Shell to build Php3.5B LNG terminal in Batangas

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Shell Energy Philippines Inc. (SEPH) is looking to develop a liquefied natural gas (LNG) import terminal worth Php 3.5 billion in its import facility in Tabangao, Batangas. 

In its filing to the Department of Environment and Natural Resources, SEPH said that the project will supply natural gas amid the expected depletion of the Malampaya gas-to-power project. 

“With its development and operation, the Shell LNG Project will be able to address the anticipated deficit in electrical generation capacity and avoid adverse impacts to economic growth within the region,” SEPH said in its filing. 

SEPH will develop the LNG facility within the Pilipinas Shell Petroleum Corp.’s (PSPC) Shell Tabangao import terminal – which used to be a refinery. 

The company will be reviving the planned LNG terminal proposed in 2013 through Tabangao Realty Inc. (TRI), which was halted due to development costs, market conditions, and other factors. 

“With the announcement of PSPC of the refinery closure and its conversion to an import facility, SEPH saw the opportunity to revive the LNG project in line with Shell’s pursuit of clean energy projects and utilize existing utilities of PSPC such as the Jetty 4,” SEPH said. 

The LNG import terminal will consist of a floating storage re-gasification unit (FSRU) with a capacity of 3.8 metric tons per annum, as well as the conversion of the Jetty 4 from a crude import jetty into a berthing facility, a subsea and onshore gas pipeline, pressure reduction metering station (PRMS), pigging stations and an ignitable vent. 

SEPH is looking to finalize the LNG import facility’s design and kickstart its preconstruction by next year. Construction is slated for the first quarter of 2024. In earlier developments, PSPC announced that it would also construct an import terminal in the Visayas and Davao del Sur in Mindanao.