Overview of LNG, gas infrastructure in the Philippines

• – 4 LNG terminals expected
• – 10 gas power plants proposed
• – Robust growth market for LNG

SINGAPORE (ICIS) –The Philippines is considered a robust growth point of LNG demand in Asia. It has a population of 115.8 million, densely concentrated around major city clusters that also drive the country’s fast economic growth and industrialization.

Natural gas plays a significant role in the Philippines’ economy, especially in the energy sector, followed by industrial and transportation – 98% of Philippines’ gas supply goes to the power sector.

Natural gas-fired power generation accounts for around 21% of the total energy mix in the Philippines. ICIS estimates the Philippines’ power demand will grow at a rate around 6.7%.

The primary source of natural gas supply in the Philippines has been the Malampaya Gas Field, which accounts for more than 99% of domestic production. Operational since October 2001, the offshore gas field has been declining from 2022 and is estimated to be depleted by early 2027.

Consequently, imported LNG has emerged as an option to fuel the country’s energy transition, backfilling the domestic supply gap and fulfilling fast-rising gas demand. Philippines began to import LNG in 2023 and received 17 cargoes for 2024 by the time of this article. ICIS Foresight expects the country’s LNG imports for 2024 to reach 1.17 million tonnes, twice as much its 2023 imports.

Currently Philippines has two LNG receiving terminals. The first LNG project, Philippines LNG (PHLNG) operated by Singapore’s AG&P, uses the ADNOC’s Ish as a storage unit and onshore regasification equipment to supply gas to San Miguel Global Power’s 1,278 MW Ilijan CCPP (combined cycle power plant). The second terminal, Batangas FSRU (floating storage and regasification unit) owned by utility First Gen uses the BW Batangas and fires four nearby power plants.

The country has four upcoming LNG terminals that will come online through 2025-2026, adding a total regasification capacity of 10.72mpta. The government envisions another 3.98mpta LNG capacity to meet supply requirement by 2050.

Construction for more gas power plants are also on the way. As of March 2023, Luzon alone has 10 gas to power project proposals, which will add 10.2GW electricity generation capacity accumulatively.

(Yuanda Wang in Shanghai contributed to this article)