UPDATE 1-Excelerate given go ahead for floating LNG terminal in Philippines

(Adds Philippine energy dept statement, project details,
background)
Sept 27 (Reuters) - U.S. liquefied natural gas (LNG) company
Excelerate Energy will proceed with its floating LNG import
terminal project, Luzon LNG, after receiving the go ahead from
the Philippines.
"Excelerate will develop, design, permit, construct,
finance, and operate the terminal," the company said after
reporting a notice to proceed from the Philippines government.
It will also arrange the supply of LNG to the terminal.
The facility, which will have a storage capacity of 150,000
cubic meters, will be set up in the Bay of Batangas on the main
island of Luzon, near power plants running on Malampaya natural
gas, the Philippines' Department of Energy (DOE) said on Friday.
"As proposed, by the third quarter of 2021 we are expecting
that Excelerate's FSRU LNG facility will commercially operate,"
Philippine Energy Secretary Alfonso Cusi said in a statement.
The Southeast Asian country will rely on imported natural
gas to feed some of its power plants currently running on its
Malampaya gas, which is expected to be depleted within the next
decade.
Within six months from the issuance of the notice to
proceed, Excelerate has to comply with permit requirements and
submit the proof of financial closing to the DOE.
The completion of construction and commissioning of the
facility will take around two years, from October 2019 to June
2021, the DOE said.
At least three other Philippine LNG projects are currently
in the pipeline: First Gen Corp's FGEN.PS venture with Tokyo
Gas Co Ltd 9531.T , Australia-listed Energy World Corp's
EWC.AX LNG hub project in Pagbilao province, and Phoenix
Petroleum Philippines Inc's PNX.PS LNG hub proposal.
Power producer First Gen said in May it had completed
"significant pre-development work" for its planned LNG terminal
to be built near its four Malampaya gas-fed power plants with a
combined capacity of 2,000 megawatts. Energy World was nearing completion of its Pagbilao project,
Managing Director and Chief Executive Stewart Elliott said in
May.
Phoenix last year won government approval to build a $2
billion LNG terminal, also in Batangas, with CNOOC Gas and
Power, a unit of CNOOC 0883.HK and China's largest LNG
importer and terminal operator, as one of its potential
partners. The DOE said SMC Global Power Holdings Corp, a unit of
Philippine conglomerate San Miguel Corp SMC.PS that operates a
1,200-MW power plant also running on Malampaya gas, has
expressed interest to become a customer of Excelerate. This,
however, could not immediately be verified.