LNGPH Plans ₱6-Billion LNG Storage Expansion in Batangas

 

LNGPH is preparing a ₱6-billion investment to strengthen the Philippines’ natural gas supply infrastructure, with plans to build a third onshore liquefied natural gas (LNG) storage tank at its Ilijan facility in Batangas.

The proposed project would add between 100,000 and 180,000 cubic meters of storage capacity, potentially allowing the company to hold enough LNG to cover up to 18 days of supply. LNGPH President and CEO Yari Miralao said construction could take between 36 and 42 months once the project moves forward.

The expansion reflects the company’s consideration of a more permanent, land-based storage system to reduce its reliance on floating storage and regasification units (FSRUs). LNGPH is currently evaluating the next steps for the project as it considers how best to secure fuel supplies for its power generation operations.

Two onshore LNG tanks have already been commissioned at the Ilijan facility, each with a capacity of 60,000 cubic meters. These are the country’s first large-scale onshore LNG storage facilities, with each tank capable of holding approximately five and a half days of supply.

LNGPH also charters a floating storage unit from Abu Dhabi National Oil Company (ADNOC), the United Arab Emirates’ state-owned energy company. The vessel can accommodate roughly 12 days’ worth of LNG stocks.

Adding a third onshore tank would significantly expand the company’s fuel reserves, with LNGPH targeting total storage capacity equivalent to more than a month of supply. Greater storage flexibility could help the company manage procurement schedules and maintain fuel availability amid changing market conditions.

The investment carries broader implications for the Philippine power sector. LNGPH operates gas-fired power plants in Batangas with a combined generating capacity of at least 2,500 megawatts, accounting for approximately 18 percent of Luzon’s electricity demand, according to the company’s latest data. Maintaining reliable access to natural gas is therefore important to the operations of a substantial portion of the region’s power supply.

LNGPH is a joint venture involving Meralco PowerGen Corp., owned by Manuel V. Pangilinan’s group; Therma Natgas Power Inc., under the Aboitiz group led by Sabin Aboitiz; and San Miguel Global Power Holdings Corp., led by Ramon Ang.

Beyond storage expansion, the company is also positioned to participate in the country’s efforts to develop additional natural gas-fired generation capacity. Excellent Energy Resources Inc., an LNGPH subsidiary, is among 10 companies that have passed the pre-qualification stage for the Philippines’ first mid-merit natural gas auction.

The auction seeks to attract 3.8 gigawatts of natural gas-fired power capacity, encouraging investment in plants that can respond to fluctuations in electricity demand.

Mid-merit power plants serve as an important link between baseload facilities, which provide steady electricity around the clock, and peaking plants, which are activated when demand surges. Their ability to adjust output helps balance the grid as consumption changes throughout the day.

For the Philippines, LNG storage and additional gas-fired generation could become increasingly important as electricity demand grows. LNGPH’s proposed investment would strengthen its own fuel infrastructure while supporting the wider role of natural gas in the country’s evolving energy mix.