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Manila Bulletin devider Business devider Philippines turns to Norway for LNG, decarbonization solutions

Philippines turns to Norway for LNG, decarbonization solutions

Published Nov 11, 2024 07:05 am

The Department of Energy (DOE), along with energy stakeholders from the Philippines, welcomed key figures from Norway to collaborate, share expertise, and discuss solutions for energy transition, including liquefied natural gas (LNG), decarbonization efforts, and energy security.

During the Norway-Philippines LNG Summit 2024, Energy Secretary Raphael P.M. Lotilla emphasized the important role of natural gas in the evolving energy landscape and elaborated on several LNG developments in progress.

“Today, LNG is stepping up to play a crucial role in our energy value chain. With two LNG terminals in Batangas Bay nearing full commercial operations, we are preparing to ensure the reliability of our gas-fired power plants,” he said.

Lotilla also highlighted the vital need to minimize methane gas leaks during the extraction and use of natural gas while exploring carbon capture, utilization and storage, as well as the co-firing of natural gas with non-fossil gases.

Once the LNG terminals are fully operational, they will produce a combined capacity of eight million tons annually, which will address the nation’s increasing power demand.

The infrastructure will also include a redundancy mechanism that can serve as an alternative fuel source for the 4,500-megawatt (MW) gas-fired generation capacity expected next year.

Additionally, the DOE chief mentioned that drilling works for the Malampaya Phase 4 project will begin next year, extending the life of the gas field and contributing to the existing production from the reservoir.

To encourage exploration and development of the Philippines’ indigenous petroleum resources, the government is actively developing a framework for special allowances for service contractors.

Moreover, Lotilla stressed the importance of utilizing natural gas in downstream applications for non-power uses and industrial facilities, especially in the Visayas and Mindanao regions. Natural gas can also be used as feedstock in fertilizer production for agricultural purposes.

“Norway has demonstrated that the responsible management of natural resources requires clear regulations, prudent fiscal policies, and a commitment to continually upgrading the skills of our workforce,” he stated.

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Department of Energy (DOE)
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