September 28, 2017
THE
member states of the Association of Southeast Asian Nations (ASEAN) are
attractive destinations for energy investment due to the region’s growth
potential and efforts to introduce competitive policies, the Philippine energy
secretary said.
“We welcome your
expertise, your experience as well as your investments to help power growth in
this region. My message is simple: ASEAN is the right place for you to invest,”
Alfonso G. Cusi, Secretary of the Department of Energy (DoE), which is hosting
this year’s 35th ASEAN Ministers on Energy Meeting at the Conrad
Hotel in Pasay City.
“Not
only because of our growth potential, but also because of our efforts to make
our region the primary investment destination for foreign investors. This is
especially true here in the Philippines, where we intend to fulfill our side of
the deal,” he said.
Mr.
Cusi pointed to the Philippines’ track record, which he said speaks for itself
in coming up with an open and transparent market.
“And
we’ve always looked to introduce policies to create a regulatory environment
that is conducive and supportive to both regional and global investors,” he
said, citing in particular Executive Order No. 30, which will identify a
project as one of national significance and hasten the approval process.
“No
longer will it take up to three years for an agency to respond to a proposal
for a project. Instead, these agencies must act on a proposal within 30 days,
failing which, the proposal is deemed approved,” he said.
Mr.
Cusi said the rest of ASEAN member states are going in the same direction as
they seek pull in much needed investments. He also said “old friends” like
Australia, China, Japan, South Korea, the United States and Russia should
invest at a time when the “global energy landscape” is facing emerging
headwinds.
“If
ever there was a right time to invest in energy in ASEAN, it is now,” he said.
He
highlighted two “notable trends” in the region that promise to change the way
governments and businesses approach the energy sector. First, he said ASEAN is
committed to a future of renewables, and second, the revolution in liquefied
natural gas (LNG), which he described as the bridging fuel in the short to
medium-term.
Mr.
Cusi said the region is actively developing renewable energy, noting that ASEAN
managed to exceed its 2013 target 23% mix for the resource about 12 years ahead
of the 2025 deadline. But while renewables are a sustainable source of energy,
they also need to be commercially viable.
On
natural gas, he said a “revolution” is being defined by three major
developments — increasing demand from Asia; increasing supply from the rest of
the world; and cheaper gas.
“In
this region, these changes are already taking place, and at a fast pace. For
starters, nowhere are the prospects higher for the demand of gas than in Asia.
For the first half of this year alone, Chinese LNG imports jumped 38% from the
same period in 2016. This thirst for gas is set to grow further,” he said.
Mr.
Cusi said the region needs to think of how it can ride the “LNG wave” to
safeguard its energy security.
“We’ve
started doing just that in the Philippines. We’ve started with the rollout of
the Batangas LNG Terminal by 2020 to safeguard against the anticipated
depletion of the Malampaya gas facility in 2024,” he said.
“The
buy-in is there. The investors are in. And we expect to commence groundbreaking
of this project in 2018,” he added.
“These
are great plans, yes. But these are plans that will cost money. It is now
imperative on us to draw in more investments and expertise to ensure that we
are prepared for this new future. Hence, I call on our friends from other
countries to help us on this journey,” he said. — Victor V. Saulon
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