Speaking at the Norway-Philippines LNG Summit 2024 on 11 November 2024, Energy Secretary Raphael P. M. Lotilla underscored the critical role of natural gas as the Philippines navigates its energy transition journey. Addressing energy stakeholders, including Norwegian and Philippine industry leaders, and business representatives, the Secretary highlighted the nation's evolving energy landscape and the growing importance of liquefied natural gas (LNG) in securing the country's energy future.
Secretary Lotilla addressed the country’s energy policy challenges, particularly as the country strives to balance energy security with the need for a low-carbon future. “We recognize the role of LNG as a transition fuel, essential not only for maintaining reliable power generation but also for complementing renewable energy sources like solar and wind. It is a key element in our energy mix as we strive for a cleaner, more sustainable energy future and enhanced energy security through the diversification of fuels and sourcing from different countries,” he said.
“Today, LNG is stepping in to play a crucial role in our energy value chain. With two LNG terminals in Batangas Bay nearing full commercial operations, we are preparing to ensure the reliability of our gas-fired power plants,” the Secretary said. At the same time, he underlined the need to reduce leakage of methane gas in the extraction and use of natural gas while continuing to explore carbon capture utilization and storage, and co-firing natural gas with non-fossil gases.
The LNG terminals, once fully operational, will have a combined capacity of 8 million tons per annum, providing a robust and flexible energy solution for the country’s growing power demand. These facilities may also serve as a redundancy mechanism, offering an alternative fuel source for over 4,500 MW of gas-fired generation capacity by 2025.
With regard to efforts to enhance domestic gas supply, Secretary Lotilla announced that the Malampaya Phase 4 project’s drilling campaign is set to commence next year and will extend the life of the field and augment Malampaya’s production output. The Department of Energy (DOE) is also working on a framework for the grant of special allowances to service contractors aimed at incentivizing further exploration and development of the country’s indigenous petroleum resources.
He also stressed the importance of downstream natural gas applications for non-power uses and in industrial facilities and its potential use in the production of fertilizer, especially in the Visayas and Mindanao. He also highlighted the use of natural gas as feedstock in the production of fertilizer.
Secretary Lotilla expressed appreciation for Norway's willingness to share its expertise in managing its energy resources, particularly its experience with North Sea oil and gas. He emphasized that lessons from Norway's journey --- ranging from regulatory certainty to fiscal responsibility and workforce development --- are highly relevant to the Philippines as it develops its natural gas sector. “Norway has shown us that the responsible management of natural resources requires clear regulations, prudent fiscal policies, and a commitment to continuously upgrading the skills of our workforce, the Secretary said.
The Norway-Philippines LNG Summit 2024 brought together key figures from both nations to explore avenues for collaboration, share expertise, and discuss innovative solutions to the global energy transition. The summit also highlighted the growing importance of LNG, decarbonization technologies, and energy security as the Philippines moves forward with its ambitious energy goals. ###