The Phinma Petroleum and Geothermal Inc. (PPGI) is looking to build a liquefied natural gas (LNG) integrated terminal in Cebu.
The company said that it has signed an agreement foreign companies to jointly develop an LNG-to-power project in Agao, Cebu.
PPGI president and CEO Francisco Viray, however, did not name the foreign partners because of a non-disclosure agreement.
But the partners are technology providers that can contribute their expertise in LNG development, PPGI EVP and COO Raymundo Reyes Jr said.
The LNG terminal will include a floating storage and regasification unit, storage and a power plant with a capacity of 120 megawatts (MW).
The said capacity is contingent on how much the Visayas Grid can absorb.
“That is the size that can be absorbed in Visayas, which is no more than 200 MW. But it is expandable,” Viray said.
The company is currently in the pre-development phase, including permitting, system impact study, (SIS), scouting the market, engineering design, and feasibility studies.
The feasibility is looking to be finished by the third quarter of 2018.
“The feasibility study will cover the economic viability of the project and that includes the market, cost of LNG, the entire financial picture,” he said.
Moving forward, the LNG terminal can be expanded to serve requirements beyond the PPGI power plant.
“We can also look at other customers that need gas. Initially, it’s for power but we can expand to serve other industries using gas,” Reyes said.