Shell decides to proceed with LNG import terminal facility in Philippines

Pilipinas Shell announced that its parent company Royal Anglo Dutch Shell has decided to proceed to front-end engineering and design (FEED) for a liquefied natural gas (LNG) import facility in Batangas, Philippines.
The firm said this announcement marks an important milestone for the project and for the Philippines, as Shell commits to undertake the full scope and definition for the development of a floating storage and regasification unit (FSRU) in the country.
Edgar Chua, Chairman of Shell Companies in the Philippines said, “With its global experience in project delivery and over 50 years experience in LNG, Shell is ideally placed to successfully deliver this important project for the Philippines. We look forward to successfully implementing the first floating storage and regasification unit in the Philippines. This will help enable continued gas supply into the future, beyond the life of the Malampaya asset.”
The decision to move into FEED comes one year after the signing of the memorandum of understanding (MOU) between the Philippine Department of Energy and Shell.
Part of the MOU called for Shell to conduct a technical feasibility study for the development, construction and operation of an LNG import and regasification terminal adjacent to the Shell refinery in Batangas City. The feasibility study considered several options and indicated FSRU as the preferred option at this stage. The 170,000 cubic meter FSRU will have an annual capacity of approximately 4 million tons per annum (mtpa), with additional significant peak send-out flexibility.
FEED will be carried out by Shell’s Technology Center Bangalore, which delivers advanced technical studies, projects and services for Shell around the world.