As the Philippines weighs the delicate balance of energy security, affordability and environmental sustainability, Liquefied Natural Gas (LNG), offers a path to sustainable and reliable power generation.
With its relatively low environmental impact, abundance and suitability as a baseload energy source, LNG has been tagged by the Department of Energy (DOE) for private sector investments and a way to make large renewable energy (RE) capacity additions viable.
In a recent media interview, Engr. Ina Pauline Abelon, an expert in the LNG sector, underscored the significant role of LNG as a cleaner transition fuel.
“LNG produces fewer and lighter emissions. For instance, when compared to diesel and the gasoline used in vehicles, the combustion products or smoke produced by oil products are much greater than those produced by LNG,” noted Abelon.
The cleaner combustion profile positions LNG favorably within the global shift towards more sustainable energy sources. The US, Germany and Japan – some of the world’s largest economies – are also the top users of LNG, while China, Japan and South Korea are top importers of LNG. Even oil producers like Saudi Arabia, UAE, and Iran are top LNG consumers. Singapore relies 94% on this “transition fuel” significantly reducing its carbon emissions by increasing its share of natural gas use from only 19% in 2000.
Cleaner baseload energy source
But apart from being a cleaner energy source, according to Abelon, LNG’s main virtue in the Philippine context is its availability as a baseload energy source.
“LNG’s main advantage is its stability as an energy source. It is not fluctuating compared to renewable energy sources, say, wind power or solar power which depend on the weather. LNG provides a continuous supply of energy so that power (electricity supply) to cities and communities is stable.”
“An LNG plant is 100% reliable (as baseload). Apart from that, the efficiency of an LNG plant is very high,” says Abelon. “Clearly (among clean energy sources) LNG is more reliable when compared to renewable energy sources.”
As the Philippines pushes for large renewable, and by nature intermittent, energy capacity additions, baseload LNG plants have a role to play in ensuring the reliability and security of the power system, sustaining economic development and social services.
The Philippines has been actively pursuing renewable energy sources to meet its growing energy demands and address environmental concerns. However, the intermittent nature of renewables like wind and solar power poses challenges in consistently meeting energy demands. More recently, intermittent power sources such as hydroelectric power plants reduced production owing to the extreme Philippine summer heat and reduced production, forcing outages.
Furthermore, the influx of RE like solar, wind and hydro requires land, competitive financing and engineering talents to develop these projects. On top of this, RE plants needs transmission availability from where they may be found. One can only build RE projects where there are natural (hydro, solar and wind) resources available.
The recent Red and Yellow alerts over Luzon and Visayas highlighted the urgent need for still more reliable energy sources that can act as baseload, positioning LNG as a viable solution.
The specter of Malampaya’s end-life
Malampaya supplies 20% of Luzon’s energy requirements. With the Malampaya natural gas reserves expected to be depleted by 2027, the Philippines is turning to LNG to fill the impending energy gap and to provision energy resources to support an ever-growing population and a rapidly growing economy.
Abelon alluded to both the Philippines’ fast dwindling Malampaya gas reserves and clean energy goals: “Based on the Philippine context as laid down by the Department of Energy (DOE), it’s very clear that we are looking towards more LNG powered plants in the Philippines.”
The Clean Energy Scenario of the Philippine Energy Plan in fact targets a mix of 26% LNG and 50% renewable energy by 2040, reflecting LNG’s crucial position in the country’s energy strategy.
LNG as a “hot topic”
LNG presently supplies less than 5% of the Philippines energy requirements, which makes it a relatively new concept where power generation is concerned.
As LNG is relatively new to the Philippines’ energy mix, there are public concerns regarding its safety. Comparisons are even being drawn with LPG, which have been known to figure in explosions and accidents.
Abelon clarifies LNG’s paramount safety: “LNG consists of lighter hydrocarbons and is mainly composed of methane. The natural gas is liquefied to -162 degrees Celsius and efficiently transported via pipelines or by ships.” According to Abelon this process ensures its efficiency and safety across various applications, particularly power generation.
Understanding the differences between LPG and LNG is crucial. LPG, made of propane and butane, is heavier and more flammable, posing risks near the ground. LNG, composed mainly of methane, is lighter and disperses quickly if released, practically eliminating flammability.
The robust safety measures and the intrinsic properties of LNG make it a secure choice for the Philippines’ energy future. Abelon highlights: “LNG plants are designed with double-lined, dual-layered tanks that meet international safety standards. The transportation of LNG is secure, adhering to the highest safety protocols.”
Global and Local Adoption
LNG’s reliability and cleaner emissions profile have led to widespread adoption around the world. Abelon cited countries like Japan, Korea, and China as leading importers of LNG, leveraging its benefits to enhance energy security and support economic growth. Meanwhile, Abelon affirmed LNG’s extensive use in countries such as Australia, the US, and the UK, highlighting its global relevance.
In the Philippines, major energy players including Meralco PowerGen, Aboitiz Power, and San Miguel Global Power have initiated significant LNG projects. A notable initiative is the USD 3.3 billion integrated LNG facility, aimed at bolstering the country’s energy infrastructure and ensuring a stable energy supply.
“It’s fairly straight forward. It’s been done (LNG has been adopted) across the globe. The Philippines has also adopted it to an extent. Neither will it be difficult. But just the same, thorough studies are undertaken to ensure safety for both the communities and the people operating power plants,” said Abelon.
