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Manila Bulletin devider Philippines devider National devider Gatchalian seeks more investments in LNG to ensure PH power supply

Gatchalian seeks more investments in LNG to ensure PH power supply

Published Feb 27, 2023 02:05 pm

The Philippines should invest in the liquefied natural gas (LNG) industry at least in the short and medium term to ensure that the country will have sufficient power supply, Sen. Sherwin Gatchalian said on Monday, February 27.

Gatchalian made the suggestion as he threw his support behind the Department of Energy’s (DOE) move to encourage investments in the LNG industry.

“LNG is good for the country’s national energy security now and I commend the energy department’s support for the construction of LNG terminals in a bid to ensure continuous power supply this year,” Gatchalian said in a statement.

“Currently, we have no choice but to go with LNG given the declining output from Malampaya,” Gatchalian said.

The senator noted that over the past four years, the output coming from the country’s only indigenous source of natural gas has been decreasing.

He also reminded that the service contract of the Malampaya gas field is expected to expire in 2024 unless extended.

The depleting supply from Malampaya is also expected to leave a huge dent in the country’s power supply. 

Gatchalian explains Malampaya fuels close to 25 percent of Luzon's electricity requirements and close to 18 percent of the entire country's power.

According to the senator, LNG is considered a transition fuel as economies ramp up investments for intermittent renewable energy (RE) technologies given the current prohibitive cost of energy storage.

“The establishment of LNG facilities addresses the expected shortfall in the country’s power supply at least in the near and medium terms. Certainly, this is one of the intervention projects that we desperately need to address the loss of thousands of megawatts of power,” Gatchalian said.    

Gatchalian earlier filed Senate Bill No. 152, which provides for the National Energy Policy and Framework for the Development and Regulation of the Philippine Midstream Natural Gas Industry. 

The bill seeks to stimulate private sector participation across the entire value chain, provides flexibility for the government to adapt to evolving market conditions, and ensure the protection of consumers' interests through a framework that encourages transparency and competition.

Related Tags

liquefied natural gas Department of Energy (DOE) Sherwin Gatchalian
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