SPPC wants to buy gas from Excelerate’s planned LNG facility

By Lenie Lectura - July 22, 2019

https://businessmirror.com.ph/2019/07/22/sppc-wants-to-buy-gas-from-excelerates-planned-lng-facility/

SOUTH Premier Power Corp. (SPPC), a unit of SMC Global Power Holdings Corp., is interested to purchase gas from US-based Excelerate Energy’s planned LNG (liquefied natural gas) facility in Batangas.

 “According to our natural gas division, it’s a letter of intent from SPPC to Excelerate to purchase LNG if, and when the latter is, able to finalize their project,” said Leonido Pulido, assistant secretary of the Department of Energy (DOE). 

Excelerate Energy has a pending application for notice to proceed to build a floating storage regasification unit in Batangas. The application, filed in January this year, remains pending.

“They were asked to submit more documentation to substantiate their proposal,” Pulido said, when asked for the status of Excelerate Energy’s application. She said the company was asked to “provide an after market,” meaning, that there should be a market for LNG that will be produced by Excelerate.

He was told that Excelerate Energy would study SPPC’s offer. “SPPC can be a potential market for them,” citing the Ilijan power plant’s proximity to the planned LNG facility of Excelerate. “They will study the proposal of SPPC.”

 An LNG hub may comprise a storage or terminal, regasification and distribution facilities and gas plants, which would be the off-takers of the gas. 

 SPPC is the independent power producer administrator (Ippa) for the 1,200-megawatt (MW) natural gas-fired power plant in Ilijan, Batangas.

 Excelerate Energy’s application is the fourth received by the DOE. The agency has already approved the applications of Tanglawan Philippine LNG Inc. and FGEN LNG Corp. (FGEN LNG).

 Tanglawan is a planned joint venture between Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd., China’s largest LNG importer and terminal operator. It has asked the DOE to extend the NTP permit. FGEN LNG, a wholly-owned subsidiary of First Gen Corp. (First Gen), broke ground for its LNG project last May. Tokyo Gas took in a 20-percent participating interest in the FGEN LNG project. 

 Australia’s Energy World Corp. Ltd. (EWC) secured a permit to construct, own and operate an LNG import terminal and regasification facility at Pagbilao Grande Island, Quezon province.

Pulido also identified another foreign company interested to join the LNG bandwagon.