Natural gas dev’t on track: DoE
The Department of Energy said natural gas development in Luzon is on track to help stabilize the power supply in the country amid a projected increase in demand, especially next year as the economy grows further.
“There is a need to diversify our power sources including the use of imported natural gas. Given its scheduled availability at the end of the first quarter of 2023, liquefied natural gas is considered an important source for fuel diversification,” Energy
Secretary Raphael Perpetuo Lotilla said on Thursday.
Lotilla said the development aligns with the transition to a low-carbon future and helps stabilize the power supply from variable renewable energy.
Likewise, it will also complement the ongoing efforts of the Malampaya Consortium to optimize sustainably the remaining indigenous gas in the Malampaya-Camago reservoir.
Based on the progress reports provided by the LNG project proponents to the DoE’s Oil Industry Management Bureau, the joint venture between Linseed Field
Power Corp and AG&P is on track to complete its first integrated LNG import terminal in Barangay Ilijan in Batangas City.
Commissioning is scheduled for March next year and the commercial operation in April — in time for the arrival of SMC’s LNG supply for the 1,200 MW Ilijan combined cycle power plant.
Meanwhile, FGEN LNG Corporation, a subsidiary of First Gen Corporation, with BW LNG providing LNG storage and regasification services, is also scheduled for the commissioning of its LNG terminal in March 2023, while the commercial operation is set in June 2023.
The opening of the facility is in line with the arrival of LNG supply to fuel its existing gas-fired power plants such as the 1000 MW Sta Rita Power Plant, 500 MW San Lorenzo Power Plant, 414 San Gabriel Power Plant and the 97 MW Avion Power Plant.
According to the DoE, natural gas will be able to support intermittent renewable sources due to its ability to provide flexible capacity, which allows LNG plants to serve not only peaking requirements to support renewables and ancillary power but can likewise provide mid-merit and base load requirements.