A BROWN Co. Inc. (ABCI) on Friday announced that one of its power generation units, Vires Energy Corp. (VEC), will no longer proceed with its plan to build a liquefied natural gas (LNG) terminal and regasification facility in Batangas.
In a disclosure to the Philippine Stock Exchange on the same day, ABCI said it has informed the Department of Energy of VEC’s withdrawal of a Notice to Proceed, issued in 2021, to build an LNG facility in Barangay Simlong, Batangas City.
ABCI explained VEC has instead decided to adopt the Third-Party Access (TPA) model, or the purchase of gas from third-party sources through long-term supply agreements, in light of recent industry developments.
“The TPA model will give the optimal approach for the VEC project to move forward,” ABCI said. “Moreover, this model will leverage existing gas infrastructure in the Batangas area to support the development of new power plants while shortening the time when power generation can happen, since VEC will no longer need to construct an LNG terminal.”
The change in plan includes the predevelopment of two 450-megawatt LNG combined-cycle power plants.
This will be constructed on a 15-hectare onshore site to replace the initially proposed floating power plant design.
ABCI clarified VEC’s withdrawal of the NTP will not prejudice the LNG project, but will be a step forward on the development of the cycled power plant.
VEC is said to be evaluating the best way to connect to the existing gas pipelines to access gas from third-party LNG terminals and indigenous gas supply from the Malampaya gas fields.
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