Australian power firm mulls P2-billion LNG hub in Quezon

MANILA, Philippines - An Australian power company, Energy World Corp. (EWC), is all set to build a P2-billion liquefied natural gas (LNG) terminal hub in Quezon province, an Energy official said yesterday.

Department of Energy (DOE) director Jesus Tamang said EWC would push through with the project after it recently secured an environmental clearance certificate. “The project is ongoing as they have been issued an ECC by the Environment and Natural Resources Bureau,” Tamang said.

The DOE official said EWC had already broken ground as a start of the construction of the 300-megawatt (MW) LNG power plant located at Barangay Ibabang Polo, Pagbilao, Quezon. The company has yet to firm up the completion date for the project.

At present, EWC is engaged in the exploration, development and production of gas and oil, development and production of LNG, and design, construction, operation and maintenance of LNG plants. “LNG supply will be coming from Indonesia,” Tamang said.

Based on DOE targets, however, the establishment of the LNG hub terminal in Quezon is seen to be completed by 2013 and another LNG terminal in Bataan by 2015.

According to Tamang, EWC’s LNG terminal project may force other power plant operators in the area, such as the 735-MW Pagbilao coal plant of San Miguel Corp. and TeaM Energy Corp. to convert to LNG.

He noted that Quezon Power Philippines Ltd., which owns a 460-MW coal plant in Mauban, Quezon may also consider converting to LNG.

The energy official said the DOE is currently studying  the “techno-economic aspects of related technologies for fuel shift to natural gas” because is LNG is cheaper and cleaner source of fuel.