Gas Processing is Produced by Gulf Publishing Company

Your source for technology information for the gas processing industry


Philippines aims to issue permit for $2 B LNG facility in 2018

MANILA (Reuters) — The Philippines is aiming to next year award the permit to build and operate the country's first facility for receiving and distributing liquefied natural gas, its energy secretary said on Tuesday.

The project, estimated to cost $2 B, comes as the Southeast Asian nation seeks to replace depleting local gas reserves that now produce around a fifth of its power.

Dozens of domestic and foreign companies are looking to get a stake in the project, including investors from China, Japan, South Korea and Russia, Energy Secretary Alfonso Cusi told reporters.

To ensure the project's viability, Cusi said the government intended to initially allow only one such LNG facility, with state-owned Philippine National Oil Company (PNOC) holding a minimum stake of 10%.

"More than 50 (companies) have signified to PNOC their intent to participate in the project," Cusi said after issuing new regulations that he hopes will smooth the development of both the facility and the wider LNG sector in the Philippines.

"This long-awaited circular (on the new rules) will guide all the players to ensure one common standard, safety in transport, in distribution, in all aspects, and to make sure that the interests of consumers are protected," he said.

Construction of the project, which includes a 5-MMtpy storage facility, will take about 30 mos to complete, Cusi added.

"We want it up and running in 3 yr ... We won't wait for the Malampaya contract to expire."

The country's key Malampaya gas field is expected to be depleted in 7 yr. Operated by a unit of Royal Dutch Shell Plc, it fuels utilities producing about 40% of power supply for the main Luzon island, home to the capital Manila.

In July, a senior PNOC executive said the company was looking at a project that includes storage, regasification and distribution facilities and a 200-MW power plant, which could be upgraded to a 1,000-MW capacity.

Tokyo Gas Co Ltd said in October that it had formally expressed interest in the Philippines' LNG project.

Meanwhile, First Gen, which owns four Malampaya gas-powered plants with a total capacity of 2,011 MW, has also disclosed plans to build its own LNG terminal. But any project would not be expected until after the country's main import facility is completed.

Reporting by Enrico dela Cruz; Editing by Joseph Radford


Copyright © 2016. All market data is provided by Barchart Market Data Solutions. Futures: at least 10 minute delayed. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  Cmegroupicon                                     Icelogo

FEATURED COLUMNS

Business Trends
-Julian Thomas
Indonesia, home to 260 MM people on 14,000 islands across a vast archipelago, is estimated to become the seventh-largest economy in the world by 2030, with such growth expected to boost the nation’s energy consumption by 80% from present levels.<sup>1</sup>
Editorial Comment
-Adrienne Blume
At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
Executive Viewpoint
-Christina Andersen
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.


The New LNG Imperative

Register Now

The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.

November 29, 2017 10am CST

View on Demand

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2015 Gulf Publishing Company.