Secretary Cusi Continues Push for LNG

TAGUIG CITY –Department of Energy (DOE) Secretary Alfonso G. Cusi today reiterated his directive to intensify efforts to meet energy security targets, particularly the liquefied natural gas (LNG) sector, as the industry seeks to contribute to economic recovery in the New Normal. 

Since taking the agency’s helm in 2016, Secretary Cusi has been pushing for groundbreaking solutions to address the various energy woes plaguing the country for decades. This includes, among others, his vision to transform the country into a regional LNG hub,  openness to harness the potential of nuclear energy as part of the energy mix, and  zeal in exploring other sources of energy like hydrogen to meet the country’s growing needs. 

In anticipation of the eventual depletion of the Malampaya deep-water gas-to-power project which has been providing about 20% of the country’s power needs, the Energy chief has long been advocating for the optimization of LNG from importing the gas, establishing the necessary infrastructure to help the sector progress from its current infancy stage, and seeing the country develop into a leading LNG hub in Asia. 

Current data from the DOE-Natural Gas Division indicate that of the six proposed LNG terminal projects, four have been issued with Notices to Proceed (NTP), with an initial validity of six months, subject to further extensions for approval by the DOE. 

• Excelerate Energy L.P.’s Floating Storage Regasification Unit (FSRU) Liquefied Natural Gas Terminal project was issued an NTP on 20 September 2019. The DOE granted two NTP extensions, the first, which was valid for six months as allowed by the Philippine Downstream Natural Gas Regulations (PDNGR), was issued on 27 May 2020. The second, due to force majeure brought about by the COVID-19 pandemic, was issued on 16 December 2020 and was valid for three months. At present, the Department is evaluating Excelerate’s Permit to Construct application, while the company is securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated commercial operation date (COD) is in Q3 of year 2022. 

•Atlantic Gulf & Pacific Company of Manila, Inc.’s (AG&P) Floating Storage Unit (FSU) and Onshore Regasification, as well as its 60,000 cubic meter buffer LNG storage tank project was issued a NTP on 24 February 2021. AG&P is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q2 of year 2022. 

• Shell Energy Philippines, Inc.’s (SEP) FSRU Terminal project was issued an NTP on 16 March 2021. SEP is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q3 of year 2022.

• Vires Energy Corporation’s FSRU terminal was issued an NTP on 22 April 2021. The company is currently securing the necessary permits from other concerned government agencies and financial closing prior to construction. Its estimated COD is in Q1 of year 2023. 

Meanwhile, two projects are in the next phase and have been issued with Permits to Construct (PTC). 

• FGEN LNG Corporation’s Interim FRSU and LNG Terminal project was issued a PTC for the construction of its interim FSRU’s ancillary facility on 23 September 2020. FGEN LNG Corporation is currently under construction. Its estimated COD is in Q3 of year 2022. 

•Energy World Gas Operations Philippines, Inc.’s LNG Storage and Regasification Terminal project was issued with a PTC on 21 December 2018, which was valid for two years. At present, the DOE is evaluating the company’s application for a PTC extension of 24 months. Its COD is in Q4 of year 2022.

“Attaining energy security may have been complicated by the current global health crisis. However, the DOE is seeing to it that we will be able to carry on. The Department continues to pursue all possible avenues that would help us break free from energy import dependence and provide the energy needs of future generations of Filipinos in a sustainable manner,” Secretary Cusi concluded. 

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