Global energy giant Royal Dutch Shell's Philippines unit is now finalizing front-end engineering design (FEED) for its planned LNG terminal and may be on track for completion by 2017, local reports cited Shell Philippines Exploration (Spex) md Sebastian Quinones as saying.
Pilipinas Shell Petroleum Corp is currently looking at a FSRU LNG terminal at the Batangas Bay area, The company needs to sort out the FEED study before coming out with a final investment decision (FID).
Quinones said investors and shareholders of the company would only approve the project if there is a “good and viable plus-minus 10% estimate” on the total project cost. “Probably, this would be hundreds and hundreds of millions again,” he said. “I don’t think (the FID) will be this year. It could be next year.”
He noted however that once the FID comes, it would take less that three years to build the FSRU LNG terminal. “Energy projects like this take a long time," he said.
Supply from the Malampaya deep water gas-to-power project, the biggest gas project in the Philippines currently which took 10 years to develop, is expected to run out by 2024, thus building an LNG import terminal is key to meeting supply needs, possibly by LNG imports, until another gas field is discovered and developed -
“Hopefully, we can find something in between but now, it’s too late to be able to develop something that can replace Malampaya. So, to bridge the gap between that would require LNG imports,” Quinones said.
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