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Philippines aims to issue permit for USD 2 billion LNG facility in 2018

Gasoil News - Published on Thu, 07 Dec 2017

Image Source: Wikimedia
Reuters reported that 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. The project, estimated to cost USD 2 billion, 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 Mr 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 percent.

Mr 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 "More than 50 (companies) have signified to PNOC their intent to participate in the project. 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 that construction of the project, which includes a 5 million tonnes-per-annum storage facility, will take about 30 months to complete. "We want it up and running in three years. We won't wait for the Malampaya contract to expire."

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

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Posted By : Rabi Wangkhem on Thu, 07 Dec 2017
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