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The Philippines is seeking to build an LNG import and distribution facility worth US$2 billion by 2020 as it tries to replace its aging Malampaya natural gas field before it is depleted in 2024, according to the country’s Energy Secretary Alfonso Cusi.
The LNG infrastructure project would include a 200-MW power generation plant, and is one of the projects for which the Philippines is seeking investments under its long-term energy plan through 2040, Reuters quoted Cusi as saying at an industry forum.
Energy demand in the Philippines is expected to triple by 2040, and electricity needs are seen growing fourfold compared to 2015, according to the energy secretary.
The Malampaya natural gas field fuels three natural gas-fired power stations with a total generating capacity of 2,700 MW to provide 30 percent of the country’s energy needs, according to the operator of the deepwater gas field, Shell.
Back in November 2016, Cusi said at an industry event in Japan:
“As an emerging LNG market in Asia, my country, the Philippines can take advantage of the current period of oversupply and the relatively low prices of LNG.”
At the time, the energy secretary invited Japanese and other international investors to participate in LNG trade and infrastructure projects.
Last month, Shell Philippines president Cesar Romero told local news outlet Business Mirror that it had held exploratory discussions with the Philippines government for a possible partnership on a big LNG project, but no decision has been made yet.
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Australia-listed Energy World Corp has an LNG project under development in the Philippines—it plans a terminal that would act as a hub for onward distribution of LNG throughout the Philippines, as well as a power station at the site.
Philippine power company First Gen Corp said earlier this year that it was willing to discuss with the government plans for a US$1-billion LNG terminal in order to feed in the future its gas-fired plants that currently use gas from the ageing Malampaya field.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews.