Manila Seeks Japanese Investment in LNG Sector
Philippines is looking to attract companies from Japan to invest in country’s LNG sector. The issue will be discussed during energy secretary Alfonso G Cusi's visit to Japan this week as part of the country’s delegation to the fifth regular meeting of the Philippines-Japan high-level committee on infrastructure and economic co-operation.
Cusi will focus on encouraging natural gas companies in Japan to invest in the Philippines’ LNG hub terminal project in anticipation of the Malampaya gas field’s depletion by 2022, Philippines' department of energy (DoE) said June 19.
“The strategic location of the Philippines, as well as the fair and competitive playing field policy for natgas would entice investors to engage in the LNG terminal project,” Cusi said. Major Japanese gas companies such as Tokyo Gas are among those in serious talks for the project, DoE added.
“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 said.
The Philippines has entirely relied on the Malampaya offshore gas field as its only supply source for natural gas. However, the Malampaya gas reserves are expected to be depleted soon and the growing demand for electricity underscores the need for LNG imports.
“The construction of strategic natural gas facilities, which includes LNG receiving terminals and distribution pipelines, is 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.
Recently, a number of foreign firms have shown interest in developing LNG infrastructure in Philippines. South Korea's SK E&S signed June 5 a letter of intent (LoI) with the Philippines government for construction of LNG infrastructure worth $1.7bn in the country. Philippines’ independent oil and gas company, Phoenix Petroleum, signed a memorandum of understanding with Cnooc Gas & Power, a unit of China’s Cnooc, to develop an LNG import terminal.