Takeaways from AP's report on Philippines governor's interest in natural gas

BATANGAS, Philippines (AP) — The Philippines is engaged in a major buildout of natural gas power at a time when scientists say the world needs to urgently phase out fossil fuel use because of climate change. Analysts say Filipinos will likely pay more for their electricity and that additional future needs could have been met with clean renewables.

An Associated Press investigation found that a major cheerleader for natural gas, Gov. Hermilando Mandanas of Batangas province, stood to benefit from the buildout.

Here are key takeaways from AP’s report:

The government has ambitions for making the Philippines a liquified natural gas hub for the Asia-Pacific region. And Batangas province is at the heart of where it’s happening.

Four gas power plants lie along the coastline about two hours south of the capital Manila, and four more are planned. Six new terminals for importing the chilled and liquified gas are on the way or already operating.

Mandanas told the AP that the electricity is badly needed for development that will benefit all of the Philippines.

Batangas Gov. Hermilando Mandanas gestures during an interview with The Associated Press at his office in the city of Batangas, Batangas province, Philippines on Thursday, Aug. 10, 2023. (AP Photo/Aaron Favila)

Mandanas owned the largest share in a real estate firm, AbaCore Capital Holdings Inc., that soared in value as energy companies moved in. The governor promoted the expansion in media interviews and public events. And AbaCore launched its own natural gas project.

Mandanas led a takeover of AbaCore in the 1980s, building it into a real estate behemoth beyond its original interests in mining and gaming. When he was elected governor in 2016, he stepped down as CEO and his wife, Regina Reyes, took over. But company documents show that as of last fall, Mandanas still owned almost 30% of the company.

Reyes was open about her husband’s policies benefiting the family company. She told shareholders in 2019 that programs “implemented and led” by her husband would boost AbaCore.

A deal signed in 2019 involved an AbaCore sister company in which Mandanas now holds a large stake. The AbaCore affiliate and three Chinese firms