The Department of Energy (DOE) is now betting on the completion of the natural gas projects in Luzon to help stabilize power, especially during the summer months of 2023.
“There is a need to diversify our power sources including the use of imported natural gas,” Energy secretary Raphael Lotilla said in a statement.
Lotilla said that liquefied natural gas (LNG) is “considered an important source for fuel diversification.” DOE said added that the LNG project, which will be available by the first quarter of 2023, will complement the ongoing efforts in Malampaya to optimize the remaining indigenous gas in the Malampaya-Camago reservoir.
Atlantic, Gulf & Pacific International Holdings (AG&P), together with Linseed Field Power Corp., is looking to kick start the operations of its LNG terminal in Batangas by March 2023. The DOE said that this is in time for the arrival of San Miguel Corporation’s LNG supply for the 1,200 megawatt (MW) Ilijan combined cycle power plant.
Meanwhile, First Gen Corporation’s FGEN LNG Corporation is looking to launch operations of its BW LNG by June 2023 in time for the arrival of the LNG supply for the 1000 MW Sta. Rita power Plant, 500 MW San Lorenzo Power plant, 414 MW San Gabriel Power Plant, and the 97 MW Avion Power Plant.
“Our foremost concern is to ensure that there is enough capacity supplied through various sources most especially in the coming summer months to sustain the power supply in the country”, Lotilla said.
However, advocate group Power for People Coalition (P4P) said that the DOE is “out of touch” with LNG’s economic and environmental developments.
“LNG is a burden for consumers, especially now when global gas supplies are setting record-high prices. Just a few days ago, the Japanese trade ministry came out and said long-term LNG contracts are sold out. Whatever supply we find will be very costly, especially during the upcoming summer peak season,” P4P Convenor Gerry Arances said in a separate statement.