The floating storage unit is the ‘central component’ of AG&P’s P14.6-B LNG terminal in Batangas. —CONTRIBUTED PHOTO
Singapore-based Atlantic, Gulf & Pacific International Holdings (AG&P) is finally bringing to the country liquefied natural gas (LNG) with the opening of a terminal by the first quarter of 2023.
“We look forward to opening the PHLNG (Philippines LNG) Regasification Terminal in early 2023, bringing LNG for the first time to the Philippines,” Joseph Sigelman, chair and CEO of AG&P, said in a statement.
The construction firm has just completed the conversion of the LNG carrier called ISH into a floating storage unit (FSU) or vessel, which it described as a “central component” of its P14.6-billion LNG import terminal in Batangas. The FSU forms part of a combined offshore-onshore import hub, which has an initial capacity of 5 million tons per annum.
AG&P immediately commenced the construction of its facility after securing the Department of Energy’s go-signal in March last year.
LNG, which supposedly uses 40-percent less carbon dioxide, is in line with the government’s goal of increasing green energy in the country’s power generation mix.
AG&P had said its facility would open “a new era of clean, efficient fuel” and “secure the current and future energy demand of the region.”
Although LNG is touted as a reliable and affordable bridge fuel as countries transition from coal, a report by the Institute for Energy Economics and Financial Analysis had said global LNG supply was constrained and prices have hit record highs.
“Some may argue that LNG prices will soon settle to affordable levels, but prices are widely expected to remain elevated for the next four to five years,” Sam Reynolds, an energy finance analyst at IEEFA, said last month.
Aside from AG&P, the Lopezes’ First Gen Corp. is also expected to inaugurate its own LNG terminal next year.
FloatingAG&P signed in February a 15-year agreement with ADNOC Logistics and Services (ADNOC L&S) for the supply, operations and maintenance of its 137,512-cubic meter floating facility.
“The FSU will be capable of loading LNG at a peak rate of 10,000 cbm/hr (cubic meter per hour) and a discharge-to-shore peak rate of 8,000 cbm/hr,” it said.
AG&P Terminals and Logistics president Karthik Sathyamoorthy said the construction for two onshore tanks, representing the second phase of the LNG facility, has also started. These tanks would be integrated as part of the main terminal in 2024.
Sathyamoorthy said the facility would store and dispatch LNG to power plants, industrial and commercial customers and other consumers. AG&P has yet to disclose the names of its customers. INQ