Wednesday, June 21, 2017

AG&P sees gas industry evolving towards smaller LNG infrastructure

Posted on May 26, 2017

INDUSTRIAL engineering company Atlantic, Gulf and Pacific Co. (AG&P) said the existing infrastructure for liquefied natural gas (LNG) is based on complex pipeline networks serving the soon-to-be-depleted Malampaya field, which may not be suited for future needs.

It sees the development of gas distribution weighted towards small to medium-scale facilities to better serve demand in certain regions.

“The current model of LNG delivery in the Philippines relies on bigger and complex gas pipeline networks that makes it not ideal to meet the often smaller energy requirements of select regional demand areas,” said Matthew Baxter, AG&P vice-president for LNG technology.

“AG&P is capitalizing on this, combining its modularization capabilities with the latest technologies to develop the complete spectrum of ‘plug-and-play’ -- small to mid-scale -- LNG infrastructure assets that will help drive down costs and accelerate last-mile delivery to under-served LNG demand centers across the country,” he told participants of 5th Power and Electricity World Week at the SMX Convention Center, which ends today.

He said the Philippine archipelago presents a unique challenge for the distribution of gas energy. He described current power delivery models as too large and uneconomical to meet the relatively smaller-scale energy requirements of regions outside major metropolitan areas.

Mr. Baxter said the forecast depletion of the Malampaya gas field offshore Palawan, requires a viable alternative sourcing-to-delivery solution to power these small demand centers.

He said a small-scale LNG delivery network, including floating LNG storage, on-shore regasification units, and small-sized power plants, will enable energy to be tweaked to the needs of the archipelago from as little as five megawatts of power up to traditional-sized plants.

AG&P is banking on its position as an end-to-end LNG infrastructure provider for the distribution of LNG to help bridge the gap. The company said it has a record of delivering solutions for the oil and gas industry, with specific expertise in LNG. -- Victor V. Saulon

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