MAN inks LNG pact with Philippines

Germany’s MAN Energy Solutions has signed a deal with the Philippines’ Department of Energy to conduct a feasibility study on the development of small- to medium-scale LNG-to-power projects in the country.

According to a statement on Sunday, the German firm and the DOE signed a memorandum of understanding on February 22, in line with the agency’s efforts to help facilitate the development of the country’s downstream natural gas industry.

Energy secretary Alfonso G. Cusi and Wayne Jones, executive board member and chief sales officer of MAN Energy Solutions, signed the deal during a virtual ceremony.

Visayas and Mindanao

Under the agreement, MAN would conduct a feasibility study on the development of small- to medium-scale LNG importation and regasification to power projects in Visayas and Mindanao.

Cusi said the department has always been vocal in its aim to “fully develop the downstream natural gas industry of the Philippines.”

“Studies such as the one that MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities,” said Cusi.

In addition, MAN would determine the required mixed modes of land and sea transport to domestically provide natural gas supply in an “economical” manner.

The firm would also determine the necessary infrastructure and transportation facilities that would contribute to the market development of natural gas in Visayas and Mindanao.

MAN and the DOE agreed to make the final feasibility report available to the public, especially to those investors who are interested in developing LNG facilities in the covered areas, the statement said.

“Should the findings of MAN Energy Solution’s report be favorable, it would definitely pave the way for the entry of much-needed capital investments in Visayas and Mindanao,” said Cusi.

“If not, the report’s results will still help guide us in recalibrating our strategic direction. So regardless of the study’s outcome, we are optimistic that our partnership would go a long way in helping make our natural gas aspirations a reality,” he added.

Two LNG import terminals in Philippines expected to go online in 2022

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.

During this year, two LNG import terminals are expected to go online.

As recently reported, Singapore’s LNG firm AG&P signed a deal with a unit of UAE’s Abu Dhabi National Oil Co (Adnoc) to charter a floating storage unit for its LNG import terminal in the Philippines.

Under the deal, AG&P will lease the 1995-built, 137,315-cbm LNG carrier Ish from Adnoc Logistics & Services and convert it to an FSU.

AG&P’s terminal in the Philippines, Philippines LNG or PHLNG, will have an initial capacity of 5 million tonnes per annum.

The firm claims this would be the first LNG import terminal in the Philippines and expects to commission the facility in Batangas Bay in July.

Also, last year First Gen said it had signed a charter contract with a unit of BW Gas under which the latter would provide FSRU BW Paris for its Batangas LNG import terminal in the Philippines.

FGEN LNG Corporation, a unit of First Gen, is developing the FSRU-based project.

The project would allow FGEN LNG to accelerate its ability to introduce chilled fuel to the Philippines in the third quarter of 2022, the firm said at the time.

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