As it prepares to begin its liquefied natural gas sector this year, the Philippines' Department of Energy announced that it has approved a $67 million LNG import terminal project, the nation's eighth such facility.
In a statement, the DOE said it has given Samat LNG Corp. the go-ahead to start building a small-scale LNG facility in Mariveles, Bataan province, roughly 60 kilometres (35.2 miles) north of the nation's capital Manila.
As output from its Malampaya gas field in the South China Sea is anticipated to continue falling and be exhausted by 2027, the Southeast Asian nation would need to rely on LNG imports to feed gas-fired power facilities with a combined capacity of more than 3,000 megawatts.
The Philippines is stepping up attempts to find fresh domestic gas resources in addition to importing LNG for the power generating and transportation sectors as it seeks to phase out coal-fired power plants.
As per plan, Samat LNG wants to start producing 200,000–400,000 tonnes of LNG per year by the first half of 2024. Gas will be supplied to small-scale power plants, manufacturing firms, and transportation fleets.
Three of the government-approved LNG import terminal projects, including that of Singapore's Atlantic, Gulf and Pacific and Philippine power producer First Gen Corp., are anticipated to start operating commercially this year.
Laura Saguin, head of the DOE's natural gas management branch, claims that the LNG terminal for the Australian-listed Energy World Corp is also nearly finished.
Allowing LNG imports shouldn't be viewed as a deterrent to the development of renewable energy, which the government has been promoting, according to Energy Secretary Raphael Lotilla