The Department of Energy (DOE) said that it has granted Atlantic Gulf & Pacific Company’s (AG&P) permit-to-construct application for its liquefied natural gas (LNG) import facility project in Batangas City.
Based on a Manila Bulletin report, the DOE hopes that with its Permit to Construct, Expand, Rehabilitate, and Modify (PCERM), AG&P would commence commercial operations as scheduled by the second quarter of next year.
The PCERM serves as the second step in a series of permitting processes for LNG ventures in the country. Prior to this, the DOE grants firms a notice-to-proceed (NTP), which lasts for six months and can be extended for another half-year. AG&P’s NTP was issued last February 24.
Firms handed NTPs need to secure all the project approvals needed from various government agencies. They would also have to work on their financial closing, as well as their off-taker or buyer.
In the case of AG&P, its target market would be the gas-fired power plants of San Miguel Corporation (SMC). AG&P’s facility would be located near the 1,200-megawatt Ilijan plant, in which SMC Global Power Holdings serves as independent power plant administrator. However, it was reported that the DOE had yet to receive a definitive power contract.
The government has been giving permits to private firms to construct LNG import terminals, as the supply of the Malampaya gas field continues to dwindle.