LNG infrastructure buildup still slow in Phl, says Fitch

The country’s liquefied natural gas (LNG) infrastructure is not expected to grow at an unprecedented rate even as investments in LNG import terminals are moving ahead, according to Fitch Solutions.

In a report, Fitch Solutions Country Risk and Industry Research said six LNG import terminals with a combined capacity of 21.7 million tons per annum (mtpa) have been approved by the government to support the anticipated surge in LNG imports for the power sector.

Of the six projects, three are scheduled for completion this year.

Fitch Solutions said AG&P’s three-mtpa floating regasification unit at Batangas Bay is expected to commence operations within the first quarter, while First Gen LNG’s 5.3-mtpa offshore floating storage and regasification unit terminal in Batangas is scheduled to be completed within the same period as well.

Energy World Corp.’s onshore three-mtpa LNG terminal in Quezon is also progressing and is expected to be completed within the year, according to Fitch Solutions.

Meanwhile, Vires Energy Corp. is in the advanced stage of project development for its 3-mtpa LNG storage and regasification terminal integrated with a 450-megawatt gas-fired power plant.

Fitch Solutions said the terminal is expected to commence operations in 2026.

A three-mtpa floating storage and regasification terminal of Shell Energy Philippines is targeted to commence construction by the first quarter of next year, while USbased Excelerate Energy has yet to receive approval from the Department of Energy to construct its proposed LNG import facility in Batangas Bay.