McDermott International’s CB&I Storage Solutions will provide the engineering, procurement and construction (EPC) work for a second storage tank at Atlantic Gulf and Pacific Company’s (AG&P’s) liquefied natural gas (LNG) import and regasification terminal in the Philippines.
CB&I Storage Solutions was awarded the first LNG storage tank by AG&P earlier this year. The additional scope includes a 1,200 cubic meter shop-fabricated double wall LNG bullet and a second 60,000 cubic meter full containment steel LNG tank along with geotechnical investigation, soil improvement, foundation and topside platform structure, pre-commissioning, purging and commissioning activities.
“We value the confidence that AG&P has in our organisation to award us this additional scope of work,” said Cesar Canals, Senior Vice President of CB&I Storage Solutions. “Our fabrication facility in Thailand specialises in the production of prefabricated storage solutions and will build the LNG bullet for delivery to Batangas. We believe there’s no better team in the world with the experience, expertise and local resources to execute this high-profile project.”
Mechanical completion is slated for the first quarter of 2022 for the LNG bullet and second quarter of 2024 for the second tank with purging and commissioning activities to follow, McDermott said in a statement yesterday.
Five proposed LNG import projects
The Philippines has a total of five proposed LNG import projects with total regasification capacity of 16.2 million t/y – all projected to be online from 2024, Ole Hvalbye, an analyst at consultancy Rystad Energy told Energy Voice earlier this year.
But not all of these projects will be developed as the proposed capacity exceeds expected demand, warned Hvalbye.
LNG import projects proposed by First Gen and AG&P appear to have the upper hand over competing projects as both developers have long-term agreements to supply existing power plants and are close to final investment approvals.