Virtual LNG pipeline proposed for ‘stranded’ markets in Philippine

MANILA, Philippines – A virtual liquefied natural gas (LNG) pipeline could bridge the capacity demand in Southeast Asia, particularly in the Philippines, infrastructure solutions provider Atlantic, Gulf and Pacific Co. (AG&P) said.

During the fourth annual Power and Electricity Philippines conference, AG&P president Albert Altura said there is considerable opportunity for LNG to become a major energy source in the region, particularly for ‘stranded’ markets that are either inaccessible or too small to be feasibly served by the current power supply model.

“Our virtual LNG pipeline comprises a network of smaller-scale economical delivery systems including vessels, re-gasification terminals and smaller power plants,” he said.

 “These customized LNG solutions accelerate construction, require less upfront investment and offer faster and broader delivery. We are already seeing considerable demand for these products and anticipate this continuing in the next few years,” Altura said.

The Philippines, in particular, provides a unique challenge for the distribution of energy to 100 million people living across 7,000 islands, the company said.

It said traditional power delivery models are often too bulky to be viable to meet relatively smaller-scale energy requirements.

 “AG&P has both the technical leadership and expertise to deliver affordable, de-centralized clean power solution across Philippines,” Altura said.

Last May, AG&P introduced a “bite-sized” LNG solution to provide a supply chain for local and regional developers eyeing to build small-scale LNG projects.

The company offers small-scale LNG solutions, including floating storage, regasification and power, provide power plants tailored to the archipelago, from even five megawatts all the way up to traditionally-sized plants.

Currently, the company is in talks with potential off-takers which include small-scale developers of LNG power plants and large scale tankers.

AG&P said small-scale LNG provides a clean solution without the soot and contaminants of old coal.

With the recent decrease in the cost of LNG, such technology is now not only viable, but also strongly commercial. it added.