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DOE, German firm to study potential LNG projects in Visayas, Mindanao

Angelica Y. Yang - Philstar.com
DOE, German firm to study potential LNG projects in Visayas, Mindanao
This undated file photo shows an LNG facility.
BusinessWorld / File

MANILA, Philippines — The Department of Energy (DOE) has partnered up with German manufacturing firm MAN Energy Solutions SE to look at the possibility of developing small to medium-scale liquified natural gas (LNG) projects in Visayas and Mindanao. 

The Energy department wants to establish the country as a regional LNG hub, with the agency's chief Alfonso Cusi tagging natural gas as the "fuel of the future." 

In a statement, DOE said Cusi recently inked a memorandum of understanding with MAN Energy's Chief Sales Officer Wayne Jones, allowing both entities to enter in a public-private partnership in conducting a feasibility study on the development of small to medium-scale LNG importation and regasification to power projects in Visayas and Mindanao. 

"We have always been very vocal about our desire to fully develop the downstream natural gas industry of the Philippines," Cusi said. 

"Studies such as the one that MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities," he added.

Cusi said the results of Man Energy's report will guide the department in recalibrating their LNG strategy. 

If found to be "favorable", the report's findings will help in encouraging LNG investments in the two major islands.

Right now, the country's only indigenous gas field, the offshore Malampaya gas-to-power project, which supplies up to 20% of the Philippines' energy requirements, is estimated to be completely depleted by 2027. 

The government is looking at LNG to tide over the gap in supply once Malampaya's reserves get depleted, and once the project's contract expires in 2024.  

Service Contract (SC) 38, the license which allows for the exploration of the gas field, is set to expire next year. 

Six proposed LNG terminals are in the works, and have secured permits with the Philippine government.

ALFONSO CUSI

DOE

LIQUIFIED NATURAL GAS

LNG

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