Documents submitted to the Department of Environment and Natural Resources showed the proposed project would be built near the 1,200-megawatt Ilijan combined cycle power plant. Industry sources said Linseed’s partner is Atlantic Gulf & Pacific Company of Manila Inc., which earlier announced plans to develop an LNG terminal.
The company’s planned integrated LNG import terminal aims to serve the requirements of the nearby Ilijan power plant and future projects of SMC Global Power Holdings Corp., such as the 850-MW combined cycle power plant expansion.
SMCGP’s proposed 850-MW mid-merit plant is scheduled to start operations in 2022.
“Given the timelines/requirements associated with this project, the terminal shall first be designed to utilize onshore re-gasification, storage, utilities and balance of plant, supplemented with a floating storage unit,” Linseed said. The company is led by lawyer Herbert Hernane who serves as president.
The terminal off-shore components consist of structures to support berthing and mooring of the FSU and LNG carriers.
“The project is in line with this goal which is to supply clean and reliable liquefied natural gas to the adjacent Kepco Power Plant and to other industries [through future expansion]. In doing this, the Project will contribute to the national economy, improve the quality of life of the people and meet the projected need for power in the Luzon grid,” Linseed said in its report.
It said the Ilijan plant’s supply agreement with the Malampaya gas field would expire by June 2022.
“Linseed is targeting to commission this import facility by June 2022 so that the power plant can seamlessly secure supply and continue its operations thereafter. Therefore, the Project will contribute to the national economy, improve the quality of life of the people and meet the projected need for power in the Luzon grid,” it said.
Linseed said that without the proposed LNG terminal, the Ilijan power plant which supplies more than 10 percent of the 11,304MW capacity of the Luzon grid would have to try extending its supply agreement with Malampaya.
“This terminal therefore is an important component of securing almost 20 percent of the power demand of the entire Luzon Island. The continued operation of the Kepco Ilijan Gas Plant plays a crucial role in maintaining the country’s current power generation capacity even if Shell Philippines Exploration b.V. stops its supply of natural gas to the Power Plant when the Malampaya field nears the depletion of its gas reserve,” it said.
Linseed said the continuous operation of the Ilijan power plant and the 850-MW mid-merit expansion and the proposed LNG terminals would increase the employment and business opportunities available in Batangas.
“The project is also deemed to contribute to the local economy particularly of the host barangay―Ilijan and Batangas City through taxes, employment of more than 1,500 workers, social development programs and CSR projects,” it said.
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