2 LNG projects expected to be done in Q2, Q3 ’22

Fuentebella: “We are coming up with more policies so that we can ensure that they have more supply.”

TWO LNG (liquefied natural gas) projects are expected to be finished in the second and third quarters of 2022, just in time when the Malampaya gas facility starts to run dry.

The Interim Floating Storage and Regasification unit (FSRU) Terminal project of FGEN LNG Corp. and partner Tokyo Gas will be finished by end-September next year while the FSRU and Onshore Regasification Terminal project of Atlantic Gulf & Pacific Company of Manila Inc. (AG&P) and partner Osaka Gas will be completed in the second quarter of 2022.

“We see that the output of Malampaya will be declining for 2022, 2023 and 2024.  Hence, we are moving forward with the LNG facilities. We have FGen facility

in Batangas, which is still on track to be finished by end-September of 2022 and the FSRU of AG&P.  This is going to be completed by second quarter of 2022,” Energy Undersecretary Felix William Fuentebella said during  the Ensuring Sustainability of Food and Utilities forum organized by the Economic Journalists Association of the Philippines (EJAP).

As of June 30 this year, FGen’s overall project progress is 19.95 percent, the DOE said. This will provide the gas supply requirement for Santa Rita, San Lorenzo, San Gabriel and Avion gas plants, and for the proposed 1,200 MW of new natural gas power plants.

Meanwhile, the target date of commercial operation of AG&P’s LNG facility is by end-June 2022. It will provide the LNG storage and regasification services for the existing 1,200-MW Ilijan power plant in Batangas. Osaka Gas will provide AG&P the technical support for the development, operation and maintenance of the project through a Technical Services Agreement to be signed by both parties.

AG&P’s LNG project costs P15.33 billion while FGen’s LNG project cost is P13.28 billion.

The Malampaya gas facility will undergo a 22-day shutdown starting October 2 this year. The DOE said that there will be sufficient power supply “if there are no forced outages” during the period. Besides, he added, gas plants can shift to liquid fuel.

Also,  Fuentebella said the GN Power Dinginin plant is expected to come on line by then.

“So as far as 2021 third and fourth quarters are concerned, we are in a better situation. Moving forward, after the shutdown, we presented that there will be a decrease in the output of the gas field and there will be an effect—a reduction in megawatt production of natural gas plants. Hence, we showed why there is a push for LNG,” Fuentebella said.

He added that for 2022, power supply on election day is thin. “That is why we are closely monitoring the situation. We are coming up with more policies so that we can ensure that they have more supply,” said the DOE official.