The upcoming completion of liquefied natural gas (LNG) import terminals in the country next year will support the government’s goal of transitioning to a low-carbon future, according to the Department of Energy (DOE).
“There is a need to diversify our power sources including the use of imported natural gas… Given its scheduled availability at the end of the first quarter of 2023, LNG is considered an important source for fuel diversification,” said Energy Secretary Raphael Lotilla, in a statement.
Lotilla added that LNG import terminals will also help stabilize power supply from variable renewable energy as well as complement ongoing efforts of the Malampaya consortium to optimize sustainably theremaining indigenous gas supply.
Based on progress reports provided by project proponents to the DOE’s Oil Industry Management Bureau, Linseed Field Power Corp. and AG&P, is on track to complete its integrated import terminal in Ilijan, Batangas for commissioning by March 2023 and commercial operations by April 2023.
Meanwhile, FGEN LNG Corp. with BWLNG is also scheduled for the commissioning of its Batangas LNG terminal by March next year and commercial operations by June 2023, in line with the arrival of LNG supply to fuel its existing gas-fired powerplants including the 1,000 MW Sta Rita, 500 MW San Lorenzo,414 MW San Gabriel and the 97 MW Avion.
The DOE said there is currently an available regulatory framework apart from a downstream natural gas development plan to guide policy makers and stakeholders for the entry of LNG in the country as natural gas’s role is crucial in providing flexible power supply.
“Our foremost concern is to ensure that there is enough capacity supplied throughvarious sources most especially in the coming summer months to sustain the power supply in the country,” Lotilla further said.
Amid the DOE’s support for LNG investments, several groups cite doubts on the sustainability of the said fuel resource.
Earlier, Avril de Torres, Center for Energy, Ecology and Development executive director, said that Southeast Asia, including the Philippines, will suffer from a “climate transition handicap,” mainly due to public and private finance from G20 members such as Japan, the European Union and the US which is pushing the boom of fossil gas and LNG developments in the region.
Meanwhile, Sam Reynolds, energy finance analyst of the Institute for Energy Economics and Financial Analysis, said that emerging LNG market in Southeast Asia“is hampered by several uncertainties such as the unaffordability of LNG and fuel supply insecurity.”
Based on data from the DOE, as of September 2022, the country’s total installed capacity from natural gas-fired power plants is at 3,732 MW, equivalent to 13.2 percent of the overall 28,203 MW worth of installed power capacity nationwide.
