Shell Energy Philippines Inc. plans to develop a P3.5-billion liquefied natural gas import terminal within the parent company’s import facility in Tabangao, Batangas.
“The project will supply natural gas for power use with the impending depletion of the Malampaya gas field by 2024. 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,” the company said in documents submitted to the Department of Environment and Natural Resources.
SEPH filed a notice with the Department of Energy on Nov. 11, 2020 to develop the import terminal project.
SEPH conceptualized the LNG terminal in 2013 for a different project, but with Pilipinas Shell Petroleum Corp.’s refinery closure and conversion to an import facility, it saw the opportunity to revive the LNG project.
The DOE issued the NTP to SEPH on March 16, 2021.
SEPH’s updated LNG project components consist of a floating storage re-gasification unit with a capacity of 3.8 metric tons per annum, conversion of the jetty, subsea and onshore gas pipeline and pressure reduction metering station.
An FSRU is an LNG storage ship capable of onboard regasification and can supply LNG directly into the gas network.
The pipeline will tie-in to the Malampaya Onshore Gas Plant. It will share facilities such as the onshore control room, substation, access roads and drainage system with the PSPC facility.
The company will also source onshore water supply from the PSPC facility.
The project will rise within the PSPC import facility in Barangays Libjo, Malitam and Tabangao Ambulong in Batangas City.
“Despite the expected depletion of Malampaya, new projects and investments such as infrastructure, manufacturing and power generation, among others, are expected to be attracted to the country due to this LNG project,” SEPH said.
It said the potential use of natural gas for transportation and shipping would lessen the Philippines’ dependence on conventional fuel and promote the use of natural gas, which has significantly lower emissions.
SEPH said developing the project would mean that a steady supply of 3.8 MTPA of natural gas would be made available for energy production and other industries.
“It becomes crucial that LNG will be imported to fill the gap that will be left when Malampaya is depleted. The continued and reliable supply of LNG in the country is important for its continued development and for meeting the vision and commitments of the Philippine government,” it said.
The project is expected to start construction in the first quarter of 2024, with commercial operations eyed by the third quarter of 2025.
