Energy World Corp. Ltd. (EWC) of Hong Kong is investing some $210 million, or roughly P9 billion, to put up a liquefied natural gas terminal and regasification facility (LNG hub terminal), which will reportedly be the first of its kind in Asia.
The proposed LNG hub terminal in Pagbilao Grande Island, Quezon, will be a significant milestone in the development of the Philippines’ natural gas industry and will likewise “pave the way to provide clean and green energy to the archipelago,” EWC said in a report.
On a larger scale, the construction of this facility on the island will spur the development of an Asian LNG spot market since Pagbilao is located along the international LNG trade routes.
For EWC, this will form another strategic step in the company’s business plan to increase the supply and availability of LNG to Asia through new markets.
According to the company, the LNG terminal will be built in two phases, the first of which will cover the construction of a 130,000-cubic-meter LNG storage tank, regasification facility, jetty and supporting infrastructure. Phase two will include the construction of an additional 130,000-cubic-meter LNG storage tank.
The proposed terminal will be adjacent to the existing Pagbilao Power Plant of Team Energy, which has a 230-kilovolt switchyard in place, and sheltered deep-water berthing for ocean-going vessels.
Site work and construction of phase one of the LNG hub terminal have already commenced and commercial operation is planned for 2012-2013.
The company has expressed confidence in the project, considering that it has already “received very strong interest from financiers and industrialists in the Philippines to co-invest and develop the LNG Hub Terminal.”
Aside from the terminal, EWC is also looking to put up a 300-megawatt combined cycle gas turbine power plant to serve as an anchor buyer of LNG.
The power plant will be designed to accommodate the latest high efficiency and environment-friendly technology available for gas turbines, thus enabling the Philippines to be a leader in this field, the company explained.
“It will be one of the most efficient power-producing plants in South Asia which, when combined with the fuel gas from the hub terminal, will allow highly competitive priced power to be generated and sold from the plant,” EWC added.