Luzon LNG project : Excelerate Energy gets Philippines’ nod for floating LNG terminal

The Philippines’ Department of Energy (DOE) has issued the Notice to Proceed (NTP) to Excelerate Energy to proceed with the Luzon LNG project, a proposed floating liquefied natural gas (LNG) import terminal in the country.

To be located in the Bay of Batangas, the Luzon LNG project will provide natural gas from LNG to existing and future gas-based power plants that generate electricity for the Luzon island along with the Metro Manila region. Excelerate Energy believes that the secure and abundant source of natural gas supply will augment the current gas production from the domestic Malampaya fields with reserves from the fields depleting.

Daniel Bustos – Chief Commercial Officer of Excelerate Energy, commenting on the Luzon LNG project, said: “We are pleased to have received this significant approval from the Government of the Philippines in supporting the country’s long-term energy objectives – this is an important milestone to move the project forward.

“We look forward to working with the government and private sector for the successful completion of the project that will enable Excelerate to invest in critical infrastructure allowing the country to continue on its current path of tremendous economic growth.”

The Luzon LNG project will be built in the Bay of Batangas. Photo courtesy of Ramon FVelasquez/Wikipedia.org.

The Luzon LNG project is planned to be built offshore Batangas in order to offset the impact to the prevailing shipping traffic in the area and coastline. The Filipino LNG import terminal will be equipped with Excelerate’s offshore technology to enable it to withstand the extreme weather conditions in Philippines.

Daniel Bustos  added: “We commend the Government of the Philippines for requiring the structure of the project to include the challenging integration of LNG supply, technical procurement and implementation, and user agreements to the benefit of the country.

“Excelerate is the only company with the experience to deliver all that is required for this complex project – this will not be our first time,” continued Mr. Bustos. “We are in the unique position to offer the most industry experience to the Philippines to deliver a safe, efficient, and reliable project.”

The Luzon LNG project will have all the essential elements to meet the natural gas requirements of the Luzon island. Excelerate Energy will undertake the development, design, permitting process, construction, finance, and operation of the LNG import terminal.