DOE cites inroads in bid to fine-tune LNG rules

By Lenie Lectura - October 10, 2017

https://businessmirror.com.ph/doe-cites-inroads-in-bid-to-fine-tune-lng-rules/

MORE than 50 local and foreign firms took part during Tuesday’s public consultation to fine-tune the draft Philippine Natural Gas Regulation (PNGR), the policy framework that will guide the development of the natural-gas industry in the country.

Energy Secretary Alfonso G. Cusi said his office is already preparing the necessary policies “as we approach the depletion of indigenous natural-gas supply from Malampaya by 2024”.

“By diversifying our energy mix through LNG [liquefied natural gas], we are ensuring a secure and stable supply of energy. This is a priority,” Cusi said.

During the public consultation, the Department of Energy (DOE) bared plans to develop the domestic natural-gas industry, and eventually transform the Philippines as the LNG trading and transshipment hub in the Asia-Pacific region.

The DOE presented the draft PNGR in accordance with several key considerations.

Aside from the depletion of the Malampaya gas field, another considerations is the potential of LNG to cover the increasing mid-merit to peaking demand of the Philippines, which is expected to require around 18,500 megawatts (MW) by 2040. This estimate was based on the Philippine Energy Plan (PEP).

Another key consideration is the potential of LNG/natural gas-fired power plants in complementing renewables, which are poised to increase from 5,000 MW to 15,000 MW by 2035.

The DOE is also taking into consideration the potential of LNG to replace diesel-fired power plants in off-grid areas. Another key consideration of the DOE is the expected nonpower demand for natural gas from the commercial, industrial, transportation and even household sectors.

On October 10 about 56 companies and embassies participated in the consultation to fine-tune the draft PNGR. Among the firms represented in the consultation included the Aboitiz Equity Ventures Inc., Marubeni Philippines Corp. and Sumitomo Corp. of the Philippines.

The embassies of Australia, Singapore, Japan and the Republic of Korea also sent representatives.

Another public consultation is scheduled on October 24.