DOE inspects LNG sites that have gotten NTPs

By Lenie Lectura -December 13, 2019
from Business Mirror

THE Department of Energy (DOE) on Thursday inspected the LNG (liquefied natural gas) sites that have been issued a Notice to Proceed (NTP) by the agency.

The agency said the inspection was “part of the agency’s monitoring activities on the developments so far undertaken by the projects’ proponents.”

The DOE-Oil Industry Management Bureau’s (OIMB) Natural Gas Division conducted site and aerial inspections of various proposed integrated receiving terminals of LNG, the DOE’s Facebook page stated.

Among the sites visited are Tanglawan Philippine LNG Inc.’s Site No.1 (AG&P, Buan, Batangas), proposed sites for Excelerate Energy’s West and East Floating Storage Regasification Units and First Gen Corp.’s LNG site in the First Gen Clean Energy Complex in Batangas.

DOE Undersecretary Donato Marcos led the inspection team composed of members from the DOE-OIMB’s Philippine Downstream Natural Gas Industry Regulation contingent.

The DOE has yet to release its inspection report, saying it has yet to collate all assessment made on the sites. Thereafter, a report will be submitted to Energy Secretary Alfonso Cusi.

Tanglawan is a joint venture between Dennis Uy-led Phoenix Petroleum and China’s largest LNG importer and terminal operator, China National Offshore Oil Corp. (CNOOC) Gas and Power Group Co. Ltd. It received its NTP from the DOE on December 21, 2018.

The NTP was later renewed for another six months.

Lopez-led First Gen Corp.’s NTP took effect on March 7, 2019. FGen LNG Corp., a subsidiary of First Gen, is the project proponent of the LNG terminal.

US-based firm Excelerate Energy LP was issued the green light to proceed with the development of an LNG floating storage and regasification facility in Batangas. The DOE issued an NTP on September 20, 2019.

The NTP is valid for six months only. It may be extended for another six months subject to DOE’s evaluation.

Within six months from the issuance of the NTP, the LNG firms must comply with the Permit to Construct (PTC) requirements—the submission of permits from various government agencies and endorsements from local government units. They are also required to submit to the DOE the proof of financial closing.

Subsequently, the DOE will issue the PTC authorizing the actual construction of the LNG facility, in accordance with the Department Circular 2017-11-0012, or the “Rules and Regulations Governing the Philippine Downstream Natural Gas Industry,” upon compliance with the PTC requirements.