DOE welcomes ongoing completion of natural gas projects in Luzon to stabilize power supply in 2023

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The Department of Energy (DOE) welcomes the ongoing completion of natural gas projects in Luzon to help stabilize power supply particularly in 2023.

“There is a need to diversify our power sources including the use of imported natural gas.” Energy Secretary Raphael P.M. Lotilla said.

“Given its scheduled availability at the end of the first quarter of 2023, liquefied natural gas (LNG) is considered an important source for fuel diversification,” he added.

This will complement ongoing efforts of the Malampaya Consortium to optimize sustainably the remaining indigenous gas in the Malampaya-Camago reservoir. 

Secretary Lotilla added that LNG is also aligned with the goal of transitioning to a low-carbon future and helps stabilize power supply from variable renewable energy. 

Based on the progress reports provided by the LNG project proponents to the DOE’s Oil Industry Management Bureau, Linseed Field Power Corp., a joint venture between San Miguel Corporation (SMC) and AG&P, is on track to complete its first integrated LNG import terminal in Barangay Ilijan in Batangas City.

Commissioning is scheduled in March 2023 and the commercial operation in April 2023, in time for the arrival of SMC’s LNG supply for the 1,200 MW Ilijan combined cycle power plant. This additional power source is impactful as Luzon copes with a power supply deficit. 

Meanwhile, FGEN LNG Corporation, a subsidiary of First Gen Corporation, with BW LNG providing LNG storage and regasification services, is also scheduled for the commissioning of its LNG terminal in March 2023, while the commercial operation is set in June 2023, in line with the arrival of LNG supply to fuel its existing gas-fired power plants such as the 1000 MW Sta Rita Power Plant, 500 MW San Lorenzo Power Plant, 414 San Gabriel Power Plant and the 97 MW Avion Power Plant. 

“Our foremost concern is to ensure that there is enough capacity supplied through various sources most especially in the coming summer months to sustain the power supply in the country”, Lotilla said.

The additional supply also includes stranded power from coal fired power plants in Bataan due to transmission constraints. 

Natural gas will be able to support the intermittent renewable sources due to its ability to provide flexible capacity. This flexibility allows LNG plants to serve not only peaking requirements to support renewables and ancillary power but can likewise provide mid-merit and base load requirements. 

The DOE has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policy makers and stakeholders for the entry of LNG in the country. 

Likewise, the DOE, in its iteration of the Philippine Energy Plan (PEP), presented a roadmap for a Clean Energy Scenario, which supports the United Nation’s Sustainable Development Goals.

Under the Clean Energy Scenario, government aims to transition to a cleaner energy and low-carbon future. which considers increasing the contribution of natural gas power generation as a transition fuel through the establishment of LNG receiving terminals and regasification facilities. ####