Excelerate LNG permit extended

By Lenie Lectura December 28, 2020
https://businessmirror.com.ph/2020/12/28/excelerate-lng-permit-extended/
 

The Department of Energy (DOE) has extended the Notice to Proceed (NTP) permit to develop the LNG (liquefied natural gas) project of Texas-based Excelerate Energy LP (Excelerate).

“I already signed the extension of Excelerate. If not early this month, late last month,” said Energy Secretary Alfonso G. Cusi.

The agency first issued the NTP to develop a floating LNG import terminal in Batangas Bay to Excelerate in September last year. The permit expired this year but was “just recently” extended by the agency, according to an official of the company’s local partner when sought for confirmation.

“Our NTP just got extended. I believe it’s 3 months from date of receipt,” said Michael Acebedo Lopez, Topline Energy Executive Vice President.

Excelerate is in the final phases of preparing to commence construction on the Filipinas LNG Gateway project, the country’s first open access LNG import terminal.

The terminal will utilize Excelerate’s state-of-the-art offshore Floating Storage Regasification Unit (FSRU) technology, specifically designed to perform in extreme weather conditions. The technology has been proven at Excelerate’s operations in the United States within the Gulf of Mexico and North Atlantic, Israel, and most recently, the Bay of Bengal.

With import capacity of about 5 million tons of LNG per annum, the project will be able to supply fuel for up to 4,000megawatts (MW) of baseload power generation, allowing it to service multiple power plant customers in Luzon.

The LNG project follows a Third Party Access (TPA) model, whereby LNG import capacity is marketed to multiple gas users in the region on an open and transparent basis. This is in contrast to the “Own Use” model where separate LNG terminals are being built for each independent power plant.

Unlike comparative “Own Use” solutions, the “TPA” model allows gas users to enter into shorter-term contracts for quantities that meet their specific requirements. This method is considered highly efficient as there is less “wasted” capacity due to underutilization.