Batangas LNG terminals to boost PH energy transition

Meanwhile, drilling at the Malampaya Phase 4 will soon commence.

The Philippines’ Energy chief Raphael Lotilla has underscored the critical role of natural gas in the country’s energy shift as two liquefied natural gas (LNG) terminals in Batangas are set to reach full commercial operations.

“With two LNG terminals in Batangas Bay nearing full commercial operations, we are preparing to ensure the reliability of our gas-fired power plants,” Lotilla said.

Once fully operational, the facilities will have a combined capacity of 8 million tonnes per annum, providing flexibility 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 megawatts of gas-fired generation capacity by 2025.

“We recognise 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,” Lotilla said.

“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.

When it comes to domestic gas supply, Lotilla said 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 energy department is also working on a framework for the grant of special allowances to service contractors aimed at incentivising further exploration and development of the Philippines’ indigenous petroleum resources.