DoE’s Cusi touts ASEAN’s energy investment potential

THE member states of the Association of Southeast Asian Nations (ASEAN) are attractive destinations for energy investment due to the region’s growth potential and efforts to introduce competitive policies, the Philippine energy secretary said.

“We welcome your expertise, your experience as well as your investments to help power growth in this region. My message is simple: ASEAN is the right place for you to invest,” Alfonso G. Cusi, Secretary of the Department of Energy (DoE), which is hosting this year’s 35th ASEAN Ministers on Energy Meeting at the Conrad Hotel in Pasay City.

“Not only because of our growth potential, but also because of our efforts to make our region the primary investment destination for foreign investors. This is especially true here in the Philippines, where we intend to fulfill our side of the deal,” he said.

Mr. Cusi pointed to the Philippines’ track record, which he said speaks for itself in coming up with an open and transparent market.

“And we’ve always looked to introduce policies to create a regulatory environment that is conducive and supportive to both regional and global investors,” he said, citing in particular Executive Order No. 30, which will identify a project as one of national significance and hasten the approval process.

“No longer will it take up to three years for an agency to respond to a proposal for a project. Instead, these agencies must act on a proposal within 30 days, failing which, the proposal is deemed approved,” he said.

Mr. Cusi said the rest of ASEAN member states are going in the same direction as they seek pull in much needed investments. He also said “old friends” like Australia, China, Japan, South Korea, the United States and Russia should invest at a time when the “global energy landscape” is facing emerging headwinds.

“If ever there was a right time to invest in energy in ASEAN, it is now,” he said.

He highlighted two “notable trends” in the region that promise to change the way governments and businesses approach the energy sector. First, he said ASEAN is committed to a future of renewables, and second, the revolution in liquefied natural gas ( LNG), which he described as the bridging fuel in the short to medium-term.

Mr. Cusi said the region is actively developing renewable energy, noting that ASEAN managed to exceed its 2013 target 23% mix for the resource about 12 years ahead of the 2025 deadline. But while renewables are a sustainable source of energy, they also need to be commercially viable.

On natural gas, he said a “revolution” is being defined by three major developments — increasing demand from Asia; increasing supply from the rest of the world; and cheaper gas.

“In this region, these changes are already taking place, and at a fast pace. For starters, nowhere are the prospects higher for the demand of gas than in Asia. For the first half of this year alone, Chinese LNG imports jumped 38% from the same period in 2016. This thirst for gas is set to grow further,” he said.

Mr. Cusi said the region needs to think of how it can ride the “LNG wave” to safeguard its energy security.

“We’ve started doing just that in the Philippines. We’ve started with the rollout of the Batangas LNG Terminal by 2020 to safeguard against the anticipated depletion of the Malampaya gas facility in 2024,” he said.

“The buy-in is there. The investors are in. And we expect to commence groundbreaking of this project in 2018,” he added.

“These are great plans, yes. But these are plans that will cost money. It is now imperative on us to draw in more investments and expertise to ensure that we are prepared for this new future. Hence, I call on our friends from other countries to help us on this journey,” he said. —