Clear policy signals

BARCELONA – The latest catastrophe that befell our country as super typhoon “Ompong” hit is again a sad testimonial of the dire consequences of ignoring the challenges of climate change. This should prod a re-thinking on the part of President Rodrigo Duterte to be more supportive of the Philippine government initiatives to be among the countries in the forefront of pushing the implementation of the climate change adaptation and greenhouse reduction measures agreed upon during Conference on the Parties (COP) held in Paris in 2015.

While President Duterte recognizes the catastrophic events were brought by Mother Nature’s phenomenon, he, however, relates climate change conferences to frequent junkets abroad by Philippine government officials. Those are the only times that the former Davao City Mayor talks about climate change instead of impressing upon the Filipinos the need to realize the serious effects if we do not help contribute to reduce our carbon emissions in our daily living.

There are many ways to cut down our own carbon footprints that we may not perhaps realize we’re doing them already.

Like walking instead of riding a car or smoke-belching cabs, jeepneys and buses, or taking tricycles even for short distance travels only.

While here in this cosmopolitan capital city of Catalunia, my IphoneX apps Health Data recorded a total of 16,636 steps I made, or equivalent to my having walked a distance of more than 11.1 kilometers. “Walking regularly has many health benefits, and you may see your walking heart rate lower over time by staying active, managing your weight, and reducing everyday stress,” my Iphone Health Data App states. A lower walking heart rate may indicate better health and cardiovascular fitness, it added.

At least I was able to do walking here without me ending with asthma attack that usually erupts after a short walk in heavily polluted air in Metro Manila.

Walking that much was exhilarating experience for me because it’s fume-free here. Spain’s rich resources of natural gas are the fuel being used in cars and other transport vehicles here, that’s why. An environment-friendly fuel, liquefied natural gas (LNG) is also cheaper than refined oil products like gasoline and diesel.

So it was a welcome additional knowledge to learn the latest technology advancement in the production and development of new LNG sites and projects across the globe that were discussed during our attendance here of the 2018 Gastech conference and exhibition. At the end of the four-day events here, organizers announced the holding of 2019 Gastech will be hosted by Houston, Texas dubbed as “the world’s energy capital.”

The Gastech 2018 explored the new demand centers for natural gas, the challenges for the gas sector in Spain and beyond and a range of other issues including the interplay between gas and renewable energy in power generation, project development, and managing emissions.

Kristy Kramer, Wood Mackenzie’s Head of Americas Gas Research, who spoke at the Gastech plenary, cited the shale gas revolution had resulted in the United States becoming the largest gas producer in the world, comprising 23 percent of total global production. At the start of 2014, she noted, more than 50 percent of US gas production was from shale and has reached 65 percent up to present. “With an abundance of low cost gas resource and sustained demand growth, the size of the US natural gas market will greatly expand over the next 20 years. We expect the US to be the largest natural gas producer by 2040,” Kramer told the Gastech plenary.

While attending Gastech here, our Department of Energy (DOE) emailed their announcement about a series of “roadshows” the agency will conduct to help boost the exploration of oil and gas resources in our country under its Philippine Conventional Energy Contracting Program (PCECP). According to the DOE, the PCECP is the agency’s “revised and transparent petroleum service contract awarding mechanism that allows the government to develop and utilize indigenous petroleum resources under a service contract with qualified local and international exploration companies.”

Per data gathered by the DOE, an annual average of only 5 wells have been drilled in the country from the period 2007-2017. This puts the Philippines way behind its neighboring countries, Myanmar (29), Malaysia (81), Indonesia (903), Thailand (594), and Vietnam (43), that have conducted significantly more drilling activities.

During the DOE “roadshows,” local communities will be oriented on the benefits of hosting exploration and development projects and its greater contribution to nation-building. Under the PCECP, the DOE will award service contracts which it will conduct either through the competitive selection process or via nomination.

  The DOE “roadshow” kicked off in Palawan last Sept. 20. The next “roadshows” will be held in Davao on Sept. 27 and in Zamboanga in October. After the “roadshows,” the PCEP will be formally launched in November, the DOE disclosed.

“We have to be aggressive in our pursuit of achieving energy self-sufficiency as envisioned by the Duterte administration. Maximizing our exploration and development activities would help us keep up with energy sector developments and economic changes in the ASEAN region and worldwide,” Energy Secretary Alfonso G. Cusi stressed. The PCECP, Cusi cited, could mean a lot for the country in the search for a new source of energy like the off-shore gas field in Malampaya in Palawan.

The Malampaya Deep Water Gas-to-Power Project is the largest and most successful natural gas industry project in the country. It is serving about 30 percent of the power supply requirements in Luzon.

Known for having pioneered the use of natural gas as a clean source of energy to generate electricity, the First Gen operates four of these natural gas-fed power plants in Luzon that are all located inside their Clean Energy Complex in Batangas City. The entire complex houses the 1,000-megawatt (MW) Sta. Rita and the 500-MW San Lorenzo combined cycle natural gas-fired power plants; the 420-MW San Gabriel and 97-MW Avion open cycle natural gas-fired power plants. The Lopez family-owned First Gen is thus planning to construct its own LNG facility for its wholly integrated Clean Energy Complex.

The planned LNG terminal facility recently got a boost following declared offer by San Miguel Corp. (SMC) president and chief operating officer Ramon Ang to partner with the First Gen project as submitted earlier to the DOE. The SMC-run 1,200-MW Ilijan plant is also a gas-fired generating plant similarly located in Batangas, is set to raise its capacity to 3,000-MW by year 2022.

With climate change realities upon us, especially in a disaster-prone country like the Philippines, the shift to decarbonized environment becomes more urgent concern and priority for the government to lead the way. The natural gas production of the Malampaya gas field is projected to be depleted by year 2022, co-inciding with the end of the six years term of office of President Duterte.

Now entering the third year of this administration, the private sector-led initiatives in the use of clean energy sources need more clear policy signals from the government, especially from no less than President Duterte.