The Philippines could award the permit for the construction for the construction and operation of the country’s first liquefied natural gas (LNG) import facility as early as next year.
A number of domestic and foreign companies are lining up for a stake in the 5 mtpa project priced at $2 billion, according to Energy Secretary Alfonso Cusi , Reuters reports.
The country is turning to LNG imports in order to cover the demand for power generation as domestic resources from the Malampaya gas field are depleting.
While the Philippines aimed at developing one LNG import project with the state-run Philippine National Oil Company (PNOC) holding at least a 10 percent stake, interest of more than 50 companies could see a faster development of a wider LNG sector.
Cusi added that the project’s construction could take up to 30 months, and the state would like to have it up and running before the Malampaya contract expires.
The project would include a power plant with a 1,000 megawatts production capacity, however, the facility would initially be producing 200 MW. Energy demand in the Philippines is expected to triple from 2015 to 2040. To cover the demand, the country will have to ramp up power generation capacity by 7,000 MW over the next five years.
LNG World News Staff