SMC unit taps AG&P for LNG project
By Lenie Lectura – August 21, 2020
from Business Mirror
SMC Global Power Holdings Corp., a wholly-owned subsidiary of conglomerate San Miguel Corp. (SMC), is partnering with Atlantic Gulf & Pacific (AG&P) for its planned LNG (liquefied natural gas) project in Batangas.
The company’s planned Ilijan LNG Terminal will be developed by AG&P LNG Terminals and Logistics, with EPC (engineering, procurement and construction) work to be handled by AG&P Construction Solutions.
“As of August 2020, the company is in advanced stages of executing a binding term sheet on the Terminal Use Agreement (TUA) with AG&P to provide LNG receiving, storage and regasification services to the Ilijan Power Plant and Ilijan Expansion,” the power firm said in a report.
The LNG terminal’s commercial operation is targeted in June 2022, in time for the expiration of the Ilijan IPPA (Independent Power Producer Agreement).
SMC Global Power, through its subsidiary South Premiere Power Corp., is the IPP administrator of the output of the 1,200MW Ilijan plant.
Ilijan is among the gas plants fueled by the Malampaya natural gas facility, which is nearing the end of its service contract in early 2024.
The proposed LNG facility will have a Floating Storage and Regasification Unit (FSRU). The power plant component of the project is capable of handling 3,000 megawatts (MW) of capacity. Of which, 1,200MW is for baseload operations and 1,800MW for mid-merit.
It will tap a hybrid onshore/offshore solution using modular technology, resulting in a cost-effective EPC and consequently, a viable terminal use fee for the power plants.
The power firm has negotiated “priority status” for the Ilijan LNG Terminal over all projects of AG&P. “As the foundation customers, SMC’s power plant will also be the priority terminal users for the terminal and its capacity.”
SMC Global Power said AG&P has extensive expertise in LNG regasification technologies and the development and execution of LNG infrastructure solutions to utilize gas for retail and power plant use. AG&P acted as EPC contractor or technical partner for various LNG terminal projects across the world.
The site for the LNG terminal and expansion project is strategic because of the proximity to the existing Ilijan plant.
SMC President Ramon S. Ang has been vocal in the company’s interest to venture into LNG, provided that gas prices become more competitive.
