Philippines: Phinma Energy set on developing LNG terminal in Sual

Philippines: Phinma Energy set on developing LNG terminal in Sual

Phinma Energy Corp. is still keen on building a receiving terminal for
imported liquefied natural gas (LNG) in Sual, Pangasinan, one of its
officials said.

The company is currently studying the feasibility of putting up a
300-megawatt (MW) gas-fired power plant, as well as an import LNG terminal
with a capacity of 400, 000 tons of LNG per annum.

The feasibility study began last year, but so far the project seems to be
capital intensive and risky if the market is unstable, Phinma Energy senior
vice president Raymundo A. Reyes, Jr. told reporters on Monday.

Even if Phinma releases a final investment decision, the earliest they can
complete the project is by 2020, two years before the projected depletion of
the Malampaya gas field.

"You also have to consider that (power plant) into the equation [because]
you can import [but] if you don't have any anchor load 'di mo rin mabebenta
'yung LNG mo (you won't be able to sell your LNG)," Reyes said.

The project is slated to fall under Phinma's subsidiary Trans-Asia Petroleum
Corp.

Phinma is looking to construct the project on their own or as a majority
stakeholder in a partnership. On the other hand, it seeks partners and is
willing to take a minority interest, Reyes said.

He said that the current market for gas is less competitive than coal,
because the Philippines currently has an oversupply of baseload power from
coal-fired plants and has caused competition concentrated mainly in
mid-merit capacity plants.

The Philippines' energy mix requires 70 percent of baseload power, majority
of which is provided by plants that run on coal, natural gas and geothermal
power every day.

Only 20 percent is needed from mid-merit plants, which run mostly on natural
gas. Peaking plants make up only 10 percent of the energy mix, which are
oil-based facilities and renewable energy projects.

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Link to Original Article:
http://powerphilippines.com/2017/04/12/phinma-energy-set-developing-lng-term
inal-sual/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com