Gov’t hikes share of natural gas in energy mix

MANILA, Philippines - The Philippines is increasing the share of natural gas in the energy mix through intensified investment promotion activities in the construction and operation of strategic natural gas infrastructure, a ranking official of the Department of Energy (DOE) said.

Energy Undersecretary Loreta Ayson, in a recent meeting on energy trade and investment focusing on liquefied natural gas (LNG) during the 11th APEC Ministerial Meeting in China, said the Philippines is continuously working to develop its own LNG industry.

“We are focusing our efforts in expanding green energy sources in the total energy supply of the country; one of which includes the establishment of an expanded natural gas use in different parts of the Philippines and increasing the share of natural gas in the energy mix through intensified investment promotion activities in the construction and operation of strategic natural gas infrastructure projects such as pipelines and LNG terminals,” she said.

In the case of the Philippines, she said the government must partner with the private sector in building infrastructure such as natural gas pipelines.

“Considering the huge investment required, we need partners in the development and exploration of our natural resources and infusion of the required capital investments,” Ayson said.

During the meeting, Asia Pacific Economic Cooperation member countries highlighted the Beijing Declaration under the theme “Joining Hands Toward Sustainable Energy Development in the Asia-Pacific Region.”

The Declaration emphasized the importance of cooperation among member economies of APEC in responding to the twin challenges of energy security and sustainable development. Underlying these challenges are the use of clean energy, facilitation of energy investment and trade and the promotion of energy efficiency, the DOE said.

APEC member countries agreed to strengthen mechanisms to improve interconnectivity arrangements in the region by promoting infrastructure development that include trans-border oil and gas networks, power grids, LNG terminals, smart grids and distributed energy systems.

“Acknowledging the emergence of LNG in the global and regional fuel mix, the ministers instructed the Energy Working Group to launch the APEC LNG Trade Facilitation Initiative which will encourage dialogue, develop public-private partnerships and support LNG market-based pricing mechanisms to boost the creation of robust APEC natural gas markets,” the DOE added.

Ayson said member economies reaffirmed the importance of deploying and applying highly efficient technologies in coal-fired power plants and the pursuit of scientific solutions to mitigate environmental impacts of non-conventional oil and gas development.

The use of clean energy remains a priority among APEC member economies subscribing to the aspirational goal of “doubling the share of renewables in the APEC energy mix, including on the power generation, from 2010 levels by 2030,” she also said.

LNG is natural gas that has been converted into liquid for ease of storage or transport.

Numerous power players have already expressed interest in developing LNG terminals around the country.

Pilipinas Shell Petroleum Corp., for instance, wants to build an LNG regasification terminal beside its refinery in Batangas with an estimated cost of $1 billion.

Lopez-led First Gen Corp., meanwhile, is developing up to 1,300 megawatts of power generation capacity fueled by natural gas from its facility in Batangas

The DOE is currently crafting an LNG masterplan to guide investments in the sector and attract LNG players in the country.