Shell proceeds with LNG terminal plan

Royal Dutch Shell Plc. has started work on a liquefied natural gas (LNG) import facility in Batangas, which could provide gas to power generation facilities with a combined capacity of as much as 2,000 megawatts.

In a statement, Shell said it was proceeding with the front-end engineering and design (FEED) for the project. It said the decision to start the FEED was an important milestone for the project and for the Philippines as Shell “commits to undertake the full scope and definition for the development” of a floating storage and regasification unit in the country.

FEED will be carried out by Shell’s Technology Centre Bangalore, which delivers advanced technical studies, projects and services to Shell companies around the world.

“With its global experience in project delivery and over 50 years experience in LNG, Shell is ideally placed to successfully deliver this important project for the Philippines. We look forward to successfully implementing the first floating storage and regasification unit in the Philippines. This will help enable continued gas supply into the future, beyond the life of the Malampaya asset,” Edgar Chua, chair of Shell Companies in the Philippines, said in a statement.

Roger Bounds, vice president for global LNG at Shell International Exploration and Production BV, said the “rapid progress” made on the Batangas LNG project would allow the company to increase the supply of natural gas  to the Philippines to help meet a growing energy demand.

The decision to move into FEED comes a year after the signing of the memorandum of understanding (MOU) between the Department of Energy and Shell, in the presence of President Aquino and Shell chief financial officer Simon Henry.

Part of the MOU called for Shell to conduct a technical feasibility study for the development, construction and operation of an LNG import and regasification terminal adjacent to the Shell refinery in Batangas City. Riza T. Olchondra