PHL tells investors to place bet on liquefied natural gas
The Department of energy (DOE) told industry leaders that the country’s liquefied natural gas (LNG) sector is now ripe for investment.
Speaking before the 2nd LNG and Clean Energy Investment Summit, Energy Assistant Secretary Leonido J. Pulido III urged investors to take a look at the many LNG investment opportunities in the Philippines.
Pulido, who supervises the Natural Gas Management Division of the Oil Industry Management Bureau (NGMD-OIMB), said the agency is fast-tracking the development of the LNG industry and that it is now ripe for investment.
He presented an overview of the LNG Investment in the Philippines during the summit.
He said the Philippine natural gas sector essentially is all about the Malampaya Gas Power Project in the West Philippine Sea, which is being run by a consortium composed of Shell, Chevron, and the Philippine National Oil Company-exploration Corp. (PNOC-EC).
He pointed out that natural gas currently provides for 3,200 megawatts of electricity and accounts for 21.1 percent in the 2019 Gross Generation of the country. But in Luzon alone, natural gas’ contribution last year was at 29.3 percent.
“With Malampaya’s depletion estimated to occur in the next few years, there is an urgent need to attract more investments in the downstream LNG industry,” Pulido said.
As such, the DOE has approved the permits of 5 proposed LNG Regasification Terminal Projects targeted for operation from 2022 to 2025. These include 3 proponents, namely Excelerate Energy L.P., Batangas Clean Energy Inc., and Atlantic Gulf & Pacific Company of Manila, Inc. which were issued with a Notice to Proceed (NTP); and 2 proponents, namely FGEN LNG Corp. and Energy World Gas Operations Philippines Inc. both issued with Permit to Construct.
“The timely implementation of these proposed LNG projects shall facilitate for the entry of LNG in the country. We will also be attaining energy security for natural gas not only for power generation requirements, but also for other potential applications of natural gas in industrial, commercial, residential and transport sectors,” Pulido said.
He added that the Department Circular otherwise known as the “Rules and Regulations of the Philippine Downstream Natural Gas Industry,” together with Executive Order 30 on Energy Projects of National Significance and Republic Act 11032 or the Ease of Doing Business Act, have provided for the regulatory framework that is conducive to the entry of potential LNG proponents from private sector to assist the government in developing the natural gas industry in the country.
The DOE has been promoting the Philippines as a Liquefied Natural Gas hub that will ultimately serve not only the country’s energy needs, but also that of the Southeast Asian region as envisioned by Energy Secretary Alfonso G. Cusi.
The DOE official also called on the support of the participants who, he said, convened to address a common goal: expansion of the LNG and clean energy industries in the Philippines.