• The Philippines will take delivery of its first imported LNG supply in mid-April to fuel its 1,200MW Ilijan power plant
• The LNG was shipped recently by Vitol Asia Pte from its global LNG portfolio on Das Island, UAE
• The Philippines has begun importing LNG amid falling output from its Malampaya-Camago 1 natural gas field off Batangas and after Asian spot LNG prices slid from all-time highs in 2022
The Philippines will take delivery of its first liquefied natural gas (LNG) import in mid-April to fuel its 1,200 megawatt (MW) Ilijan power plant, according to supplier Vitol Asia Pte Ltd, a supply and trading unit of Vitol Group.
Vitol Asia will supply the LNG cargo to San Miguel Global Power, which is expected to significantly augment the net dependable power generation capacity of the country in the face of rapidly increasing post-pandemic demand.
Vitol loaded the LNG cargo a few days ago on the 161,900-cubic-meter LNG vessel Golar Glacier from its global LNG portfolio on Das Island, United Arab Emirates, under a long-term contract by its partner ADNOC.
“We are pleased and excited to have worked closely with our partner San Miguel Global Power on this historic and first LNG cargo into the Philippines. This is a significant milestone and we look forward to bringing more LNG supply from around the world to meet the rising gas demand of the Philippines,” said Mike Muller, president of Vitol Asia.
Muller did not disclose the volume and price of the LNG shipment.
The Philippines has turned to importing LNG amid declining output from its Malampaya-Camago 1 natural gas field off Batangas province, about 65 kilometers northwest of Palawan on the West Philippine Sea.
The purchase comes after spot LNG prices in Asia fell sharply from all-time highs last year, when Russia cut gas supplies to Europe at the outbreak of the Ukraine war and sparked a flurry of purchases by European nations, according to a Reuters report.
The news agency said the Philippines became the newest LNG buyer in Asia as it seeks alternative fuel for its existing gas-fired power plants that are producing more than 3,000 MW, including San Miguel Global’s 1,200-MW Ilijan power plant in Batangas.
San Miguel Global is one of the largest power companies in the Philippines, accounting for 10-12% of the dependable capacity of Luzon Island.
Last December, the power arm of parent San Miguel Corp. offered the capacity of the Ilijan power plant to Manila Electric Co., said reports in Manila quoting SMC president Ramon S. Ang.
Ang said the offer covers the full 1,200MW capacity of the Ilijan plant and will cost Meralco only a minimal P1 per kilowatt hour in capital recovery fee, “or half of its capital cost on the facility.”
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