The Luzon LNG project is a proposed floating LNG import terminal, which will provide natural gas to gas-fired power plants serving the Luzon island


Image: The Luzon LNG project is a proposed floating LNG import terminal in the Bay of Batangas. Photo: courtesy of Carlo San/

Excelerate Energy has been given a notice from The Philippines’ Department of Energy (DOE) to move ahead with the Luzon LNG project, a floating liquefied natural gas (LNG) import terminal in the Bay of Batangas.

The Luzon LNG project will supply natural gas, sourced from LNG, to existing and new gas-fired power plants serving the Luzon island, which includes the area of Metro Manila.

Luzon LNG project to augment existing gas production from Malampaya fields

According to Excelerate, the rich and secure source of gas supply will augment the current gas production from the domestic Malampaya fields as reserves from the fields are starting to deplete.

Excelerate chief commercial officer Daniel Bustos said: “We are pleased to have received this significant approval from the Government of the Philippines in supporting the country’s long-term energy objectives – this is an important milestone to move the project forward.

“We look forward to working with the government and private sector for the successful completion of the project that will enable Excelerate to invest in critical infrastructure allowing the country to continue on its current path of tremendous economic growth.”

The Luzon LNG project will be constructed offshore Batangas to minimise the impact to the existing shipping traffic in the region and coastline. The proposed LNG import terminal will use Excelerate’s offshore technology, which is said to be designed specifically to operate in extreme weather conditions, like those of the Philippines.

Excelerate said that the Luzon LNG project will combine all the necessary elements to address the region’s natural gas requirements. Included in these are a fully-integrated turnkey floating LNG terminal, arrangement of the necessary supply of LNG, and distribution of natural gas to end-users in the Luzon region.

The US-based floating LNG regasification solutions provider will develop, design, permit, construct, finance, and also operate the Luzon LNG terminal.

With the NTP in place, Excelerate plans to pursue the required permits and also the financing needed for the floating LNG project in the Philippines.

Last year, Excelerate commissioned the Moheshkhali Floating LNG terminal – Bangladesh’s first ever liquefied natural gas (LNG) import facility, located offshore Moheshkhali Island in the Bay of Bengal.