MANILA, Philippines – Hong Kong-based Energy World Corp. (EWC) said it is on track to completing the construction and starting operations of a $210-million liquefied natural gas (LNG) hub in Quezon province this year.
The firm has partnered with InterOil Corp. and Pacific LNG Operations Ltd. for the LNG facility, it said.
“Site works and construction of phase one of the hub terminal have already commenced and commercial operation is planned for 2012 to 2013,” EWC said.
The LNG terminal is divided into two phases. EWC said capital expenditures for phase one of the project has been set at $130 million and $80 million for phase two.
EWC said it partnered with InterOil and Pacific LNG through a non-binding memorandum, which allows the parties to establish an associated downstream gas sale, purchase, transmission and distribution service company.
“Under confidentiality agreements we have received very strong interest from financiers and industrialists in the Philippines to co-invest and develop the hub terminal,” EWC said.
The first phase of the project will include a 130,000 cubic meter LNG storage tank, regasification facility, jetty and supporting infrastructure.
The second phase will include an additional 130,000 cubic meter LNG storage tank.
EWC said the LNG hub terminal will be used to facilitate the distribution of natural gas to the proposed 300-megawatt (MW) combined cycle gas turbine power plant. It is adjacent to the 764-MW Pagbilao coal-fired thermal power plant.
“It will be one of the most efficient power producing plants in South Asia which, when combined with the fuel gas from the hub terminal, will allow highly competitive priced power to be generated and sold from the plant,” EWC said,
The hub will also allow the province to distribute LNG to other power producers in the region and compressed natural gas for vehicle use.
“The strategic location of the hub terminal, which sits along international LNG trade routes, will help the development of an Asian LNG spot market,” EWC said.
EWC said it has the flexibility of acquiring cargoes of LNG from the international spot market as well as from EWC’s own gas fields in Indonesia, Australia or its interests in Papua New Guinea.
In January 2011, EWC received a permit for the development, construction and operation of the LNG terminal hub from the Department of Energy. The permit is for a period of 25 years, which can be extended thereafter.
To date, EWC is engaged in power, gas and LNG exploration, development and production in Australia and Indonesia.