AG&P opening Batangas LNG facility by mid-year

McDermott Philippines-LNG

Atlantic, Gulf, and Pacific Co. (AG&P) and local unit Linseed Field Power Corporation said they are on-schedule to open the integrated liquefied natural gas (LNG) import terminal near the 1,200-megawatt (MW) Ilijan gas-fired power plant in Batangas City by mid-year.

In a report by the Manila Standard, Department of Energy (DOE) Oil Industry Management Bureau Director Rino Abad said that Linseed is on track with its target commissioning for the Philippines LNG (PLNG) facility.

Abad added that the DOE approved the transfer of the application for the PLNG project from AG&P to Linseed. AG&P would focus on being the project’s contractor.

Based on documents submitted to the Department of Environment and Natural Resources, the Php14.6-billion PLNG is targeted for completion by June, the same month when Ilijan’s supply agreement with the Malampaya consortium expires. Ilijan is one the country’s five power plants sourcing fuel from the Malampaya gas field, which is on the brink of drying up.

Aside from Ilijan, PLNG is expected to service SMC Global Power Holdings’ (SMCGP) other power plant projects, such as its 850MW mid-merit plant expansion, which is scheduled to begin operations this year. SMCGP unit South Premiere Power Corporation is Ilijan’s independent power producer administrator.

Meanwhile, AG&P Chairman and CEO Joseph Sigelman told that it will be opening the three million tonnes per annum facility in July. 

Sigelman added that gas will help stabilize the power grid and help in the country’s transition to renewable energy.

PLNG was approved for construction in September last year.