PH NEARING GOAL OF BECOMING LNG HUB IN ASIA

The Philippines may be closer to the government’s goal of emerging as an Asian hub for liquefied natural gas in the next several years as at least four groups are developing their respective LNG facilities in anticipation of waning output from the Malampaya production field.

Energy Secretary Alfonso Cusi said the Philippines had been intensifying its efforts to ensure energy security given the expected depletion of the Malampaya gas field by 2027.

Cusi was a speaker at the LNG Producer-consumer Conference 2020, held online on Oct. 12 and jointly hosted by the Japanese Ministry of Economy, Trade and Industry, and the Asia Pacific Energy Research Center.

“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,” Cusi told the forum.

He said the DOE has so far issued permits to three groups to proceed with their LNG terminal projects — Exalarate Energy, Batangas Clean Energy, Energy World (EWC), and the joint venture of First Gen and Tokyo Gas.

A fifth group, homegrown conglomerate San Miguel’s power generation platform, is also planning its own LNG terminal in Batangas, mainly for their own needs but also for expansion to third-party off-takers.

Of these project proponents, the most forward-looking appears to be Australian firm EWC, which envisions the LNG terminal it is building in Quezon province as providing foundation for the establishment of an Asian LNG spot market.

“We are optimistic that these developments signal the dawning of a vibrant Lngindustry in our country,” Cusi said.

“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 added.