Quantcast
Latest Stories

LNG terminal project set

Royal Dutch Shell remains committed

By

Royal Dutch Shell has committed to push through with its planned liquefied natural gas (LNG) import terminal project in Batangas, which could provide gas to power generation facilities with a combined capacity of as much as 2,000 megawatts.

Energy Secretary Carlos Jericho L. Petilla announced this Friday prior to a briefing with Shell officials, stressing the significance of this infrastructure in improving the country’s current energy mix.

Aware of the risks the Dutch firm is facing with this project, Petilla said, the government was fully supporting the LNG import terminal project.

In the meantime, Shell officials said Friday that based on the results of a feasibility study, a floating storage regasification unit (FSRU) was the most viable option for an LNG terminal, which will be located near Pilipinas Shell’s refinery in Tabangao, Batangas. The target is to complete the FSRU by 2017.

J. Scott Porter, senior business development manager for the upstream international unit of Shell Eastern Petroleum Pte. Ltd., explained that an FSRU would be faster to put up, less expensive and it would entail small onshore footprint.

According to Porter, Shell has adequate space within its Tabangao complex to accommodate the expansion of the FSRU as the market develops.

Roger Bounds, vice president for global LNG for upstream international at Shell International Exploration and Production BV, added that the company was expected to come up with the final investment decision (FID) within the next 12 months.

Although Petilla said Shell had committed  to push through the LNG terminal project, Bounds said the company had yet to conduct a more detailed study to resolve certain technical and economic issues, and to ensure that it woud be a sustainable investment.

Porter added that apart from securing the market for LNG, the company needed to ensure that there would be a “right regulatory environment.”

“This is a new industry. We are hoping this [project] will jumpstart broader consumption of gas. We are looking at projects like the Batangas-Manila pipeline (BatMan-1) to get off the ground, and for a set of regulations and rules (to be put in place),” Porter said.

Shell’s planned FSRU is an indication of the Dutch firms “faith and confidence in the country,” said Edgar Chua, country chair of Shell Companies in the Philippines.

“Apart from the LNG import facility, there are other projects—like the upgrade of the [Tabangao] refinery and few others that—we’re looking at,” Chua said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: batangas terminal project , Business , liquefied natural gas , Royal Dutch Shell



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Bernice Lee arrested by NBI team
  • Group: Bataan cop killed to stop him from exposing colleagues linked to drug ring
  • Chemical Engineer licensure examination
  • Troubled history fuels Japan-China tension
  • Palace: Our concern is to ensure MRT runs smoothly
  • Sports

  • NLEX fights off Derulo Accelero to remain unbeaten
  • Mayweather diehard Bieber eats pride, poses with Pacquiao for photo op
  • Power Pinays rip Singapore to enter quarters in Asian volley tilt
  • PBA D-League: Waves edge skidding Superchargers
  • Ilad’s last-second basket lifts Gems over Bakers
  • Lifestyle

  • Miss America: Don’t suspend teen over prom invite
  • Transitions and resurrection in the performing arts
  • ‘Archaeology tour’ of Cebu’s heritage of faith
  • Historic Fort Bonifacio tunnel converted into a septic tank
  • ‘Imports’ from London, and play of the year
  • Entertainment

  • Arrest warrants out vs. Deniece Cornejo, Cedric Lee, et al over serious illegal detention
  • Lindsay Lohan says she had a miscarriage
  • Discovery network cancels Everest jump
  • ‘Captain America’ stays strong atop US box office
  • Easter musings
  • Business

  • Century Pacific Food sets IPO price at P13.75 per share
  • Oil prices down in quiet Asian trade
  • Asian shares mixed in holiday-thinned trade
  • BDO seen keen on bidding for Cocobank
  • Bataan freeport investment pledges up 1,302%
  • Technology

  • PH has slowest internet in Southeast Asia
  • Nintendo’s trailblazing Game Boy marks 25th anniversary
  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Opinion

  • Gigi’s home
  • Palace stonewalls on MRT inquiry
  • Couple of things too
  • There is plenty of water behind Wawa Dam
  • Triduum thoughts of a young boy
  • Global Nation

  • Balikatan could spoil peace talks, says militant group
  • DFA officers hold workshop on aiding human traffic victims
  • Canada in communication with PH on toxic wastes
  • Filipinos in Middle East urged not to panic amid MERS-CoV scare
  • Obama on mission to quiet Asia skeptics
  • Marketplace