AG&P investing P14.6 billion for LNG facility

MANILA, Philippines — Atlantic, Gulf and Pacific Co. (AG&P) is investing P14.6 billion in its planned integrated liquefied natural gas (LNG) import terminal in Batangas.

Based on the environmental impact statement (EIS) submitted to the Department of Environment and Natural Resources (DENR), AG&P – through Linseed Field Power Corp. – will secure a lease contract with Ilijan Primeline Holdings Inc. to develop the area.

The terminal will serve the LNG demand requirements of the 1,200-megawatt (MW) Ilijan combined-cycle power plant, the 850-MW combined cycle power plant expansion, as well as future power projects of SMC Global Power Holdings (SMCGPH).

The Ilijan power plant is currently sourcing gas from the Malampaya gas field, but the supply agreement is expiring by June 2022.

To meet the Ilijan plant’s requirement, Linseed plans to put up an onshore regasification, storage, utilities and balance of plant, supplemented with a floating storage unit (FSU).

“Linseed is targeting to commission this import facility by June 2022 so that the power plant can seamlessly secure supply and continue its operations thereafter. Therefore, the project will contribute to the   economy, improve the quality of life of the people and meet the projected need for power in the Luzon grid,” the company said.

The Ilijan power plant supplies more than 10 percent of the 11,304 MW capacity of the Luzon grid.

Meanwhile, SMCGPH’s proposed 850-MW mid-merit plant  is scheduled to commence operations in 2022.

“This terminal, therefore, is an important component of securing almost 20 percent of the power demand of the entire Luzon island,” Linseed said.

In a Senate hearing last month,  Department of Energy (DOE) Assistant Secretary Leonido Pulido said it held a pre-application conference with AG&P to bring in a floating storage and regassification unit (FSRU), and has an initial agreement with San Miguel Corp. for the project.

An FSRU is a LNG carrier capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.

In December, SMCGP said it was in advanced stages of executing the binding terminal use agreement term sheet for the proposed LNG terminal in Batangas, with AG&P to provide receiving, storage and regasification services to the Ilijan power plant.

It has negotiated “priority status” for the Ilijan LNG terminal over all projects of AG&P LNG projects.