DOE finalizing LNG project evaluation team

MANILA, Philippines — The Department of Energy (DOE) is finalizing a review committee, in partnership with the US government and University of the Philippines (UP), that will evaluate applications for liquefied natural gas (LNG) project as more companies are interested in developing the country’s natural gas industry.

DOE assistant secretary Leonido Pulido said the US Department of State, under the US-Asia Enhancing Development and Growth through Energy initiative, has provided a grant for the country’s Gas Policy Development Project (GPDP).

The project, which commenced in October last year, is being implemented by the University of the Philippines Statistical Center Research Foundation Inc. (UPSCRFI).

The GPDP aims to provide technical assistance to the DOE in implementing the Philippine Downstream Natural Gas Regulation (PDNGR).

“We’re finalizing that structure [for the review process]. They’re supposed to be part of a committee that would help us evaluate all of these applications under the PDGNR,” Pulido said.

“But since that hasn’t been finalized, it’s still the natural gas division of the OIMB (Oil Industry Management Bureau) that is currently evaluating applications,” Pulido said.

The PDNGR details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.

Issued in December 2017, the policy on the natural gas industry is aimed to meet the country’s goal of becoming the liquefied natural gas (LNG) trading and trans-shipment hub in the Asia Pacific region. 

Currently, the OIMB-Natural Gas Division is evaluating the application of Tanglawan Philippine LNG Inc. to extend the Notice To Proceed (NTP) granted by the agency.

Tanglawan is the prospective partnership among Phoenix, state-run Philippine National Oil Co. (PNOC) and China National Offshore Oil Corp. (CNOOC).

Issued by the DOE in December last year, the NTP has a six-month validity which ended last June 22.

“I don’t want to get ahead of ourselves by making a declaration that we would be granting an extension of their NTP. But it’s there, and it is currently being evaluated by OIMB,” Pulido said.

Tanglawan is planning to build a regastification and receiving terminal with a capacity of 2.2 metric tons per annum (mtpa), with commercial operations targeted to start by end-2023. 

The facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the country.

It aims to develop a gas-fired power generation facility with up to 2,000 megawatts (MW) installed capacity, initially putting up a 1,100-MW gas-fired power plant to become the offtaker of the LNG supply.

Meanwhile, the DOE directed US-based Excelerate Energy L.P. to submit additional documents to its application to build a floating storage and regassification unit (FSRU) offshore Batangas.

“They were asked to submit more documentation to substantiate their proposal. What was asked from them is to provide an after market,” Pulido said.