Power industry stakeholders on Tuesday pushed for the adoption of liquefied natural gas (LNG) to promote energy security.
Energy Secretary Raphael Lotilla said during a forum on “Advancing Energy Security: Fueling Sustainable Progress with Liquefied Natural Gas (LNG)” organized by the Stratbase Institute, in partnership with CitizenWatch Philippines, that LNG plays a crucial role, serving as a cleaner substitute for traditional fossil fuels.
Lotilla said there should be “collaborative efforts” to ensure energy security and sustainability, as he thanked Congress for supporting enabling policies like the proposed Philippine Downstream Natural Gas Industry Development Act.
“The DOE is formulating of the natural gas development plan to provide investors guidance and policy framework, legal requirements, and incentives in putting up LNG facilities and other infrastructure projects, including our future development plans and programs. We call on the support of our stakeholder and partners in the private sector to assist us in creating a resilient, self-reliant, and sustainable energy future for the Philippines,” Lotilla said.
He said two LNG facilities were constructed in Batangas to support the operations of First Gas and Ilijan power plants.
“Both complement each other and can support around 8,000 MW capacity of natural gas plants,” Lotilla said.
He said the DOE also issued four permits to construct and three notices to proceed to LNG proponents as of May 2024 and issued the amendments to Philippine downstream natural gas regulations to support the exploration and development of indigenous natural gas and prioritize its utilization.
Senator Sherwin Gatchalian, Committee on Energy vice chairman, said “collaborative efforts of the public and private sectors are crucial in embracing cleaner energy sources like liquefied natural gas, which not only promises a cleaner future but also ensure a robust and secure energy framework for the Philippines”.
Gatchalian filed the Midstream Natural Gas Industry Development Bill, which aims to fill in the gaps and strengthen existing bridge policies to unlock the potential of natural gas as a vital source of energy for the country.
“This proposed measure allows private sector participation across the entire value chain and provides flexibility for the government to adapt to evolving market conditions, among other provisions. Let us support this endeavor to fuel sustainable progress and make a lasting impact on the nation’s energy independence,” he said.
Stratbase Institute president Dindo Manhit urged the government and private sector to maximize the opportunity to work in closer collaboration to jumpstart the industry.
“Aside from the energy stability and environmental benefits, developing LNG as a stable source of power will foster more infrastructure development, technology transfer, job creation, and trade, all of which will substantially contribute to the country’s overall economic growth and prosperity,” Manhit said.
Global Business Power Corp. chief operating officer Dominador Camu Jr. said their company had responded to the challenges head-on.
“Our two-prong strategy for power generation growth is, first, expand our RE portfolio using renewable sources such as solar and wind; then second, build new High Efficiency Low Emissions (HELE) baseload power plants with clear-cut focus on developing and investing in cleaner fuel alternatives, such as LNG (natural gas) and other innovative thermal technologies,” he said.
Camu said the development of additional power plants, particularly LNG to Power, is a strategic imperative for the Philippines.
“It is a crucial step towards meeting our fragile electricity supply, mounting power demand and influx of VREs to ensure a resilient, reliable and sustainable energy supply in the next decade. Let us work together, with vision and determination, to power the good life and fuel our nation toward prosperity,” Camu said.
