Friday, April 20, 2018

Shell remains keen on LNG project in PHL


By Lenie Lectura - April 19, 2018

SHELL Philippines remains keen on a liquefied natural gas (LNG) investment in the country, even as the company has yet to formally inform the Department of Energy (DOE) about it.
Pilipinas Shell President and CEO Cesar Romero said at the sidelines of Asia Forum on Enterprise for Society that Shell has not yet submitted a proposal to the government. However, he said, the company “remains interested and very committed in working with the government.” Shell has been vocal in its plans to pursue an LNG project in the country. However, Shell is not among the interested firms met by the DOE during the recent pre-application conference.
Based on the DOE’s list, Cleanway Energy Department Corp., First Gen Corp., Tokyo Gas Co. Ltd.,  China National Offshore Oil Corp., Philippine National Oil Co. (PNOC), VIRES Energy Corp.and SK E&S Co. Ltd. have participated in the conferences.
Except for PNOC, Energy Secretary Alfonso G. Cusi said the other day that all other firms are pursuing their respective LNG investments on their own.
“PNOC is looking for a partner for the LNG project. The others are doing the project on their own. This can be done by a foreign firm,” Cusi said.
Likewise, two pre-application conferences have been scheduled by the agency for the proposed LNG projects of  Carmine Energy Pte. Ltd. and DeEnergy International Corp.Cusi said the government is aiming to turn the Philippines into a hub for LNG, amid a depletion of natural gas from the Malampaya gas field in Palawan in less than a decade. Currently, around 3,500 megawatts of power-plant capacity is dependent on the country’s sole natural gas source.
“It does not matter who among them will eventually proceed with their LNG projects. What matters is that we want to be the hub,” Cusi said.
Meanwhile, Shell has poured in about P56 million to fund its Access to Energy (A2E) project.
Five hybrid micro-grid systems were put in Puerto Princesa and Palawan since 2015, Shell Program Manager Marvi Rebueno-Truedeau said. The latest was installed in April in Taytay, Palawan. “The areas for our A2E program are the hardest to reach islands with indigenous people. On an average, the community is composed of 30 households, with over 200 individuals,” she said.
Shell operates as a downstream refining and marketing company. It focuses on turning crude oil into a range of refined products, including gasoline and kerosene.

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