Pagbilao Grande Island LNG Terminal

From Global Energy Monitor
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Pagbilao Grande Island LNG Terminal, also known as Quezon LNG and P9B Terminal, is a proposed LNG terminal in Quezon province, Philippines.

Location

The terminal is planned for Pagbilao Grande Island in Quezon province

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Project Details

  • Owner: Pagbilao Grande LNG Terminal
  • Parent: Energy World Corporation[1]
  • Location: Pagbilao Grande Island, Quezon province, Philippines[2]
  • Coordinates: 13.892078,121.755912 (exact)
  • Capacity: 3 mtpa[3]
  • Cost:
  • Financing: US$150 million loan facility from the Philippines Development Bank, Landbank of the Philippines, and the Asia United Bank[4]
  • Status: Construction[5]
  • Type: Import[1]
  • Start Year: 2022[2]

Note: mtpa = million tonnes per year; bcfd = billion cubic feet per day

Background

The Energy World Corporation of Hong Kong is planning a regasification terminal on Grande Island in Pagbilao, Luzon. They intend to build a 1.5 mmtpa onshore regasification terminal in the first phase with expansion plans to double the capacity in the second phase.[1]

Energy World received a permit for the terminal in 2011, which was extended in 2015. Initial construction work has begun, according to Energy World. Plans include a gas plant at the site.[6]

After several years of delays the project was again permitted for construction by the Philippine Department of Energy in January 2019.[7]

The 3 MTPA Pagbilao LNG terminal is being developed by Energy World Corporation in Quezon Province. The terminal would be connected to a 650 MW gas-fired power plant. The project could start operations by 2022,[3] though it has also been reported that 2024 may be the start date due to ongoing delays being experienced by Energy World with Philippine regulators. As of the end of 2020, the terminal construction was reported to be 90 percent complete.[5]

Financing

Following Energy World Corporation's agreement in September 2015 Philippines Development Bank, Landbank of the Philippines, and the Asia United Bank for a PHP6.75 billion (US$150 million equivalent) loan facility, the company has been unable to draw down the loan due to its long-standing failure to connect the associated gas plant to the main Luzon grid. Drawdown of the loan is contingent on Energy World meeting 49 conditions, of which 48 have been achieved. Grid connection is the last precedent that Energy World Corporation must complete before accessing the loan. As a result of repeated delays, Energy World Corporation has lost money and investor confidence. Its stock price, listed on the Australian Stock Exchange, has plummeted from over 40 cents per share in July 2017 to below 9 cents in January 2021.[4]

Articles and resources

References

  1. 1.0 1.1 1.2 Pagbilao - LNG regas terminal, Wood Mackenzie, July 2014
  2. 2.0 2.1 DOE eyeing P65 billion in LNG projects' investments Manila Bulletin, August 26, 2020
  3. 3.0 3.1 GIIGNL 2021 Annual Report, accessed May 5, 2021
  4. 4.0 4.1 Sam Reynolds, No Guaranteed Future for Imported Gas in the Philippines, Institute for Energy Economics and Financial Analysis, May 2021
  5. 5.0 5.1 Val A. Villanueva, Is the government serious in having ‘green’ power in our energy mix?, Business Mirror, Dec. 30, 2020
  6. Appendix 4D: Energy World Corporation Ltd and Controlled Entities, ASX.com, 30 June 2015
  7. DOE approves Energy World Corp’s LNG facility in Quezon, PhilStar, Jan. 4, 2019

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External resources

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