DOE pledges support for LNG investment and innovation

DOE logo 2023

The Department of Energy (DOE) is committed to creating an environment conducive to investment and innovation in liquefied natural gas (LNG), recognizing its role as a transitional fuel amid the country’s shift towards green energy.

With a target of achieving 50% renewable energy in the power generation mix by 2040, the government sees LNG as a cleaner alternative to traditional fossil fuels, providing a reliable energy source during the transition.

Energy Secretary Raphael Lotilla emphasized LNG’s importance highlighting its capacity to bridge energy needs while sustainable resources are developed. Currently, the Philippines hosts two LNG facilities in Batangas capable of supporting up to 8,000 megawatts (MW) of natural gas plants.

In a report by BusinessWorld, Lotilla also disclosed that the government is advancing a natural gas strategy to mitigate the variability of renewable energy sources, aligning with the Philippine Energy Plan 2023-2050. He noted that as of May, the DOE has granted construction permits to FGEN LNG Corp., Linseed Field Corp., Energy World Gas Operations Philippines, Inc., and Luzon LNG Terminal, Inc., with Samat LNG Corp., Shell Energy Philippines, Inc., and Vires Energy Corp. receiving notices to proceed.

Moreover, a comprehensive Natural Gas Development Plan is also underway to guide investors with policies, legal requirements, and incentives for LNG infrastructure.

Lotilla stressed the collaborative effort required from stakeholders and private sector partners to ensure a resilient and sustainable energy future for the Philippines.

Meanwhile, Senator Sherwin T. Gatchalian emphasized the importance of collaborative efforts between the public and private sectors in embracing cleaner energy sources like LNG. He advocated for the Midstream Natural Gas Industry Development Bill to boost existing policies and harness natural gas as a vital energy source for the Philippines.

Majah-Leah Ravago, President and CEO of the Development Academy of the Philippines, noted LNG’s potential to supplement renewable energy sources amid the declining Malampaya gas field, which supplies much of Luzon’s power.

Dindo Manhit, President of the Stratbase Institute, urged closer cooperation between the government and private sector to maximize opportunities in developing LNG. He emphasized the economic benefits such as infrastructure development, technology transfer, job creation, and enhanced trade.

The DOE’s initiative aims to harness LNG as an essential component in achieving energy stability, environmental sustainability, and economic prosperity for the Philippines.

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