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June 9, 2022

Shell to invest $66m to build LNG import terminal in the Philippines

The proposed project will include a 3.8Mtpa FSRU, subsea and onshore gas pipelines, and pigging stations.

Shell Energy Philippines is reportedly planning to invest PHP3.5bn ($66m) to build a liquefied natural gas (LNG) import terminal in Batangas City, the Philippines.

The project is planned to be developed within Pilipinas Shell Petroleum’s (PSPC) Shell Tabangao import terminal, reported The Philippine Star.

The project involves reviving the planned LNG import terminal, which was first proposed in 2013 through Tabangao Realty (TRI), Shell Energy said in a filing with the Department of Environment and Natural Resources-Environmental Management Bureau (DENR-EMB).

The original project was put on hold due to issues such as market conditions, and development costs, among others.

Shell was cited by the news agency as saying: “With the announcement of PSPC of the refinery closure and its conversion to an import facility, [Shell Energy] saw the opportunity to revive the LNG project in line with Shell’s pursuit of clean energy projects and utilise existing utilities of PSPC such as the Jetty 4.”

The revised project will include a 3.8 million tons per annum (Mtpa) floating storage and regassification unit (FSRU), and the conversion of the existing import facility Jetty 4 from a crude import jetty, to a berthing facility for the FSRU.

It will also include a pressure reduction metering station (PRMS), subsea and onshore gas pipelines, pigging stations, and an ignitable vent.

The company was cited by Manila Standard as saying in the documents: “The project will supply natural gas for power use with the impending depletion of the Malampaya gas field by 2024.”

The proposed Shell LNG Project is aimed at addressing the gas shortfall that would result from the depleting Malampaya field.

Shell Energy is considering securing a environmental compliance certificate (ECC) for the proposed project in the third quarter of this year.

Following the finalisation of the detailed design, the firm plans to start pre-construction within the next year, followed by full construction work in the first quarter of 2024.

Earlier this month, Shell announced that it had received approval from Britain’s regulator for a revised plan to develop the Jackdaw gas condensate field.

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