GLNG: Philippines prepares for entry into LNG sector

The Philippines will next year mark its entry into the world of LNG with the opening of three LNG terminals that will enable the country to reduce carbon output in line with its green energy goals and also to replace natural gas that now comes from the Philippines’ dwindling Malampaya gas field, which will be depleted by 2027.

The three regasification terminals will be operated by Singapore-based Atlantic, Gulf and Pacific (AG&P), the Philippines’ First Gen Corporation and Energy World Corporation, which is Australia-listed. The Department of Energy (DOE) has approved the installation of another three terminals, which should come into operation in about three years.

Manila is looking to import enough LNG to generate 3,000 MW of electrical power, but it is entering the LNG market when prices are high and cargoes are sometimes hard to come by.

The Malampaya gas field is a key source of energy for the Philippines but its reserves are running low and no exploration of other possible nearby gas reservoirs have taken place because of offshore territory disputes with China. With a new government in power in Manila, media reports say it is likely that negotiations between China and the Philippines on offshore rights will soon resume.

The AG&P terminal (Philippines LNG) is set to come on stream during the first quarter of 2023 with a 5mn tonne per year (tpy) capacity in Batangas Province. Gas delivered to the terminal will fire the 1,200-MW Ilijan power plant. AG&P will supply LNG from the Middle East and Australia with short- and long-term agreements. The plant was originally planned to begin operations this year, but supply issues resulted in a delay.