Excelerate Energy is set to move ahead on its Luzon LNG project in the Philippines. The country’s Department of Energy gave a Notice to Proceed (NTP) on the Texas-based company’s FLNG import terminal in the Batangas Bay this week.
“We are pleased to have received this significant approval from the Government of the Philippines in supporting the country’s long-term energy objectives. This is an important milestone to move the project forward,” said Daniel Bustos, Excelerate chief commercial officer.
Luzon LNG will supply natural gas to existing and new gas-fired power plants in the region that provide electricity to Luzon, including the area of metro Manila. Located offshore the city of Batangas, about 2 hours south of Manila, the project will include a fully integrated turnkey FLNG terminal, arranging the necessary supply of LNG and distribution of natural gas to end-users across the island of Luzon.
The terminal will utilize technology specifically designed to perform in extreme weather conditions, like those of the Philippines. Excelerate has experience working in hazardous environments in Asia: Last year, it commissioned the Moheshkhali FLNG terminal (MLNG) in the Bay of Bengal, Bangladesh’s first LNG import facility. Excelerate said at the time that MLNG was the first fully integrated turnkey FLNG terminal where all services—development, design, construction, installation, finance, and operation—were provided under a single contract by a single provider. The company said in a statement that it would implement a similar structure for Luzon LNG.
Excelerate said the project will augment the existing gas production from the domestic Malampaya field as reserves from these fields begin to deplete, and that the project’s location in Batangas will minimize the impact to existing shipping traffic in the area and coastline.
Following the NTP, Excelerate will seek the necessary permits and raise financing for the project. No startup date has been announced.