Shell’s Philippines LNG import plan gets approval

A unit of energy giant Shell has secured approval to go forward with an LNG import project in the Philippines, joining a number of developments looking to deliver the fuel to the country’s power plants.

The Philippines’ Department of Energy has issued a “notice to proceed” to Shell Energy Philippines.

“We are grateful to the Department of Energy for issuing a ‘notice to proceed’ which will enable us to further explore the opportunity of importing LNG into the Philippines,” a Shell spokesperson told LNG Prime in an emailed statement.

Shell did not reveal any additional information regarding the project but local media reports cite DOE as saying that Shell’s unit plans to install a chartered floating regasification unit (FSRU) in Tabangao, Batangas.

The proposed project would have up to 3 mtpa capacity and it would deliver the fuel to mainly power plants, according to the reports.

“The Philippines is an important country for Shell and is keen to continue working with the country to meet its growing energy requirements,” the spokesperson said.

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.

Shell already owns a 45 percent stake and operates the Malampaya deep-water gas-to-power project along with partner Chevron that also has a 45 percent stake. The Philippine National Oil Corporation-Exploration Corporation holds the rest.

Shell’s LNG import development joins four other planned projects that look to fill the expected natural gas supply gap in the future.

These include the recently approved project by Singapore’s downstream LNG player AG&P but also First Gen’s Batangas project. First Gen said recently it aims to award the Batangas FSRU contract by the end of this month.

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