MANILA, Philippines - Energy Secretary Alfonso Cusi has outlined the country’s liquefied natural gas (LNG) roadmap to Japanese investors to encourage investments in the sector.
Cusi, who is currently in Japan to attend the LNG Producer-Consumer Conference 2016, encouraged the international community to tighten partnerships in further developing and promoting the LNG industry, especially in the Philippines.
“As an emerging LNG market in Asia, my country, the Philippines can take advantage of the current period of oversupply and the relatively low prices of LNG,” he said.
As the country prepares for the depletion of the Malampaya gas field’s supply by mid-2020s, the energy chief laid down the natural gas project prospects in the country for the Japanese and other international investors to develop which includes LNG importation, off-grid or missionary islands conversion to natural gas power plants and even non-power applications, such as in transportation.
Currently, Malampaya provides 98 percent of its total production for power generation, supplying fuel to five natural gas plants in Batangas, namely Ilijan, Sta. Rita, San Lorenzo, San Gabriel and Avion with a total installed capacity of 3,211 megawatts (MW). These plants provide the electricity requirement of Luzon and the Visayas.
Cusi said the development of the country’s LNG sector would promote fuel diversification for energy stability and affordability.
“LNG can provide the demand from baseload, mid-merit and peaking requirements and can compete with other fuel sources that can address the least-cost optimal electricity from such demand centers,” he said.
Supported by the Ministry of Economy, Trade and Industry of Japan, the LNG Producer-Consumer Conference has been held every year since 2012 to further promote a shared understanding and cooperation between producers and consumers.
This year, it was co-hosted by the Asia-Pacific Energy Research Centre (APERC) with over 50 countries and regions participated, bringing together ministers, senior officials and relevant company executives from LNG producing-consuming countries.