DOE welcomes completion of Luson LNG projects

The Department of Energy (DoE) said it is pleased to welcome the ongoing completion of natural gas projects in Luzon to help stabilize energy supply, especially in 2023.

According to the agency, this will complement the ongoing efforts of the Malampaya Consortium to sustainably optimize the remaining natural gas in the Malampaya-Camago reservoir.

“We need to diversify our energy sources, including the use of imported natural gas,” Energy Minister Rafael Lotilla said. “With planned availability at the end of the first quarter of 2023, liquefied natural gas (LNG) is considered an important source of fuel diversification.”

Lotilla added that LNG is also in line with the goal of moving towards a low-carbon future and helps to stabilize the energy supply from variable renewables.

Based on progress reports provided by LNG project proponents to the Bureau of Petroleum Management of the Department of Energy, Linseed Field Power Corp., a joint venture of San Miguel Corp. (SMC) and AG&P are completing the construction of the first integrated LNG import terminal at Barangay Ilijan in Batangas City.

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Commissioning is scheduled for March 2023 and commercial operation for April 2023, just in time for LNG from SMC for the 1,200 MW Ilizhan combined cycle power plant.

Meanwhile, FGEN LNG Corp., a subsidiary of First Gen Corp., where BW LNG provides LNG storage and regasification services, also plans to commission its LNG terminal in March 2023, with commercial operation scheduled for June 2023. , which is also consistent with LNG coming in to power several of its gas-fired power plants.

“Our main concern is to ensure that there is enough power supplied from various sources, especially in the coming summer months, to maintain the energy supply in the country,” the secretary said.

The additional supply also includes outages to coal-fired power plants in Bataan due to transmission restrictions and will allow LNG plants to serve not only peak demand to support renewables and auxiliary power, but can also meet medium and base load needs. .

Finally, the Energy Department said it had already established the regulatory framework and finalized its natural gas development plan to guide policy makers and stakeholders to get LNG into the country.