DOE to declare $2 B LNG terminal as project of nat’l significance

MANILA, Philippines — The Department of Energy (DOE) is declaring the planned $2-billion liquefied natural gas (LNG) terminal part of the lineup of projects of national significance under Executive Order 30.

DOE Secretary Alfonso Cusi said the agency is preparing a list of power projects that will be under EO 30 as long as these developments have a high social impact.

“We haven’t declared any project yet, but there are projects lined up,” he said.

The energy chief said one project to be declared under EO 30 is the LNG hub.

“We will put it under EO 30, projects of national significance. So once everything is in order and it is approved, development will soon follow,” Cusi said.

EO 30 provides that government agencies concerned with energy projects should presume other agencies were able to act upon and issue their respective permits within a 30-day period.

It created the Energy Investment Coordinating Council, to be led by the DOE, which will spearhead and coordinate national government efforts to harmonize, integrate and streamline regulatory processes, requirements and forms relevant to the development of energy investments in the country.

Placing the project under EO 30 will allow the LNG terminal to start construction within 2018.

“We’re trying to meet our groundbreaking target next year to make it operational before 2022, or before the depletion of the Malampaya gas project,” Cusi said.

The DOE has tasked its corporate arm Philippine National Oil Co. (PNOC) to spearhead the development of the country’s integrated LNG hub, consisting of five million metric tons per annum of storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts (MW).

PNOC is currently evaluating unsolicited proposals from three foreign investors, namely Korea Electric Power Corp. (KEPCO), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC).

It is also in talks with the Asian Development Bank (ADB) to become its consultant for its planned LNG project.

Further supporting the development of the country’s LNG sector is the signed guiding policy on the natural gas industry to meet the country’s goal of becoming the LNG trading and trans-shipment hub in the Asia Pacific region.

Cusi recently signed Department Circular 2017-11-0012 called Philippine Downstream Natural Gas Regulation which details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.

The DOE will have the overall responsibility in promoting and supervising the development and operation of the downstream natural gas industry.