PH looking to source LNG from Canada, Brunei

Rappler.com

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Energy Secretary Jericho Petilla says a master plan for the LNG sector must be created 'because Malampaya will not be here forever'

MANILA, Philippines – The Philippine government is looking at Canada and Brunei as possible sources of liquefied natural gas (LNG), according to the Department of Energy (DOE).

DOE Secretary Carlos Jericho Petilla however said a study on LNG pricing would need to be carried out before the government enters into any deal.

“I want to get involved in the pricing scheme for LNG. We have no facility now so I want to find out where we are in terms of pricing,” Petilla said.

LNG is natural gas converted into liquid form for easy storage and transportation. It is turned back into gas for distribution via pipelines.

In the US, the gas trades at around $4 per thousand cubic feet (mcf). LNG prices in Japan are more or less $17 per mcf.

Malampaya gas, the Philippines’ domestic source of LNG, is priced at around $11 per mcf. The Malampaya gas field in northwest Palawan supplies power to 3 power plants with total capacity of 2,700 megawatts.

Petilla said a master plan for the LNG sector must be created. “Becase Malampaya will not be here forever, we have to make plans.”

“DOE is coming up with certain guidelines on how to come up with a master plan,” he added.

First Gen Corp. wants to develop up to 1,300 megawatts of power generation capacity fueled by natural gas from its facility in Batangas.

Pilipinas Shell Petroleum Corp. is preparing a feasibility study for a $1-billion LNG regassification terminal beside its refinery in Batangas.

Energy World International Ltd. of Australia is also planning to put up an LNG terminal in Pagbilao, Quezon that is targeted to be completed by January 2014. – Rappler.com

 
Image via Shutterstock.

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