2 LNG import terminals operational by 2nd half – DOE

MANILA, Philippines — Only two liquefied natural gas (LNG) import terminals are expected to start operating in the second half to resolve the Malampaya gas supply restriction—one of which faces a slight delay due to late delivery of equipment, according to an official of the Department of Energy (DOE).

Of the seven LNG terminals that were previously cleared by the agency, only two are ongoing and aggressive in terms of development, DOE director Rino Abad said.

He said the LNG import terminal of Atlantic, Gulf and Pacific Company (AG&P)—through Linseed Field Power Corp.—is set to be completed in the third quarter, albeit with a slight delay of one month at most.

The delay and its cause will be confirmed by the DOE in a monthly meeting today.

“From July 1, they may end up having commissioned the regassification terminal instead on Aug. 1. We will do a physical and actual site inspection on May 16 to ensure that reported delay is actually happening on the ground,” Abad said.

When asked about the cause of delay, the DOE official said Linseed encountered delays in the delivery of equipment from China and South Korea.

“Around 40 percent of their work program are installation projects. They faced delays in the delivery of equipment from China and South Korea. We are hoping they will arrive on time,” Abad said.

The terminal is supposed to serve the LNG demand requirements of the 1,200-megawatt (MW) Ilijan combined-cycle power plant, the 850-MW combined cycle power plant expansion, as well as future power projects of SMC Global Power Holdings (SMCGPH).

The Ilijan power plant is currently sourcing gas from the Malampaya gas field, but the supply agreement is expiring this June.

Abad said the DOE is also meeting with San Miguel Corp.’s South Premiere Power Corp. (SPPC)—the independent power producer-administrator of the Ilijan power plant output—on the schedule of the LNG delivery.

Linseed is only the operator of the LNG terminal, while SPPC will be the one to trade and import LNG.

Abad said the agency’s Electric Power Industry Management Bureau (EPIMB) and the Energy Resource Development Bureau (ERDB) is addressing the replacement fuel for the Ilijan power plant in case the LNG delivery would not come on time.

“We have scheduled a meeting with South Premiere to ensure that its timeline for LNG delivery is aligned with the completion of Linseed’s terminal. Even if we have the regassification terminal but there’s no LNG supply, the project will still be delayed,” he said.

Meanwhile, the Interim Offshore LNG Terminal Project of First Gen Corp. and Tokyo Gas in Batangas is on track to start operating in the fourth quarter.

“There’s no change in the schedule for (First Gen’s LNG terminal), which is slated for commissioning by end-October to early November,” Abad said.

He said the Lopez firm has already introduced to the DOE their chosen LNG supplier.

“They informed us that they already have an allocation of LNG. So, we have an assurance from First Gen since their LNG supply is already available,” Abad said.