By Angelica Y. Yang, Reporter
ATLANTIC Gulf and Pacific Co. (AG&P) has entered the second quarter with five construction contracts in the Philippines worth $550 million, including a project to build a liquefied natural gas (LNG) terminal in Batangas province, a company official said.
Alex P. Gamboa, AG&P senior vice-president for business development, said the amount is part of a record backlog of contracted projects worth more than $700 million, including those in India and the US.
“The 770 million [dollars] will be realized in terms of revenue in the next two to three years,” he told BusinessWorld in a phone call on Wednesday. “A big chunk of the amount will go to five projects in the Philippines and four projects abroad.”
Aside from the LNG terminal in Batangas, AG&P’s construction projects in the Philippines are an edible oil depot, a petrochemical complex, a modularized oil refinery, and an LNG bunkering vessel.
AG&P develops and runs LNG and gas logistics and distribution solutions globally. It owns and operates a 100-hectare heavy fabrication and assembly yard on Batangas Bay.
Mr. Gamboa said the remaining $200-million worth of contracted projects are three floating storage and regasification units (FSRU), which will be used for the Asian market, and a project in the US that will involve sending workers from the Philippines to the US.
AG&P Chairman Augusto Gan was quoted as saying in a press release on Wednesday that the firm’s construction business is projected to have its “best year” in its 121-year history, owing to its total contracted backlog.
“It is a groundbreaking year for AG&P as it participates in critical infrastructure projects particularly in Asia-Pacific, that will accelerate commercial development, create jobs, clean air, and trigger overall economic and social progress,” he said.
AG&P said that it expects to secure additional projects in the LNG and power sectors this year. It holds a “notice to proceed” from the Philippines’ Department of Energy for a floating storage unit and onshore gasification terminal.
“AG&P is awaiting approval of its ECC (environmental compliance certificate) and permit to construct, but preparations for the LNG terminal including engineering and procurement activities have commenced,” Mr. Gamboa said.