DOE to lure Japan investors to LNG project
By Lenie Lectura – June 19, 2018
from Business Mirror
PHILIPPINE energy officials will attempt to lure in more natural gas companies in Japan to invest in the country’s liquefied natural gas (LNG) hub terminal project.
Department of Energy (DOE) officials, led by Secretary Alfonso G. Cusi, are in Tokyo as part of the country’s delegation to the fifth regular meeting of the Philippines-Japan High-Level Committee on Infrastructure and Economic Cooperation.
The DOE delegation will reinforce discussions on the Philippine energy industry with potential Japanese investors, while other leaders of President Duterte’s economic team continue their high-level dialogues with the Japanese Ministry of the Economy, Trade and Industry, on the administration’s flagship infrastructure projects under the “Build Build Build” program.
“The strategic location of the Philippines, as well as the fair and competitive playing field policy for natural gas, would entice investors to engage in the LNG terminal project,” Cusi said.
Tokyo Gas Co. Ltd. earlier submitted to the DOE a proposal to participate in the development of an LNG facility in the Philippines. The DOE is hoping that more Japanese investors will be interested to participate in the LNG project.
“In addition to discussions on LNG investments, our top officials and staff are undergoing extensive training to effectively monitor, regulate and supervise the upcoming Philippine LNG industry,” Cusi added.
The DOE earlier issued the rules governing the Philippines Downstream Natural Gas Industry. Interested LNG investors have long waited for this policy meant to guide them in pursuing this capital-intensive project.
Department Circular 2017-11-0012 also outlines the issuance of permit on the construction, expansion, rehabilitation, modification, operation and maintenance of Downstream Natural Gas Facility.
“The construction of strategic natural gas facilities, which includes LNG receiving terminals and distribution pipelines, are necessary to ensure the security and diversity of the energy supply in the Philippines. It also provides the option of expanding the use of natural gas in the Philippines,” Cusi said.
The DOE is bent on completing the planned LNG project before the expected depletion of the Malampaya offshore gas find near Palawan island in 2024.
To date, natural gas from the Malampaya gas field provides the fuel requirements of five gas-fired power plants, all located in the province of Batangas, with a combined capacity of 3,211 megawatts (MW).
LNG is natural gas that has been converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is regasified so it can be distributed through pipelines as natural gas.
Cusi said the government is aiming to turn the Philippines into a hub for LNG. Currently, around 3,500 MW of power-plant capacity is dependent on the country’s sole natural-gas source.
The agency also intends to put up a five metric tons per annum integrated LNG facility in a bid to ensure the continued supply of gas.
DOE Undersecretary Donato Marcos and two ranking technical staff began an extensive training program on LNG value chains in Japan last Monday. They are expected to complete the course by the end of the month.
