Chinese and Japanese companies compete for the $2 billion LNG terminal project in the Philippines

Date：2017-09-15

       The Philippines plans to build a new LNG terminal in the south of Luzon island, estimated to cost $2 billion, the nikkei Asian watch said on April 4. More than 20 companies from eight countries have said they want to work with PNOC to jointly develop the project, and Chinese and Japanese companies are actively pursuing cooperation opportunities.

       The Philippines' energy minister, Alfonso Cusi, hopes that by 2022, residents across the country will be able to enjoy normal electricity.

       The Philippines' energy minister Alfonso Cusi said his team is currently reviewing project financing and technical solutions submitted by interested parties. "We are currently in discussions with Chinese and Japanese companies, mainly comparing financing options. It is too early to tell which side has the advantage, because there are too many factors to consider," he said. The countries that provide the best financing options often advise their own contractors, Cusi said. Tokyo Gas, Osaka Gas, and many Chinese state-owned enterprises and private companies have expressed interest in the project, he said.

       The news says there is only one LNG receiving facility in the Philippines, and once it has been shut down and repaired, electricity prices will go through the roof. Alfonso Cusi, vice-chairman of the Philippine people's power party, has gone to Beijing and Tokyo this year to seek investment in the Philippines' power industry.

       Cusi says he plans to visit South Korea and Russia. He said the Malampaya oil and gas field was the only source of natural gas in the Philippines, but it is expected to dry up by 2024. The oil and gas field is now run by a consortium led by shell, which can meet 40% to 45% of Luzon's electricity needs. Luzon island accounts for two-thirds of the country's GDP.

       The LNG terminal is planned to temporarily import liquefied natural gas from abroad, while the Philippine government will actively promote the country's energy development. It is reported that the installed power plant of the receiving station will initially have a capacity of about 200MW and can be expanded to 800MW later. Cusi says it hopes to identify the corresponding investors this year.

       Mr Duterte wants to achieve 100% of the country's electricity rate before he leaves office in 2022. Cusi says it plans to restart a $2 billion nuclear plant on the Bataan peninsula. The project, which is located near the fault line, was launched in the 1970s by Ferdinand Marcos, the former President of the Philippines, but has never been run.