AG&P introduces ‘bite-sized’ LNG solution for developers

By Danessa Rivera (The Philippine Star) | Updated May 22, 2016 - 12:00am

http://www.philstar.com/business/2016/05/22/1585535/agp-introduces-bite-sized-lng-solution-developers

MANILA, Philippines – Atlantic, Gulf and Pacific Co. (AG&P), a Philippine-based industrial process outsourcing firm, is introducing a “bite-sized” liquefied natural gas (LNG) solution to provide a supply chain for local and regional developers eyeing to build small-scale LNG projects.

In an interview with reporters, AG&P president Albert Altura said the small-scale LNG solution will provide a supply chain to prospective LNG developers.

“We are spearheading an LNG opportunity for the country through logistics and supply chain of LNG to potential LNG power plants,” he said.

This will be done through the company’s virtual LNG pipeline, comprising a network of smaller-scale economical delivery systems such as vessels, re-gasification terminals and smaller power plants with faster delivery times, Altura said.

“The Philippines is very much a unique geography, very much like Indonesia. Some of these large-scale LNG tankers can’t come in, let’s say to Mindoro or some of the smaller islands. So we will provide a standardized solution for that, a smaller scale vessel that can navigate through our waters,” he said.

“We will transfer that gas to smaller vessels, which we will develop and standardize, not only for the Philippines, but also for Asia,” Altura said.

AG&P chairman Jose Leviste Jr. said in the same interview the small-scale LNG solution can be viewed as a “bite-sized” access to LNG supply.

“Another way of looking at it is we want to do it bite-sized. Not everybody is First Gen Corp. or EDC (Energy Development Corp.). If we can do it in a smaller scale for more remote provinces, that’s what we want,” he said.

Altura said the LNG supply will be sourced from LNG projects in the Ichthys field in Australia and the Yamal peninsula in Siberia, where AG&P has participating interest.

“We have two projects in  Australia and Russia. These are large scale liquefactions. The gas will come from those plants. At least, Australia is fairly close [to the Philippines],” he said.

Currently, the company is in talks with potential off-takers which include small-scale developers of LNG power plants and large scale tankers.

AG&P believes small-scale LNG provides a clean solution without the soot and contaminants of old coal.

With the recent decrease in the cost of LNG, such technology is now not only viable, but also strongly commercial.