Vires Energy Corp. is interested in developing a liquefied natural gas project costing $750 million in Batangas City, its top executive said Friday.
Vires president Eduardo Mañalac said the company was waiting for the completion of the LNG framework from the government before pushing the proposed project. The Department of Energy is set to conduct public consultations on the long-awaited draft of LNG framework next week.
Mañalac said the company was in talks with possible partners but declined to disclose details.
“There are many possible partners but I will announce later on,” he said.
Vires has engaged state-owned Philippine National Oil Co. in talks for its planned LNG facility. PNOC has been tasked by the Energy Department to develop an integrated LNG facility in preparation for the eventual depletion of the Malampaya gas field within the next few years.
Vires plans to put up a 500 megawatt capacity LNG power plant and LNG receiving terminal in Barangay Simlong, Batangas City.
It has received approval to conduct a grid impact study for the proposed LNG power project.
Vires signed a technology license agreement with Sevan Marine’s subsidiary HiLoad LNG AS for an LNG receiving and re-gasification terminal in the Philippines.
It also signed a separate engineering service contract with HiLoad LNG providing design and engineering work. Payment under the license agreement is subject to Vires constructing and operating the re-gasification terminal.
Sevan Marine acquired the rights to the proprietary HiLoad technology for gas and LNG applications and has developed solutions for offshore loading of LNG and LNG receiving and regasification terminals based on the HiLoad Technology.
The LNG receiving and re-gasification terminal, named Floating Regas Dock, provides a competitive alternative to floating, storage and re-gasification unit for smaller volumes, ranging typically from 50 to 200 million standard cubic feet per day.
“We are very pleased that Vires came to us with their re-gasification requirements, and we look forward to working with Vires on this ground-breaking project. We believe there is a significant market for this solution, which provides clean gas as fuel for power plants and fills a niche in size below the more traditional FSRUs. We hope that the Vires contract is the first of many,” said Lars Ødeskaug, who is responsible for Sevan Marine’s LNG efforts, in an earlier statement.