LNG: Transitioning to cleaner power for the growth of our nation

The next few years will be critical for our country. After the economic downturn occasioned by the pandemic, and with our pursuit of middle-income status in the global stage, our organizations, industries, and sectors need to work doubly hard to achieve their targets.

We are also aware that simply growing in nominal terms is not enough; we need to aim for sustainable, inclusive, and equitable growth not only for a select few but for as many Filipinos as possible, in as many places in the archipelago as possible. 

The present administration has clearly set directions towards the digitalization of our government systems and our industries to drive economic growth. For this, we need power. 

The Department of Energy, in its Power Development Plan, says peak demand is expected to increase fourfold from 2020 to 2040. This is equivalent to a rise in demand by almost 7% annually. Thus, to adequately supply the demand, our installed capacity must not only increase fourfold but at least fivefold – from 22,317 MW in 2019 to 114,601 MW in 2040. 

This demand must be met by existing, committed and new build capacities.

Unfortunately, the Malampaya gas field a critical source of fuel for the generation of power for 20% the Luzon grid, is being depleted.

Though the renewal of the Malampaya Service Contract No. 38 for another 15 years will extend the operations of the Malampaya gas field until Feb. 22, 2039, exploration and the development of a new offshore platform will take about a decade.

Given this, an immediate alternative to import liquefied natural gas (LNG) is urgently needed to respond to the impending energy gap. Addressing the coming shortfall will protect us from potential electricity disruptions and bolster our energy reserves.

It will not only address the decline of the Malampaya gas field but provide a reliable and consistent energy supply that will benefit consumers, industries, and our overall economy. 

In this day and age, there is no more room for power interruptions. These power outages are a bane to our economy. They disrupt the regular course of business. They create uncertainty and erode confidence in our infrastructure, making an unfavorable impression of