MANILA—Philippine power producer First Gen Corp. said on March 18 the construction of its LNG terminal, initially estimated to cost $274 million, will begin next month.
First Gen’s LNG import terminal to be constructed in Batangas province, near its gas-fired power plants, is among five such projects to receive permission from the Department of Energy.
“Commencing the construction of the country’s first LNG terminal next month ... puts the company in a good position for expanding its gas portfolio especially after the recent DOE coal moratorium,” First Gen President Francis Giles Puno said in a statement.
The terminal will allow First Gen to ship LNG to the Philippines by third-quarter 2022.
The Southeast Asian country will need to import LNG to feed existing power plants with a combined capacity of about 3,200 megawatts as its Malampaya gas field in western Philippine waters is expected to run dry by 2027, based on the government’s latest projection.
First Gen’s partner for the project, which involves using a Floating Storage Regasification Unit, is Japan’s Tokyo Gas Co. Ltd., which will take a 20% participating interest in the construction and operation of the terminal.
Recommended Reading
E&P Highlights: Sep. 2, 2024
2024-09-03 - Here's a roundup of the latest E&P headlines, with Valeura increasing production at their Nong Yao C development and Oceaneering securing several contracts in the U.K. North Sea.
Breakthroughs in the Energy Industry’s Contact Sport, Geophysics
2024-09-05 - At the 2024 IMAGE Conference, Shell’s Bill Langin showcased how industry advances in seismic technology has unlocked key areas in the Gulf of Mexico.
Interoil to Boost Production in Ecopetrol Fields
2024-09-03 - Interoil will reopen shut-in wells at three onshore fields, which are under contract by Ecopetrol.
Chevron Boosts Oil, NatGas Recovery in Gulf of Mexico
2024-09-03 - Chevron’s Jack/St. Malo and Tahiti facilities have produced 400 MMboe and 500 MMboe, respectively.
CNOOC Makes Ultra-deepwater Discovery in the Pearl River Mouth Basin
2024-09-11 - CNOOC drilled a natural gas well in the ultra-deepwater area of the Liwan 4-1 structure in the Pearl River Mouth Basin. The well marks the first major breakthrough in China’s ultra-deepwater carbonate exploration.