The Department of Energy will promote the development of small- to medium-scale liquefied natural gas (LNG) importation and regasification to power projects in Visayas and Mindanao.
A memorandum of understanding (MOU) has been signed between German firm MAN Energy Solutions SE on February 22 to help facilitate the development of the country’s downstream natural gas industry.
The MOU provides for the conduct of a feasibility study on the development of small- to medium-scale LNG facilities.
“We have always been very vocal about our desire to fully develop the downstream natural gas industry of the Philippines. Studies such as the one that MAN Energy would be conducting contribute to this goal, given that the ability of our natural gas industry to reach maturity depends on the development of the necessary infrastructure such as LNG receiving terminals, gas transmission and distribution pipeline networks, and other ancillary facilities,” Energy Secretary Alfonso Cusi said.
Under the MOU, MAN ES will determine the required mixed modes of land and sea transport to domestically provide natural gas supply in an economical manner, as well as the necessary infrastructure and transportation facilities that will contribute to the market development of natural gas in said regions.
“Should the findings of MAN Energy Solution’s report be favorable, it would definitely pave the way for the entry of much-needed capital investments in Visayas and Mindanao. If not, the report’s results will still help guide us in recalibrating our strategic direction. So regardless of the study’s outcome, we are optimistic that our partnership would go a long way in helping make our natural gas aspirations a reality,” said Cusi.
Environmental advocacy group Protect Verde Island Passage (VIP) and a coalition of fishermen have confronted the Japan Bank for International Cooperation (JBIC) over its $100 million funding in AG&P International Pte. Ltd. and Linseed Field Power Corporation’s natural gas import terminal in Batangas City, citing contradictions with JBIC’s sustainability goals.