Updated
October 2, 2017, 7:21 AM By
Myrna M. Velasco
The Philippines is
targeting to finally push to groundbreaking rites by 2018 its planned $2.0
billion worth of integrated liquefied natural gas (LNG) facilities, but
conspicuously absent still is the regulatory framework that shall underpin the
country’s gas reset strategy.
Energy Secretary
Alfonso G. Cusi told reporters on the sidelines of the 35th ASEAN Ministers on
Energy Meeting (AMEM) that options would either be a floating regasification
and storage unit (FSRU) or an onshore terminal for the LNG import facility, and
this shall also rope in a power plant project as well as the necessary
distribution networks.
The government-run
entity to advance such investment propositions would be Philippine National Oil
Company (PNOC), in partnership with interested parties, including the private
sector.
But even before
reaching implementation phase, the energy chief noted that they would still
need to undertake public consultation on the propounded regulatory framework
for the sector.
“They (investors) can
go joint venture with PNOC, to the government and we will also be issuing the
regulatory framework,” he said. Public consultations though have yet to kick
off on this targeted policy framework.
Cusi added that public
consultation on the propounded regulatory regime for the LNG sector will kick
off October 10 this year, and will comply with publication as well as
administrative requirements until October 20.
Batangas is currently a
preferred site for the proposed LNG terminal, but the energy chief indicated
that Mindanao at the PHIVIDEC Industrial Estate in Misamis Oriental; and Subic
would still be part of the options.
Cusi told participants
of the ASEAN Energy meeting this week that the Philippines would already start
its “rollout of the Batangas LNG terminal by 2020.”
He indicated this shall
be the country’s “safeguard against the anticipated depletion of the
Malampaya gas facility in 2024.”
Cusi emphasized “the
buy-in is there. The investors are in. And we expect to commence groundbreaking
of this project in 2018.”
The Philippine energy
chief said the “shorter term gas contracts” had been an enticement for the
country to re-embrace gas as part of its energy mix.
“Consider that a decade
ago, more than 95% of LNG contracts were for 10 years or more. Today, that
figure is down to about 60%. Given these new developments, ASEAN needs to start
planning for this future,” he stressed.
For the Philippines,
Cusi said that “we need to think of how we can ride this LNG wave, to ensure
that we can safeguard our energy security.”
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