Shell Mulls $1 bn Investment in Philippines LNG Terminal

Pilipinas Shell Petroleum Corp. is looking to increase its investment in Philippines by as much as $1 billion as it plans to develop liquefied natural gas (LNG) terminal in Batangas.

Shell signed an agreement with the Philippines government for a joint technical feasibility study of the planned LNG terminal, Philippines Star reported.

The agreement calls for cooperation and coordination efforts between the Philippine government and Shell for a technical feasibility study which shall determine the viability for the development, construction and operation by Shell of an import and regasification terminal adjacent to its refinery facility located in Tabangao, Batangas.

The proposed site of the LNG import and regasification terminal is adjacent to Shell’s refinery facility in Tabangao, Batangas. The feasibility study is expected to be completed by 2012 with a first gas target date in 2016.

Shell also plans to move to the next next phases of exploration in the Malampaya natural gas field in northern Palawan, the newspaper report said.

By 2015, Shell expects Phase 3 of its Malampaya operations to get underway.