Philippines’ LNG imports to soar 508% through 2029

The expansion will cost the country at least $5.4b.

Philippines’ plan to expand liquefied natural gas (LNG) imports will sharply raise electricity prices and worsen household energy burdens, a new report said.

According to the briefing by Zero Carbon Analytics (ZCA) and the Center for Renewable Energy and Sustainable Technology (CREST), LNG imports are set to increase by 508% from 2025 to 2029, driven by the decline of domestic supply from the Malampaya gas field.

Based on projections from the Philippine Energy Plan (PEP), the shift toward LNG could cost the country $3.9b (PHP218b) over the next four years, not including an additional $1.5b (PHP83.7b) required to construct five new LNG import terminals.

In total, projected LNG-related investments through 2029 will reach $5.4b (PHP301.5b).

Electricity prices in the Philippines are already amongst the highest in Southeast Asia. In April 2025, generation costs made up 56% of household electricity bills.

Since these costs are tied to fuel prices, importing expensive LNG will raise rates even further.

The report also warned that LNG prices are volatile and vulnerable to global events. Recent geopolitical tensions, including the Russia-Ukraine war and conflict in the Middle East, have caused major price spikes, leading to blackouts in LNG-dependent countries like Pakistan and Bangladesh.

Despite this, the Philippine government passed the Natural Gas Industry Development Act in January 2025 to promote LNG as a transition fuel and position the country as an LNG hub.

The report pointed out that solar and wind power are now cheaper than gas, with renewable energy reducing wholesale electricity prices by up to 30%. Consumers who switched to renewables saved $1.24m (PHP71.7m) since 2021.

ZCA and CREST said the country is locking itself into high-cost infrastructure and exposing itself to global fuel market risks.

They urged the government to shift focus to renewable energy, which offers lower costs, greater price stability, and long-term energy security.