December 10, 2018 [Reuters] - Companies have signed preliminary agreement. First Gen operates 4 of country’s 5 gas-fired power plants. Other firms also looking to build nation’s 1st LNG import hub.
Philippine power company First Gen Corp and Tokyo Gas Co on Wednesday said they had signed a preliminary agreement to jointly develop a liquefied natural gas import terminal project in the Philippines.
Tokyo Gas will take a 20-percent interest in the project, which will be located in First Gen’s LNG complex in Batangas province, south of the capital Manila, the Philippine company said. No further financial details were disclosed.
The Philippines is expected to start importing LNG to feed its gas-fired power plants as domestic gas supply from its Malampaya field is set to run out in 2024.
State-owned Philippine National Oil Co (PNOC) was seeking a joint-venture partner to build and run an LNG hub in Batangas Bay, but has twice postponed a meeting with potential investors, the last one previously scheduled for Tuesday.
First Gen said in August that PNOC had rejected its unsolicited proposal to PNOC to be part of First Gen’s LNG terminal project in Batangas.
China National Offshore Oil Corp (CNOOC) is also in the running. CNOOC in June signed an agreement to develop an LNG terminal project in the Philippines with fuel retailer Phoenix Petroleum, owned by local businessman Dennis Uy who helped fund President Rodrigo Duterte’s 2016 election campaign.
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