Philippines-headquartered AG&P has received the green light to develop its liquefied natural gas import project in Batangas Bay, south of the capital Manila.

AG&P on Monday confirmed the Department of Energy (DOE) had issued the Notice to Proceed for the Philippines LNG (PLNG) terminal, a floating storage unit-based scheme, which will have initial capacity of up to 3 million tonnes per annum.


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PLNG will further open up a clean energy era for the country, helping to ensure the Philippines’ energy security as reserves from Shell’s Malampaya gas field, the sole source for the Philippines' gas-fired power plants, begin to deplete.

AG&P has already completed its pre-development work for the terminal, which is expected to be commissioned by summer 2022. The project will involve a third-party FSU secured on a long-term lease together with additional onshore storage and regasification facilities, an AG&P spokesperson told Upstream.

The receiving and regasification project will store and dispatch LNG to power plants, industrial and commercial customers and other consumers.

PLNG will have scalable onshore regasification capacity of 420 million cubic feet per day of gas and almost 200,000 cubic metres of storage that will ensure high availability and reliability of natural gas for its customers.

“We are excited about this critical step in bringing AG&P’s Philippines LNG import terminal online. AG&P is working to bring this safe, environmentally friendly, competitive fuel to our customers by the summer of 2022 and hope that the wide availability of natural gas will spur manufacturing and jobs in the Philippines,” said Karthik Sathyamoorthy, AG&P’s president of LNG terminals and logistics.

“We salute the Philippines’ DOE for its professionalism and hard work in evaluating our proposal and granting AG&P the Notice to Proceed. We are aligned with the DOE’s forward-looking vision for clean energy and look forward to supporting it,” he said.

The DOE approved AG&P’s NTP application in line with its commitment to make the Philippines a Southeast Asian LNG hub.

As an initial step, PLNG will serve to kick-start the country’s LNG importation and regasification ability, delivering gas to secure the current and future energy demand of the region, noted AG&P.

“The Philippines LNG Terminal is a landmark development for the country that will accelerate industrialisation, create jobs, lower pollution and trigger overall economic and social progress. It will directly and indirectly improve the quality of life for many thousands of Filipinos,” added Sathyamoorthy.