AG&P to proceed with LNG terminal project

MANILA, Philippines — Atlantic, Gulf and Pacific Company of Manila Inc. (AG&P) will kickstart the liquefied natural gas (LNG) importation and regasification ability of the country in the summer of 2022 after securing the green light from the Department of Energy to start construction.  

In a statement, AG&P said it has been issued the notice to proceed (NTP) by the DOE for the development of its LNG import and regasification terminal in Batangas Bay called the Philippines LNG (PLNG). 

PLNG will store and dispatch LNG to power plant, industrial and commercial customers, and other consumers, opening up a new era of clean, efficient fuel. 

The DOE approved AG&P’s NTP application in line with its commitment to make the Philippines a regional LNG hub in Southeast Asia. 

AG&P has already completed its pre-development work for PLNG, which is expected to be commissioned by the summer of 2022. 

 PLNG will kick-start the country’s LNG importation and regasification ability as the first commissioned LNG terminal in the country, delivering gas to secure the current and future energy demand of the region. 

“We are excited about this critical step in bringing AG&P’s Philippines LNG Import Terminal online. AG&P is working to bring this safe, environmentally-friendly, competitive fuel to our customers by the summer of 2022 and hope that the wide availability of natural gas will spur manufacturing and jobs in the Philippines,” AG&P president of LNG Terminals & Logistics Karthik Sathyamoorthy said. 

“We salute the Philippines’ DOE for its professionalism and hard work in evaluating our proposal and granting AG&P the notice to proceed. We are aligned with the DOE’s forward-looking vision for clean energy and look forward to supporting it,” he said.  

PLNG will have the initial capacity to deliver up to three metric tons per annum (MTPA) of regasified LNG, with additional capacity for liquid distribution. 

It will also have scalable onshore regasification capacity of 420 million standard cubic feet per day and almost 200,000 cubic meter of storage that will ensure high availability and reliability of natural gas for its customers. 

Last December, SMC Global Power Holdings (SMCGPH) said it was in advanced stages of executing the binding terminal use agreement term sheet for the proposed LNG terminal in Batangas, with AG&P to provide receiving, storage and regasification services to the 1,200-megawatt (MW) Ilijan combined-cycle power plant in Batangas.   

It has negotiated “priority status” for the Ilijan LNG terminal over all projects of AG&P LNG projects. 

“The Philippines LNG terminal is a landmark development for the country that will accelerate industrialization, create jobs, lower pollution and trigger overall economic and social progress. It will directly and indirectly improve the quality of life for many thousands of Filipinos,” Sathyamoorthy said. 

Lopez-led First Gen Corp., the other party pursuing the development of an LNG terminal, plans to introduce LNG to the Philippines as early as third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and its affiliates.