HiLoad LNG has signed a technology licence agreement with Vires Energy for a Philippines-based receiving and regasification terminal, having completed a feasibility study last year. Vires has agreed a separate service contract to cover the project’s engineering and design work.
The Floating Regas Dock (FRD) claims to provide a competitive alternative to floating storage and regasification units (FSRUs) for smaller volumes. Sevan says HiLoad is talking to other interested parties based in Southeast Asia and Latin America.
Payment under the licence is subject to Manila-based Vires building and operating the regasification terminal. Construction should start this year.
HiLoad LNG is part of Sevan Marine, which owns a 95 per cent stake in the business and has acquired the rights to the proprietary technology for gas and LNG applications, and has developed solutions for offshore loading LNG and for LNG-receiving and regasification terminals.
Deputy chief executive Lars Ødeskaug said: “We believe there is a significant market for this solution, which provides clean gas as fuel for power plants and fills a niche in size below the more traditional FSRUs. We hope that the Vires contract is the first of many.”
The Philippines sees LNG as a solution to power shortages across the archipelago and plans to develop several terminals to import gas. Shell planned to develop a 4 million tonne a year (mta) FSRU-based terminal in Batangas but has put the project on hold.