Philippine LNG Terminals Award EPC Contracts

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The developers of two would-be LNG receiving terminals in the Philippines have awarded engineering, procurement and construction (EPC) contracts this week, edging ahead the Southeast Asian country’s plan to import the superchilled fuel before domestic gas supplies run out. Southeast Asia is a growing LNG market -- five of the region’s 11 countries have LNG regasification capabilities (LNGI Mar.26'21). The Philippines, Vietnam and East Timor are also eyeing LNG imports, although progress varies (LNGI Mar.23'21; LNGI Apr.5'21). Manila-based Atlantic Gulf & Pacific (AG&P) awarded an EPC deal to US contractor McDermott for its planned LNG terminal in the Philippines’ Batangas province, which is some 100 kilometers (62 miles) south of capital Manila. The terminal is currently under construction, McDermott said in a release. Under the EPC contract, McDermott’s wholly owned CB&I Storage Solutions will build the first of two proposed 60,000 cubic meter LNG storage tanks and provide other technical services. Mechanical completion is expected in third-quarter 2023, according to McDermott. AG&P however had said in March it hoped the terminal -- dubbed Philippines LNG with potential throughput capacity of up to 3 million tons per year -- would be commissioned by mid-2022 (LNGI Mar.8'21). McDermott said it was “proud to support AG&P in the delivery of the Philippines’ first LNG import terminal.” But that remains to be seen -- two other facilities developed by Philippine utility First Gen and US firm Excelerate are also seen as strong contenders to cross the finish line first (LNGI Oct.30'20). First Gen has appointed technical services firm Jacobs to carry out EPC work for its planned terminal, also in Batangas. The utility is partnering Japan’s Tokyo Gas to develop the facility, called FGen LNG, which could come online in the third-quarter 2022 (LNGI Apr.6'21). The EPC contract involves modifying an existing liquid fuel jetty to accommodate a floating storage and regasification unit (FSRU) and discharging LNG vessels, Jacobs said in a release this week. The firm will design, manage and supervise the EPC work. The FGen LNG terminal and its associated facilities will “play a critical role in opening LNG imports to the Philippines as it transitions to cleaner energy sources,” Jacobs said. McDermott, meanwhile, said it will be well-positioned to serve growing small-scale LNG markets in Asia and other regions, CB&I Storage Solutions Senior Vice President Cesar Canals said. The Philippines has been mulling LNG imports for more than a decade to replace dwindling output from its key Malampaya field, which started operations in 2001 and is expected to be depleted by 2027. Royal Dutch Shell, Hong Kong-listed Energy World Corp. and local conglomerate LT Group are also eyeing LNG import terminals in the Philippines (LNGI Mar.29'21). Irwin Yeo, Singapore

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