2 hours agoElmer B. Sambo's response to First Gens article re...

2 hours ago

Elmer B. Sambo's response to First Gens article re their intention to build their own LNG Terminal at Batangas to feed their gas fired power plants there.

I agree with his comments below. Yes, First Gen building their own does make sense but PNOC are kidding themselves.

Justifications for three (3) LNG terminals?
Our first LNG Terminal/Hub is the EWC LNG Hub at Pagbilao. The facility is already constructed and ready for start-up. Therefore, there is no need for the justification of this facility.
First Gen is planning to put up its own LNG terminal. There is justification for this project as it has its own power plants to utilize the LNG. The existing First Gen gas power plant is also connected to the Malampaya gas supply pipeline therefore it can easily be designed to backup Malampaya gas production decline. The plan to install the terminal at Sta. Rita is ideal but the jetty facility and LNG vessel docking facility shall interfere with the busy Batangas port terminal.
PNOC JV LNG Hub is planned to be located at the PNOC existing facility at Mabini, Batangas. For this new terminal hub there are no sure customers to justify this project! It has to put up its own power plant to provide a captured consumer of its gas. To be connected to the existing Malampaya gas supply pipeline it will require 15 kms inland pipeline. As an LNG hub it cannot compete with the EWC Pagbilao LNG hub particularly on the local market as CWT will have the lead time.
Conclusion – DOE should prioritize the commissioning and start-up of the EWC Pagbilao LNG hub so the consumers can now benefit from this project. This will also provide opportunity to small local entrepreneurs to engage is small LNG business and provide opportunities to some of our areas outside Manila to progress.
First Gen LNG terminal at Sta. Rita is justified. Issue of possible interference with the shipping lanes to Batangas port should be addressed in the feasibility stage.
The PNOC JV at Mabini is a risky project. It will cost more than the First Gen LNG terminal and it has to put up more infrastructures to be able to operate. The CWT Pagbilao LNG hub will be fully operational by the time this LNG hub operates depriving the project revenue. Putting up two LNG terminals in Batangas Bay can be a recipe for disaster as the area has to cater for more LNG vessel on a daily basis posing hazard to the transport and commercial ships calling Batangas port. This project has no solid justification.