The Atlantic, Gulf & Pacific (AG&P) International Holdings is looking to commission the country’s first liquefied natural gas (LNG) terminal in Batangas City this year, a top-ranking official said.
AG&P Group chairman and chief Joseph Sigelman said that the Philippines LNG (PHLNG) import terminal will be able to store LNG and dispatch it to power plants, opening “a new era of clean, efficient fuel” for the country.
The five million tonnes per annum LNG facility, which is a project between AG&P and local unit Linseed Field Power Corporation, will serve the requirements of the 1,200-megawatt (MW) Ilijan natural gas power plant of San Miguel Corporation with the expectation that the Malampaya gas-to-power project will be depleted by 2027.
With an increase in LNG export as well as demand from the industry. AG&P looks to bridge the coming surge in gas supply “by providing fast, standardized infrastructure logistics.”
AG&P invested 14.6 billion in the PHLNG import terminal which is scheduled to open by mid-year.
The engineering, procurement, and construction (EPC) contract for the LNG facility was awarded by the Department of Energy (DOE) in April 2021, while the permit for construction was granted in September.
Apart from the Ilijan plant, PHLNG is also expected to service other SMC Global Power Holdings’ (SMCGP) plants like the 850-MW mid-merit plant expansion set for operations this year.
SMCGP subsidiary South Premiere Power Corporation serves as Ilijan’s independent power producer administrator.