MANILA, Philippines — A Brown Co. Inc. (ABCI) of businessman Walter Brown is abandoning its plan to build a floating liquefied natural gas (LNG) terminal in Batangas to focus on power generation for the time being.
ABCI subsidiary Vires Energy Corp. (VEC) informed the Department of Energy (DOE) yesterday that it is withdrawing the notice to proceed (NTP) issued in 2021 for the LNG project in Simlong, Batangas.
The NTP covers the company’s proposed integrated LNG storage and regasification facility, which includes a 450-megawatt (MW) floating power plant.
DOE data showed that VEC’s P6.15-billion floating storage and regasification unit (FSRU) was supposed to be operational by January 2025.
An FSRU is a specialized vessel used to import, store and regasify LNG.
Given recent industry developments, VEC instead plans to adopt a third-party access model, which involves the procurement of gas supply from third-party sources through long-term contracts.
“This model will leverage existing gas infrastructure in the Batangas area to support the development of new power plants and will also shorten the time when power generation can happen since VEC will no longer need to construct an LNG terminal,” ABCI said.
The listed firm is now exploring ways to connect to the existing gas pipelines to get supply from other LNG terminals and the Malampaya gas field.
Furthermore, VEC is redirecting its focus and resources on the pre-development of an LNG combined cycle power plant with a total capacity of 900 MW.
Currently in the planning stages, the project will be developed on a 15-hectare onshore site, replacing the initially proposed floating power plant design.
“The withdrawal of the NTP, therefore, will not prejudice the LNG project and will instead be a step forward on the development of the project,” ABCI said.