The local unit of Royal Dutch Shell is opening partnerships to bring its planned liquefied natural gas (LNG) terminal to actualization before the depletion of the Malampaya deepwater gas-to-power project, an official said yesterday.
The company is keen in developing an LNG facility in the country as they are setting up a new company for LNG business, outgoing Shell country chairman and president Edgar Chua said in a briefing.
“It is something we’re very much interested in because we believe LNG provides a very good, clean alternative as far as fuel for the future is concerned,” Chua said.
In its study, Shell can build a land-based or floating storage regasification unit (FSRU) LNG terminal.
However, Shell Philippines Exploration B.V (SPEX) managing director Sebastian Quinones earlier announced that the group decided to establish a floating storage regasification unit at the Batangas Bay area.
“Shell is quite flexible in all of this things. We’re not looking at doing by ourselves, it can be something in partnership with one or more partners that’s why it cannot give you a fixed amount,” Chua said.
The Malampaya project is expected to be depleted by 2024. An LNG terminal would help bridge the need until another gas field is discovered and developed.
The Malampaya currently supplies LNG for the three major gas-fired power plants in Luzon; Sta. Rita, San Lorenzo, and Ilijan plants, that has a combined capacity of 2,700 MW. This covers 40 percent of the Luzon grid’s requirements