The expected commercial operations of liquefied natural gas (LNG) projects may not happen this year, the Department of Energy (DOE) revealed.
In a report by Business Mirror, DOE said that two LNG players have notified the department of the delays in their projects.
DOE-Oil Industry Management Bureau (OIMB) director Lino Abad said that the commercial operations of the LNG project of Atlantic, Gulf, and Pacific Company (AG&P) and Linseed Field Power Corporation is moved to January 2023, as construction and commissioning are targeted to be completed by December.
Earlier, the DOE ordered AG&P to justify the deferred operations of its LNG project in Batangas. The company cited developments in the international gas markets due to the Russia-Ukraine war, and complications amid the COVID-19 pandemic as the cause of the delay.
The five million tonnes per annum (MTPA) LNG facility 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.
Meanwhile, the interim floating storage and regasification unit (FSRU) and LNG terminal of First Gen Corporation (FGEN) LNG Corp. have moved its commercial operations to March next year, Abad said.
FGEN encountered delays in its LNG project due to “events and circumstances not within reasonable control.” Operations of the FGEN’s LNG project were originally scheduled for the fourth quarter of this year.
FGEN’s interim FSRU and regasification terminal, also in Batangas, has a capacity of 5.26 MTPA and is set to supply the Sta. Rita, San Lorenzo, San Gabriel, and Avion gas plants, as well as the proposed 1,200 MW worth of new natural gas power plants.
Meanwhile, the other LNG projects like the Energy World Corp.’s LNG storage and regasification terminal, Excelerate Energy L.P’s FSRU, Shell Energy Philippines Inc.’s (SEP) FSRU terminal project, and Vires Energy Corp.’s FSRU terminal have not yet committed to its commercial operations.