Philippines Breaks Ground at LNG Terminal Site

Initial site work on the Philippines' first LNG import terminal began May 28 and the project sponsors are hoping to reach final investment decision and start construction work in earnest in the first quarter of next year.

Initial capacity will be 5mn metric tons (mt)/yr but could be scaled up to 7mn mt/yr as gas demand picks up. The joint venture developing the project FGEN LNG is targeting completion around 2023, a year before the expiration of the service contract and the well-anticipated production decline at the Malampaya field, the only commercially-producing gas reservoir in the country to date. 

Within the six-month window, First Gen qualified that it will be scouting for additional partners and will also be engaging its engineering, procurement and construction (EPC) contractor. Its shortlist includes Fluor and JGC Corporation.

“We are in discussion with a number of entities, so in the near future it is possible that we will announce additional partners that will be coming on board,” First Gen EVP and CCO Jon Russell said, adding that a lot of firms had expressed interest.

FGEN LNG indicated that it has a room for one or two more partners – in addition to Tokyo Gas that the Philippine firm developer had signed up in December last year.