SMALL SCALE LNG POWER GENERATION IN THE PHILIPPINES


Small-Scale-LNG-Power-Generation-in-the-Philippines

Over the last two decades, the possibility of LNG being introduced to the fuel mix of the Philippines has regularly emerged but never materialised. It seemed that energy security parameters, economics and the regulatory frameworks were finally not satisfying enough to justify such an introduction. However, recent developments tend to indicate that LNG arrival in the Philippines is now imminent. A strong evidence of that is that at the end of 2013, in order to be better informed and independent in their energy policy establishment, the Department of Energy (DoE) has commissioned a specific study carried out by The Lantau Group.

This study is financed by the World Bank and Australian Aid. Its objectives were to determine:

a) whether LNG would be beneficial or not for the Philippines if introduced in the energy mix?
b) if beneficial, for what application? and in which quantity?
c) what would be the best regulatory framework to make it benefit the Philippines people as much as possible?

Other evidences are the number of large LNG projects that various developers are already mentioning openly in their external communication. At the time of writing this article, these projects are at different development stage, going from basic feasibility studies (Shell, First Gen, Trans Asia…) to having external walls of LNG storage tanks being erected (EWC project).

In this paper, we will initially briefly describe the large LNG infrastructure development that is likely to soon see the light soon in Luzon. Then, we will essentially focus on discussing opportunities for small and medium scale LNG based power generation projects outside of Luzon that could emerge once the main LNG hub(s) in Luzon is(are) set up. This will lead us to describe and assess the commercial viability of a “satellite power plants” concept that could revolve around a central LNG storage facility.



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  Frederic Carron
   Regional Director, Sales, South East Asia &    Australia
   Wärtsilä Energy Solutions
   
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