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AG&P: Helping build stronger Philippine industry

AG&P Industrial Division, a manufacturing, Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) and Operations & Maintenance (O&M) leader, is pursuing projects that would help the Philippines bounce back strongly from the pandemic, usher in a greener economy and help fortify energy security in the country.

On the other hand, AG&P Energy Division develops owns and operates the downstream LNG / Natural Gas (NG) platform, including LNG regasification terminals, LNG-to-power integrated solutions, City Gas Distribution (CGD) and LNG bunkering which allows it to provide clean energy directly to its clientele.

Combined, AG&P is building infrastructure for sustainable growth of the Philippine economy and beyond.

Leading the industrial growth

In recent years, AG&P has been developing domestic infrastructure that will strengthen the industrial capability of the country as well as provide large-scale employment. “AG&P has a state-of-the-art manufacturing facility in the Philippines, which is a mini-city by itself wherein modules of various sizes (some thousands of tons) are ready for assembly at their clients’ project site. In the last three years, we have employed 8,000 people. Prior, we have sent over 12,000 people overseas and hired 11,000 domestically at our facility and are one of the largest employers in Batangas,” said Mr. Alex Gamboa, President, AG&P Industrial.

AG&P completed the expansion of the fully-integrated petrochemical complex of JG Summit, building the first fully-integrated petrochemical plant in the country; constructed major structures and mechanical components at Masinloc power plant; Petron lube blending plant; and the Shell North Mindanao import facility; the upgrade of the smelting facility of Glencore; and the modification of the Shell Malampaya offshore gas platform.

In addition, AG&P has delivered 30 modules to date from the Philippines to Thailand for its Sriracha Refinery under the Thai Oil Clean Fuel Project. Upon completion of this project, Sriracha’s refining capacity for high-value fuel products will increase from 275,000 to 400,000 barrels per day, while ensuring compliance to the new global fuel quality and emission standards.

AG&P has recently been engaged by Cemex Holding Philippines Inc.’s subsidiary – Solid Cement Corporation for its Solid K4 Expansion Project. A $235-million initiative, it involves the construction of a new integrated production line at Solid Cement’s plant in Antipolo, Rizal to increase annual capacity of blended cement by 1.5 million tons to 3.4 million tons. The target completion is by first quarter of 2024.

“We share CEMEX’s view on the growth of the construction industry and future need for increased cement production capacity to help develop and upgrade the country’s infrastructure for the Philippine economy to expand further,” said Mr. Gamboa.

Leading the energy transition

AG&P is proud to lead the global energy transition to cleaner fuels through their subsidiary GAS Entec, an energy advisory and technology firm, headquartered in Singapore with engineering offices in South Korea. The firm designs and builds cutting-edge floating and onshore LNG infrastructure powered by its proprietary plug-and-play products and advanced LNG technical solutions – bringing innovation to downstream LNG infrastructure and enabling the introduction and accelerated adoption of LNG to gas-starved demand centers. In the Philippines, AG&P is building the first Philippines LNG (PHLNG) Import Terminal of the country.

The Philippines LNG (PHLNG) Import Terminal in Ilijan, Batangas.

AG&P is spending PHP22 billion to complete the country’s first LNG import terminal, called PHLNG, within the second half of 2022 in Batangas. The PHLNG Import Terminal will initially have an annual capacity of 3 million tons of LNG.

“The Philippines LNG (PHLNG) Import Terminal in Batangas represents our contribution to enhancing energy security for the Philippines, specifically the Luzon grid,” said Mr. Gamboa.

He said the PHLNG is also envisaged to help Filipinos gain more experience and skills in the LNG industry that would help them get employed overseas, particularly in AG&P projects abroad. He said plans are afoot to link with universities and government agencies to realize this goal.

According to Mr. Gamboa, AG&P is also bidding for several projects in the energy transition and renewable energy space that when combined will generate several thousands of Megawatts needed in the future to sustain the growth of the economy; some light industry projects in the food and electronics sector; the manufacture of construction materials to reduce dependence on imports; and projects overseas that will increase production at its manufacturing facilities.

“We believe in the potential of the Philippines and the Filipinos. We are definitely interested in projects in the country that will leverage the experience and expertise we have gained abroad in building industrial infrastructure over the decades. We are also undertaking projects overseas that will use our facilities here, provide jobs for Filipinos and help increase dollar reserves for the country,” he said.

 

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