Connect with us

Hi, what are you looking for?

News

DoE sees facility investment for gas imports topping P69B

ENERGY.AGPGLOBAL.COM

THE natural gas industry will require investment of P69.23 billion to help navigate the transition from domestically produced to imported gas, the Department of Energy (DoE) said on Thursday after announcing the completion of the Natural Gas Development Plan (NGDP).

The estimated capacity of the receiving facilities required for the transition is 24.6 million tons per annum (MTPA) of liquefied natural gas (LNG) by 2040, the DoE said. The capacity requirement is only 15.6 MTPA under a scenario of greater adoption of clean energy.

The plan estimates natural gas consumption in the Philippines to be at least 16.8 million tons of oil equivalent (MTOE) for power generation and 0.05 MTOE for non-power applications by 2040.

It said much of the gas demand will be “mainly driven by the displacement of coal and oil-based fuels in power generation and greater use of gas-fired power plants as sources of balancing power.”

“Reductions in production levels are anticipated starting in 2022, with the Malampaya concession expiring by 2024. While the gas field will continue to produce significant amounts of natural gas until 2027, the impending depletion of the Malampaya gas fields, ongoing lack of LNG infrastructure, price volatility due to geopolitical and other international issues, and the increasing urgency to reduce coal and oil-based fuel utilization are providing a high level of uncertainty for potential investors and industry stakeholders, given the possibility of stranded assets should projected demand fail to pan out,” according to the plan.

The DoE said it prepared the NGDP with the University of the Philippines Statistical Center Research Foundation, Inc. The plan will serve as a guide in developing the downstream natural gas industry.

“We underscore the importance of developing our natural gas industry. As part of our strategy and ensuring energy security, we need to strengthen our strategies and policies,” Rino E. Abad, director of the DoE’s Oil Industry Management Bureau, said in a media statement.

The NGDP is a US-funded gas policy development plan guiding the DoE in drafting policy recommendations to promote clean energy.

The NGDP outlines for potential investors the legal framework, gas demand outlook, ongoing projects, industry practices and product and facility standards. It also calls for the establishment of a technical committee on downstream natural gas.

“With the challenges facing the current supply of our natural gas from the Malampaya gas field, this NGDP is also timely in providing our prospective investors’ guidance and policy framework, legal requirements, and incentives in putting up LNG facilities and other infrastructure,” Mr. Abad said.

The DoE also said that the NGDP also contains proposed regulatory processes, including the recommendations to government agencies and local government units (LGUs).

“These include technical, administrative, and regulatory guidance for agencies and LGUs, a simplified process for securing permits and clearances, documentary requirements, and technical standards to comply with,” the DoE said.

To date, the DoE has approved six proposed LNG terminal projects with operations expected to start between 2023 to 2025.

These include the FGen LNG Corp., Linseed Field Corp., Energy World Gas Operations Philippines, Shell Energy Philippines, Vires Energy Corp., and Luzon LNG Terminal. — Ashley Erika O. Jose

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.