Philippines to Increase Natural Gas, LNG Energy Projects to Ease Mid-term Energy Trouble

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Researched by Industrial Info Resources East Asia (Kofu-shi, Japan)--Natural gas-fired power projects account for approximately 20% of the Philippines energy, though the government is hoping to raise gas-fired capacity to help prevent power shortages in the future. A series of power shortages early in 2010 prompted the government to secure energy sources outside of the domestic gas fields. In terms of greenhouse gas emissions, natural gas and liquefied natural gas (LNG) are two of the cleanest burning energy sources. LNG is considered to be less so due to the carbon costs of transport.

Out of the worldwide power projects currently tracked by Industrial Info, roughly 10% are related to natural gas or LNG. Despite the expected increase in gas-fired projects, the Philippines is still aiming for an electrical capacity based solely on renewable energy.

The Philippines has several LNG terminals on the books to accommodate the projected growth of gas-fired projects expected over the next few years. At least five LNG terminals projects are in the planning stages, all of which are not scheduled to commence until the fourth quarter of 2011 or after. LNG-fired and natural gas power projects are scheduled to commence next year, including a 300-megawatt cogeneration power plant scheduled to be constructed at one of the LNG terminals currently in the planning stages.

Renewable energy is also to play a major role in boosting the Philippines' electrical capacity, and in some cases, like windfarms, will come online much faster than fossil fuel power plants. A renewable energy program, implemented in 1992 by the Philippines Department of Energy, is ultimately aimed at providing the Philippines with an electrical capacity based 100% on renewable energy. In the last few years, the program has been adding more renewable energy projects to the country's capacity.

According to Industrial Info, the Philippines currently has more than 3.5 gigawatts of renewable energy or sustainable energy under development, representing approximately $13 billion. Renewable energy has already reached 10 million barrels of oil equivalent (MMBOE) in the Philippines energy mix. Biomass alone is predicted to produce 323 MMBOE by 2012. Hydro, solar and wind power are becoming more prevalent, though geothermal power remains far easier to scale and is not subject to climate change or fluctuations in fossil fuels.

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