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Shell selects FSRU concept for Philippines LNG import terminal

Shell Batangas LNG project to go to FEED stage

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe Royal Dutch Shell Plc (Shell) is moving on the front end engineering and design (FEED) stage on the Batangas LNG import terminal project in Philippines.

Working on this project for some years, Shell completed the feasibility study to build a floating storage and regasification unit (FSRU) to import liquefied natural gas (LNG) in Philippines.

Shell_Batangas_LNG_FSRU_Project_MapThis FSRU should be moored close to the existing Tabangao Refinery, in the Batangas Province, in the Philippines.

As a result of this feasibility study, Shell selected the FSRU concept as it appeared as the most costs effective to install the first LNG import terminal in Philippines.

To save time and costs Shell and the Philippines Ministry of Energy are considering to convert an LNG carrier into this Tabangao FSRU.

This FEED work should take 12 months as to lead to a final investment decision (FID) on mid 2014.

After completing the feasibility study, Shell is planning to work on the FEED of the Batangas LNG project from its own technology center in Bangalore in India.

Then the execution of the project may depend on the time for Shell to find a LNG Carrier that could fit to be converted into the Tabangao FSRU.

Shell Tabangao FSRU to supply new-build power plant

Shell and the Philippines Ministry of Energy selected the site of the Tabangao refinery to add the FSRU as it allows an easy access for the offloading LNG carriers and it holds space enough to add a greenfield power plant.

Shell_Tabangoa_Refinery_LNG_TerminalFrom the feasibility study, the FSRU is to be designed at the FEED stage with a capacity of 170,000 cubic meters of LNG.

Since a LNG carrier is already equipped with most of the installation to load, maintain and regasify LNG, the modifications of an existing vessel into the Tabangao FSRU should take only two years after the FID, so that the Batangas LNG project should run into commercial operations by second half 2016 or first half 2017.

In addition to the technical aspects, Shell is expecting to give a more accurate costs calculation of the Batangas LNG project currently estimated to $1 billion capital expenditure including the:

Shell_Batangas_LNG_FSRU_Project – Acquisition of the LNG carrier

 – Conversion into the FSRU

 – Connection to shore

 – Onshore facilities

Last year Shell and the local utility company Meralco signed a memorandum of understanding (MOU) to build and operate a gas-fired combined cycle power generation plant at the Tabangao refinery.

To be fed by the Batangas LNG project, the Tabangao Power Plant Project should have a capacity of 2,000 MW.

In parallel, Shelland the Philippines Ministry of Energy are working on a gas pipeline project to connect the Batangas LNG import terminal to Manilla.

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