LNG remains the best energy alternative for PH – expert

Published November 23, 2017, 10:00 PM By Madelaine B. Miraflor

https://business.mb.com.ph/2017/11/23/lng-remains-the-best-energy-alternative-for-ph-expert/

As the Philippines and the rest of ASEAN region scramble to get new energy sources on board, an expert said that natural gas and Liquefied Natural Gas (LNG) are still the “most stable option” when it comes to prices compared to oil and coal.

Jeff Edwards, General Manager for Global Gas and LNG Market Development for Shell, recently said in a forum that while no single energy source can fulfill the growing demand for energy in the ASEAN region, natural gas and LNG still offer the most stable price, keeping the rates relatively low amid the growing energy mix in a particular country like the Philippines.

“Harnessing natural gas offer some of the most viable options compared to utilizing oil and coal. For one, natural gas reduces healthcare costs and the impact of climate change,” Edwards said in the recent ASEAN Energy Business Forum Panel (AEBF) discussion on Natural Gas and LNG held in the country.

“It’s the cleanest-burning fossil fuel, emitting as much as 50 percent less carbon dioxide than coal, and has negligible emissions of sulfur dioxide, nitrogen oxides, mercury, and particulates,” he added.

To date, Shell is now testing its businesses to prepare for a decarbonized, energy efficient world, Edwards added.

Shell expects global demand for gas to increase by 2 percent a year between 2015 and 2030. LNG is set to rise at twice that rate at 4 percent to 5 percent.

In 2010, there was an average of 10 countries importing natural gas. Today, there are around 50 countries importing natural gas.

Between 2014 and 2020, the size of the global LNG market is expected to grow by 50 percent, mainly from LNG facilities already under construction or just recently completed.

In the Philippines, Edwards observed that the country historically has a good balance of energy resources. The country was actually ahead than most of the world in utilizing geothermal and hydrothermal energy, he said.

The Malampaya Deep Water Gas-to-Power Project in Palawan which Shell currently operates supplies 3,200 megawatts generated from cleaner-burning natural gas.

The same helps fuel 20 percent of the country’s electricity needs while helping reduce the country’s dependence on oil imports.

However, the Malampaya Deep Water Gas-to-Power Project is also expected to reduce production by 2024.

Still according to him, the Philippines needs to make a large-scale discovery of natural gas in order to replace the Shell-operated Malampaya project or start importing LNG.