Anglo-Dutch supermajor Shell is planning to deploy a leased floating storage and regasification unit at Tabangao to import liquefied natural gas into the Philippines, according to a Department of Energy official.

“The notice to proceed is to develop an FSRU but the FSRU will be leased," Ma Laura L Saguin, division chief of natural gas management at the country's Department of Energy’s Oil Industry Management Bureau, was quoted as saying by local daily BusinessWorld.

"Only the ancillary facilities will be constructed such as the underwater pipeline. The jetty is existing but [will] be enhanced."

Continuing commitment

Shell’s intention to import LNG into the Southeast Asian nation, as earlier reported by Upstream, highlights the company’s continuing commitment to the Philippines even as it considers divesting its 45% operated stake in the giant producing Malampaya offshore gas field.

Sign up for our new energy transition newsletter

Gain valuable insight into the global oil and gas industry's energy transition from Accelerate, the new weekly newsletter from Upstream and Recharge. Sign up here

The leased FSRU will be deployed at Tabangao, Batangas on the Philippines’ most populous island Luzon.

Saguin said that Shell had received its NTP from the department on 16 March, while a similar application from Vires Energy Corporation was still under evaluation.

“The Philippines is an important country for Shell and [we are] keen to continue working with the country to meet its growing energy requirements. Shell continues to pursue opportunities where it can leverage its global expertise to provide more and cleaner energy solutions," a Shell spokesperson told Upstream.

"We are grateful to the Department of Energy for issuing a Notice to Proceed, which will enable us to further explore the opportunity of importing LNG into the Philippines.”

Several other players including AG&P, Excelerate Energy, Batangas Clean Energy and First Gen have touted LNG import schemes for Batangas while Energy World Corporation is constructing its own receiving terminal at Pagbilao, Quezon.

The companies have been granted approval for various projects including FSRUs, onshore receiving and regasification terminals or both.

90% complete

EWC last week said that its 130,000 cubic metres LNG terminal was 90% complete. The Pagbilao facility can handle throughput of 3 million tonnes per annum of LNG with the first tank, which can support 3000 megawatts of gas-fired power generation.

This hub terminal is to be run on a tolling model for third party clients.

“We foresee significant demand for LNG once it becomes available in the Philippines. EWC has received approaches and is in initial discussions with several provinces, islands and industry players wishing to secure LNG supplies,” the company said in an investor presentation last week.

Updated to include Shell's comments to Upstream.