DOE to start construction of LNG hub by 2019

Danessa Rivera (The Philippine Star) - April 30, 2018 - 12:00am

https://www.philstar.com/business/2018/04/30/1810637/doe-start-construction-lng-hub-2019

MANILA, Philippines — The Department of Energy (DOE) is now targeting to start construction of the country’s liquefied natural gas (LNG) hub not beyond the middle of 2019 as more interested parties express intent to participate in the development of the massive project, a ranking government official said.

The agency is still accepting letters of intent (LOI) from companies interested to build the LNG terminal under the Philippine Downstream Natural Gas Regulation (PDNGR), Energy Undersecretary Donato Marcos said.

The PDNGR details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.

There are 10 companies which have submitted their LOI, profiles, and business models and more investors are still approaching the DOE for the project, Marcos said.

Some of the interested parties are local firm Cleanway and UK-based Resiro, Japanese firm Tokyo Gas, Lopez-led First Gen Corp., China National Offshore Oil Co. (CNOOC), Philippine National Oil Co. (PNOC), and Carmine Energy Pte. Ltd. with Golar Energy.

With this, Marcos said the DOE is now looking at groundbreaking to happen sometime in the fourth quarter until the first half of 2019.

“We need to realize (the project) in the fourth quarter, but of course we’re also looking at early quarter or first semester of next year,” he said.

“What is important is they achieve financial closing. Once they get the financial closing, they will complete their requirements and we can issue the notice to proceed, after which, (we can issue) the permit to construct, expand, rehab and maintain, and then after that is the permit to operate and maintain,” he said.

During the 35th ASEAN Ministers on Energy Meeting (AMEM) last year, Energy Secretary Alfonso Cusi said the liquefied natural gas (LNG) hub in Batangas was expected to start construction in 2018.

Cusi said the project it is targeted to be online by 2020 to safeguard against the anticipated depletion of the Malampaya gas facility in 2024, which supports over 3,000 megawatts (MW) of gas-fired power plants.

The LNG integrated terminal is also targeted to become an LNG hub for Asia, complementing those in Japan and Singapore.

Meanwhile, the Management Association of the Philippines (MAP)—one of the premiere business organizations in the Philippines—is pushing for clarity in the upstream and downstream natural gas industry of the country which could leave 3,200 MW of gas-fired power plants stranded.

The business group believes that “there is not enough clarity on how the Philippines will manage the decline of the Malampaya natural gas reservoir and in new exploration and production gas finds,” MAP committee on energy vice chair Ernesto Pantangco said.

PNOC shortlists 3 bidders for LNG project

Danessa Rivera (The Philippine Star) - April 29, 2018 - 12:00am

https://www.philstar.com/business/2018/04/29/1810351/pnoc-shortlists-3-bidders-lng-project

MANILA, Philippines — State-run Philippine National Oil Co. (PNOC) is evaluating three possible partnerships to pursue the development of a $2-billion liquefied natural gas (LNG) terminal.

PNOC president Ruben Lista said the company is considering three prospective investors to go through a vetting process to be determined by the company’s board.

The PNOC board is currently finalizing the criteria required in choosing a partner for the LNG project, Lista said.

The criteria was previously endorsed by PNOC’s technical working group (TWG) and consultant Asian Development Bank (ADB).

“After this we will head to Stage 2, which means we will determine whether the proponents will satisfy what is needed by the country,” Lista said.

If none of the prospective partners pass the criteria, PNOC will resort to teaming up with other interested parties that submitted letters of intent (LOI) to the Department of Energy (DOE).

“If not, we will join whoever is offering their service to the DOE and decide on a system on how we can work together,” Lista said.

PNOC was tasked by Energy Secretary Alfonso Cusi to put up an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 MW.

But the DOE has also issued the Philippine Downstream Natural Gas Regulation (PDNGR), which details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.

So far, the DOE has received at least nine LOIs from seven companies, which include PNOC, Japanese firm Tokyo Gas, Lopez-led First Gen Corp. and China National Offshore Oil Co. (CNOOC).

of government in the development of the country’s LNG hub through PNOC was important because it is a holder of a franchise for the LNG pipeline.

LNG terminals in peer countries like Singapore and Malaysia are also operated by state-owned corporations  which assure a cheaper option for LNG, the PNOC official said.

DoE lists substations suitable to take in new power plant capacity

April 29, 2018 | 9:09 pm

http://bworldonline.com/doe-lists-substations-suitable-to-take-in-new-power-plant-capacity/

THE Department of Energy (DoE) has listed 14 areas with newly built substations to guide would-be power plant developers hoping to connect to the transmission system.

“These recommended connection points, however, should be viewed from a transmission planning perspective and are based on the capability of the existing grid,” the DoE said in its invitation to investors on the available opportunities in the Philippine energy sector.

The department identified the “ideal locations” as three areas in Luzon, six in Visayas and five in Mindanao where power plants may be constructed.

In Luzon, it recommended the construction of a total 900 MW for three plants with a capacity of 300 MW each. They may connect at the Malaya 230-kilovolt (kV) substation, the San Manuel 230 kV and Muntinlupa 115 kV substations.

In the Visayas, the DoE identified the new substations as Calbayog 138/69 kV, Daanbantayan 230 kV, Babatngon 138 kV, Compostela 138 kV, Maasin 138 kV and Bohol 138 kV. It recommended 100 MW power plants in each of the sites.

In Mindanao, the substations are Placer, Aurora, Bislig, Pitogo and Tacurog — all at 138 kV. It also recommended 100-MW power plants to connect to the substations.

“There is a substantial number of publicly announced infrastructure projects to complement the already comprehensive transmission network in the Philippines, providing a broad range of investment and partnership opportunities,” the DoE told investors.

It said state-led National Transmission Corp. is pushing for massive capital spending on at least six transmission line interconnection projects worth $2 billion. The lineup of projects include the $1-billion Visayas-Mindanao interconnection project and five other transmission line loops, the DoE added.

It identified the loops as Antique-Mindoro, Bohol-Cebu, Panay-Negros, Davao-Samal Island, and Antique-Romblon.

The DoE also cited a $27-million deal between privately owned National Grid Corp. of the Philippines (NGCP) and smart grid solutions firm ABB Ltd. to strengthen the country’s grid infrastructure. It said 18 smart grid transformers will be provided to NGCP, “improving its energy distribution and the reliability of its grid network.”

The department also cited an announcement by distribution utility Manila Electric Co. about the implementation of an automated metering infrastructure project to equip 3.3 million of its customers with smart meters by 2024.

“Moreover, General Electric Co. (GE) will be constructing a new 500-kV transmission line and substation in Bataan. It is due to be completed by 2018 and will serve as the additional outgoing circuit from Hermosa to San Jose,” it said.

“This will allow simultaneous maximum dispatch of existing power plants,” the DoE added. — Victor V. Saulon