AG&P taps Texas firm for LNG storage tanks

MANILA, Philippines — Atlantic Gulf and Pacific Co. of Manila Inc. (AG&P) has tapped a unit of Texas-based McDermott International, Ltd. to put up the storage tanks for its liquefied natural gas (LPG) terminal in Batangas.

McDermott announced on its website that its CB&I Storage Solutions business was awarded a contract by AG&P for the engineering, procurement and construction (EPC) of a LNG storage tank for the Philippines LNG (PLNG) currently under construction in Batangas.

Under the contract, CB&I Storage Solutions will provide the first of two 60,000 cubic meter full containment steel LNG tanks, along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.

“We are proud to support AG&P in the delivery of the Philippines’ first LNG import terminal. The design of this first-of-a-kind full containment steel LNG tank highlights our innovation and technology leadership in the LNG storage industry and positions CB&I Storage Solutions to serve the growing small-scale LNG market in Asia and other regions with similar demands,” CB&I Storage Solutions SVP Cesar Canals said.

“We have an extensive history of executing world-class projects in the Philippines and are confident in our ability to deliver this tank safely, on time and within budget,” he said.

PLNG’s mechanical completion is slated for the third quarter of 2023 with purging and commissioning activities to follow.

“We are confident we made the right choice to work in close cooperation with CB&I Storage Solutions on this technically advanced and challenging project,” AG&P project director Roeland Uytdewilligen said.

Based in Houston, Texas, McDermott is a premier, fully-integrated provider of engineering and construction solutions to the energy industry. Its unit CB&I Storage Solutions is one of the leading designer and builder of storage facilities, tanks and terminals, with more than 59,000 structures completed throughout its 130-year history.

Last week, AG&P said it secured projects worth over $770 million, marking 2021 as the best year for its construction business.

AG&P said the contracted backlog of projects include work on behalf of five land or marine LNG terminals, a petrochemical complex, modularized oil refinery, an oil depot, a new LNG bunkering vessel and engineering for other maritime LNG applications in the Philippines, India, US and elsewhere.

When asked for a breakdown, the company said bulk of the total cost or $600 million is for LNG projects while the balance is for non-LNG projects.

“AG&P’s construction business is forecast to have its best year, with contracted backlog already over $770 million spread over three years. It is a ground-breaking year for AG&P as it participates in critical infrastructure projects particularly in Asia-Pacific, that will accelerate commercial development, create jobs, clean air and trigger overall economic and social progress,” AG&P chairman Augusto Gan said in a statement.

One of the projects AG&P secured is in the Philippines after it was issued the notice to proceed by the Department of Energy (DOE) for the development of its LNG import and regasification terminal on Batangas Bay.

The project, called Philippines LNG (PLNG), will store LNG and dispatch natural gas to power plant, industrial and commercial customers and other consumers, opening up a new era of clean energy for the country and doing its part for the Philippines to compete for and win investment and jobs.

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

The PLNG will serve to 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.

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

Apart from this, the PLNG will also have scalable onshore regasification capacity of 420 million standard cubic feet per day and almost 200,000 cubic meters b of storage that will ensure high availability and reliability of natural gas for its customers.