Philippines gives go-ahead for its first small-scale LNG terminal amid preparations for gas imports

The Philippines’ Department of Energy (DOE) has approved the country’s first small-scale liquefied natural gas (LNG) terminal as it prepares to launch the LNG industry this year.

The LNG terminal is being developed by Samat LNG Corporation, a company that was established in 2020 to develop, own and operate LNG import terminals together with the receiving, storage, distribution and wholesale marketing of LNG into the Philippines primarily to industrial and commercial customers for power supply and transportation fuel.  

According to the information on the developer’s website, Samat’s Mariveles LNG terminal will be the first small-scale LNG terminal in the Philippines. At the same time, it is the country’s seventh LNG project.

During the second quarter of 2022, Samat was seeking the necessary regulatory approvals and investment incentives to proceed with the development and construction of the Mariveles LNG Terminal together with the marine jetty, trucking operations and satellite installations and other related activities.

On 27 January 2023, the Philippine DOE said it issued a notice to proceed to Samat, allowing the company to move forward with the $67 million LNG import terminal.

The terminal is designed to handle approximately 200,000- 400,000 tonnes of LNG annually and will be located in Bataan province.

Other LNG import projects scheduled to commence operations this year include the first Philippines LNG import terminal (PHLNG) developed by Atlantic Gulf & Pacific (AG&P) and First Gen Corp.’s Batangas LNG terminal.

These projects are needed to maintain the supply of natural gas in the Philippines as the indigenous source, the Malampaya gas field in the South China Sea, is expected to be depleted by 2027.