MANILA, Philippines - Pilipinas Shell Petroleum Corp. has moved a step closer in its plan to put up an import regasification terminal in the Philippines for liquefied natural gas (LNG) after concluding its feasibility study on the project.
Energy Secretary Carlos Jericho Petilla welcomed Shell’s expression of commitment to push through with the LNG terminal.
“There are no talks on investment figures yet at this point. This is more like a commitment on the project that they are going to put up here. They want to operate it in two to three years,†Petilla said after meeting with Shell officials yesterday.
Results of the feasibility study, initiated in July 2012 and presented to the media yesterday confirmed the viability of developing an import regasification terminal in the Philippines, particularly a floating storage instead of a land-based terminal.
In a separate press briefing, Roger Bounds, vice-president of Shell’s Upstream International Global LNG said that based on the study, the viable option is to put up a floating storage and re-gasification vessel (FSRU).
The FSRU, to be located in Shell’s terminal in Batangas, is also a more viable option considering the weather patterns in the Philippines.
An FSRU has high back-up equipment design, has optimal jetty location and can exit faster in case of a cyclone.
However, officials stressed yesterday this is only the initial phase of the company’s plan.
“If all the permits are in place, we could be making a final investment decision in the next 12 months,†said J. Scott Porter, senior business development manager for Shell’s Upstream International business.
Pilipinas Shell country chairman Ed Chua said the FSRU terminal can service a demand of up to 2,000 megawatts and can complement the growing renewable energy industry in the Philippines.
However, the company declined to divulge investment figures but said last year that the construction of an LNG terminal may require an investment of up to $1 billion.