DOE upbeat on fuel supply as 2 LNG facilities completed: Philippines

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The Department of Energy (DOE) is upbeat on the continuous fuel supply of gas-fired power plants in the country following the completion of two liquefied natural gas (LNG) facilities.

The first importation of LNG was completed by Linseed Field Corp. and it is now supplying natural gas to the Ilijan natural gas power plant of San Miguel in Batangas, the DOE said.

With the delivery of LNG, Ilijan has resumed supplying power to the grid since Thursday.

According to the DOE, this is expected to improve its contribution to the energy supply in the Luzon grid, especially in the coming months.

Meanwhile, the DOE said the LNG facility constructed by FGEN LNG Corp. is also scheduling its first LNG cargo delivery window in the latter part of the year, which will add to and secure the supply of natural gas for its power plants in Batangas.

'All these developments are positive signals reflecting the continuous interest of the private sector in investing in critical infrastructures that will allow the country to import and utilize imported LNG and complement the available gas from the Malampaya reservoir to meet the country's growing energy demand,' the DOE said.

LNG is considered by the DOE as an important source for fuel diversification.

The DOE said the entry of LNG as a new type of fuel into the energy mix increases diversity and security of the country's energy needs.

It is seen to provide the country with fuel and technology that allows flexibility in supporting the various grid demands from baseload to providing reliable mid-merit to peaking power supply.

'This flexibility also enables our push to further develop intermittent renewable energy technologies such as solar and wind,' the DOE said.

The DOE has already put in place the regulatory framework and completed its downstream natural gas development plan to guide policymakers and stakeholders for the entry of LNG in the country.

A total of seven LNG terminal projects in the country has been approved by the DOE so far. These are the projects of AG and P through Linseed Field, FGEN LNG, Energy World Gas Operations Philippines Inc., Excelerate Energy L.P., Vires Energy Corp., Shell Energy Philippines Inc., and Samat LNG Corp.