New LNG policy in the works – DOE

MRC Allies teams up with Chinese firm for LNG exploration

The Department of Energy (DOE) is looking at liquefied natural gas (LNG) policies that will enable the industry to provide additional power sources to the country, DOE Undersecretary Felix William Fuentebella said.

Fuentebella said government agencies and the private sector are working to study the developments of the LNG sector.

“Shell and First Gen are part of the coalition. I also asked government to collate and present the current data on LNG,” Fuentebella said.

“We are looking at policies on transparency and competition, policies as far as common carriers are concerned, what are our policies for anti-competitive behavior,” he said.

“I’ve asked LNG sources to report on the supply and competition issues and we’re taking a look at common carrier laws and the franchise requirements,” he added.

DOE-Energy Resource Development Bureau (ERDB) and the Oil Industry Management Bureau (OIMB) are tasked to assess the indigenous resources and imported LNG, respectively.

Fuentebella said they are aiming to finish the assessment by December, when they will start talks of forming an LNG policy.

Previously, DOE Secretary Alfonso Cusi said the government will lead the establishment of an LNG terminal to provide supply when the Malampaya project ends in 2024. (Read: Gov’t to lead LNG terminal construction, says Cusi)

The Philippine National Oil Co. (PNOC) is doing a study for its feasibility.

DOE Undersecretary Jesus Posadas said yesterday that the DOE is “technology agnostic” concerning the search for baseload or 24/7 power requirements. The agency is looking at sourcing 65 percent of power from baseload plants, 25 percent from mid-merit plants and 10 percent from peaking plants.

“We’re looking at the power mix and basically the power mix is to address the economic growth especially the industrialization aspiration of the President,” Posadas said.

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