A World Bank-funded technical study has identified a number of possible sites for an LNG floating storage and regasification unit to serve the island of Mindanao in the Philippines.
Macajalar Bay has edged ahead of Davao, General Santos, Iligan and northern Mindanao, said an official at the Department of Energy, which is leading the study.
The area is a government-favoured zone for development and is home to potential customers such as Japanese-owned Philippine Sinter Corporation.
The steel industry company is building its own coal-fired power plant but is said to favour a switch to using gas from LNG imports.
Mindanao needs to expand its power options. The island is dependent on hydroelectric generation but industrial consumers switch to back-up diesel sources during seasonal dry periods. It is also a typhoon area, however, and siting would likely be a key consideration for any FSRU.
The DoE team official said the next step is to develop a transactional framework for investors interested in participating in the project.
This could include carrying out a full feasibility study. Outline plans envisage the unit being operational in three years.
