Energy World to launch LNG hub in March
Energy World Corp. of Australia expects to complete the first 200-megawatt unit of the 650-MW liquefied natural gas facility in Pagbilao, Quezon by March 2016.
Energy World said in an annual report filed with the Australia Securities Exchange the second 200-MW unit was expected to start commercial operation by June next year.
“The power plant will source regassified LNG from the company’s Philippines LNG hub when it is completed by early 2016. In the meantime, arrangements are being made to obtain LNG from a temporary floating storage unit,” it said.
Energy World earlier bared plans to construct the LNG facility in three phases, including 200-MW phase 1, 200-MW phase 2 and 250-megawatt phase 3.
The company said the estimate was considered in view of the current time frame. It said the schedule might change, subject to various risk factors.
Energy World said the project would become the first LNG terminal to become operational in the Philippines.
It said the LNG hub would be used to facilitate the distribution of LNG and natural gas, including receipt, storage and dispatch of LNG cargoes to four main markets, including the EWC plant, small-scale terminal, LNG and CNG for fuels and other markets in Asia Pacific.
“The availability of sales channels will be subject to our obtaining necessary licenses and approval, including export approval if we deiced to market the LNG outside of the Philippines,” Energy World said.
It said the location of the Energy World hub would facilitate the development of an Asian LNG spot market.
“However, we have not yet entered into any binding arrangements for the sale of LNG or gas from the Philippines hub,” Energy World said.
The company said construction at the site “continues at an impressive rate.”
“Generation site formation finished. The unloading jetty is substantially completed and unloading arms are installed,” Michael O’Neille, independent non-executive director and chairman of the audit committee of Energy World said.
He said two units for LNG regassification were installed and gas-fired turbine generators were erected and installed.
O’Neill said associated pipes, pumps, valves, controls of the Siemens power generator package were underway while support facilities, were all in place as part of the project requirements.
The directors of Energy World in March agreed on a mandate and term sheet with the Development Bank of the Philippines for project financing of LNG facility.
Energy World earlier said the value of the project debt was about $550 million. DBP will partially underwrite the financing and arrange for syndication among local lenders.