DoE lauds completion of Luzon LNG projects

THE DEPARTMENT OF ENERGY (DOE) SAID IT GLADLY WELCOMES THE ONGOING COMPLETION of natural gas projects in Luzon to help STABILIZE POWER SUPPLY, PARTICULARLY IN 2023.

As per the agency, this will complement ongoing efforts of the Malampaya Consortium to optimize sustainably the remaining indigenous gas in the MalampayaCamago reservoir.

“There is a need to diversify our power sources including the use of imported natural gas,” Energy Secretary Raphael Lotilla said. “Given its scheduled availability at the end of the first quarter of 2023, liquefied natural gas (LNG) is considered an important source for fuel diversification.”

Lotilla added that LNG is also aligned with the goal of transitioning to a low-carbon future and helps stabilize power supply from variable renewable energy.

Based on the progress reports provided by the LNG project proponents to the DoE’s Oil Industry Management Bureau, Linseed Field Power Corp., a joint venture between San Miguel Corp. (SMC) and AG&P, is on track to complete its first integrated LNG import terminal in Barangay Ilijan in Batangas City.

Commissioning is scheduled in March 2023 and the commercial operation in April 2023, in time for the arrival of SMC’s LNG supply for the 1,200-MW Ilijan combined cycle power plant.

Meanwhile, FGEN LNG Corp., a subsidiary of First Gen Corp., 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, which is also in line with the arrival of LNG supply to fuel its several gas-fired power plants.

“Our foremost concern is to ensure that there is enough capacity supplied through various sources, most especially in the coming summer months to sustain the power supply in the country,” the secretary said.

The additional supply also includes stranded power from coal fired power plants in Bataan due to transmission constraints and will allow LNG plants to serve not only peaking requirements to support renewables and ancillary power but can likewise provide midmerit and base load requirements.

Finally, the Energy department said it has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country.