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Batangas Clean Energyexits liquefied natural gas race
Published by admin at August 23, 2021
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BY LENIE LECTURA – AUGUST 23, 2021
from Business Mirror
Lucio Tan-led Batangas Clean Energy Inc. (BCE) has droppedout of the liquefied natural gas (LNG) race after it failed to apply for apermit extension of its proposed multi-million dollar project.
Based on Department of Energy (DOE) statement last Friday,there are 6 proposed LNG terminal projects. These are FGEN LNG Corp.’s InterimFSRU and LNG Terminal project, Atlantic Gulf and Pacific Company of ManilaInc.’s (AG&P) FSRU and Onshore Regasification, Energy World Gas OperationsPhilippines Inc.’s LNG storage and regasification terminal project, the FSRULNG terminal of Excelerate Energy L.P., the FSRU terminal project of ShellEnergy Philippines Inc., and the FSRU terminal of Vires Energy Corp.
Four of which have been issued with Notices to Proceed(NTP), with an initial validity of six months, subject to further extensionsfor approval by the DOE. Meanwhile, FGEN and Energy World’s LNG projects are inthe next phase and have been issued with permits to construct (PTC).
BCE’s NTP has expired, according to DOE-Oil IndustryManagement Bureau Director Rino Abad.
“They are very responsive. However, their NTP expired inFebruary this year and they have yet to submit an extension or apply for thenext phase,” said Abad when sought for comment on BCE’s LNG project status.
The project proponent was supposed to build an LNG storageand regasification terminal that would cost $735 million. The project, whichwas supposedly ready for commercial operation by first quarter of 2025, alsoincludes the construction of a 1,100-MW gas-fired power plant.
The project did not reach financial closing as industryexperts noted the lack of an anchor market for the LNG project.
Meanwhile, FGEN’s project is currently under construction.Its commercial operation date (COD) is set for the third quarter of 2022.
The DOE is evaluatingEnergy World’s application for a PTC extension of 24 months. Its COD is set forthe fourth quarter of next year.
AG&P is currently securing the necessary permits fromother concerned government agencies and financial closing prior toconstruction. Its estimated COD is the second quarter of 2022.
Shell is also is securing permits in time for the COD set forthe third quarter of 2022.
Vires Energy’s FSRU terminal is expected to be completed inthe first quarter of 2023.
The DOE has granted Excelerate Energy two NTP extensions,the first—which was valid for six months as allowed by the PhilippineDownstream Natural Gas Regulations—was issued on May 27, 2020. The second, dueto force majeure brought about by the Covid-19 pandemic, was issued on December16, 2020 and was valid for three months.
At present, the DOE is evaluating Excelerate’s PTCapplication, while the company is securing the necessary permits from otherconcerned government agencies and financial closing prior to construction. Itsestimated COD is the third quarter of 2022.
“Attaining energy security may have been complicated by thecurrent global health crisis. However, the DOE is seeing to it that we will beable to carry on. The Department continues to pursue all possible avenues thatwould help us break free from energy import dependence and provide the energyneeds of future generations of Filipinos in a sustainable manner,” said EnergySecretary Alfonso G. Cus
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