How AG&P built the Philippine’s first LNG import facility

Its innovative solutions earned them two wins at the Asian Oil & Gas Awards.

Grappling with an impending power crisis, the Philippines recognised the need to introduce LNG into the country’s energy mix to address its energy requirements. In 2020, AG&P International Holdings Pte. Ltd. (AG&P) began discussions to build an LNG terminal in Ilijan, Batangas, to be known as the Philippines LNG Import Terminal or PHLNG. The terminal, at full capacity, will potentially provide gas to power plants supplying 20-30% of Luzon Island’s power.

In the relentless pursuit of cleaner and more sustainable energy solutions, the transition from traditional, polluting fuels to renewable alternatives was imperative. However, this transition is quite complex, considering the unique challenges and limitations associated with adopting sustainable technologies like hydrogen or fully renewable energy platforms in diverse geographic landscapes.

Recognising this complexity, AG&P, headquartered in Singapore, is playing a pivotal role in enabling this transition by making natural gas accessible in emerging Asian markets. They are a key developer and operator of downstream LNG (liquefied natural gas) and NG (natural gas) ecosystems, providing critical infrastructure to support the full value chain of clean fuel.

LNG stands out as a viable fuel alternative that promotes a decarbonised journey towards energy transition by significantly reducing greenhouse gas emissions. It reaffirms energy security and mobility from fuel sources whilst remaining a practical solution for cleaner and more cost-effective fuel. 

AG&P’s solution was to combine a floating storage unit and onshore storage with a patented modular regasification solution to supply gas to one of the largest power producers in the country, SMC Global Power (SMCGP). The AG&P-designed PHLNG terminal is set to have a capacity of 5 million metric tons per annum (MTPA), aiding SMCGP's gas-fired power plants, with a planned expansion to 3 GW in the next five to seven years.

In embracing the emergence of flexible, scalable, and modular regasification technology, making LNG a compelling option even for regions with small and fragmented pockets of energy requirements, AG&P utilises their majority-owned Korea-based engineering firm GAS Entec’s RegasTainer® technology for their terminal facility. This custom-designed feature optimises the overall design for cost-effectiveness and scalability, ensuring that the terminal can meet growing energy demands.

The company also designed a well-defined Process Block Flow Diagram that ensures a smooth transition from the LNG carrier to customer premises, showcasing meticulous planning and execution. AG&P furthers its efforts through the operations and maintenance of the terminal, ensuring operational efficiency, productivity, and safety. 

Advocating LNG Education

Understanding the importance of public education about LNG, AG&P hosted the first LNG 101 Information and Education Campaign (IEC). This initiative aimed to provide fundamental knowledge about LNG, its practical uses, and how it compares to other available energy sources in the country.

AG&P was also invited as a resource speaker during the 24th National Maritime Week Symposium organised by the Maritime Industry Authority (MARINA). This event provided an invaluable platform for educating various external stakeholders about the pivotal role that LNG projects play in advancing the marine industry’s sustainability. AG&P plans to conduct more IEC activities to create awareness about LNG's role in transitioning to cleaner energy and maintaining energy security.

Because of these achievements and initiatives, AG&P has been recognised for its outstanding achievements. The company received the Downstream Project of the Year - Singapore award and the LNG Project of the Year - Singapore award at the recently concluded Asian Oil & Gas Awards. These accolades underline AG&P's relentless pursuit of innovative solutions in the LNG sector.

AG&P's remarkable achievements are a testament to their dedication to advancing the accessibility and viability of LNG as a crucial component in the global shift towards cleaner and sustainable energy alternatives. The company’s efforts have not only impacted the Philippines but have set a benchmark for transformative change in the energy landscape. AG&P continues to drive innovation, making significant strides in revolutionising the LNG industry and propelling cleaner energy adoption worldwide.

The Asian Oil & Gas Awards is presented by Asian Power Magazine. To view the full list of winners, click here. If you want to join the 2024 awards programme and be acclaimed for your company's outstanding contributions and initiatives in the oil and gas sector in Asia, please contact Danica Avila at [email protected].