DOE Promotes PH Liquefied Natural Gas Investors’ Guide
TAGUIG CITY- The Department of Energy (DOE) on Friday (September 4) promoted the Philippine Liquefied Natural Gas (LNG) Investors’ Guide during a webinar of the United States Agency for International Development (USAID)-supported US-Asia Gas Partnership (AGP) and the United States Energy Association (USEA).
The LNG Investors’ Guide provides information for potential energy players in setting up an LNG facility in the country.
Energy Secretary Alfonso G. Cusi thanked everyone involved in the drafting and promotion of the Guide, saying the initiative was a step closer to the Duterte administration’s vision of making the Philippines a regional hub for LNG in Southeast Asia.
“I am confident that with the Guide now readily available, more investors will take interest in our downstream LNG industry. The DOE is committed to develop the Philippines as a LNG hub that can serve not only our energy needs but also of the region,” he said.
The Guide, which fosters a transparent systematic application and permitting process that coincide with the Ease of Doing Business in the Philippines, was a product of the Gas Policy Development Project (GPDP) under the United States and Philippines partnership through Asia-Enhancing Development and Growth Through Energy (Asia EDGE). It is funded by the US Department of State Bureau of Energy Resources.
Last Friday’s webinar on “Philippines: Tapping into the World’s LNG Market" provided the Department of Energy (DOE) team an opportunity to promote the publication, since the occasion was attended by some 235 participants from 34 countries.
Energy Assistant Secretary Leonido J. Pulido III, who supervises the Natural Gas Management Division of the Oil Industry Management Bureau (NGMD-OIMB), presented an overview of the Philippine Downstream Natural Gas Industry (PDNGI) during the webinar.
He explained that the Philippine natural gas sector essentially is all about the Malampaya Gas Power Project in the West Philippine Sea, which is being run by a consortium composed of Shell, Chevron, and the Philippine National Oil Company-Exploration Corporation (PNOC-EC).
Asec. Pulido said natural gas currently provides for 3,200 megawatts of electricity and accounts for 21.1% in the 2019 Gross Generation of the country. But in Luzon alone, natural gas’ contribution last year was at 29.3%.
With Malampaya’s depletion estimated to occur in the next few years, there is an urgent need to attract more investments in the downstream LNG industry.
“The (Malampaya) supply can go as far as 2027, but it does not have enough gas for further expansion to provide future natural gas requirements, particularly on the plan to expand the application of natural gas in industrial, commercial, residential and transport sectors,” Asec. Pulido said.
The Investors’ Guide, Asec. Pulido added, hopes to enhance the Public- Private partnership by encouraging the private sector to assist the government in developing the natural gas industry.
During the webinar, former GPDP Director Ramon Clarete made a comprehensive presentation on the features of the Investors’ Guide, which contained the following:
• Natural Gas Industry: Outlook and Potential Investments; and
• Primer for Application where he mapped out the necessary permits and clearances from various agencies.
The webinar was organized by the AGP and the USEA through collaboration with the DOE, the U.S. Department of State Bureau of Energy Resources, the U.S. Department of Commerce Commercial Law Development Program, and the GPDP-Philippines. The AGP is a key component of Asia EDGE, a whole-of-government initiative to grow sustainable and secure energy markets across the Indo-Pacific region and level the playing field for private sector firms in Asia.
Both Assistant Secretary Pulido and Dr. Clarete were panelists during the webinar’s open forum, while lawyer Mohamed Rali Badissy of the Commercial Law Development Program of the US Commerce Department acted as the moderator.