Shell remains keen on LNG, renewables

MANILA, Philippines — The local unit of energy giant Royal Dutch Shell is pursuing liqufied natural gas (LNG) and renewable energy projects as part of the group’s global thrust to provide cleaner energy, its top official said.

The Shell group of companies continues to push for the use of LNG and renewables in areas where it is present to create lower CO2 opportunity, Pilipinas Shell Petroleum Corp. (PSPC) president and chief executive officer Cesar Romero said during the Asian Forum on Enterprise for Society (AFES) 2018.

On the homefront, Shell is in continuous discussion with government on LNG development.

“We’re very much in discussions with the [government]. We remain interested and very committed in working with the government,” Romero said.

The Shell group, through Shell Philippines Exploration B.V. (SPEX), is the operator of Malampaya deepwater gas-to-power project with a 45 percent interest.

Romero earlier said the project could still provide gas supply beyond the 2024 expiry of its contract, or until 2027 to 2029.

But it needs to resolve its tax issue with the Commission on Audit, which said the project has a tax deficiency of P53.14 billion.

For renewable energy, Romero said the company embarked on several access to energy programs in Puerto Princesa.

“We have three micro-grids in operation now. We are trying to learn how to scale this up, do this in a manner that’s sustainable economically, commercially, and also environmentally,” he said.

In total, PSPC has five micro-grids, of which two were recently completed, Shell program manager Marvi Rebueno-Trudeau said.

These include the Batak Village Micro-Grid Project in Puerto Princesa (1-kilowatt (kw) micro hydro turbine, 1-kw solar array, 3- and 7-kilovolt-amps (kva) diesel generator and a 2.8-kw hybrid inverter); Ligad Micro-Grid Project in El Nido (7.5-kw solar array, 5-kw wind turbine, 10-kva diesel generator); Binaluan Micro-Grid Project in Taytay (15-kw solar array, 5-kw wind turbine and 33-kva diesel generator); Decabaitot Island Micro-Grid Project in Linapacan (15-kw solar array, 3-kw wind turbine and 33-kva diesel generator); and Baras Micro-Grid Project in Taytay (15-kw solar array and 33kva diesel generator).

Shell also plans  plans to develop another micro-grid in one barangay in El Nido, Rebueno-Trudeau said.

The company will also launch a program capacitating the community by providing solar kiosk and  training for enterprise development, she said.

In May 2016, Royal Dutch Shell announced the establishment of a separate division, New Energies, to invest in renewables for a future beyond fossil fuels amid technological changes and climate change policies.

While the group pursues RE investments, Shell continues to be an oil and gas company.