Energy Secretary Raphael Lotilla said Thursday the completion of liquefied natural gas terminals in Luzon and the availability of imported LNG would help stabilize power supply in the dry months next year.
Lotilla said the Department of Energy was preparing contingency measures as it expected supply to be tight in the next dry months.
“Our foremost concern is to ensure that there is enough capacity supplied through various sources, most especially in the coming summer months to sustain the power supply in the country,” Lotilla said.
The energy secretary said imported natural gas would help diversify the country’s power sources.
“Given its scheduled availability at the end of the first quarter of 2023, liquefied natural gas is considered an important source for fuel diversification. This will complement ongoing efforts of the Malampaya Consortium to optimize sustainably the remaining indigenous gas in the Malampaya-Camago reservoir,” Lotilla said.
He said LNG also aligns with the government’s goal of transitioning to a low-carbon future and helps stabilize power supply from variable renewable energy.
Based on the progress reports provided by the LNG project proponents to the DOE’s Oil Industry Management Bureau, Linseed Field Power Corp. of AG&P was on track to completing its first integrated LNG import terminal in Barangay Ilijan in Batangas City.
The DOE said the commissioning of the Linseed LNG project was scheduled in March 2023 and the commercial operation in April 2023, in time for the arrival of SMC’s LNG supply for the 1,200-MW Ilijan combined cycle power plant.
FGEN LNG Corp., a subsidiary of First Gen Corp., with BW LNG providing LNG storage and regasification services, is also scheduled to commission its LNG terminal in March 2023, while the commercial operation is set in June 2023.
This will coincide with the arrival of LNG supply to fuel First Gen’s existing gas-fired power plants such as the 1000-MW Sta Rita Power Plant, 500-MW San Lorenzo Power Plant, 414-MW San Gabriel Power Plant and the 97-MW Avion Power Plant.
The DOE said natural gas would support intermittent renewable sources due to its ability to provide flexible capacity.
This allows LNG plants to serve peaking requirements to support renewables and ancillary power and provide mid-merit and baseload requirements.
The agency already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country.
It also expects additional supply from coal-fired power plants in Bataan once transmission constraints are addressed.