ENERGY Secretary Alfonso Cusi said importation of liquefied natural gas (LNG) remains the best option for the country to meet its future energy requirements.
Luzon will initially require 3.5 MTPA (million tonnes per annum) of LNG to feed the existing 3,200-megawatt (MW) gas-fired power plants. Cusi said it could import more for the other potential downstream merchants, such as the industrial and transport sectors.
“They say that the Malampaya supply can go as far as 2027, but it does not have enough gas for the further expansion needed to provide future natural gas requirements, particularly with the plan to expand application of LNG in the industrial, commercial, residential and transport sectors,” Cusi said on Tuesday.
“We have taken the first step to establishing our LNG regasification capacity to secure replacement fuel for Malampaya and augment our power supply capability,” he added.
Cusi was referring to the country’s LNG players who were issued notices to proceed with their proposed LNG terminal projects. These are Exalarate Energy, Batangas Clean Energy, Energy World Corporation and First Gen LNG Corporation, which has partnered with Tokyo Gas for their 5.26 MTPA interim floating and storage regasification unit.
“While the LNG industry in our country is still in its infancy stage, importation of LNG remains the best option for the Philippines at the moment to assure the country’s future energy requirements will be sufficiently met,” he said.
Importing LNG requires capital-intensive investment in large-scale terminals with regasification facilities. This, Cusi said, may initially push the challenge due to the limited market of LNG in the country at this time.
To address this, Cusi said the administration is fully committed to develop the full potential of the National Downstream National Gas Industry. “Hence, I’m hopeful that the newly published Philippine LNG investor’s guide which we are actively promoting will lead more investors into our downstream LNG industry. The DOE is committed to develop the Philippines as an LNG hub that can serve not only our energy needs but also that of the region,” said Cusi during the 9th LNG Producer-Consumer Conference.
The Philippines, he said, has been intensifying its efforts to ensure energy security with the expected depletion of the Malampaya gas field in the next few years. “Being at the forefront of the energy regulation in the country, the primary objective of the DOE is to ensure energy sustainability and sufficiency. We also recognize the recent urgent need to attract more investments in the downstream LNG industry in the country,” added the energy chief.