Natural gas and LNG, best option for the Philippines
In the recent Powertrends/ ASEAN Energy Business Forum Panel (AEBF) discussion on Natural Gas and Liquefied Natural Gas (LNG) held at the SMX Convention Center, Jeff Edwards, General Manager for Global Gas and LNG Market Development for Shell, affirmed that no single energy source can fulfill the growing demand for energy in the ASEAN region. Natural gas and LNG, however, can offer one of the most stable options in terms of price when compared to other energy sources such as oil and coal.
“Harnessing natural gas offer some of the most viable options compared to utilizing oil and coal. For one, natural gas reduces healthcare costs and the impact of climate change. It’s the cleanest-burning fossil fuel, emitting as much as 50 percent less carbon dioxide than coal, and has negligible emissions of sulfur dioxide, nitrogen oxides, mercury, and particulates,” explained Edwards. He adds that Shell is testing its businesses to prepare for a decarbonized, energy efficient world.
Shell expects global demand for gas to increase by 2% a year between 2015 and 2030. LNG is set to rise at twice that rate at 4% to 5%. In 2010, there was an average of 10 countries importing natural gas. Today, there are around 50 countries importing natural gas.
Between 2014 and 2020, the size of the global LNG market is expected to grow by 50%, mainly from LNG facilities already under construction or just recently completed.
In the Philippines, Edwards observed that the country historically has a good balance of energy resources. The country was actually ahead than most of the world in utilizing geothermal and hydrothermal energy.
The Malampaya Deep Water Gas-to-Power Project in Palawan which Shell currently operates supplies 3,200 megawatts generated from cleaner-burning natural gas. The same helps fuel 20 per cent of the country’s electricity needs while helping reduce the country’s dependence on oil imports. However, the Malampaya Deep Water Gas-to-Power Project is also expected to reduce production by 2024.
Still according to him, the Philippines needs to make a large-scale discovery of natural gas in order to replace the Shell-operated Malampaya project or start importing LNG. He added that governments should start developing new policies that recognize natural gas as being more economic versus coal. During the same forum, Edwards also expressed elation when he heard that officials of the Department of Energy in the Philippines were working to further promote natural gas and LNG market in the country.