Philippines eyeing natural gas tie-up with Norway

Speaking at the 2024 Norway-Philippines LNG Summit on Monday, Energy Secretary Raphael Lotilla said Norway, which has a huge interest in shipping, is a “natural ally of the Philippines for biofuels.”
Department of Energy

MANILA, Philippines — The Philippines is pursuing a partnership with Norway to unlock the potential of natural gas in sectors beyond power generation, including logistics and aviation.

Speaking at the 2024 Norway-Philippines LNG Summit on Monday, Energy Secretary Raphael Lotilla said Norway, which has a huge interest in shipping, is a “natural ally of the Philippines for biofuels.”

“There is a strong interest on their part for not only sustainable aviation fuel (SAF) but also for cleaner fuel for shipping. That is an important area where Norway and the Philippines can do business and research together,” Lotilla said.

SAF is an environmentally friendly alternative to fossil-based jet fuel that can be produced from plants and used oil feedstock such as agriculture wastes.

Lotilla also lauded Norway for its willingness to share its expertise in managing energy resources, particularly oil and gas projects in the North Sea.

“Norway has shown us that the responsible management of natural resources requires clear regulations, prudent fiscal policies and a commitment to continuously upgrading the skills of our workforce,” he said.

As the country navigates toward its energy transition journey, the secretary also underscored the crucial role of liquefied natural gas (LNG) in ensuring energy security.

As a transition fuel, LNG is essential not only for maintaining reliable power generation but also for complementing renewable energy sources like solar and wind, he said.

For instance, solar panels only generate electricity when the sun is shining, while wind turbines only operate when there is sufficient wind.

“It is a key element in our energy mix as we strive for a cleaner, more sustainable energy future and enhanced energy security through the diversification of fuels and sourcing from different countries,” Lotilla said.

With two LNG terminals in Batangas Bay nearing full commercial operations, Lotilla is optimistic about the prospects of gas-fired power plants.

Once fully operational, the LNG terminals are expected to have a combined capacity of eight million tons annually, providing a robust and flexible energy solution for the country’s growing power demand.

In the short term, the Department of Energy expects power demand to increase by six percent annually until 2028.

By 2050, the Energy department projects the country’s peak demand to reach 68.5 gigawatts, a threefold increase from the 16.6 GW recorded in 2022.

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