MANILA — The Department of Energy (DOE) is fine-tuning the policy framework that will guide the development of the natural gas industry in the country.
DOE Undersecretary Donato Marcos said this during a public consultation on Philippine Natural Gas Industry Regulation (PNGR) at the DOE Compound in Taguig City on Wednesday.
“By providing the necessary policy directions, it is our hope to usher in much needed private sector capital in order for us to put up the necessary infrastructure so that our country would be able to tap into the growing LNG (liquefied natural gas) market,” Marcos said.
The draft PNGR took into consideration the expected drop in the indigenous natural gas supply when Malampaya natural gas facility finally dries up by 2024; the potential of liquefied natural gas (LNG) to meet the increasing mid-merit to peaking demand which will require around 18,500 megawatts (MW) by 2040 based on the Philippine Energy Plan (PEP).
The draft also considers the potential of LNG to complement renewable energy (RE) sources; to replace diesel-fired power plants in off-grid areas; and the expected non-power demand for natural gas for commercial, industrial, transportation or household purposes.
Last August, DOE Secretary Alfonso Cusi already revealed plans to make the Philippines a hub for LNG.
“We have been a de facto LNG hub for quite some time now. We are now formulating the necessary policies to formalize that and become the LNG hub for the Asia-Pacific region,” Cusi said.
“By diversifying our energy mix through LNG, we are ensuring a secure and stable supply of energy. This is a priority,” Cusi pointed out.
Marcos impressed upon the attendees the significance of the public consultation and the need to keep up with the rising demand for energy as the country goes on its golden age of infrastructure.
“The public consultation on Philippine Natural Gas Regulation (PNGR) is the first step towards attracting and enticing private sector investments in the Philippine Natural Gas industry,” Marcos said.
The public consultation was attended by local and foreign stakeholders Aboitiz Equity Ventures, Inc.; Aboitiz Power; CN Energy, Energy Development Corp.; CNOOC; Embassies of Australia, Singapore, Japan, and the Republic of Korea;
Energy World Corporated Ltd.; Gas Power Solutions, GE Philippines, Inc.; IE Singapore; Japan Bank for International Cooperation; JGC Philippines Inc.; JSK Gas Corp.; JSK Holdings; KEPCO Philippines Corp; Lantau Group; Marubeni Philippines Corp.;
Metro Pacific Investments; Mitsui & Co. (Asia Pacific Pte. Ltd.); National Power Corp.; Osaka Gas Manila, Pavilion Energy Pte. Ltd.; Philippine Petroleum Association of Upstream Industry Inc. (PAP); Sumitomo Corp. of the Philippines; Sembcorp Marine Rigs & Floaters Pte. Ltd.; SK E&S; SSB Cryogenic Equipment Pte Ltd.;
Tokyo Gas Co, Ltd.; Total Gas and Power Asia; Vires; PXP Energy Corp.; Pilipinas Shell Petroleum Corp.; Philodrill; Star Power; PHINMA; First Gen Corp.;
Blackstone Group; CleanRock Renewable Energy Resources Corp.; Basic Energy Corp.; Enerbay Inc.; Philippine National Oil Company-Exploration Corp.; and
CGN New Energy Holdings Co. Ltd.;Shell Philippines Exploration B.V.; SCU; PhiLNG; Power Sector Assets and Liabilities Management Corp.; City Enro (BCG); local government of Pagbilao; Philippine National Oil Company; First Gas; Puno and Peñarroyo Law Offices; and International Finance Corp.