Published
By Myrna M. Velasco
With the highly
anticipated business model shift and policy reset in the country’s gas
industry, the Department of Energy (DOE) has set off at least three core
strategies on its planned gas supply sourcing.
Energy Secretary
Alfonso G. Cusi noted that the first approach would be to discover the next
Malampaya; second is importation of liquefied natural gas (LNG); and third
strategy would be an amalgamation of both.
“The DOE is looking at
three models on how the country will develop and utilize the natural gas
resource: Namely, to source indigenous natural gas, like that of Malampaya; to
import liquefied natural gas; and to combine both models,” he said.
Cusi qualified that
“policy and regulatory framework crafting” will yet start, but at this stage,
he noted that his department already signed up cooperation deals with
development partners, primarily that of China, Japan and Singapore.
The energy chief further
indicated that in their blueprint, they have cast gas investments both in the
upstream and downstream segments – so that shall go from having an integrated
LNG import terminal and storage, regasification facilities, pipelines and the
end-user power generation facilities.
On supply sourcing
though, the consternation of many stakeholders in the sector is what they
perceive as “lack of drive” to pursue fresh round of exploration and
development of petroleum resources that could possibly be a replacement for the
depleting Malamapaya reserves.
Former Philippine
National Oil Company-Exploration Corporation (PNOC-EC) President Rufino B.
Bomasang pointed this out in the presence of the DOE in a recent energy
business forum, citing that geological data lounging at the department actually
show massive potential – but investors will not come in unless the government
takes decisive step to fix the sector’s policy and regulatory dilemmas
especially on the tax regime issue that had been vexing the industry.
Currently, PNOC is
taking the lead on planned LNG investments, but beyond the design of the LNG
terminal and the proposed gas sourcing strategy, the state-run run firm has a
lot more concerns to seriously weigh if only to prove the viability of its
planned ventures, primarily on the commercial side of things.
One major predicament
would be the off-takers (capacity buyers) of the generated electricity of the
gas plants that will be fueled by LNG, as announced by both the DOE and PNOC.
That would be a dilemma
since “gas plants of merchant development state” had already been declared by
banks as not “too viable” for financing, hence, these assets need to be tied up
to power supply agreements.
Nevertheless, given
that their costs would be comparatively higher than coal-fed generated
capacity, it needs to be assessed if the distribution utilities or even
industries within the contestable or retail threshold would end up as the
“willing buyers.”
The other option will
be for state-run PNOC to set up its own retail electricity supplier unit (RES)
unit, but it has yet to make its own declaration if it has the determination to
knock at every consumers’ door to sell its power plant capacity – like what
many of the power generators have been doing.
No comments:
Post a Comment