Metro Manila (CNN Philippines, September 27) — The Department of Energy gave the green light for an American firm to set up a natural gas facility off Batangas.
The DOE on Friday announced its approval for the plan of Excelerate Energy L.P. to build a floating import storage for liquefied natural gas (LNG) in the country. The regulator granted a notice to proceed on September 20, the Texas-based firm said.
Excelerate runs nine LNG floating storage units worldwide. This will be the company’s first storage in the Philippines, which can carry up to 150,000 cubic meters. The facility will be built about 9.5 kilometers off the coast of Batangas Bay.
Secretary Alfonso Cusi said the new facility would add to local stockpiles, as the Malampaya reservoir is seen to run dry by 2027.
“As proposed, by the third quarter of 2021 we are expecting that Excelerate’s LNG facility will commercially operate,” Cusi was quoted in a statement. “With our continuing efforts to provide energy security, especially since we are anticipating the depletion of Malampaya gas, the establishment of LNG facilities bring a promising future for the country.”
Cusi gave Excelerate six months to secure permits from local government units and agencies, including the submission of a proof of financial closing, before the firm is given a permit to construct.
Cusi has said that he wants to make the Philippines a regional hub for LNG.
Construction is expected from October 2019 to June 2021. The DOE said the SMC Global Power Holdings Corp. is looking to source its LNG requirements from the Batangas facility for gas-fired power plants in Luzon.
