The Department of Energy (DOE) has approved the construction of the small-scale liquefied natural gas (LNG) receiving terminal and regasification facility in Brgy. Sisiman, Mariveles, Bataan. 

The notice-to-proceed was issued to Samat LNG Corporation last January 9. The move was made “to ensure power supply in light of the impending depletion of the Malampaya natural gas field, the DOE said in a statement on Friday. 

The Malampaya gas field will be undergoing a maintenance shutdown from February 4 to 18, 2023. 

The $67 million LNG project is capable of importing 200,000 to 400,000 tons of LNG yearly and is expected to supply small-scale independent power producers, manufacturing companies, and transport fleets. 

“The LNG will be distributed to its customers by a dedicated fleet of LNG  trucks, small LNG vessels, and barges within its neighboring regions,” DOE said. 

Samat LNG was given 12 months to complete its requirements from the issuance of the NTP in order to proceed with the construction of the LNG terminal. These include regulatory permits from involved government agencies as well as financial closing for the project. 

Under the clean energy scenario of the DOE, the country’s natural gas consumption is expected to reach 18,883 megawatts (MW) in 2024 driven by the displacement of coal and oil-based fuel in power generation. 

Samat LNG will be joining the other six ongoing LNG projects in the country. Linseed Field Corporation, together with Atlantic, Gulf & Pacific International Holdings (AG&P), is expected to complete its LNG import terminal for commissioning in March 2023, and commercial operations by April. 

Meanwhile, First Gen Corporation unit FGEN LNG Corp.’s LNG storage and regasification project is scheduled for commissioning in March 2023, while commercial operations is set in June 2023.