contract expires.
But First Gen Corp. is looking to secure partners by early next year to start its own LNG terminal to meet the needs of its gas-fired power plants.
The crucial time to start building the country’s LNG terminal is still a few years down the road, First Gen president and COO Francis Giles Puno said.
“If the Malampaya contract ends by 2024, it takes about four years of construction, so at the latest we should do something by 2020 onwards,” he said.
However, the Lopez-led company wants to conclude its search for potential partners to be able to commence with its LNG terminal in Batangas.
“It’s easy to get a partner because there are a lot of choices, but we have to make sure we choose the right partners… that is financial, technical and fit in our project,” Puno said.
“We’d like to be in a position where we at least hopefully announce a partnership in the next, hopefully by early next year,” he said.
First Gen’s planned LNG terminal, which will have a capacity to supply a minimum five million tons of natural gas equivalent to 5,000 megawatts (MW), will be located within the Lopez Group’s clean energy complex which houses the 1,000-MW Sta. Rita, 500-MW San Lorenzo, San Gabriel and 97-MW Avion gas plants. Puno said First Gen’s proposed LNG terminal presents a real option for the country because it is currently the most advanced and already has a secured market.
“The uniqueness of our project is we already have power plants so the general approach is to create our own option for our LNG, and if there are other options out there that seem to be more competitive than our project, well and good,” he said.
“At this stage, we believe that our project is the more feasible available today. Unless proven otherwise, our project is the most feasible at this stage,” he said.
The Department of Energy announced earlier that it is looking to start constructing the country’s LNG hub by mid-2019 to safeguard against the anticipated contract expiration of the Malampaya gas facility by 2024.
The facility is also targeted to become an LNG hub for Asia, complementing those in Japan and Singapore.
The agency is currently seeking proposals from the private sector to spearhead the project.