Philippines' AG&P terminal to be commissioned at end-April - official

Kitco Media
By Reuters
Published:
Updated:
Reuters
SINGAPORE, Feb 23 (Reuters) - Singapore-based Atlantic, Gulf and Pacific said its liquefied natural gas (LNG) terminal in the Philippines will be commissioned at the end of April, according to a company official, a month later than previously scheduled.


Joseph Sigelman, AG&P's chairman and chief executive, also confirmed that the company has already signed for term supplies to be delivered to the terminal, but declined to provide details.


"I cannot (share more information), but there are long-term contracts in place," he said.


AG&P's terminal, named PHLNG, was previously scheduled for commissioning in July 2022, when it was due to be available for test runs by the operator, but was delayed due to COVID-induced supply-chain issues. In December, AG&P said the import terminal was on track to begin operations in the first quarter of 2023.


The terminal will have annual capacity of 5 million tonnes and fuel the existing 1,200-MW Ilijan power plant in Batangas province. San Miguel Global Power, one the largest power companies in the Philippines, operates the Ilijan plant under an "independent power producer administrator" agreement signed with the government.


Sigelman also confirmed that AG&P has signed a supply agreement with San Miguel, but declined to provide details.


"The important banks in the Philippines have supported the project and project finance... They would not have done so without the typical chain of contracts."


AG&P's terminal is among seven LNG projects that the Philippines' department of energy has approved. The country will need to import LNG to fuel its gas-fired power plants with a combined capacity of more than 3,000 megawatts, as output from its Malampaya gas field in the South China Sea is expected to continue declining and be depleted by 2027. (Reporting by Emily Chow Editing by Tomasz Janowski)

emily.chow.thomsonreuters.com@reuters.net))
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