The Department of Energy (DOE) is unwavering in its commitment to fostering an environment conducive to investments and innovation in liquefied natural gas (LNG). It recognizes its pivotal role as an intermediary fuel during the country’s crucial transition to renewable energy and its relentless efforts to enhance natural gas capacity.
Under its National Renewable Energy Program, the government has set an ambitious goal of achieving a 50 percent national renewable energy (RE) power generation mix by 2040. In this context, LNG is seen as a cleaner alternative to traditional fossil fuels and a reliable source of support for the transition to renewable energy.
LNG as a Transitional Source in the Green Energy Transition
During a pre-recorded speech at a Stratbase forum, Energy Secretary Raphael Lotilla emphasized the importance of having a dependable energy source while exploring and developing renewable resources, categorizing LNG as an essential transitional source. Lotilla also confirmed that the DOE has issued permits and notices to proceed to LNG proponents.
The DOE is formulating a Natural Gas Development Plan to provide investors with guidance, policy, legal requirements, and incentives for establishing LNG facilities and related infrastructure. Energy Secretary Raphael Lotilla underlined the importance of collaboration with stakeholders and partners in the private sector, emphasizing that their involvement is crucial to achieving energy security and sustainability for the Philippines.
Majah-Leah Ravago, President and CEO of the Development Academy of the Philippines, suggested that LNG could help address the deficiencies of renewable energy sources and fill the gaps resulting from the gradual depletion of the Malampaya gas field, which provides a considerable amount of Luzon’s power needs.
The Economic Prospects and Growth Potential of the LNG Industry
Dindo Manhit, President of the Stratbase Institute, advocates for a stronger partnership between the government and the private sector to fuel the growth of the LNG industry. He highlights the potential for energy stability, environmental benefits, infrastructure development, technology transfer, job creation, and trade to significantly boost the country’s economic growth and prosperity, instilling optimism about the future of the energy industry in the Philippines.
Source: DOE vows to boost environment for investments, innovation in LNG