The Philippines has approved the application of a U.S. firm to build a liquefied natural gas (LNG) floating storage and regasification unit (FSRU) facility in Batangas province, the Philippine Department of Energy (DOE) said on Friday.
The DOE said the U.S. firm, Excelerate Energy L.P., runs nine operating floating storage units worldwide.
The proposed FSRU LNG Facility in the Philippines will have a storage capacity of 150,000 cubic meters, to be located at about 9.5 km offshore in the Bay of Batangas, the department added.
"As proposed, by the third quarter of 2021 we are expecting that Excelerate's FSRU LNG facility will commercially operate," Philippine Energy Secretary Alfonso Cusi said in a statement.
"With our continuing efforts to provide energy security, especially since we are anticipating the depletion of Malampaya gas (field), the establishment of LNG facilities bring a promising future for the country," he said.
The DOE gave the firm six months to secure permits from local government units and agencies.
Based from the work program submitted by Excelerate, the completion of construction and commissioning of the facility will take around two years from October 2019 to June 2021.
The scheduled commercial operations date is on the third quarter of 2021, the DOE added.
The DOE said the new floating facility will add to local stockpiles as the Malampaya reservoir is projected to be depleted "anywhere between 2026 and 2029."
The Malampaya Deep Water Gas-to-Power Project is the largest and most successful natural gas industrial project in the Philippines, serving about 30 percent of the power requirements of the Philippine main Luzon island.
Cusi said the DOE is committed to "explore, explore, explore" in its pursuit of energy independence, security, and sustainability through the effective and reasonable development of all indigenous energy resources in the Philippines.
The Philippines is heavily dependent on oil imports, making it vulnerable to price volatility.
Editor:Cherie
