DOE OKs construction of $67 million LNG receiving terminal in Bataan

MANILA, Philippines — The Department of Energy (DOE) has approved the development of a $67 million liquefied natural gas (LNG) receiving terminal as part of efforts to ensure power supply in line with the impending depletion of the Malampaya natural gas reservoir.

The DOE said it issued a notice to proceed to Samat LNG Corp. to construct a small-scale LNG receiving terminal and regasification facility in Mariveles, Bataan.

The agency said the project proponent is given 12 months to comply with the requirements from the date of the issuance of the notice to proceed to push through with the project construction.

Samat LNG will also have to obtain the required regulatory permits from other government agencies and secure financial closing for the construction of the proposed LNG receiving terminal and regasification facility.

With an estimated investment of around $67 million, the project is expected to start commercial operation by the first half of 2024.

Once completed, the facility is   capable of importing 200,000 to  400,000 tons of LNG annually.

It is expected to supply LNG to fuel small-scale independent power producers, manufacturing companies, and transport fleets.

The LNG will be distributed to its customers by a dedicated fleet of LNG trucks, small LNG vessels, and barges within   neighboring regions.

The DOE said small-scale LNG terminals are ideal for an archipelagic nation such as the Philippines as they are modular and can be constructed quickly.

The agency said these LNG terminals can supply fuel for off-grid and on-grid capacities.

“The DOE has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country,” it said.

Samat LNG will join the other six ongoing LNG terminal projects development in the country.

These projects are being undertaken by Linseed Field Corp., FGEN LNG Corp., Luzon LNG Terminal Inc., Energy World Gas Operations Philippines Inc., Shell Energy Philippines Inc. and Vires Energy Corp.

The DOE said Linseed Field is expected to complete its first integrated LNG import terminal in Barangay Ilijan in Batangas City, with its commissioning scheduled in March and the commercial operation in April.

On the other hand, the agency said FGEN LNG, with BW LNG providing LNG storage and regasification services, is also scheduled for the commissioning of its LNG terminal in March while the commercial operation is set in June.

“The DOE welcomes the completion of these two natural gas projects --- Linseed Field Corp. and FGEN LNG Corp. to help stabilize the power supply, particularly during this summer period,” the agency said.

The DOE said LNG is also considered an important source for fuel diversification as this would complement the efforts of the Malampaya consortium to optimize the sustainability of the remaining indigenous gas in the Malampaya-Camago reservoir.

“Foremost, the government’s concern is to ensure enough capacity is supplied through various sources, especially in the coming summer months, to sustain the power supply in the country,” it said.