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Back in April 2021, Vires Energy has secured approval from the Philippines’ Department of Energy to develop its LNG-to-power project in the Philippines, located in Batangas on the main island of Luzon.
In addition to the FSRU, Vires Energy’s project in Barangay Simlong, Batangas included a 1.6km subsea gas pipeline from the unit to a 500-MW floating power plant.
In November 2021, Vires Energy awarded a contract for its LNG-to-power project.
A consortium of Seanergy Singapore and London Marine Consultants worked as the project’s owner’s engineer to cover up to the commissioning stage.
Leveraging existing gas infrastructure in Batangas
A Brown (ABCI) said in a stock exchange filling that its subsidiary, Vires Energy (VEC) has given notice on August 30 to the Department of Energy withdrawing the notice to proceed issued for the LNG terminal and regasification facility.
“VEC has decided, given recent industry developments, to forego constructing an LNG terminal and instead adopt the third-party access (TPA) model, which involves the purchase of gas from third-party gas sources through long-term gas supply agreements,” the company said.
According to ABCI, it has been determined that the adoption of the TPA model will give the “optimal approach” for the VEC project moving forward.
This model will leverage existing gas infrastructure in the Batangas area to support the development of new power plants and will also shorten the time when power generation can happen since VEC will no longer need to construct an LNG terminal, the company said.
“VEC, therefore, will redirect its focus towards power generation and the pre-development of a 2x450MW LNG combined cycle power plant,” it said.
This project is currently in the planning stages and will be constructed on a 15-hectare onshore site replacing the initially proposed floating power plant design, according to ABCI.
“The withdrawal of the NTP, therefore, will not prejudice the LNG project and will instead be a step forward on the development of the project,” it said.
“The Vires Energy site in Barangay Simlong is strategically located along the Batangas Bay and is currently evaluating the best way to connect to the existing gas pipelines to access gas from third-party LNG terminals and indigenous gas supply from Malampaya,” the company added.
LNG import in Philippines
The Philippines has several LNG import facilities on the table as the Malampaya gas field becomes less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants.
In April last year, Singapore’s LNG firm AG&P kicked off commissioning activities at the first import terminal in the Philippines following the arrival of the 137,500-cbm FSU Ish at the terminal’s jetty in Batangas Bay.
The LNG import facility features the converted FSU, which AG&P chartered from Adnoc for a period of up to 15 years.
Besides PHLNG, First Gen’s Batangas FSRU-based LNG import terminal is also operational, and has received several spot LNG cargoes up to date.
BW LNG’s 162,000-cbm FSRU BW Batangas arrived in Batangas in June 2023 to start serving First Gen’s terminal.
Shell suppled the first LNG cargo for commissioning purposes to First Gen’s FSRU-based LNG terminal in August last year, while Trafigura, TotalEnergies, and CNOOC supplied the second, the third cargo, and the fourth cargo respectively.
First Gen awarded a contract to a unit of Japan’s Tokyo Gas to supply the fifth cargo.