Shell to build 2nd Philippines' LNG facility in 2 to 3 years, then BG Group and Korea Western Power

Royal Dutch Shell aims to build the Philippines' first liquefied natural gas (LNG) import terminal in the next two to three years, as Asia's fastest-growing economy seeks to diversify its energy sources to meet robust demand.

The terminal will be a floating facility near Shell's Tabangao refinery in Batangas province, one of only two refineries in the Philippines.

"We could make a final investment decision within the next 12 months," Mr. Roger Bounds, Vice President Global LNG at Shell, said at a media briefing. He declined to give any figures for the investment or other details of the project.

Shell's new terminal would add the Philippines to a growing number of Southeast Asian nations, including Thailand, Indonesia, Malaysia and Singapore, who have come to the market in recent years, and will have to compete for supplies with larger, established LNG buyers like Japan.

Southeast Asia's LNG demand is expected to more than double to 20 million tonnes by the end of the decade from around 9 million tonnes in 2015, according to PFC Energy analysts.

A final decision for Shell to invest in the Philippines project would depend on regulatory approvals and off-take agreements that the company can sign.

Global trade in LNG will grow by nearly a third by 2018, with supplies from the United States and Australia reversing a shortage expected over the next two years, according to the International Energy Agency.

The Philippines, whose economy grew 7.8 per cent year-on-year in the first quarter, imports almost all of its fuel requirements. Several other companies, including BG Group and Korea Western Power, have also proposed LNG receiving terminals in the Philippines, but have yet to finalize development plans.

REUTERS / Today Online

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President Aquino wants clogged drainage systems by “street-vendors” probed

President Aquino wants to get to the bottom of the recent massive flooding in Metro Manila.

The President has ordered the Department of the Interior and Local Government (DILG) and the PNP to look into allegations that vandals deliberately clog Metro Manila's drainage systems to make money out of stranded commuters and motorists.

It is common in Metro Manila during rainy seasons that the "tulak boys" and their linked street vendors will provide long bench and chairs as bridges for stranded commuters to cross the streets with a service charge of not less than ₱5.00 peso per person.

Caught on the act

One of the "team members" of the Rebuilding for the Better Philippines witnessed the act of actual clogging of the waterway passage to the drainage using plastics and mixed of garbage by the "street vendors" in Pedro Gil LRT Station.

Other street vendors were also asked if such activity which was witnessed by one of our team is common in Pedro Gil Station and some of them admitted that the boys make used to it before the rain will fall to make money out of stranded commuters.

"Wala namang magagawa ang mga pasaherong gustong tumawid pag mataas ang tubig kundi tumulay d'yan sa ginagawa nila, lalo na yung galing Robinson ay dito rin dadaan at tatawid kaya nakakatulong na rin yung pinagdugtong-dugtong na upuan para maka tawid sila" an old woman street vendor said.

Aquino also asked the justice department to find out how some establishments were able to secure titles for properties built along waterways.

He also wants a comprehensive report on Public Works and Highways Secretary Rogelio Singson's revelation that some local officials postponed the relocation of informal settlers during the elections to get more votes.

On ANC, Valenzuela Mayor Sherwin Gatchalian admitted this is a political reality.

With report from RFTBP & ABS-CBN News

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