Australian independent LNG developer Energy World Corporation said Wednesday it has signed a non-binding agreement with Canada's InterOil and Australia's Pacific LNG to develop an LNG import terminal in the Philippines, Platts reports.
EWC said in the statement that it has been awarded a permit to construct and operate an LNG hub terminal at Pagbilao Grande Island in Quezon province.
The company had said in January 2010 that it was planning to build a 1 million mt/year LNG terminal at Quezon, adding at the time that the facility could be ready in 1 1/2 to 2 years.
Under the agreement, InterOil and Pacific LNG will discuss taking stakes in the project, and the three companies will establish a gas services company to purchase, transmit, distribute and sell LNG or regasified LNG on a wholesale or retail basis to the Philippine market, EWS said.
The terminal would be located next to an existing power plant. It would include facilities for "unloading, storage, regasification and processing of LNG and/or regasified LNG of to 1 Bcf/day," the company said. If that volume refers to gas, it would be equal to around 7.5 million mt/year of LNG, far higher than the company's initial plan for a 1 million mt/year facility.
It added that the project would include the construction of a new gas-fired power plant, comprising two 150 MW units, at the site in two phases.
The company said that a "key basis for exploring the partnership" was that the power plant could be "the anchor buyer" for a proposed liquefaction project in Papua New Guinea, taking up to 500,000 mt/year of LNG.
Pacific LNG said in February that it and InterOil had signed a project funding and construction agreement with EWC on their plan to build a 3 million mt/year LNG plant in the Gulf of Province in Papua New Guinea. Under the agreement, EWC will receive 14.5% of the proceeds from LNG sales in return for fully funding the project.
The agreement is conditional on the project reaching final investment decision no later than December 31. Currently, the project schedule calls for an FID by June 30, with startup 30 months later, or around the end of 2013.
The current plan for the PNG plant calls for a first phase construction of a 2 million mt/year facility, with a second-phase expansion of 1 million mt/year.
InterOil CEO Phil Mulacek said in the statement Wednesday that the Philippines project has the "capacity to underpin the proposed PNG EWC LNG facility, assisting our progress toward a final investment decision for that facility."
The Philippines government has been pushing the development of LNG imports. In December, the Department of Energy's Secretary, Jose Rene D. Almendras, said the country was looking to LNG imports to lift power capacity to replace aging coal-fired facilities.
At the time, he said he had instructed the Philippines National Oil Corp., or PNOC, to partner a public sector company to import LNG.
In addition to EWC, local power company San Miguel Energy is considering investing up to $8 billion in the construction of LNG import facilities and integrated power projects, parent company San Miguel said in September 2010.
The Philippines does not import LNG currently.
EWC said in the statement that it has been awarded a permit to construct and operate an LNG hub terminal at Pagbilao Grande Island in Quezon province.
The company had said in January 2010 that it was planning to build a 1 million mt/year LNG terminal at Quezon, adding at the time that the facility could be ready in 1 1/2 to 2 years.
Under the agreement, InterOil and Pacific LNG will discuss taking stakes in the project, and the three companies will establish a gas services company to purchase, transmit, distribute and sell LNG or regasified LNG on a wholesale or retail basis to the Philippine market, EWS said.
The terminal would be located next to an existing power plant. It would include facilities for "unloading, storage, regasification and processing of LNG and/or regasified LNG of to 1 Bcf/day," the company said. If that volume refers to gas, it would be equal to around 7.5 million mt/year of LNG, far higher than the company's initial plan for a 1 million mt/year facility.
It added that the project would include the construction of a new gas-fired power plant, comprising two 150 MW units, at the site in two phases.
The company said that a "key basis for exploring the partnership" was that the power plant could be "the anchor buyer" for a proposed liquefaction project in Papua New Guinea, taking up to 500,000 mt/year of LNG.
Pacific LNG said in February that it and InterOil had signed a project funding and construction agreement with EWC on their plan to build a 3 million mt/year LNG plant in the Gulf of Province in Papua New Guinea. Under the agreement, EWC will receive 14.5% of the proceeds from LNG sales in return for fully funding the project.
The agreement is conditional on the project reaching final investment decision no later than December 31. Currently, the project schedule calls for an FID by June 30, with startup 30 months later, or around the end of 2013.
The current plan for the PNG plant calls for a first phase construction of a 2 million mt/year facility, with a second-phase expansion of 1 million mt/year.
InterOil CEO Phil Mulacek said in the statement Wednesday that the Philippines project has the "capacity to underpin the proposed PNG EWC LNG facility, assisting our progress toward a final investment decision for that facility."
The Philippines government has been pushing the development of LNG imports. In December, the Department of Energy's Secretary, Jose Rene D. Almendras, said the country was looking to LNG imports to lift power capacity to replace aging coal-fired facilities.
At the time, he said he had instructed the Philippines National Oil Corp., or PNOC, to partner a public sector company to import LNG.
In addition to EWC, local power company San Miguel Energy is considering investing up to $8 billion in the construction of LNG import facilities and integrated power projects, parent company San Miguel said in September 2010.
The Philippines does not import LNG currently.