Philippines advances LNG import ambitions

LNG29 November 2013, News Wires – At least three potential liquefied natural gas (LNG) import projects are planned in the Philippines, with recent advances suggesting they could overcome delays and get off the drawing board. More than a decade after Arco, former operator of the Tangguh gas field in Indonesia proposed selling this gas to the Philippines as LNG, commercially viable receiving and regasification projects are now firmly within Manila’s grasp. There have been delays over these LNG import plans and also to the proposed onshore gas pipeline distribution network – gas demand is highest in Metro Manila and in industrial areas on the main island of Luzon – but real progress is now being made. Shell is considering a terminal at Batangas from which regasified volumes would flow through a new pipeline dubbed Batman 1 to customers in the capital, Brunei has plans for a facility too as does AG&P while local player First Gas is also considering an LNG import project. Addressing delegates at the CEO summit on the first day of the Asean Council on Petroleum (Ascope) conference Ascope 2013, the Philippines’ Ascope representative said the World Bank is supporting its plans to become an LNG importer. The nation today is 59% energy self sufficient, with 43% of its demand being met by renewable energy sources – the Philippines is the world’s second largest geothermal energy producer after the US. Despite bearing the brunt of the recent devastating Typhoon Haiyan, known locally as Yolanda, he said that the Philippines this year expects GDP growth of 7.6%, “the highest in the region even beating China”.

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