1st LNG plant to be built in Luzon next year

MANILA, Philippines - The Department of Energy (DOE) is expecting the first 300-megawatt liquefied natural gas (LNG) power plant to be built in Luzon in 2011.

Data from the DOE showed that there would be an entry of LNG-run power facility in Luzon grid by next year.

The DOE did not specify the company that would be putting up the 300 MW LNG facility.

But in 2008, Hong Kong-based power firm Energy World International Ltd. (EWI) already signified interest to put up a 300-MW LNG-run power plant in Pagbilao, Quezon.

EWI had already finalized the feasibility study for the project.

Based on earlier DOE data, EWI was then in the process of securing permits and licenses for the construction of the combined cycle gas turbine power facility.

Specifically, the proposed power facility will be divided in two phases of 150 MW each, construction of a mother LNG terminal, and development of a network of storage and distribution facilities throughout the country, among others.

LNG is natural gas that has been converted to liquid form for ease of storage or transport. LNG is more cost-efficient to transport over long distances where gas pipelines do not exist. LNG can also be transported by specially designed LNG vessels.

So far, there are various firms that plan to put up LNG terminal in the country. Among these are PTT of Thailand, Marubeni Corp. of Japan, Russian power firm Gazprom and Petrochina.

PTT and PNOC are looking at the possibility of venturing into putting up an LNG terminal.

Currently, there are three natural gas-fired power facilities in the country namely: Sta. Rita and San Lorenzo power plants of First Gen Corp. in Batangas; and 1,200 MW Ilijan power plant of Korea Electric and Power Co. and National Power Corp. 

The DOE earlier said it is planning to convert some of the power plants like Limay and Sucat into an LNG-run facility.