The Department of Energy (DOE) has issued a notice-to-proceed (NTP) for Shell Energy Philippines’ (SEPH) liquefied natural gas (LNG) import terminal project.
“The Philippines is an important country for Shell and is keen to continue working with the country to meet its growing energy requirements,” SEPH said in a statement.
“Shell continues to pursue opportunities where it can leverage its global expertise to provide more and cleaner energy solutions. We are grateful to the [DOE] for issuing [an NTP] which will enable us to further explore the opportunity of importing LNG into the Philippines,” it added.
No other details on the project were mentioned.
SEPH’s sister firm Shell Exploration Philippines B.V. (SPEX) is the operator of the Malampaya gas-to-power project, of which it is selling its 45% stake. The MVP Group of businessman Manny V. Pangilinan and Dennis Uy’s Udenna Corporation, which already owns the other 45%, are going head-to-head for SPEX’s share, though Udenna is expected to exercise its right of first refusal.
The Malampaya consortium’s Service Contract 38 will expire in 2024, while gas field’s reserve is expected to be depleted by 2027.
Meanwhile, SEPH’s other sister firm Pilipinas Shell Petroleum Corporation reported a net loss Php16.2 billion last year due to the closure of the Tabangao refinery and a slowdown in fuel demand due to the COVID-19 pandemic.
