Lucio Tan-led Batangas Clean Energy Inc. (BCE) has dropped out of the liquefied natural gas (LNG) race after it failed to apply for a permit extension of its proposed multi-million dollar project.
Based on Department of Energy (DOE) statement last Friday, there are 6 proposed LNG terminal projects. These are FGEN LNG Corp.’s Interim FSRU and LNG Terminal project, Atlantic Gulf and Pacific Company of Manila Inc.’s (AG&P) FSRU and Onshore Regasification, Energy World Gas Operations Philippines Inc.’s LNG storage and regasification terminal project, the FSRU LNG terminal of Excelerate Energy L.P., the FSRU terminal project of Shell Energy Philippines Inc., and the FSRU terminal of Vires Energy Corp.
Four of which have been issued with Notices to Proceed (NTP), with an initial validity of six months, subject to further extensions for approval by the DOE. Meanwhile, FGEN and Energy World’s LNG projects are in the next phase and have been issued with permits to construct (PTC).
BCE’s NTP has expired, according to DOE-Oil Industry Management Bureau Director Rino Abad.
“They are very responsive. However, their NTP expired in February this year and they have yet to submit an extension or apply for the next phase,” said Abad when sought for comment on BCE’s LNG project status.
The project proponent was supposed to build an LNG storage and regasification terminal that would cost $735 million. The project, which was supposedly ready for commercial operation by first quarter of 2025, also includes the construction of a 1,100-MW gas-fired power plant.
The project did not reach financial closing as industry experts noted the lack of an anchor market for the LNG project.
Meanwhile, FGEN’s project is currently under construction. Its commercial operation date (COD) is set for the third quarter of 2022.
The DOE is evaluating Energy World’s application for a PTC extension of 24 months. Its COD is set for the fourth quarter of next year.
AG&P is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is the second quarter of 2022.
Shell is also is securing permits in time for the COD set for the third quarter of 2022.
Vires Energy’s FSRU terminal is expected to be completed in the first quarter of 2023.
The DOE has granted Excelerate Energy two NTP extensions, the first—which was valid for six months as allowed by the Philippine Downstream Natural Gas Regulations—was issued on May 27, 2020. The second, due to force majeure brought about by the Covid-19 pandemic, was issued on December 16, 2020 and was valid for three months.
At present, the DOE is evaluating Excelerate’s PTC application, while the company is securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is the third quarter of 2022.
“Attaining energy security may have been complicated by the current global health crisis. However, the DOE is seeing to it that we will be able to carry on. The Department continues to pursue all possible avenues that would help us break free from energy import dependence and provide the energy needs of future generations of Filipinos in a sustainable manner,” said Energy Secretary Alfonso G. Cusi.
